Financial Performance - The company's operating revenue for Q1 2025 was CNY 4,804,261, a decrease of 3.63% compared to CNY 4,985,267 in the same period last year[6]. - Net profit attributable to shareholders decreased by 36.71% to CNY 65,797 from CNY 103,961 year-on-year[6]. - Basic earnings per share fell by 50.26% to CNY 0.0094 from CNY 0.0189 in the previous year[6]. - Total comprehensive income for Q1 2025 was CNY 85,335,000, compared to CNY 114,451,000 in Q1 2024, representing a decrease of approximately 25.5%[44]. - Net income attributable to the parent company for Q1 2025 was CNY 66,450,000, down from CNY 103,166,000 in Q1 2024, a decline of about 35.6%[44]. - The gross profit margin for Q1 2025 was approximately 1.5%, compared to 2.5% in Q1 2024, indicating a decline in profitability[39]. - The total operating profit for Q1 2025 was CNY 108,020 thousand, down from CNY 126,507 thousand in Q1 2024, a decline of 14.6%[39]. - The company reported a decrease in short-term borrowings to CNY 986,697 thousand from CNY 984,379 thousand, a slight increase of 0.24%[33]. - The company reported an operating loss of CNY 63,000, compared to an operating profit of CNY 16,284 in Q1 2024, indicating a significant decline in performance[59]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 40,625,818, down 1.29% from CNY 41,156,527 at the end of the previous year[8]. - Current assets totaled CNY 32,099,149 thousand, a decrease of 1.15% from CNY 32,472,961 thousand on December 31, 2024[31]. - Current liabilities were CNY 24,826,305 thousand, slightly decreased from CNY 24,838,671 thousand, indicating a reduction of 0.05%[33]. - Non-current liabilities decreased to CNY 6,899,727 thousand from CNY 7,472,791 thousand, a decline of 7.66%[36]. - Total liabilities as of March 31, 2025, amounted to CNY 13,936,265,000, a decrease from CNY 14,994,236,000 as of December 31, 2024[56]. - The total assets decreased from CNY 22,690,740,000 on December 31, 2024, to CNY 21,586,749,000 on March 31, 2025[56]. - The company's total equity remained stable at CNY 7,650,484,000 as of March 31, 2025, compared to CNY 7,696,504,000 at the end of 2024[56]. Cash Flow - Cash inflows from operating activities in Q1 2025 totaled CNY 4,864,151,000, down from CNY 5,245,241,000 in Q1 2024, a reduction of approximately 7.2%[46]. - Cash outflows from operating activities in Q1 2025 were CNY 5,249,209,000, compared to CNY 6,096,877,000 in Q1 2024, indicating a decrease of about 13.9%[46]. - The company's cash flow from operating activities showed a significant decrease, with a net cash increase of CNY -555,142 in Q1 2025 compared to CNY 81,209 in Q1 2024[50]. - The company's cash and cash equivalents at the end of Q1 2025 were CNY 875,262 thousand, down from CNY 2,286,046 thousand at the end of Q1 2024, representing a decline of 61.7%[65]. - The net cash flow from financing activities in Q1 2025 was -CNY 1,092,933 thousand, compared to -CNY 506,922 thousand in Q1 2024, reflecting a worsening of 115.5%[65]. Contracts and Projects - The company signed new domestic contracts worth RMB 7.665 billion, an increase of 52.08% year-on-year[21]. - New overseas contracts amounted to RMB 900 million, reflecting a year-on-year increase of 42.67%[21]. - The total value of new industrial contracts reached RMB 8.402 billion, accounting for 98.10% of total new contracts, with a year-on-year increase of 78.47%[21]. - The company successfully completed the first power delivery for the 1 booster station of the 1.2 million kW new energy project in Baotou[22]. - The largest box-type filter press for the Yunnan copper zinc relocation project has been successfully installed[22]. - The company has completed the basic design for the NPI project of the West Mangdu C3 project[22]. - The total contract value for the mining operation project at the West Mangdu Iron Mine is approximately RMB 2.033 billion[21]. Management and Strategy - The company has implemented a three-level project management system to enhance project profitability[23]. - The company has optimized its procurement system and subcontractor management to improve efficiency and effectiveness[23]. - The company is accelerating investment in key projects related to mineral resources, green low-carbon metallurgy, and digitalization, aiming for industry-leading breakthroughs in core technologies[24]. - The company has implemented a "2025 Technology Achievement Promotion Plan" to accelerate the industrialization of core technologies, including ultra-fine droplet desulfurization and energy-saving environmental protection technologies[24]. - The company is focusing on safety management system optimization, implementing a three-level safety management organization to enhance safety control effectiveness[27]. - The company is deepening reforms to enhance organizational efficiency and effectiveness, focusing on the construction of EPC capabilities and optimizing management levels[28]. - The company is building a talent team with a focus on technology, marketing, project management, internationalization, and skilled personnel, aiming for a systematic approach to talent development[29]. - The company has implemented a comprehensive performance evaluation system covering all employees, ensuring 100% coverage of performance assessments among over ten thousand employees[30]. Research and Development - Research and development expenses increased to CNY 122,964 thousand in Q1 2025, up 13.06% from CNY 108,721 thousand in Q1 2024[38]. - Research and development expenses increased to CNY 7,264,000 in Q1 2025, compared to CNY 2,692,000 in Q1 2024, indicating a focus on innovation[58]. - The company is advancing AI+ business models, with new breakthroughs in aluminum/copper surface optical inspection applications led by China Technology[25]. - The company has established a three-level integrated digital management model to enhance digital service capabilities and optimize smart construction site platform functions[25].

Financial Performance - The company reported a significant increase in revenue for the year ended December 31, 2024, with total revenue reaching $150 million, representing a 25% year-over-year growth[6]. - The Group's total revenue for the Year was approximately HK$781.7 million, a decrease of approximately 32.5% from approximately HK$1,158.0 million in the corresponding period of 2023[29]. - The Group recorded a loss of approximately HK$46.2 million for the year, compared to a profit of approximately HK$53.5 million in 2023, with a basic loss per share of HK$3.5 cents (2023: profit per share of HK$4.25 cents)[35]. - The Group's revenue decreased by approximately 32.5% to about HK$781.7 million for the year (2023: approximately HK$1,158 million)[33]. - The Group's trading business revenue decreased by approximately 32.5% to approximately HK$769.0 million for the Year, down from approximately HK$1,141.9 million in 2023[22]. - The petrochemical products storage business revenue decreased by approximately 21.1% to approximately HK$12.7 million, compared to approximately HK$16.1 million in 2023[23]. - The cost of revenue decreased by approximately 32.6% to approximately HK$774.1 million for the Year, down from approximately HK$1,148.9 million in 2023[30]. - The Group recorded a gross profit margin of approximately 1.0% for the Year, slightly up from approximately 0.8% in the corresponding period of 2023[30]. - Finance costs for the Year amounted to approximately HK$21.7 million, a decrease from approximately HK$33.9 million in 2023[31]. Future Projections and Guidance - The company provided guidance for the next fiscal year, projecting revenue growth of 20% to $180 million, driven by new product launches and market expansion[6]. - The Group anticipates a sustainable recovery and moderate growth in petrochemical products, while actively seeking new market opportunities[28]. - The recovery of the global economy is expected to drive growth in external demand, creating new development opportunities for China's foreign trade[28]. - The company plans to launch three new products in the upcoming year, which are anticipated to generate $30 million in additional revenue[6]. - The company announced plans for market expansion into Southeast Asia, targeting a 10% market share within the next two years[6]. Research and Development - Investment in research and development increased by 15%, totaling $10 million, focusing on innovative technologies and product enhancements[6]. Operating Expenses and Cost Management - Operating expenses were controlled, increasing only by 5% to $50 million, despite the expansion efforts[6]. - The gross profit margin improved to 60%, up from 55% in the previous year, reflecting better cost management and pricing strategies[6]. Corporate Governance and Compliance - The Company is committed to maintaining high standards of corporate governance and has adopted governance practices aligned with the CG Code provisions[194]. - The Company has confirmed compliance with all code provisions set out in the CG Code during the Year[196]. - The Company has established whistleblowing channels for external parties to confidentially raise concerns regarding possible misconduct[195]. - The Company has implemented Group-wide governance policies and systems subject to regular review to ensure best practices across the organization[195]. - The Company has confirmed that all Directors complied with the required standard of dealings regarding securities transactions throughout the Year[197]. - The Company has no overlapping directorships with its controlling shareholder, ensuring independent operation of the Board[183]. - The audit committee is authorized to regularly review the company's anti-bribery and anti-corruption policies[198]. - All directors confirmed compliance with the trading rules and the code of conduct for securities trading throughout the year[200]. - There were no known violations of the trading rules during the year[200]. Environmental, Social, and Governance (ESG) Initiatives - The company has established an ESG Working Group to enhance its environmental, social, and governance management, engaging a third-party institution for a comprehensive evaluation of ESG risks and opportunities[79]. - The company emphasizes the importance of ESG risks and has made continuous improvements in its ESG management practices[79]. - The company’s board retains overall responsibility for ESG governance, ensuring alignment with stakeholder interests[79]. - The ESG Working Group has actively communicated with stakeholders to understand their expectations and interests regarding ESG information, utilizing various feedback channels[80]. - The company has drafted management approaches, strategies, and objectives related to ESG based on stakeholder feedback and identified important ESG issues[80]. - A separate ESG report is available on the Stock Exchange's website and the Company's website[109]. Shareholder and Capital Structure - The Group's largest customer accounted for approximately 20.0% of total revenue, while the top five customers contributed 75.7%[104]. - The Group did not recommend any final dividend for the Year, consistent with the previous year[103]. - As of December 31, 2024, the Company's distributable reserves included a share premium account of approximately HK$201.4 million and accumulated losses of approximately HK$739.5 million[127]. - The Company did not make any charitable donations during the Year, consistent with 2023[128]. - The Company has not issued or granted any convertible securities, warrants, or similar rights up to December 31, 2024[149]. - The Company did not adopt any share scheme during the Year[150]. - The Company has applied for a temporary waiver to restore the minimum percentage of Shares to public hands on or before June 20, 2025, which was granted by the Stock Exchange on March 19, 2025[177]. Management Changes - The company has changed its name from "Dafeng Port Heshun Technology Company Limited" to "Yancheng Port International Co., Limited" effective from March 6, 2025[72]. - Mr. Ji Yaosheng was appointed as an executive Director, while Mr. Ji Longtao, Mr. Yang Yue Xia, and Mr. Zhang Shukai resigned as non-executive Directors on March 21, 2025[74]. - The Board has undergone changes in composition and committee structure as of March 26, 2025[95].

Financial Performance - For the fiscal year 2024, the company's revenue was RMB 1,006.6 million, a decrease of approximately 5.0% compared to RMB 1,060.0 million in fiscal year 2023[11] - The net profit for fiscal year 2024 increased by approximately 5.0% to RMB 33.2 million, up from RMB 31.6 million in fiscal year 2023[11] - The gross profit margin for fiscal year 2024 was 37.7%, slightly up from 37.5% in fiscal year 2023[8] - The operating profit margin for fiscal year 2024 was 3.3%, compared to 3.0% in fiscal year 2023[8] - The total revenue for the fiscal year 2024 was RMB 1,006.6 million, a slight decline of about 5.0% compared to RMB 1,060.0 million in fiscal year 2023[25] - Profit increased from RMB 31.6 million in fiscal year 2023 to RMB 33.2 million in fiscal year 2024, marking an increase of approximately 5.0%[43] - Gross profit decreased by approximately 4.5% from RMB 397.2 million in fiscal year 2023 to RMB 379.2 million in fiscal year 2024[29] Assets and Liabilities - Non-current assets increased to RMB 164.2 million in fiscal year 2024 from RMB 103.0 million in fiscal year 2023[8] - Current assets rose to RMB 655.4 million in fiscal year 2024, compared to RMB 623.4 million in fiscal year 2023[8] - The total assets of the company reached RMB 819.6 million in fiscal year 2024, up from RMB 726.4 million in fiscal year 2023[8] - The total liabilities increased to RMB 543.3 million in fiscal year 2024 from RMB 472.6 million in fiscal year 2023[8] - The company's cash and cash equivalents decreased from RMB 143.2 million to RMB 106.5 million, while pledged deposits increased from RMB 4.2 million to RMB 8.5 million[46] - The debt-to-asset ratio was approximately 17.7% as of December 31, 2024, compared to 18.6% as of December 31, 2023[46] Market Strategy and Development - In 2024, the company focused on "high-quality development" strategies, with a commitment to enhancing operational efficiency and brand value, resulting in a 0.3% growth in clothing, footwear, and textile sales in the national market[20] - The company launched a new industrial park project in Ningbo, Zhejiang, aimed at integrating clothing R&D, design, and smart manufacturing, with the main construction completed, highlighting a focus on technological innovation[21] - The company signed a new brand ambassador, Hu Bing, to enhance brand recognition and cultural influence, aiming to strengthen the market presence of the Shanshan brand[21] - The company emphasized a dual-channel strategy, investing in both online and offline sales to optimize store performance and market layout, ensuring balanced growth across channels[14] - The company plans to expand its core national brands, FIRS and SHANSHAN, through diversified and cooperative business models, targeting steady growth in operating profits for 2025[17] - The company is committed to continuous product innovation, focusing on high-cost performance products, particularly in the suit category, to meet market demands[14] - The company aims to enhance its management system and digital capabilities, establishing a process operation warning mechanism to improve overall management efficiency[16] - The company will participate in the 2024 Autumn/Winter China International Fashion Week, launching a trend release show for Chinese suits, reinforcing its position as a leading brand in the suit category[20] Employee and Management - Employee costs for the year were approximately RMB 42.4 million, an increase from RMB 36.2 million in 2023, with a total of 265 employees as of December 31, 2024[51] - The company employed 265 staff members as of December 31, 2024, down from 311 in 2023, with a gender ratio of 49% male to 51% female[110] - The board consists of two female members, representing approximately 25% of the board[110] - The management team has extensive experience, with over 20 years in the apparel industry collectively[62] - The management team has extensive experience in the apparel industry, with key personnel having over 30 years of experience[81] Corporate Governance - The company emphasizes the importance of good corporate governance to enhance shareholder value[83] - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with all provisions except for the separation of the roles of Chairman and CEO[84] - The board is responsible for overseeing the management and overall performance of the group, ensuring necessary financial and human resources are in place[88] - The board consists of nine directors, including three independent non-executive directors, meeting the requirement of at least one-third independence[89] - The company has received annual independence confirmation letters from all independent non-executive directors, affirming their independence throughout the year[94] - The board has established committees to monitor operational and financial performance, ensuring proper internal controls and risk management[88] - The company has established a risk management policy to address potential operational risks, including strategic, operational, legal compliance, and environmental risks[132] - The Board is responsible for maintaining an effective risk management and internal control system, ensuring compliance with relevant legislation and regulations[132] Environmental, Social, and Governance (ESG) - The company is committed to corporate social responsibility and sustainable development, focusing on ESG issues[164] - The ESG report for the fiscal year 2024 will cover policies and performance in environmental protection, labor practices, and community engagement[165] - The ESG report highlights the company's progress in creating sustainable value for shareholders and stakeholders[166] - The total air pollutant emissions for the fiscal year 2024 amounted to approximately 13.7 kg, representing an increase of about 30.5% compared to 10.5 kg in fiscal year 2023[198] - The average air pollutant emissions per vehicle increased to 3.4 kg in fiscal year 2024 from 2.6 kg in fiscal year 2023, marking a rise of approximately 30.8%[198] - The company has implemented measures to reduce air pollution, including optimizing vehicle usage and encouraging employees to plan routes in advance[198] - The board of directors is committed to monitoring ESG governance matters and ensuring compliance with the latest ESG disclosure requirements from the Hong Kong Stock Exchange[192] - The company emphasizes the importance of a healthy environment for sustainable development and aims to be a leader in environmental protection[193]

Financial Performance - For the fiscal year 2024, the company achieved a revenue of RMB 1.9464 billion and a net profit attributable to shareholders of RMB 395.8 million, with basic earnings per share of RMB 1.38[13]. - The company's total revenue increased by approximately 57.2% from RMB 1,238.5 million in 2023 to RMB 1,946.4 million in 2024[38]. - Revenue from cross-border logistics services rose by 84.0% to RMB 1,833.6 million, driven by an increase in service volume from 233,903 TEUs to 331,043 TEUs[37][38]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth[84]. - Profit before tax increased by approximately 231.3% from RMB 122.7 million to RMB 406.5 million[48]. - Net profit for the year rose by approximately 235.3% from RMB 119.6 million to RMB 401.0 million[51]. Operational Efficiency - The company completed a total container transportation volume of 331,043 TEUs, reinforcing its leading position in the cross-border logistics industry[13]. - The company launched self-operated routes to South America and Africa, enhancing its global service network coverage and operational efficiency[14]. - The company is committed to digital management investments, developing smart logistics solutions to improve supply chain transparency and operational efficiency[15]. - The company plans to optimize its fleet's energy structure by gradually introducing new energy vessels and implementing refined operational management[18]. - The average price per TEU for cross-border logistics services increased from RMB 4,000 to RMB 4,813 due to rising market rates and an increase in self-operated services[38]. Strategic Initiatives - The company aims to deepen its global layout by expanding self-operated routes in the Americas and building overseas warehouses to enhance service efficiency[17]. - The company intends to strategically invest in mergers and acquisitions to integrate quality resources and establish strategic partnerships with leading enterprises[19]. - The company aims to create a more competitive industrial ecosystem through strategic cooperation and digital supply chain service system improvements[19]. - The company expects steady revenue growth in 2025 through the expansion of self-operated routes and development of engineering logistics and overseas warehouse businesses[34]. Cost Management - The sales cost increased by approximately 71.6% to RMB 1,736.3 million, primarily due to rising costs associated with cross-border logistics services[39]. - Gross profit decreased by approximately 7.3% from RMB 226.6 million to RMB 210.1 million, with gross margin dropping from 18.3% to 10.8% due to a decline in average daily charter rates from RMB 136,000 to RMB 77,000[40]. - Selling and distribution expenses increased by approximately 31.6% from RMB 17.4 million to RMB 22.9 million, mainly due to higher salaries and benefits for the sales and marketing team[42]. - Administrative expenses rose by approximately 18.2% from RMB 83.1 million to RMB 98.2 million, attributed to increased salaries, depreciation, and office expenses[43]. Governance and Compliance - The board is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[103]. - The company has complied with the corporate governance code throughout the year, with the exception of the Chairman and CEO roles being held by the same individual[103]. - The board has established written guidelines to regulate securities trading by directors and employees, ensuring compliance with insider trading regulations[108]. - The company has confirmed that all directors have adhered to the standards of conduct regarding securities trading during the year[108]. - The board believes that having the same individual serve as both Chairman and CEO enhances the company's ability to respond quickly and effectively to business strategies[103]. ESG and Sustainability - The company reported a focus on ESG principles, actively reducing carbon emissions and enhancing waste management and marine protection measures[16]. - The management team emphasized the importance of sustainability initiatives, aiming to reduce carbon emissions by 30% over the next five years[84]. - The board of directors is responsible for overseeing the implementation of ESG strategies and performance, regularly discussing ESG risks and opportunities[164]. - The company has established a three-tier ESG governance structure involving the board, management, and execution units to ensure effective management of ESG-related tasks[164]. - Climate-related risks are incorporated into the overall ESG management framework to ensure effective risk control[197]. Human Resources - The employee costs related to the company's staff amounted to RMB 66.1 million for the year ended December 31, 2024[73]. - As of December 31, 2024, the employee gender ratio is 44.5% male (150 employees) and 55.5% female (187 employees)[151]. - The company aims to enhance gender diversity by training qualified female employees to prepare them for future Board positions[134]. Risk Management - The internal audit and risk management functions conducted an independent assessment of the adequacy and effectiveness of the risk management and internal control systems, finding no significant inconsistencies[146]. - The company updated its risk management system, adding new management protocols for significant matters and contract discussions to better control operational risks[187]. - The company has implemented a framework for disclosing inside information, ensuring timely and appropriate handling of such information[147].

Financial Performance - The company reported a significant increase in revenue, achieving a total of RMB 500 million for the fiscal year, representing a growth of 25% compared to the previous year[10]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 20% to RMB 600 million[10]. - The company reported a pre-tax loss of RMB 185,829 thousand for the fiscal year ending December 31, 2024, an improvement from a loss of RMB 379,096 thousand in 2023, indicating a reduction of approximately 51% year-over-year[21]. - The company reported a basic and diluted loss per share of RMB 0.43 for the fiscal year 2024, an improvement from RMB 0.89 in 2023[21]. - The company reported a net asset value of RMB 916,953 thousand as of December 31, 2024, down from RMB 1,226,254 thousand in 2023[21]. - The company reported a cash and cash equivalents decrease of 34.7% from RMB 927.8 million in 2023 to RMB 606.0 million in 2024[64]. - The company reported a total of 211 employees, down from 376 employees as of December 31, 2023[75]. Market Expansion and Product Development - User data showed an increase in active users, reaching 1.2 million, which is a 30% increase year-over-year[10]. - New product launches included the LuX Valve Plus, which is expected to contribute an additional RMB 100 million in revenue in the upcoming year[10]. - The company is expanding its market presence in Southeast Asia, targeting a 15% market share by the end of the next fiscal year[10]. - The company aims to deepen its global strategy and continue providing high-quality treatment solutions for structural heart disease patients[19]. - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of RMB 200 million allocated for this purpose[10]. - The company aims to accelerate the registration process for the LuX-Valve series products in Europe and the US, targeting CE certification and FDA approval as key milestones for international expansion[20]. - The company is actively promoting the commercialization of Ken-Valve, with expectations to achieve commercial implantation in the first half of 2025[29]. Research and Development - Research and development expenses increased by 10%, totaling RMB 50 million, to support innovation and new technology[10]. - R&D expenses decreased from RMB 288.2 million in 2023 to RMB 142.6 million in 2024, primarily due to reductions in share-based compensation, employee costs, and raw material costs[54]. - The company has established a comprehensive commercialization system covering the entire product lifecycle for Ken-Valve, ensuring robust market promotion[15]. - The company has developed proprietary technologies for TAVR, TMVR, and TTVR products, with no guarantee of successful commercialization[44]. Clinical Trials and Regulatory Approvals - LuX-Valve Plus completed a one-year follow-up in clinical trials, showcasing unique advantages for large annulus patients[12]. - Ken-Valve product received market registration certification from the National Medical Products Administration, establishing a solid foundation for rapid market penetration[14]. - JensClip completed all enrollment for confirmatory clinical trials, demonstrating excellent clinical value and potential application prospects[16]. - The company plans to submit registration applications for JensClip to the National Medical Products Administration in 2025, expanding its product pipeline[16]. - The TRAVEL II multi-center clinical trial for LuX-Valve Plus received widespread recognition at major academic conferences in the US and UK[12]. - The company is participating in the FDA's Total Product Life Cycle Advisory Program (TAP) pilot for LuX-Valve Plus, which is expected to enhance clinical development guidance[35]. Corporate Governance and Management - The company has adopted the corporate governance code as per the listing rules, with compliance noted except for the combined roles of chairman and CEO[99]. - The board consists of one executive director, five non-executive directors, and three independent non-executive directors, ensuring strong independence[101]. - The company has implemented a management structure where the executive directors and senior management are responsible for daily operations and strategy execution[104]. - The board is responsible for overseeing major affairs, including policy formulation, overall strategy, and risk management systems[102]. - The company has established a risk management and internal control system, which is reviewed annually and deemed effective and sufficient[135]. Employee Engagement and Development - The company plans to implement a new employee stock ownership plan to enhance employee engagement and retention[10]. - The company emphasizes competitive salaries and benefits to attract and retain employees, along with continuous education and training programs[75]. - The company has a structured performance evaluation system to determine employee compensation, promotions, and career development[75]. - The group has implemented a mentorship program for new employees to help them integrate into the work environment and enhance their business capabilities[188]. - The employee turnover rate for 2024 is 48.2%, with the highest turnover among employees aged 30 and below at 53.9%[184]. Environmental Sustainability - The company is committed to sustainable development by integrating ESG management into its core operations and regularly evaluating the effectiveness of its sustainability strategies[153]. - The total greenhouse gas emissions for 2024 were approximately 841.8 tons of CO2 equivalent, with a density of 3,989.8 kg CO2 equivalent per person, reflecting a 37.5% reduction from 2023[161]. - The company aims to continuously improve energy efficiency and reduce emissions through systematic management and optimization of operational processes[166]. - The company strictly adheres to environmental protection policies and has implemented waste classification and recycling plans to improve resource utilization rates[174]. - The company has set a goal to enhance water usage efficiency by maintaining water equipment and promoting water-saving practices among employees[173]. Shareholder Relations - The company has adopted a shareholder communication policy to enhance dialogue with investors and ensure effective communication regarding business performance and strategies[145]. - Shareholders holding more than 10% of the company's shares can request a special general meeting within 10 days, and those holding over 1% can propose temporary resolutions[142]. - The company encourages shareholders to provide feedback and inquiries, ensuring that the board of directors addresses shareholder concerns during meetings[146].

Industry Overview - In 2024, the biopharmaceutical industry faced a complex situation with both challenges and opportunities, emphasizing the importance of developing first-class vaccines to protect human health [14]. Company Strategy and Goals - The company aims to create value and accumulate development potential during economic recession, focusing on the value release of its core products [14]. - Recbio is expected to submit the marketing application for its first strategic product in 2025, marking a significant milestone for the company [28]. - The company was recognized in the "2024 TOP10 China Listed Pharmaceutical Companies in ESG Competitiveness," reflecting its commitment to sustainable development [23]. - Recbio established the "Recbio College" to support employee education and integration of education, talent, industry, and innovation chains [24]. Clinical Trials and Vaccine Development - In 2024, Recbio's phase III clinical trial of the recombinant HPV 9-valent vaccine REC603 progressed well, completing the 36-month observation and initiating the 42-month observation [15]. - The phase I clinical study of REC610, a novel adjuvanted recombinant shingles vaccine, showed strong gE-specific immune response comparable to Shingrix®, with 24,640 subjects enrolled in the phase III trial in China within two months [15]. - The recombinant HPV 9-valent vaccine, REC603, is currently in the pivotal stage of Phase III clinical trial in China, with a clinical analysis report expected by August 31, 2025, and marketing application submission by December 31, 2025 [48][50]. - The novel adjuvanted recombinant shingles vaccine, REC610, received clinical trial approval in October 2023, with Phase III trials initiated in October 2024 and expected marketing approval by November 30, 2026 [52]. - The bivalent recombinant respiratory syncytial virus vaccine, REC625, is scheduled for completion of preclinical studies in 2025 [52]. - The novel adjuvanted recombinant HPV 9-valent vaccine, REC604c, was submitted for clinical trial application in February 2025 and accepted by the NMPA [52][53]. - The company is developing multiple vaccine candidates, including those for hepatitis B, herpes simplex, and influenza, with various adjuvant systems [50][52]. - The company emphasizes the importance of HPV vaccines in preventing cervical cancer, which is primarily caused by high-risk HPV types [53]. - The company is developing several early-stage vaccines, including REC609 for human cytomegalovirus, REC629 for hepatitis B virus, and REC630 for therapeutic hepatitis B virus, utilizing advanced technology platforms [108][109][110]. Financial Performance - The company reported a loss before tax of RMB 561,897,000 in 2024, a slight improvement from RMB 572,443,000 in 2023 [33]. - Loss per share for 2024 was RMB 1.16, compared to RMB 1.19 in 2023, indicating a reduction in losses [33]. - Total non-current assets increased to RMB 1,285,103,000 in 2024 from RMB 1,056,904,000 in 2023, representing a growth of 21.5% [34]. - Total current assets decreased to RMB 655,129,000 in 2024 from RMB 1,129,373,000 in 2023, a decline of 42% [34]. - Total current liabilities rose significantly to RMB 839,420,000 in 2024, up from RMB 444,235,000 in 2023, marking an increase of 88.9% [34]. - Net current assets turned negative at RMB (184,291,000) in 2024 compared to RMB 685,138,000 in 2023, indicating a substantial decline [34]. - Total (deficit)/equity decreased to RMB 529,324,000 in 2024 from RMB 1,070,944,000 in 2023, reflecting a drop of 50.7% [34]. Manufacturing and Production Capabilities - The HPV vaccine industrialization base can produce up to 20 million doses of the recombinant HPV 9-valent vaccine annually, complying with Chinese and international GMP standards [21]. - The innovative vaccines manufacturing facility, completed in November 2021, spans approximately 17,000 sq.m. and has received production licenses from Jiangsu MPA [41][43]. - The vaccine manufacturing facility in Taizhou City, Jiangsu Province, has established a complete quality system for large-scale commercial production, meeting both Chinese and EU GMP standards, and has a successful track record of large-scale batch production [107]. - The company has completed the construction of its HPV vaccine manufacturing facility in Taizhou, Jiangsu Province, which has a designed peak annual capacity of 20 million doses of HPV 9-valent vaccines [144]. Research and Development - Total research and development costs for the year ended December 31, 2024, amounted to RMB 476.1 million, with no costs capitalized during the same period [139]. - The company has developed four advanced technology platforms: novel adjuvant development, protein engineering, immunological evaluation, and process development, which enhance vaccine discovery and development [137]. - The in-house R&D team consists of over 100 personnel, most holding master's or doctoral degrees in relevant fields, ensuring a strong foundation for vaccine R&D [132]. - The company has established a systematic approach to vaccine development, integrating novel adjuvant development, protein engineering, and immunological evaluation [118]. Market and Competitive Landscape - There are significant opportunities for REC603 as it is the only domestic HPV 9-valent vaccine currently in development, which can prevent approximately 90% of cervical cancer cases [66]. - The first domestic HPV bivalent vaccine captured 66.7% of China's HPV bivalent vaccine market in its first year, despite being approved in 2019, while the first imported vaccine was approved in 2016 [72][76]. - The HPV 9-valent vaccine is expected to follow a similar trend in pricing as domestic products tend to be more cost-effective compared to global counterparts [72][76]. - The Chinese government has implemented favorable policies for domestic HPV vaccine developers, which the company expects to benefit from in the future [72][76]. Organizational Changes and Efficiency - The company has reorganized its clinical development, process development, and quality analysis departments to improve management efficiency and operational profitability [138]. - The number of research and development staff has decreased following organizational optimization, while efficiency has improved [138]. International Business Development - The company plans to build an international business development team to commercialize its vaccine candidates in international markets, with agreements signed with several countries for the development and commercialization of the recombinant HPV 9-valent vaccine REC603 [148]. Employee and Social Responsibility - The company has implemented training programs for employees and complies with social insurance and housing provident fund contributions as per PRC laws [153].

Media and Broadcasting - The Group's operating philosophy of "low cost, high efficiency" has been crucial in navigating the challenging economic environment, resulting in solid performance in both Media and Telecommunications sectors[11] - The Group successfully broadcasted the 19th Asian Games in Hangzhou and partnered with local TV stations for the 2024 Paris Olympic Games, enhancing community engagement[14] - HOY TV's live Olympic clips consistently ranked among the top five trending videos on YouTube, reflecting strong audience engagement and support for Hong Kong athletes[17] - The Group launched Hong Kong's first-ever television micro-drama "Love Suddenly," featuring two-minute episodes to attract younger viewers and enhance mobile viewing experiences[18] - The Group is actively producing a diverse range of variety shows and exploring innovative filming techniques to improve audience engagement and viewing experiences[18] - The Group has applied for broadcasting rights in the Greater Bay Area to introduce Hong Kong-style micro-dramas to the mainland market, aiming for market expansion[18] - The Group's media business provides a wide range of content, including entertainment, sports, and educational programs, fulfilling its civic responsibilities[13] - The Group's i-CABLE News team ensures the accuracy of information in its reports and produces informative programs to encourage public participation in community issues[13] - The Group's commitment to an omnimedia broadcasting model aims to meet post-pandemic viewing habits, including access via smart TVs[18] - The Group's efforts in sports broadcasting are seen as a means to bridge political differences and strengthen community bonds in Hong Kong[17] - During the Olympic broadcasting period, HOY TV's live segments consistently ranked among the top five on YouTube, reflecting strong engagement with Hong Kong audiences[20] - The Group's omni-media broadcast of the Hong Kong Olympic Team's highlights secured support from 53 sponsors, marking a significant milestone[37] - The Group plans to launch Hong Kong's first micro-drama series "My Family Has Joy" in 2025, featuring episodes of only 2 minutes each to cater to mobile viewers[20] - The Group's social media achieved over 32 million views on HOY YouTube during the Paris Olympics, with a year-on-year increase of more than 40% in subscribers[48] - The number of users on the hoy.tv website and HOY's official app reached over 780,000 during the most active month in 2024, with over 100 million views recorded[50] - The HOY Mobile App downloads increased by 45% as of December 31, 2024, with Instagram and YouTube followers growing by more than 130%[53] - The Group's three free-to-air TV channels and mobile applications achieved coverage of approximately 99% of the population in Hong Kong[47] - The "Undercover" travel series received strong support from the Hong Kong Tourism Board, leading to the launch of "Undercover Service Squad," which attracted over 1.85 million views in Guangdong province[41] - The "Railway Traveler" program garnered significant support from young audiences online and led to the launch of "Railway Traveler 2" within the same year[60] - The Group has actively expanded into the Mainland China market, collaborating with TV stations in the Greater Bay Area to enrich multimedia content[43] - The integration of HOY TV experience across various platforms has enhanced the effectiveness of streaming services and advertising[49] - The Group's branded content initiatives have resonated with diverse audience demographics, providing innovative promotional solutions[44] - The completion of large-scale event venues in Hong Kong has driven new marketing and promotion services related to international events and exhibitions[42] - HOY TV provided over 450 hours of live broadcasts for major international sports events in 2024, including the "FIVB Volleyball Nations League" and "Copa América USA 2024" [87] - The Group invested over 1,100 hours of live broadcasts of various world sports events on HOY 76, mobile applications, and official websites in 2024 [88] - The Group produced a unique Cantonese Spring Festival Gala programme, which was broadcasted live across the Greater Bay Area and Southeast Asia in February 2024 [72] - HOY TV launched three new episodes of the cooking series "Theme Cook," showcasing culinary skills in the Greater Bay Area [66] - The Group supported local consumption by producing several dining programmes, including "Dining Guide" and "Let's Eat 100 in Hong Kong" [70] - The new pet variety show "Stories from MEOW MEOW" features artists sharing their experiences with cats, enhancing audience engagement [75] - The Group's lifestyle programmes, such as "Good Old Days" and "Hints of Postnatal Care," focus on the daily lives of Hong Kong people [79] - HOY TV's health programme "Health Concern Group" addresses health myths and provides insights from various health experts [82] - The Group's infotainment programmes, including "Hong Kong Phenomenon 3," have become part of Hong Kong's distinctive television culture [80] - The Group's travel and dining programmes aim to boost consumption in Hong Kong, reflecting the trend of local spending [67] - Cable TV 18 Channel broadcasted 125 days of racing, including 37 overseas events, enhancing the viewing experience for horse racing enthusiasts[93] - In 2024, HOY TV broadcasted over 450 hours of major international sports events, including the World Volleyball League and the Copa America[91] - The mobile application "Racing GPS" provides subscribers with an additional platform to watch horse racing programs and features a YouTube channel with various programs[94] - The flagship program "City Focus" achieved a peak rating of 4.4, successfully uncovering livelihood issues and prompting government action[103] - The Group's "Hong Kong Cable News Express" serves as the sole distributor of advertisements for MTR In-train TV, contributing to advertising revenue growth[106] - The Group organized the "Season Opening Prelude Party" to engage horse racing enthusiasts and strengthen community ties[100] - The i-CABLE News team produced programs to help citizens understand the operations of government departments and the Constitution of China[107] - The documentary "Keep Pace with You" highlighted the inspirational story of trainer Danny Shum, showcasing dedication in the horse racing industry[95] - HOY TV plans to broadcast over 1,100 hours of various world sports events in 2024, expanding its sports content offerings[91] - The Group's collaboration with the Hong Kong Jockey Club included promotional activities to enhance community engagement and promote responsible gambling[96] Telecommunications - The telecommunications business serves over 2 million households in Hong Kong, maintaining stable results and exploring market opportunities[22] - The Group aims to enhance optical and 5G network coverage to support high-bandwidth and low-latency AI applications, attracting commercial customers[22] - The telecommunications network serves over 2 million households in Hong Kong, contributing positively to the Group's performance[117] - The Group has shifted its sales approach in the first half of 2024 to enhance flexibility and cope with market demands, resulting in improved customer retention and overall business revenue growth[118] - The Group is committed to providing diversified telecommunications products and services, launching several new packages for broadband and mobile services to attract new customers[119] - The expansion of the Gigabit Passive Optical Network (GPON) aims to enhance network coverage and capacities, meeting the increasing demand for high-speed broadband services[120] - A strategic cooperation agreement with China Mobile Hong Kong Co., Ltd. continues to strengthen the Group's partnership in telecommunications and media information services, supporting new business development[121] - The telecommunications segment is challenged by fast-changing technology and market saturation, necessitating innovative service approaches and competitive service packages[126] - The Group faces significant competition in the traditional free television sector due to changing viewer habits and the rapid growth of streaming platforms and social media[127] - The telecommunications division is challenged by rapid technological changes and market saturation, necessitating innovative service offerings and network enhancements[127] - The Group aims to strengthen its competitive position by investing in new market opportunities and updating non-competitive segments[127] Economic Environment - The economic recovery in Hong Kong in 2024 was less satisfactory than expected, with a slowdown in the retail market and rising operational costs[34] - The Group is actively undergoing strategic transformations to innovate in content, distribution, and marketing solutions to adapt to changing audience viewing habits[35] - The Group's business strategy includes integrating online, offline, and outdoor media platforms to enhance audience engagement and marketing efficiency[33] - The Group is focused on developing new profit models through collaboration in markets such as the Greater Bay Area and Mainland China[33] Environmental, Social, and Governance (ESG) - The ESG report covers the Group's key business operations in media and telecommunications in Hong Kong for the reporting period from January 1, 2024, to December 31, 2024[129] - The Group's ESG governance includes a dedicated working group that monitors ESG-related risks and opportunities, reporting to the Board[134] - The Board is responsible for overseeing the Group's sustainable development and ensuring effective risk management and internal controls related to ESG[134] - The Group has established key performance indicators (KPIs) to evaluate the effectiveness of its ESG policies and management systems[132] - The ESG working group conducts annual training to better understand climate-related risks and ensures these are considered in the annual risk assessment process[134] - The Group engages a professional consultant for ongoing assessment of internal control and risk management systems to identify deficiencies[134] - The management is responsible for executing ESG strategies and developing implementation plans that are tied to senior management compensation considerations[134] - The Group replaced 16 out of 23 Euro IV diesel vehicles, aiming to replace all by 2027 to reduce overall air emissions[138] - A policy to reduce paper usage was established in 2022, focusing on centralized sourcing and double-sided printing[138] - Diesel consumption was reduced by approximately 49%, achieving 28,686 liters in 2024 compared to 56,094 liters in 2021[138] - Water consumption intensity was maintained at 2,119 cubic meters in 2024, approximately 8% lower than 2,306 cubic meters in 2021[138] - The Group emphasizes ESG issues related to product responsibility, employee safety, supply chain management, and environmental protection[147] - The ESG working group validates key material ESG issues and their link to respective aspects and KPIs[146] - Stakeholder engagement includes internal emails, meetings, and corporate website updates to align sustainability goals[140] - The Group's environmental targets established since 2021 aim to enhance sustainability performance[137] - Continuous monitoring of ESG-related risks is conducted to ensure effective internal control measures[136] - The Group's management is responsible for executing the ESG strategy and integrating it into key performance indicators[136] Customer Service and Employee Welfare - The Group received ISO 9001:2015 and ISO 10002:2018 certifications for quality management and customer satisfaction, maintaining these standards during the reporting period[156] - A total of 115 written complaints were received during the reporting period, a decrease from 288 complaints in 2023, indicating improved customer service[157] - The Group has established policies to protect personal data, complying with the Personal Data (Privacy) Ordinance, with no incidents of non-compliance reported during the reporting period[164] - The Group is committed to employee health and safety, implementing four key policies to ensure a safe workplace[168] - The Group has a Corporate General IT Control Policies and Procedures in place to manage and protect IT systems, with no reported incidents of intellectual property rights breaches during the reporting period[159] - The Group emphasizes customer experience, implementing a quality management system to enhance hotline and customer care services[157] - The Group organized various recreational and leisure activities to promote employee wellbeing and mental health[175] - The injury rate for 2024 is 0.0088, an increase from 0.0083 in 2023, while the lost days decreased from 531 to 343[173] - The lost days rate for 2024 is 0.0015, down from 0.0020 in 2023, and the absentee rate is 0.0192, slightly lower than 0.0204 in 2023[173] - The Group sourced from 715 suppliers in Hong Kong (87%), 21 from Mainland China (3%), and 83 from other countries (10%) during the Reporting Period[178] Environmental Impact - The Group did not generate significant sewage discharge during the Reporting Period[181] - Air emissions for nitrogen oxides (NOX) decreased from 0.29 tonnes in 2023 to 0.21 tonnes in 2024, while particulate matter (PM) emissions reduced from 0.027 tonnes to 0.020 tonnes[193] - The Group strictly adheres to the Air Pollution Control Ordinance and Waste Disposal Ordinance, with no incidents of non-compliance reported during the Reporting Period[183] - The Group encourages suppliers to adopt green measures and products that fulfill the 4Rs Rule: "Reduce, Recycle, Reuse and Replace"[177] - The Group has implemented measures to reduce greenhouse gas emissions and energy consumption, including optimizing vehicle utilization and phasing out pre-Euro IV diesel vehicles[190] - There were no incidents of work-related fatalities reported in the past three reporting periods[174] - In 2024, the Group recorded a total CO2 emissions of 4,738 tonnes, a decrease of 10% from 5,258 tonnes in 2023[195] - Scope 1 CO2 emissions decreased from 233 tonnes in 2023 to 206 tonnes in 2024, representing a reduction of approximately 11.6%[195] - Scope 2 CO2 emissions decreased from 5,025 tonnes in 2023 to 4,532 tonnes in 2024, reflecting a decline of about 9.8%[195] - CO2 emissions intensity for Scope 1 was approximately 0.23 tonnes per employee in 2024, up from 0.21 tonnes per employee in 2023[197] - CO2 emissions intensity for Scope 2 was approximately 4.99 tonnes per employee in 2024, compared to 4.63 tonnes per employee in 2023[197] - The Group is actively collecting Scope 3 emissions data to enhance transparency and accountability in its environmental impact[198] - The Group has implemented waste management initiatives, focusing on reducing, reusing, and recycling waste to minimize landfill contributions[199] - Environmentally friendly recycling bins for metal, plastic, and Tetra Pak were placed on each floor starting January 2024 to promote waste sorting[200] - The Group encourages employees to adopt paperless practices and use electronic copies to reduce paper waste[199] - Training and education on waste reduction have been emphasized among employees to foster a culture of sustainability[199]

Financial Performance - The company's consolidated revenue for the fiscal year ended December 31, 2024, decreased by 36.1% to approximately HKD 456.86 million from HKD 714.49 million in 2023[20]. - The gross profit fell by 50.6% to HKD 152.37 million, resulting in a gross margin of 33.4%, down from 43.2% in the previous year[13]. - The loss attributable to the company's owners increased by 191.0% to HKD 298.57 million compared to a loss of HKD 102.60 million in 2023[20]. - Basic loss per share was HKD 39.5 cents, a 190.4% increase from HKD 13.6 cents in the prior year[13]. - The mid-term dividend paid was HKD 1.5 cents, a decrease of 70% from HKD 5.0 cents in the previous year[13]. - The company recorded a consolidated revenue of approximately HKD 456,859,000 for the year 2024, a decrease of about HKD 257,627,000 or 36.1% compared to HKD 714,486,000 in 2023[24]. - The loss attributable to the company's owners was approximately HKD 298,573,000, an increase of 191.0% from last year's loss of HKD 102,604,000, primarily due to the decline in revenue[24]. - Gross profit decreased by approximately 50.6% to about HKD 152,366,000 due to reduced sales[28]. - Distribution and selling costs decreased by approximately 6.7% to about HKD 181,074,000, mainly due to a reduction in royalty fees[29]. - Administrative expenses increased by 2.5% to HKD 160,096,000, which includes salaries, rent, and depreciation[30]. - Financial expenses increased by approximately 17.7% to about HKD 4,473,000 due to higher interest on bank loans and lease liabilities[31]. - As of December 31, 2024, the total assets of the group were approximately HKD 694,161,000, a decrease of about 32.6% from HKD 1,031,356,000 in 2023[40]. - The capital debt ratio rose to 16.3%, up from 5.8% in 2023, indicating a significant increase in leverage[13]. Strategic Focus and Operations - The company plans to focus on improving operational efficiency and optimizing organizational structure to maintain market position amid economic uncertainties[21]. - The company aims to enhance product innovation and marketing strategies to adapt to rapidly changing market conditions[21]. - The company has strategically expanded its development in Vietnam's real estate market through land acquisition in Da Nang[47]. - The group plans to engage in property development in Vietnam in 2024, considering various local conditions and strategic priorities[48]. - The company will continue to enhance automation in manufacturing to improve efficiency and maximize long-term returns for shareholders[54]. - The group is implementing flexible strategies to expand its product range and strengthen its customer base amid global economic uncertainties[53]. - The company has reduced capital investments in related development projects due to delays in land acquisition and a decline in core manufacturing operations[56]. Environmental, Social, and Governance (ESG) - The company emphasizes the importance of environmental, social, and governance (ESG) matters for sustainable development, integrating these principles into its mission[21]. - The group is focused on environmental responsibility by implementing green office measures and considering further eco-friendly practices in its operations[50]. - The company aims to minimize its environmental impact through resource management and efficiency measures[121]. - The total greenhouse gas emissions for the business in 2024 amounted to 12,160.93 tons of CO2 equivalent, a decrease from 12,421.81 tons in 2023[127]. - The annual emission density in 2024 was 0.0991 tons of CO2 equivalent per square meter, down from 0.1012 tons in 2023[130]. - The company implemented energy efficiency measures that resulted in a reduction of 17.760 tons of CO2 equivalent emissions in 2024, compared to 39.970 tons in 2023[131]. - The group has obtained certifications for social compliance standards, promoting safety and fair labor practices[121]. - The group has implemented various environmental protection measures to minimize greenhouse gas emissions, although climate change risks currently do not significantly impact business operations[140]. - The group actively promotes water-saving measures, including the installation of water meters and automatic valves to prevent wastage[138]. - The group has not reported any significant environmental incidents during the reporting period, indicating effective management of potential pollution risks[139]. Corporate Governance - The board consists of four executive directors and four independent non-executive directors, ensuring at least one-third of the board is independent[67]. - The company has adopted a corporate governance code in compliance with the Hong Kong Stock Exchange listing rules, reflecting its commitment to best practices[65]. - The independent non-executive directors have confirmed their independence according to the relevant listing rules, ensuring effective independent judgment[68]. - The company has a strong focus on risk management, identifying key risks and implementing appropriate measures and monitoring systems[66]. - The board is responsible for strategic development decisions and monitoring the management of the group's business and affairs[66]. - The company has established various committees, including audit, remuneration, and nomination committees, to assist the board in fulfilling its responsibilities[66]. - The independent non-executive directors possess appropriate professional qualifications and expertise in accounting and financial management[67]. - The company has a policy for directors to retire and seek re-election at least once every three years, promoting accountability[68]. - The board is committed to continuous review and enhancement of governance policies to align with regulatory changes and best practices[65]. - The company has a diverse board with members having extensive experience in finance, asset management, and corporate governance[69]. - The company held 32 board meetings during the year, with all directors receiving sufficient information to make informed decisions[71]. - The remuneration policy for executive directors and senior management is linked to performance, service tenure, and experience, with regular reviews based on market practices[76]. - The Nomination Committee is responsible for reviewing the board's structure and composition annually to ensure diversity in age, expertise, skills, experience, independence, knowledge, and gender[79]. - All directors participated in continuous professional development to stay updated on their responsibilities and the latest developments in laws and regulations applicable to the company[73]. - The company has adopted a code governing securities trading by directors, ensuring compliance with the required standards[72]. - The Remuneration Committee's primary role is to review the remuneration policies and structures for directors and senior management, ensuring the ability to attract and retain a high-quality team[74]. - The company’s chairman and CEO roles are held by different individuals, ensuring effective governance and operational management[70]. - The Nomination Committee evaluates the independence of independent non-executive directors and makes recommendations for appointments and reappointments[78]. - All members of the Remuneration Committee attended all meetings during the year, ensuring active participation in decision-making[75]. - The company provides directors with access to independent professional advice when necessary, with costs covered by the company[71]. - The board consists of six male directors and two female directors, meeting the minimum requirement set by rule 13.92[86]. - The company aims to maintain at least one female director over the next four years to enhance board diversity[86]. - The nomination committee will annually review measurable diversity goals and report progress to the board[85]. - The audit committee is responsible for reviewing the appointment of external auditors and ensuring their independence[89]. - The audit committee members include qualified accountants, ensuring compliance with accounting standards and regulations[90]. - The audit committee has conducted mid-year and year-end financial reviews, ensuring adherence to accounting policies and legal requirements[93]. - The company emphasizes transparency and fairness in the nomination process for board members[84]. - The nomination committee will focus on attracting diverse talent across various backgrounds to foster a more inclusive environment[85]. - The financial statements for the year ending December 31, 2024, have been reviewed by the audit committee and audited by external auditor KPMG (Hong Kong) with no significant uncertainties affecting the company's ability to continue as a going concern[94]. - The company paid approximately HKD 1,800,000 for statutory audit services provided by KPMG (Hong Kong) and around HKD 1,821,000 for audit and non-audit services to overseas subsidiaries[105]. - The internal audit function has been established since 2015, focusing on risk management and internal controls, with a dedicated internal audit team consisting of two members[102]. - The audit committee has conducted a review of the effectiveness of the internal control system, finding it to be effective and sufficient without any significant concerns affecting the company's financial status or operational performance[104]. - The company has implemented appropriate monitoring procedures to safeguard assets and ensure compliance with relevant regulations and accounting standards[100]. - The audit committee received reports on the performance of the internal audit function and identified key risks, ensuring that appropriate follow-up actions were taken[99]. - The board is responsible for maintaining proper accounting records and ensuring timely preparation of financial statements[96]. - The company actively enhances transparency and communication with shareholders and potential investors through mandatory interim and annual reports[109]. - The audit committee has established a whistleblowing policy to allow employees and stakeholders to report any misconduct, ensuring prompt and transparent investigations[103]. - The company has adopted various policies to assess and improve the effectiveness of its internal control and risk management functions[104]. - The company conducted a review of its shareholder communication policy, ensuring effective implementation during the review year[110]. - The annual general meeting provided a platform for shareholders to engage with the board, with all directors present except for two[112]. - The company expects to consider multiple factors when declaring dividends, including financial performance and capital needs[117]. Employee Relations and Workforce - The company operates four factories in Vietnam and employs approximately 2,200 staff across various regions including Hong Kong, China, and the US[7]. - As of December 31, 2024, the group has approximately 2,200 employees, a decrease from 2,310 in 2023, and offers competitive compensation aligned with market trends[49]. - The total number of employees as of December 31, 2024, was approximately 2,200, with 2,081 being factory employees, all of whom are full-time[141]. - The annual turnover rate for employees aged 18-25 was 21.2%, slightly up from 21.12% in the previous year, while the turnover rate for those aged 46-55 decreased from 21.19% to 12.50%[143]. - The total training hours for factory employees increased to 8 hours per employee in 2024, compared to 4 hours per employee in 2023[150]. - The number of work-related injuries resulting in lost workdays was 1 in 2024, down from 2 in 2023, with a total of 23 lost workdays compared to 45 in the previous year[147]. - The group has implemented strict measures to prevent child and forced labor in compliance with labor laws[154]. - The group maintains good relationships with suppliers to ensure stable services and product quality[155]. - There were no significant complaints regarding product quality and delivery during the reporting period[157]. - The group has approximately 500 suppliers across Hong Kong, China, and Vietnam[154]. Innovation and Product Development - The group is committed to providing innovative and quality products, investing significant resources in new equipment to enhance competitiveness[159]. - The group will continue to purchase energy-efficient appliances and materials, and review supplier sources[164]. - The group encourages reporting of any misconduct or fraud, ensuring confidentiality for whistleblowers[162]. - The top five customers accounted for approximately 59.0% of the group's revenue, with the largest customer representing about 32.8%[170]. - The total cash dividends paid during the year amounted to approximately HKD 34,029,000, with a proposed final dividend of HKD 0.01 per share, totaling around HKD 7,562,000[171]. - The company's distributable reserves as of December 31, 2024, were approximately HKD 186,137,000, a decrease from HKD 400,779,000 in 2023[175]. - The total remuneration for the eight directors amounted to HKD 10,812,000, with the highest individual remuneration being HKD 4,035,000[183]. - As of December 31, 2024, the company had issued shares totaling 538,573,569, with the largest shareholder holding 71.22% of the issued share capital[191]. - The company did not purchase, redeem, or sell any of its listed shares during the year[174]. - The board of directors has the discretion to recommend dividends based on various factors, including corporate governance considerations[172]. - There were no warrants or stock-linked agreements issued during the year[176]. - The company has no provisions regarding preemptive rights in its articles of association[177]. - The company has not entered into any management contracts related to its overall business during the year[178]. - Smart Forest holds 71.22% of the company's issued ordinary shares, totaling 538,573,569 shares[193]. - The company has received revised financing letters from banks for a total amount not exceeding HKD 70,000,000, effective from September 18, 2020[197]. - The company confirms that at least 25% of its issued shares are held by the public prior to the publication of the annual report[196]. - The company has established a remuneration committee to review the remuneration policy based on group performance and market statistics[194]. - The company appointed KPMG as the new auditor on October 24, 2024, following the resignation of another firm[199]. - The company has not changed its external auditor in the past three years, with KPMG auditing the financial statements for the fiscal year 2024[199]. - The company has disclosed that its controlling shareholder must maintain at least 51% ownership to avoid default on revised financing terms[197]. - The board has adopted corporate governance codes and has complied with them, except for a specific disclosure regarding independent non-executive directors' tenure[195]. - The company has not made any arrangements for its directors or their associates to benefit from the purchase of shares or debentures[192]. - The company has confirmed that there are no other known interests or short positions in its issued share capital as of December 31, 2024[193].

Financial Performance - The company's operating revenue for Q1 2025 reached RMB 717,806,101.77, representing a year-on-year increase of 45.47% compared to RMB 493,440,384.78 in Q1 2024[9] - Net profit attributable to shareholders for Q1 2025 was RMB 48,734,998.79, a significant increase of 123.77% from RMB 21,779,300.91 in the same period last year[9] - Basic and diluted earnings per share for Q1 2025 were both RMB 0.0592, reflecting a growth of 114.49% from RMB 0.0276 in Q1 2024[9] - Total operating revenue for Q1 2025 reached RMB 717.81 million, a significant increase of 45.6% compared to RMB 493.44 million in Q1 2024[20] - Net profit for Q1 2025 was RMB 52.95 million, up 106.8% from RMB 25.58 million in Q1 2024[21] Cash Flow and Liquidity - The net cash flow from operating activities surged to RMB 75,905,954.92, marking a dramatic increase of 1,714.77% compared to RMB 4,182,677.79 in Q1 2024[9] - Operating cash flow for Q1 2025 was $75,905,954.92, a significant increase from $4,182,677.79 in Q1 2024, reflecting strong sales growth[23] - Cash inflow from operating activities totaled $558,792,537.30 in Q1 2025, compared to $305,304,118.30 in Q1 2024, indicating a year-over-year increase of approximately 83%[23] - The net increase in cash and cash equivalents for Q1 2025 was $1,652,351.39, a decrease from $341,118,724.26 in Q1 2024, indicating tighter liquidity[23] - The company reported cash and cash equivalents at the end of Q1 2025 of $214,621,306.21, down from $460,950,534.36 at the end of Q1 2024[23] Assets and Liabilities - The company's total assets as of March 31, 2025, were RMB 3,289,665,874.93, a slight increase of 0.77% from RMB 3,264,667,069.57 at the end of 2024[9] - Total liabilities decreased to RMB 1.29 billion as of March 31, 2025, from RMB 1.31 billion at the end of 2024, indicating improved financial stability[19] - The net assets attributable to shareholders increased to RMB 1,991,814,731.15, up by 2.51% from RMB 1,943,079,732.36 at the end of 2024[9] Operational Efficiency - The company experienced a significant reduction in the proportion of operating expenses relative to revenue, contributing to the overall profit increase[13] - The company reported a gross profit margin of approximately 15.9% for Q1 2025, compared to 10.5% in Q1 2024, highlighting enhanced operational efficiency[20] Research and Development - Research and development expenses increased to RMB 37.69 million in Q1 2025, up from RMB 25.78 million in Q1 2024, reflecting a commitment to innovation[20] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 67,102[14] Accounting Adjustments - The company has implemented adjustments in accounting standards affecting the profit statement, specifically impacting operating costs and sales expenses by RMB 8,972,218.95[13] Other Financial Activities - Cash outflow for investment activities in Q1 2025 was $207,124,553.35, up from $65,279,224.82 in Q1 2024, resulting in a net cash flow from investment activities of -$63,382,246.33[23] - Total cash inflow from financing activities was $427,387,745.02 in Q1 2024, while in Q1 2025, the net cash flow from financing activities was -$10,709,378.76, indicating a shift in financing strategy[23] - The company received $512,067,212.86 in cash from sales in Q1 2025, compared to $258,138,891.46 in Q1 2024, marking an increase of approximately 98%[23] - Cash received from investment returns in Q1 2025 was $2,795,095.28, compared to $894,992.72 in Q1 2024, showing a growth of about 212%[23] - The company paid $85,919,455.69 in cash for other operating activities in Q1 2025, up from $53,598,103.19 in Q1 2024, reflecting increased operational costs[23] - The company experienced a foreign exchange impact of -$161,978.44 on cash and cash equivalents in Q1 2025, compared to -$89,710.14 in Q1 2024, highlighting currency volatility effects[23] Strategic Overview - The company has no significant new strategies or important matters reported during the reporting period[16]

Financial Performance - For the year ended December 31, 2024, the Group reported revenue of HK$1,913,162,000, a slight decrease of 0.6% compared to HK$1,923,964,000 in 2023[14]. - The Group's gross profit decreased by 14.8% to HK$527,619,000 from HK$618,962,000 in 2023[14]. - The loss for the year attributable to equity holders of the Company was HK$135,163,000, a significant decline of 318.0% compared to a profit of HK$61,998,000 in 2023[14]. - Adjusted profit for the year increased by 11.9% to HK$89,410,000 from HK$79,916,000 in the previous year[14]. - Adjusted EBITDA rose by 2.5% to HK$344,211,000 compared to HK$335,794,000 in 2023[14]. - The gross profit margin decreased to 27.6% from 32.2%, reflecting a decline of 4.6 percentage points[14]. - The adjusted profit attributable to equity holders increased by 5.7% to HK$58.7 million in 2024, compared to HK$55.6 million in 2023[21]. - The adjusted profit attributable to equity holders of the Company for 2024 was HK$58.7 million, up from HK$55.6 million in 2023, while total revenue decreased to HK$1,913.2 million from HK$1,924.0 million[35][36]. - The overall loss for the Mainland China ophthalmic business decreased from HK$75.7 million in 2023 to HK$47.1 million in 2024, excluding impairment losses[50]. Revenue Breakdown - Core medical service revenue increased by 0.5% to HK$1,913,162,000 from HK$1,904,531,000 in the previous year[14]. - Revenue from the ophthalmic business decreased by 4.3% to HK$1.37 billion in 2024, primarily due to reduced demand for refractive surgeries[24]. - Revenue from Hong Kong decreased by 3.3% to HK$901.6 million in 2024 from HK$932.1 million in 2023, primarily due to cautious consumer trends[60]. - Revenue from ophthalmic services in Mainland China increased by 4.0% to HK$1,011.6 million in 2024 from HK$972.4 million in 2023, with a 6.1% increase in RMB terms[61]. - Revenue from dental services in Shenzhen surged by 20.8% to HK$464.6 million in 2024 from HK$384.7 million in 2023[65]. - Revenue from the use of Elderly Health Care Vouchers at Shenzhen CKJ Hospital amounted to HK$15.1 million from August 14 to December 31, 2024[53]. - Revenue from oncology and other medical services decreased to approximately HK$38.1 million, representing 2.0% of total revenue[91]. - Revenue from sales of vision aid products decreased by 3.8% to HK$156.4 million in 2024, mainly due to reduced demand in Mainland China[92]. Operational Challenges and Strategies - The Group faced challenges including a complex global macroeconomic environment and intense industry competition, prompting a refinement of business strategies[19]. - The Group aims to identify new avenues for growth amidst the evolving market landscape[19]. - The Group's operational strategy includes optimizing its organizational structure and refining management to improve profitability and efficiency[41][47]. - The company plans to invest in innovative healthcare solutions, including a fair value gain of HK$111.1 million from its investment in Health Hope Pharma Limited[30]. Capital Expenditures and Financial Position - Capital expenditures in 2024 totaled HK$444.7 million, primarily for the addition of right-of-use assets and equipment for hospitals and clinics[127]. - As of December 31, 2024, the Group's total capital commitments amounted to approximately HK$31.9 million, a decrease from HK$107.2 million in 2023, mainly related to property and hospital lease renovations in Shenzhen Ping Shan[133]. - The Group's debt-to-equity ratio is not applicable as of December 31, 2024, due to a net cash position, consistent with 2023[134]. - The Group reported cash and cash equivalents of HK$423.1 million, short-term bank deposits of HK$29.0 million, and bank borrowings of HK$29.2 million, with most borrowings denominated in US dollars, Renminbi, or Hong Kong dollars[155][158]. Future Outlook and Expansion Plans - The outlook for ophthalmic services in Hong Kong remains strong due to an aging population, while challenges persist in Mainland China's ophthalmic business due to changing consumer patterns[152]. - The Group plans to capitalize on business opportunities in the dental sector in Shenzhen and the medical business in Luohu, Shenzhen, driven by the trend of cross-border consumption[153]. - The C+ Health CKJ (Shenzhen) Hospital is set to open in January 2025, offering dental and multi-specialty medical services to meet the needs of Hong Kong's elderly population[28]. - A strategic agreement was signed for the construction of a "Hong Kong-style" private hospital near Luohu port, expected to open in January 2025[54]. Management and Governance - Dr. Dennis Lam has been appointed as a "Justice of the Peace" in Hong Kong since 2004 and has served as a Deputy of the National People's Congress of China since 2008[193]. - Ms. Li Xiaoting has been the general manager of the eye center in Hong Kong since January 2012 and the general manager of Shenzhen C-MER Hospital since March 2013[195]. - Dr. Lee Yau Wing Vincent has been practicing since January 2012 and is the Head of Hong Kong Operation[199].