Financial Performance - The group's total revenue for the reporting period was approximately HKD 613.0 million, representing a significant increase of about 10.0% compared to HKD 557.2 million in the previous year[7]. - The profit attributable to the company's owners for the year was approximately HKD 34.1 million, a substantial decrease of about 40.1% from HKD 56.9 million in the previous year[7]. - The company recorded a revenue of approximately HKD 613.0 million for the reporting period, a significant increase of about 10.0% compared to HKD 557.2 million in the same period last year[20]. - The automotive beauty and maintenance products segment generated revenue of approximately HKD 484.8 million, up about 8.8% from HKD 445.5 million in the previous year, primarily due to effective e-commerce sales strategies on multiple online platforms[21]. - The personal care products segment reported revenue of approximately HKD 128.2 million, a substantial increase of about 14.7% from HKD 111.7 million in the previous year, driven by increased demand from a major overseas customer[22]. - The company's gross profit was approximately HKD 227.2 million, representing a significant increase of about 29.2% compared to HKD 175.9 million in the previous year, attributed to effective e-commerce strategies and lower raw material prices[24]. - Other income and gains amounted to approximately HKD 13.6 million, a substantial increase of about 56.9% from HKD 8.6 million in the previous year, mainly due to increased sales of waste and recyclable materials[25]. - Selling and distribution expenses rose significantly to approximately HKD 90.0 million, an increase of about 161.8% from HKD 34.4 million in the previous year, primarily due to higher advertising and promotional expenses[26]. - Administrative expenses increased to approximately HKD 58.0 million, a rise of about 12.2% from HKD 51.7 million in the previous year, mainly due to higher employee salaries and benefits[27]. - The company reported a net profit of approximately HKD 34.1 million, a significant decrease of about 39.9% from HKD 56.7 million in the previous year, primarily due to increased selling and distribution expenses and asset impairment provisions[29]. Dividend and Shareholder Information - The board has proposed a final dividend of HKD 0.0219 per share, down from HKD 0.0364 per share in the previous year[8]. - The company has adopted a dividend policy prioritizing cash distributions to shareholders, with decisions based on financial performance and capital needs[97]. - The company maintains a shareholder communication policy to ensure timely and equal access to relevant information for shareholders and potential investors[98]. - The company will hold an annual general meeting to provide a communication platform between shareholders and the board[91]. - The company has reviewed its shareholder communication policy and confirmed its effective implementation as of December 31, 2024[103]. - The company encourages shareholders to access corporate communications via its website to reduce environmental impact[101]. Market and Business Development - The group continues to allocate more resources to develop its Original Brand Manufacturing (OBM) business, with significant growth in online sales reflecting the ongoing implementation of e-commerce strategies in China[16]. - The group plans to enhance brand awareness through sponsorship of exhibitions, public relations activities, and multimedia platforms to promote its corporate image and brand[16]. - The group aims to strengthen its self-owned brand promotion and expand new markets to consolidate and enhance its business development[10]. - The group is optimistic about its domestic market and OBM business, focusing on improving existing OBM product lines with environmentally friendly formulas and strict cost control[11]. - The group will continue to participate in various exhibitions in China and globally to meet market demand and adjust its strategies accordingly[10]. - The group believes in the growth potential of the new Baobao Long series of automotive beauty and maintenance products, although other products under the Baoci Li brand will remain the main source of revenue in the short term[16]. Economic and Industry Context - The group recorded a GDP growth of 5.0% in China, driven by strong domestic consumption and strategic economic policies, although recovery remains fragile due to global economic uncertainties[11]. Corporate Governance - The board consists of four executive directors and three independent non-executive directors, ensuring high independence and effective decision-making[54]. - The company has adopted a competitive yet reasonable remuneration policy for directors to attract and retain qualified individuals[40]. - The board consists of 5 male directors and 2 female directors, with a goal to increase the proportion of female directors to over 25% in the coming years[61]. - The company has adopted a nomination policy to enhance board diversity and governance standards, considering factors such as gender, age, cultural background, and professional experience[65]. - All directors have participated in ongoing professional development to enhance their knowledge and skills, ensuring informed contributions to the board[59]. - The company has mechanisms in place to ensure independent opinions are obtained, including annual reviews of the board's composition and the independence of non-executive directors[63]. - The board has established a diversity policy, recognizing the benefits of a diverse board in improving performance and achieving strategic goals[61]. - The company has a formal process for the appointment and re-election of directors, ensuring transparency and adherence to governance standards[57]. - Independent non-executive directors have confirmed their independence in accordance with listing rules, and the company believes all such directors are independent[63]. - The board's succession planning is included in the nomination policy to address potential vacancies due to resignations or other circumstances[65]. - The board of directors held 4 meetings during the reporting period, with all members attending 100% of the meetings[68]. - The Audit Committee was established on May 27, 2019, and held 2 meetings to discuss audit and financial reporting issues[70][71]. - The Remuneration Committee, also established on May 27, 2019, held 1 meeting to review the group's remuneration policies and director compensation[75]. - The Nomination Committee, established on May 27, 2019, held 1 meeting to review the current board structure and ensure adequate composition[80]. - The company engaged Ernst & Young as the external auditor for financial reporting during the reporting period[83]. - The board is committed to maintaining high standards of corporate governance and regularly reviews its governance policies[82]. - Independent professional advice is sought by board members when necessary to fulfill their duties[67]. - The company ensures that independent non-executive directors constitute a majority in the Remuneration Committee[75]. - The Audit Committee's scope includes reviewing financial statements and monitoring risk management and internal control systems[70]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific areas[68]. Risk Management - The company emphasizes the importance of maintaining a robust risk management and internal control system to achieve business objectives and sustainable growth[107]. - The board has overall responsibility for assessing and determining the nature and extent of risks the company is willing to take to achieve strategic goals[109]. - Financial risks include potential misuse of funds, inadequate budget management, and compliance issues with accounting regulations[110]. - The company has implemented a comprehensive annual budget and a budget execution responsibility system to mitigate financial risks[110]. - Operational risks involve ensuring product safety and environmental standards, as well as managing human resources and supply chains effectively[112]. - The company actively monitors dust, high temperatures, and chemical hazards, and has established energy-saving and emission reduction plans[112]. - Legal risks include potential contract violations and intellectual property protection issues, which the company addresses through contract review and regular legal support[113]. - The board has established an internal audit department to continuously monitor the effectiveness of the risk management and internal control systems[114]. Environmental, Social, and Governance (ESG) - The company has committed to evaluating its business impact on significant environmental, social, and governance issues and will report the findings[119]. - The report adheres to the Hong Kong Stock Exchange's guidelines for environmental, social, and governance reporting, ensuring compliance with mandatory disclosure requirements[120]. - The company has established an environmental, social, and governance (ESG) framework to promote and implement its sustainability strategy[126]. - The board of directors is responsible for guiding the company's sustainable development direction and overseeing ESG work[126]. - The company has identified key stakeholders and regularly interacts with them through various communication channels[130]. - Stakeholders, including government, shareholders, employees, and customers, have specific concerns such as legal compliance, investment returns, employee rights, and product quality[131]. - The company is committed to minimizing its environmental impact and maintaining green operations in compliance with relevant environmental laws and regulations in China and Thailand[135]. - The company has implemented key measures and procedures for controlling air pollutants, greenhouse gas emissions, and waste management[135]. - The company emphasizes the importance of employee rights, workplace safety, and career development opportunities[136]. - The company has not been aware of any serious violations regarding emissions and waste management laws during the reporting period[135]. - The ESG working group is responsible for implementing ESG strategies and reporting progress to the board[126]. - The company aims to enhance its ESG risk management and improve its overall ESG performance[126]. - The company has implemented the latest 2020 National VI emission standard models for its fleet to improve exhaust emissions[139]. - In 2024, the company's energy consumption increased by approximately 8% compared to 2023, primarily from production machinery and vehicles[147]. - The company aims to maintain zero serious violations related to exhaust, greenhouse gas, and waste emissions over the next five years[144]. - The main source of greenhouse gas emissions in 2024 comes from Scope 2, accounting for 85% of total emissions[140]. - The company is actively researching and developing environmentally friendly formulations, such as water-based and low-VOC products[145]. - The company has established an environmental management system for aerosol and non-aerosol product production, certified under ISO 14001[145]. - The company has implemented energy-saving measures and aims to improve resource usage efficiency, particularly in water and energy consumption[147]. - The company has engaged qualified third-party pollution monitoring companies to review and supervise its pollutant emissions annually[141]. - The company is committed to reducing harmful waste and has developed detailed environmental protection rules and guidelines for employees[141]. - The company promotes green production practices and encourages employees to reduce waste, such as reusing paper and using electronic approval systems[145]. - The company has implemented various emergency response mechanisms to address climate-related risks, including purchasing adequate natural disaster insurance[154]. - The company identifies and assesses climate-related risks through its Environmental, Social, and Governance (ESG) working group, which updates the board on climate regulations and industry benchmarks[154]. Employee and Training Initiatives - The company emphasizes the importance of attracting and retaining talented employees, recognizing that a professional team is its most valuable asset[155]. - The company conducts annual reviews of employee performance to determine bonus levels, salary adjustments, and promotions[157]. - The company has established a safety management department to ensure compliance with national and local safety production laws and regulations[159]. - The company provides safety training courses and organizes emergency drills to enhance employees' emergency awareness and capabilities[159]. - The company has implemented measures to reduce noise pollution in the workplace, including using low-noise equipment and providing ear protection for employees[160]. - A total of 455 employees participated in various training sessions, accumulating 12,720 hours of training during the reporting period[168]. - Training topics included fire safety training, emergency response for occupational injuries, and practical skills for handling fire-related incidents[168]. - The percentage of trained employees rose to 97.2% in 2024, up from 94.9% in 2023, indicating improved training initiatives[196]. - The average training hours per employee increased to 27.2 hours in 2024 from 24.2 hours in 2023, reflecting a commitment to employee development[196]. Supply Chain and Quality Assurance - The company has established a quality assurance team to oversee supplier and raw material quality control, ensuring compliance with industry standards[174]. - The company has received multiple certifications for its quality management systems, including ISO 9001:2015 and ISO 14001:2015, demonstrating its commitment to high standards[175]. - Quality control measures are implemented at various stages of production to ensure compliance with applicable industry standards[176]. - The company conducts pre-storage inspections and pre-delivery testing to ensure products meet specifications before reaching customers[178][179]. - The company maintains stable relationships with suppliers to avoid over-reliance on any single source, ensuring a consistent supply of quality materials[171]. - 202 suppliers passed the company's quality assurance audits during the reporting period, indicating effective supply chain management[171]. Social Responsibility and Community Engagement - The company donated over RMB 450,000 to support disaster relief efforts following the Guangdong floods in 2024, demonstrating its commitment to social responsibility[189]. - The company is committed to community investment and has contributed to disaster relief projects, reinforcing its social responsibility values[187]. - The company has established a whistleblowing policy to prevent corruption, encouraging employees to report suspicious activities through various channels[186]. - During the reporting period, the company arranged for 60 employees, including directors, to receive two hours of anti-corruption training[186]. Compliance and Legal Matters - The company has not been involved in any disputes regarding product quality with customers during the reporting period[182]. - The company emphasizes the importance of intellectual property and has implemented multiple management systems to protect it[183]. - The company has a three-year product shelf life, and any product recalls or replacements require prior approval from the responsible regional sales team[182]. - The company has not been aware of any serious violations related to health and safety, advertising, labeling, or privacy laws during the reporting period[184]. - The company respects the privacy of partners, employees, and consumers, ensuring that sensitive information is handled by authorized personnel only[184]. Environmental Impact and Waste Management - Total greenhouse gas emissions for 2024 were 2,629.76 tons CO2 equivalent, an increase of 3.95% from 2,529.08 tons in 2023[192]. - The total amount of hazardous waste increased significantly to 93.34 tons in 2024, up from 33.54 tons in 2023, representing a 178.5% increase[192]. - Total energy consumption reached 5,465,134.32 kWh in 2024, a rise of 8.17% compared to 5,051,869.44 kWh in 2023[192]. - The total number of employees decreased slightly to 468 in 2024 from 472 in 2023, with a notable increase in female employees from 236 to 241[194]. - Employee turnover rate for males increased to 25.6% in 2024 from 19.9% in 2023, while the turnover rate for females decreased to 18.7% from 21.2%[194]. - The total amount of non-hazardous waste increased to 310.82 tons in 2024 from 298.43 tons in 2023, showing a 4.7% rise[192]. - The company has set targets for emissions reduction and outlined steps taken to achieve these goals[200]. - Total harmful waste generated amounted to X tons, with a density of Y[200]. - Total non-harmful waste generated amounted to A tons, with a density of B[200]. - Direct (Scope 1) and energy indirect (Scope 2) greenhouse gas emissions were reported in tons, with a density of C[200]. - Total energy consumption was reported as D kilowatt-hours, with a corresponding density[200]. - Total water consumption was reported as E, with a density of F[200]. - The company has implemented policies to effectively use resources, including energy and water[200]. - Significant climate-related issues affecting the company have been identified, with management actions taken[200]. - The company has described methods for handling both harmful and non-harmful waste, along with reduction targets[200]. - The total amount of packaging materials used for products was reported as G tons, with a per unit production metric of H[200].

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was approximately RMB 4,313.7 million, a decrease of about 20.9% compared to RMB 5,455.0 million in 2023[20] - The net profit attributable to the company's owners for 2024 was approximately RMB 10.0 million, down from RMB 14.5 million in 2023[20] - The manufacturing segment generated external sales revenue of approximately RMB 4,156.1 million in 2024, a decrease of about 17.6% from RMB 5,044.5 million in 2023[22] - The company has experienced a decline in sales in both the manufacturing and jewelry new retail segments, with sales decreasing by approximately RMB 888.4 million and RMB 252.9 million, respectively[20] - The jewelry retail segment recorded sales of approximately RMB 157.6 million in 2024, down from RMB 410.5 million in 2023, accounting for about 3.7% of total revenue compared to 7.5% in 2023[29] - The group recorded an annual loss of approximately RMB 44.6 million in the sold fresh food retail business segment for the year ended December 31, 2024, compared to a loss of RMB 27.5 million in 2023[43] - The overall gross profit increased to approximately RMB 111.1 million in 2024, up about 2.3% from RMB 108.6 million in 2023, with the gross margin rising to approximately 2.6%[60] Business Strategy and Focus - The company plans to focus its management and resources on its core jewelry and metal businesses following the sale of the Jiangsu Nongmuren platform[20] - The company aims to enhance its financial performance in the coming years through improved profit margins and operational efficiency[22] - The group has shifted its sales focus online, reducing the number of physical stores from 16 in 2023 to 7 in 2024, and plans to continue leveraging third-party platforms for marketing and sales[28] - The group plans to continue integrating new marketing models, including short video marketing and influencer promotions, to enhance online sales operations[33] - The company aims to strengthen its upstream business operations, including potential acquisitions of mining resources, to improve supply chain control and resource reserves[49] Segment Performance - The jewelry new retail segment turned a loss of approximately RMB 7.8 million in 2023 into a profit of approximately RMB 9.9 million in 2024, despite a significant decline in gold product sales[20] - The jewelry new retail segment's gross profit margin improved due to increased sales of silver products, which have a significantly higher margin than gold products[20] - The group strategically reduced marketing expenses for its cultivated diamond brand SISI, as the market for cultivated diamonds is still in its early stages in China[29] - The strategic shift towards higher-margin silver products has improved profitability in the jewelry new retail segment despite overall revenue decline[60] Acquisitions and Investments - The group completed the acquisition of a 51% stake in Jiangxi Letong New Materials Co., Ltd., which owns 100% of Tibet Longtian Mining Co., Ltd., enhancing its upstream business layout[41] - The group has acquired a 51% stake in Jiangxi Letong, which holds exploration rights for mineral resources in Tibet, with estimated inferred ore volume of approximately 2,100,000 tons and inferred metal content of about 5,800 kg[45] - The company plans to sell its 51% stake in Shenzhen Fresh Life Technology Co., Ltd. for RMB 300,000, expecting an estimated gain of approximately RMB 10 million, subject to audit, to be included in the financial results for the year ending December 31, 2025[42] Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[88] - The board consists of two executive directors and three independent non-executive directors, ensuring a balanced governance structure[88] - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, complying with most provisions for the year ending December 31, 2024[88] - The company has established a shareholder communication policy to ensure timely, effective, and transparent communication with shareholders[150] - The board has established a risk management team to assist in the ongoing supervision of the group's risk management and internal control systems[126] Risk Management - The company faces strategic risks due to changes in the business, economic, regulatory, or political environment, which may adversely affect performance and strategic goals[135] - Legal and compliance risks may arise from unexpected or uncertain legal or regulatory applications, potentially leading to fines and operational costs[135] - The company has implemented a whistleblowing policy allowing employees and stakeholders to report misconduct confidentially[136] - An anti-corruption and anti-bribery policy has been established to prevent internal corruption and bribery situations[137] Employee and Shareholder Relations - The company recognizes employees as its most valuable asset and aims to provide competitive compensation and development opportunities[170] - The company encourages shareholder participation in decision-making processes, allowing shareholders to propose resolutions at general meetings[158] - The company has reserves available for distribution to shareholders amounting to RMB 248,146,000 as of December 31, 2024, down from RMB 256,421,000 in 2023[180] Financial Position - As of December 31, 2024, the company's bank and other borrowings amounted to approximately RMB 400.9 million, down from RMB 421.2 million in 2023, with a net cash position reflected in a net debt-to-equity ratio of approximately -10.3%[70] - Capital expenditure for the year ending December 31, 2024, was approximately RMB 1.2 million, significantly lower than RMB 7.0 million in 2023[71] - The company maintained a strong liquidity position, with cash and bank balances of approximately RMB 526.3 million as of December 31, 2024, compared to RMB 524.7 million in 2023[77] Market and Sales Dynamics - The average monthly silver price in 2024 is expected to fluctuate, impacting the group's manufacturing and retail strategies[27] - The group’s top five suppliers accounted for about 51.9% of total purchases for the year ending December 31, 2024, an increase from 48.9% in 2023[176] - The largest supplier represented 24.0% of total purchases for the year ending December 31, 2024, up from 13.4% in 2023[176]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenues of $349.1 million, a decrease of 2.3% from $359.3 million in 2023[10] - Gross profit for 2024 was $216.7 million, resulting in a gross margin of 62.1%, up from 61.1% in 2023[10] - The company achieved a net profit of $28.8 million for 2024, with a net profit margin of 8.2%, down from 9.2% in the previous year[10] - In 2024, the total revenue for the company reached $349.1 million, a decrease of 2.8% compared to 2023, primarily due to challenging economic conditions in North America and Latin America[32] - Gross profit decreased from $219.5 million in 2023 to $216.7 million in 2024, with a gross margin improvement to 62.1%, up from 61.1% in the previous year[33] - Net profit for the period was $28.8 million, a decrease of 12.6%, resulting in a net profit margin decline from 9.2% to 8.2%[33] - Adjusted net profit decreased by 22.3% from $36.9 million in 2023 to $28.7 million in 2024, with an adjusted net profit margin of 8.2%[80] Assets and Liabilities - Total assets increased to $627.3 million in 2024, compared to $613.5 million in 2023, while total liabilities slightly decreased to $142.5 million[11] - As of December 31, 2024, cash and cash equivalents exceeded total debt, indicating no leverage ratio was presented[82] - Total interest-bearing bank and other borrowings amounted to $4.8 million as of December 31, 2024, compared to $4.4 million in 2023[85] Revenue by Region - The Asia-Pacific region generated $116.2 million in revenue, reflecting a 6.0% increase year-over-year, while Europe and the Middle East & Africa reported revenues of $50.5 million and $34.6 million, growing 0.7% and 27.1% respectively[20] - North America revenue fell by 12.4% to $137.4 million, primarily due to the impact of high interest rates on financing costs for customers[69] - Asia-Pacific revenue increased by 6.0% to $116.2 million, driven by the successful implementation of the "Go-Direct" strategy and expansion of operations in Thailand, China, and Japan[69] Product Development and Innovation - The company received approval for its injectable botulinum toxin product DAXXIFY® in China, expected to launch in 2025, enhancing its growth potential[15] - The company is focusing on integrating AI technologies into its offerings, launching the Alma IQ™ skin analysis solution to provide comprehensive beauty health solutions[15] - The company launched three new products, including Alma Harmony™, Soprano Titanium™ special edition, and Alma IQ™, which received strong market recognition[41] - The company successfully launched Profhilo® in Thailand, showcasing its ability to integrate injection fillers with energy-based devices for combined treatment solutions[27] - The new generation hyaluronic acid complex Profhilo® received approval from the Hainan Provincial Drug Administration in April 2024, crucial for its commercialization in mainland China[43] Sales and Distribution - Direct sales accounted for 87% of total revenue, while distribution contributed 13%, demonstrating the effectiveness of the company's strategy in a challenging macro environment[22] - The gross profit from direct sales accounted for 87% of total revenue, compared to 78% in the same period last year[33] - The company achieved a nearly 20% growth in direct sales offices outside North America, balancing revenue performance amid regional challenges[32] Strategic Initiatives - The company aims to enhance its core business profitability and accelerate the commercialization of key products in 2024[17] - The company is pursuing a localization strategy to better meet local market demands through integrated production, research, and sales[16] - The company is strategically investing in expanding its ecosystem through diversified business lines and consumer brands[38] - The company is pursuing mergers and acquisitions to enhance its R&D capabilities and product portfolio[60] Corporate Governance - The board consists of a balanced mix of executive and non-executive directors, ensuring strong independence and effective decision-making[175] - The company’s board is collectively responsible for overseeing the business and ensuring effective internal controls and risk management systems[185] - The board has the authority to make decisions on significant matters, including policies, strategies, and major transactions[186] - The company emphasizes compliance with regulatory requirements and has allocated resources to ensure ongoing adherence to relevant rules and regulations[162] Employee and Workforce - Employee headcount decreased by 5.9%, resulting in a reduction of 64 employees, totaling 1,015 employees as of December 31, 2024[109] - Research and development activities were conducted by 84 employees, accounting for 23.6% of the total workforce[110] - The company has a robust employee training program to enhance understanding of market and industry developments, ensuring a competitive work environment[166] Environmental and Social Responsibility - The company is committed to environmental sustainability and has implemented measures to improve manufacturing and development environmental performance, including reducing carbon emissions[163] Financial Management - Cash flow from operating activities, investing activities, and financing activities was utilized for operational needs, interest payments, and capital expenditures[88] - Net cash flow from operating activities for the reporting period was $33.1 million, a decrease of 24.7% compared to the previous year[91] - Capital expenditures for the reporting period amounted to $2.7 million, primarily for the renovation of leased properties[94] Shareholder Information - Major shareholders include Meizhong Huli with 127,318,640 shares (27.18%) and Nengyue with 207,186,160 shares (44.24%)[139] - The company reported a final dividend of HKD 0.126 per share for the year ended December 31, 2024[114] Compliance and Legal Matters - The company has not been involved in any significant litigation or arbitration as of December 31, 2024[165] - The company has complied with all disclosure requirements under Chapter 14A of the listing rules during the reporting period[155]

Financial Performance - Revenue for the year 2024 decreased to HK$247.1 million, down 13.1% from HK$284.1 million in 2023[28] - Gross profit for 2024 was HK$164.4 million, a decline of 14.4% compared to HK$192.1 million in 2023[28] - The company reported a loss for the year of HK$11.5 million, worsening from a loss of HK$9.5 million in 2023[28] - Loss attributable to owners of the Company was HK$9.8 million in 2024, compared to a loss of HK$4.6 million in 2023[28] - The Group's revenue for the year ended 31 December 2024 decreased by approximately 13.0% compared to the same period in 2023, resulting in a loss attributable to the owners of approximately HK$9.8 million[37] - The gross profit margin for 2024 was 66.6%, down from 67.6% in 2023[33] - The net loss margin for 2024 was -4.7%, compared to -3.3% in 2023[33] - Self-operated retail sales decreased by 7.9% to HK$186.3 million, accounting for 75.4% of total revenue[85] - E-sales dropped significantly by 35.6% to HK$28.8 million, reflecting limited livestream sales activities in Mainland China[85] - Revenue from distributors fell by 24.6% to HK$13.3 million, primarily due to a challenging operating environment in Mainland China and Macau[85] - Proprietary brands revenue decreased by 16.4% to HK$198.8 million, while licensed and authorized brands increased by 5.0% to HK$47.3 million[87] - Revenue from Hong Kong and Macau declined by 8.1% to HK$186.5 million, driven by weak consumer sentiment[97] - Revenue from Mainland China decreased by 25.7% to HK$59.9 million, attributed to reduced retail sales and limited livestream sales[97] Operational Insights - The Group operates 155 points-of-sale (POS) across 34 cities in the Greater China Region[16] - The distribution network includes 111 self-operated POS, primarily located in Hong Kong and southern Mainland China[21] - The Group's product categories include bed linens, duvets, pillows, and home accessories, targeting premium markets[5] - The Group plans to launch the new "7A Function" product under the "CASA-V" brand in 2025, featuring enhanced health and antibacterial properties[41] - The livestream sales subsidiary in Mainland China will resume full operations in 2025 after a change of shareholders, expected to drive revenue growth[42] - The Group's livestream sales business, Casa Living, was not fully operational for most of the Year due to shareholder litigation and changes[52] - The Group's new product, the "7A function" product under the "CASA-V" brand, aims to enhance sleep quality with upgraded health features[45] - The Group aims to enhance its wholesale business in Mainland China, targeting nationwide corporations and providing uniquely designed bedding products[71][74] Market and Consumer Trends - In 2024, the total retail sales of social consumer goods in Mainland China reached RMB 48.8 trillion, representing a year-on-year growth of 3.5%[48] - The Group remains optimistic about the long-term future despite challenges in the retail environment, supported by government measures to boost consumption[45] - The Group's sales to other customers decreased by 4.1% year-on-year due to a challenging business environment in Hong Kong[57] - Sales from distribution for the Review Period decreased by 24.6% year-on-year, reflecting a challenging retail environment[54] - The Group's branding efforts have been recognized with awards for "Shenzhen Well-known Brand" and "Bay Area Well-known Brand" during the review period[69] - The reinstatement of the "Multiple Entry Permit" policy for Shenzhen residents visiting Hong Kong is expected to boost local consumer sentiment and retail sector development[68] Strategic Initiatives - Future strategies may involve market expansion and enhancement of product offerings to recover from recent losses[28] - The Group plans to continue focusing on high-quality sleep products designed with "fashion, creativity, and functionality" to meet consumer needs[45] - The Group's new product launches and brand promotions are part of a strategy to strengthen its market position and consumer engagement[63] - The Group will allocate additional resources to marketing for its online business to optimize retail operations on traditional e-commerce platforms[72][74] - The Group is developing sales through new media and wholesale businesses to mitigate operational risks associated with over-reliance on physical retail in Hong Kong and Mainland China[200] Financial Position and Ratios - Total assets as of 31 December 2024 were HK$448,366,000, a decrease from HK$466,275,000 in 2023[30] - The current ratio improved slightly to 3.4 in 2024 from 3.3 in 2023, indicating strong liquidity[33] - The Group has maintained a gearing ratio of 0.9% in 2024, indicating low financial leverage[33] - The inventory turnover days increased to 250.6 days in 2024 from 235.0 days in 2023, suggesting slower inventory movement[33] - The Group recorded a net tax credit of HK$1.1 million for 2024, with an effective tax rate of -4.9% for 2023 due to operating losses in PRC subsidiaries[105] - Total liabilities decreased by 2.2% to HK$83.7 million in 2024 from HK$85.5 million in 2023[121] - Total equity declined by 4.2% to HK$364.7 million as of December 31, 2024, compared to HK$380.8 million in 2023[121] Management and Governance - The company has a strong board of directors with diverse expertise in finance, management, and consumer products, enhancing strategic decision-making capabilities[179] - The management team includes members with advanced degrees in business administration and governance, contributing to effective corporate governance[181] - The company emphasizes the importance of financial reporting and compliance, with a dedicated team overseeing these functions[185] - The company is focused on strategic planning, particularly in procurement and sales management in Hong Kong, led by experienced executives[177] Challenges and Risks - The Group's revenue from Hong Kong declined due to sluggish economic conditions and a trend of increased saving among consumers, with no significant change in travel habits[193][198] - The Group maintains a cautious optimism regarding the consumption potential in the Greater China region, despite anticipated challenges from increased tariffs on imports[70] - RMB depreciated by approximately 3.3% against HKD in 2024, which may impact the Group's performance[136]

Financial Performance - Total revenue for 2024 is RMB 1,160.3 billion, a decrease of 8.2% compared to 2023[23] - Net profit attributable to shareholders for 2024 is RMB 27.9 billion, down 16.7% from 2023[23] - Basic earnings per share for 2024 is RMB 1.085, reflecting a decrease of 16.2% year-on-year[23] - The company’s gross profit for 2024 is RMB 110.2 billion, a decline of 10.2% from the previous year[23] - The company’s operating profit before tax decreased by 14.6% to RMB 40.6 billion in 2024[23] - The net profit for 2024 was CNY 30.76 billion, down 18.3% year-on-year, with profit attributable to shareholders decreasing by 16.7% to CNY 27.89 billion[117][134] - The company's gross profit for 2024 was CNY 110.23 billion, representing a gross margin of 9.5%, down from 9.7% in 2023[120] - The EBITDA of the group was 72.29 billion yuan, down 5.5% year-on-year[78] Assets and Liabilities - Total assets increased by 23.3% to RMB 2,256.3 billion in 2024 compared to 2023[24] - Total liabilities rose by 27.5% to RMB 1,746.3 billion in 2024 compared to 2023[24] - The company’s current assets increased by 25.7% to RMB 1,264.1 billion in 2024[24] - The company’s non-current assets grew by 20.5% to RMB 992.2 billion in 2024[24] Shareholder Information - The total number of shares decreased from 24,752,195,983 to 24,741,865,118 due to the repurchase and cancellation of restricted stocks[34] - The largest shareholder, China Railway Corporation, holds 11,623,119,890 shares, representing 46.98% of total shares[46] - The total number of common stock shareholders as of the end of the reporting period is 464,569[45] - The company has seen a decrease of 28,017,126 shares held by Hong Kong Central Clearing Limited during the reporting period[46] Business Strategy and Development - The company aims to enhance its core competitiveness and contribute to national strategies amidst a complex external environment[27] - The company aims to anchor its strategy on "efficiency improvement and value creation" for 2025, focusing on technological innovation and modern industrial system development[32] - The company is focusing on high-quality development and has made significant progress in key projects such as the Salt-Yi and Tong-Su-Jia-Ning railways[80] - The company is expanding its research into future industries, with five projects underway in areas such as deep-sea tunnels and human living environments[31] Market and Industry Trends - In 2024, the total output value of the construction industry in China is projected to reach RMB 32,650.11 billion, with a year-on-year growth of 3.85%[68] - The new signed contract amount for the construction industry in 2024 is expected to be RMB 33,750.05 billion, a decrease of 5.29% year-on-year[68] - The new signed contract amount for overseas engineering projects is projected to be USD 267.3 billion in 2024, with a year-on-year growth of 1.1%[69] Innovation and Technology - The company has achieved significant progress in innovation, with 12 management innovation results recognized as national modern enterprise management innovations[31] - The company is focusing on technological advancements and the application of new technologies such as AI and big data in the design consulting sector, which is expected to open new business opportunities[70] - The group has developed key technologies in various fields, achieving international leading standards in 51 projects[106] Social Responsibility and Environmental Commitment - The company has been awarded first prize in 10 projects for green construction technology by the China Construction Industry Association, highlighting its commitment to energy conservation and environmental protection[32] - The company has engaged in significant social responsibility efforts, including participation in wetland restoration and disaster relief operations, receiving praise from various governmental and social entities[32] Financial Management and Risks - The company faces various business risks, including real estate investment risk, international operation risk, infrastructure investment risk, and cash flow risk[166] - The company reported floating-rate borrowings of RMB 302.796 billion in 2024, compared to RMB 253.718 billion in 2023[160] - The company's debt-to-asset ratio was 77.4% as of December 31, 2024, an increase of 2.5 percentage points from 74.9% in 2023[164] Leadership and Governance - 任鸿鹏 has held various leadership positions within the company, including Vice President and Party Committee Member since November 2023[198] - The company emphasizes the importance of party leadership in its corporate governance structure[198] - The company is committed to enhancing its market position through strategic leadership and management practices[200]

Regulatory Approvals and Clinical Trials - The company has received regulatory approvals for its Claudin18.2 antibody osemitamab (TST001) from the US FDA, China's NMPA, and Korea's MFDS, entering a critical development phase for global Phase 3 trials[9] - The Phase II data presented at ASCO 2024 and ESMO 2024 showed promising efficacy of osemitamab (TST001) in combination with nivolumab and CAPOX for first-line treatment of advanced G/GEJ cancer patients[9] - The company achieved key regulatory approvals for its lead oncology asset, osemitamab (TST001), from the FDA, NMPA, and MFDS for the treatment of gastric cancer[19] - The global Phase III trial (TranStar301) for Osemitamab (TST001) has received approvals from the FDA, China's NMPA, and South Korea's MFDS for use in first-line treatment of Claudin18.2 expressing gastric cancer[47] - The company has received IND approval for the Phase II study of blosozumab (TST002) in China, aimed at verifying efficacy and tolerability[80] - The company has successfully held an FDA Type C meeting to agree on comparability strategies for the late-stage development and final registration filing of osemitamab (TST001)[94] Pipeline Development and Research - The company showcased compelling data from the Phase I trial of blosozumab (TST002) at the WCO-IOF-ESCEO conference, indicating significant improvements in bone density for osteoporosis patients[10] - The Chinese National Medical Products Administration has approved blosozumab (TST002) for Phase II clinical trials, indicating progress in the company's pipeline[10] - The company is advancing a novel antibody-drug conjugate (ADC) targeting LIV-1 for triple-negative breast cancer treatment, demonstrating good anti-tumor activity[10] - The company initiated preparatory studies for TST801, a dual-function antibody fusion protein targeting BAFF and TACI, with potential applications in autoimmune diseases[21] - The company has developed a diverse pipeline of 15 candidates targeting oncology, bone disorders, and kidney diseases, with all but one candidate developed internally[43] - TST003, a first-in-class humanized anti-GREMLIN-1 antibody, is currently undergoing global first-in-human trials[55] - TST012, an ADC candidate targeting FGFR2b, is in the preclinical stage and aims to complement the gastric cancer strategy with Osemitamab (TST001)[56] - TST105, a bispecific ADC candidate targeting FGFR2b and an undisclosed tumor antigen, is also in the preclinical stage, focusing on improving treatment windows for solid tumors[57] - The company is focusing on non-oncology projects addressing significant medical needs in bone and kidney diseases, with several candidates in development[62] Financial Performance - Revenue decreased from RMB 53.8 million for the year ended December 31, 2023, to RMB 11.3 million for the year ending December 31, 2024, primarily due to a reduction in CDMO services[17] - Other income decreased from RMB 37.3 million for the year ended December 31, 2023, to RMB 23.5 million for the year ending December 31, 2024, mainly due to a decrease in interest income and government grants[17] - R&D expenses decreased from RMB 382.0 million for the year ended December 31, 2023, to RMB 192.1 million for the year ending December 31, 2024, attributed to the advancement of key pipelines and resource reallocation[17] - Administrative and selling expenses decreased from RMB 117.4 million for the year ended December 31, 2023, to RMB 70.5 million for the year ending December 31, 2024, primarily due to reduced labor costs and professional services[17] - Adjusted loss and total comprehensive expenses decreased from RMB 437.3 million for the year ended December 31, 2023, to RMB 270.4 million for the year ending December 31, 2024, due to reallocation of R&D investments and reduced costs[17] - The company reported a net loss of RMB (290,292) thousand for the year ended December 31, 2024, compared to a net loss of RMB (462,570) thousand for the year ended December 31, 2023[114] Partnerships and Collaborations - The company aims to establish partnerships to maximize the potential of its pipeline molecules, focusing on core products[11] - The company is actively engaging potential partners to support the global development and commercialization of osemitamab (TST001), having received milestone payments from a research collaboration partner[36] - The company has established strategic collaborations with renowned academic institutions for translational research on multiple projects, enhancing its global leadership in Claudin18.2 targeted combination therapies[89] - The company is exploring global partnerships for supply of perfusion and feeding batch culture media[150] - The company is in discussions with several domestic pharmaceutical companies for collaboration on the development and commercialization of blosozumab (TST002) in the Greater China region[81] Intellectual Property and Patents - The company has secured patents for Claudin18.2 in China and Russia, with plans to obtain a Hong Kong patent in 2025[9] - The company successfully obtained a patent for Claudin18.2 from the National Intellectual Property Administration of China in August 2024 and from the Russian Federal Intellectual Property Office in November 2024[27] - The company has received a patent for Claudin18.2 in Hong Kong as of March 2025[102] Operational Efficiency and Cost Management - The company aims to enhance operational efficiency and reduce costs to improve competitiveness[111] - The company plans to develop a lyophilization technology to better serve customers[111] - The company has expanded its CDMO services, including the development of new generation perfusion media and lyophilization technology to support both internal and external projects[39] - The company has acquired lyophilization technology and optimized the development of lyophilization cycles to support both internal and external CDMO client plans[94] Market Strategy and Future Outlook - The company plans to continue expanding its product line and explore partnership opportunities to maximize the commercial value of its pipeline assets[113] - The company is actively seeking collaborations to support its global development strategy and enhance its product and technology platforms[109] - The company expects potential collaborations to advance its leading asset, osemitamab (TST001), into a global Phase III trial for CLDN18.2 positive gastric cancer, marking a key step in establishing it as a foundational treatment for various solid tumors[111] Risk Management and Compliance - The company faces significant risks including the ability to identify new drug candidates and complete clinical development successfully[168] - The company is committed to fulfilling social responsibilities and promoting sustainable growth while adhering to environmental protection laws and regulations[167] - The company has not been involved in any major disputes with customers or suppliers during the reporting period[178]

Acquisitions and Business Expansion - The company completed the acquisition of CC Bong Logistics Limited and Mouton Investment Limited, enhancing its coal supply chain platform and operational efficiency[9]. - The company acquired Shanxi Magao Supply Chain Management Co., which has a coal storage capacity of 250,000 tons, enhancing its supply chain capabilities[18]. - The company also acquired Changzhi Desheng Coal Storage and Distribution Co., which is expected to have a total storage capacity of 1 million tons of coal[19]. - The company completed acquisitions of CC Bong HK and Mouton HK, enhancing its coal supply chain capabilities with a total storage capacity of 1.12 million tons[26]. - The acquisition of CC Bong HK was completed for a total consideration of HKD 100 million, with HKD 62.64 million paid through the issuance of 156,600,000 new shares at HKD 0.40 per share and the remaining HKD 37.36 million settled via an unsecured promissory note[37]. - The acquisition of Mouton Investment Limited was finalized for HKD 35.2 million, with 73,333,333 new shares issued at approximately HKD 0.48 per share, facilitating the integration of existing coal storage and specialized equipment[41]. - The company acquired 100% of the issued share capital of CC Bong Logistics Limited and Mouton Investment Limited through its wholly-owned subsidiary, Runce Limited[91]. Financial Performance - Operating revenue for coal mining and washing industries was approximately RMB 3,160.33 billion, a year-on-year decrease of 11.1%[15]. - Operating profit for the coal mining and washing industries was approximately RMB 604.64 billion, a year-on-year decrease of 22.2%[15]. - The coal business segment contributed approximately RMB 4.03 billion in revenue for the year, an increase from RMB 2.85 billion in the previous year[20]. - Revenue increased from approximately RMB 2.86 billion in the previous year to about RMB 4.03 billion, reflecting a growth rate of 41.4%[25]. - The cost of sales rose by approximately 44.3% year-on-year, from RMB 2.64 billion to RMB 3.81 billion, primarily due to increased coal sales[25]. - The company recorded a gross profit of approximately RMB 222.7 million, maintaining relative stability compared to the previous year, although the gross margin decreased[25]. - Administrative expenses increased to approximately RMB 604 million from RMB 404 million in the previous year, mainly due to higher salary levels and staff numbers[29]. - Other income decreased to approximately RMB 96 million from RMB 316 million in the previous year, primarily due to reduced government subsidies and foreign exchange gains[30]. - The company incurred other operating losses of approximately RMB 205 million, mainly due to expected credit losses on financial assets[32]. - Financial costs netted approximately RMB 45 million, a shift from net financial income of RMB 55 million in the previous year[33]. - Income tax expenses for the year were approximately RMB 258 million, down from RMB 311 million in the previous year[34]. - The company sold 95% of its equity in Hami Jinhua for RMB 94 million, recording a gain of approximately RMB 18.34 million from the sale[24]. Market and Economic Environment - China's GDP grew approximately 5.0% year-on-year, indicating a positive economic environment for coal demand[11]. - In 2024, China's raw coal production reached about 440 million tons, a year-on-year increase of approximately 4.2%[13]. - Coal imports in 2024 amounted to approximately 54.3 million tons, reflecting a year-on-year increase of 14.4%[13]. - The coal industry remains a typical cyclical industry, closely linked to economic growth and energy production stability[11]. - In the current year, China's electricity generation reached approximately 1,008.69 billion kWh, representing a year-on-year growth of about 6.7%[16]. - The production of pig iron in China was approximately 852 million tons, a year-on-year decrease of 2.3%[16]. - Cement production in China fell to 1.825 billion tons, a year-on-year decline of 9.5%, marking the lowest level since 2010[16]. - The steel export volume increased by 22.7% year-on-year, indicating a strong demand in international markets[16]. - The average price of imported coal decreased by 0.7% in 2024, with the price per ton dropping to approximately RMB 682.7[69]. - Non-electric demand for coal is anticipated to grow, with chemical coal demand expected to reach 37 million tons in 2025, a year-on-year increase of 8%[64]. Strategic Focus and Future Plans - The company aims to enhance its competitiveness by providing additional storage and blending services to its customers[10]. - The company is actively seeking opportunities to develop its coal business through value-added acquisitions and strategic resource reallocation[20]. - The company plans to enhance its coal trade and supply chain services, leveraging its strengths in financing, technology, and operational excellence to explore new opportunities in the coal industry[70]. - The company has initiated photovoltaic project development to promote low-carbon transformation and integrate coal-based energy with green energy[70]. - The company has allocated more resources to develop its coal business since 2021, which has become its strategic business segment[91]. - The company has continued to diversify its operations into coal storage services during the current fiscal year[91]. Governance and Management - The management team includes experienced professionals with backgrounds in finance, investment, and management, enhancing the company's strategic capabilities[73][74][76][78][80]. - The company has a strong focus on asset management and investment strategies, with key personnel involved in significant financial projects and acquisitions[76][80]. - The board of directors includes individuals with significant experience in mergers and acquisitions, which may facilitate future growth opportunities[76][80]. - The company has appointed independent non-executive directors to ensure governance and oversight, reflecting a commitment to corporate responsibility[74][81]. - The board consists of eight directors, including four executive directors and three independent non-executive directors[156]. - The board of directors held 4 meetings during the year, in compliance with the code's requirement of at least four meetings annually[163]. - The company has established a mechanism to ensure independent viewpoints are provided to the board, including hiring legal advisors for compliance with Chinese and Hong Kong regulations[160]. - The company has adopted policies to ensure all business transactions comply strictly with relevant laws and regulations[160]. - The company has established a risk management framework to identify and manage significant risks affecting its operations[189]. - The company has engaged external legal advisors to provide ongoing advice on relevant laws and regulations affecting its operations in China and Hong Kong[190]. Shareholder Information - The company does not recommend any final dividend for the year[108]. - As of December 31, 2024, the company's distributable reserves amount to approximately RMB 275.7 million[109]. - Major shareholders include Mr. Feng Yuan Tao with 306,522,040 shares (14.57%) and Mr. Bong Chin Chung with 242,419,957 shares (11.53%) as of December 31, 2024[142]. - Tian Yuan International Limited holds 521,000,000 shares, representing 24.77% of the total issued share capital[139]. - Fu Lian Holdings Limited holds 137,792,017 shares, representing 6.55% of the total issued share capital[139]. - The company has established a dividend policy that outlines factors determining dividend payments, long-term profitability, and expected cash flows[200]. Risk Factors - The coal business is subject to various regulatory risks, including health, safety, and environmental regulations[97]. - Financial risks include market, credit, and liquidity risks, which could impact the company's operations and financial performance[97]. - The company has established a risk management framework, including continuous monitoring and reporting to the board of directors[190]. - The internal compliance officer will report directly to the board to ensure operations comply with applicable laws and regulations[190]. - The company has adopted internal control and risk management procedures to help achieve business objectives and safeguard assets[188]. Employee Information - As of December 31, 2024, the company employed 999 staff, an increase from 819 staff as of December 31, 2023, with total employee costs amounting to RMB 898 million, up from RMB 858 million in the previous year[61].

Financial Performance - Revenue increased by 11.8% to approximately HK$2,311.3 million for the year ended December 31, 2024, compared to approximately HK$2,067.3 million for the previous year[13]. - Gross profit rose by 15.6% to approximately HK$579.9 million, up from approximately HK$501.7 million in the prior year[13]. - Gross profit margin improved by 0.8 percentage points to 25.1%, compared to 24.3% for the year ended December 31, 2023[13]. - Operating profit was approximately HK$173.7 million, an increase from approximately HK$144.1 million in the previous year[13]. - Profit attributable to owners of the Company was approximately HK$143.2 million, compared to approximately HK$104.2 million for the year ended December 31, 2023[13]. - Profit before income tax for the year was approximately HK$177.6 million, compared to HK$144.1 million in the previous year[15]. - Profit for the year was approximately HK$139.1 million, compared to HK$95.6 million for the previous year[15]. - Basic earnings per share attributable to owners of the Company for 2024 were HK$19.8 cents, reflecting a 37.5% increase from the previous year[20]. - The Group's total revenue increased by 11.8% to approximately HK$2,311.3 million, compared to HK$2,067.3 million for the year ended December 31, 2023[40]. - Profit attributable to owners of the Company for the year ended December 31, 2024, was approximately HK$143.2 million, up from HK$104.2 million in the previous year, representing a growth of 37.4%[44]. - Basic and diluted earnings per share attributable to owners of the Company for the year ended December 31, 2024, were both HK19.8 cents, compared to HK14.4 cents for the year ended December 31, 2023, reflecting a 37.5% increase[45]. Dividends - A proposed final dividend of HK7.0 cents per share was recommended, along with an interim dividend of HK3.0 cents per share, totaling HK10.0 cents per share for the year[13]. - The annual dividend payout ratio increased to 50.5%, up from 48.6% for the year ended December 31, 2023[13]. - The proposed final dividend for the year ended December 31, 2024, is HK7.0 cents per share, an increase from HK5.0 cents per share in the previous year, with total expected dividends of HK10.0 cents per share for 2024[46]. - The Group's distributable reserves amounted to approximately HK$985.3 million as of December 31, 2024[165]. - The Board intends to balance sufficient capital for business growth with rewarding shareholders through dividends[128]. - The Company reserves the right to change its dividend payment plans based on various factors including earnings and financial condition[134]. Business Operations - The hospitality supplies business contributed approximately HK$1,930.1 million to total revenue in 2024, up from HK$1,697.2 million in 2023[25]. - The Group is pursuing a supply chain diversification strategy, including production lines in Cambodia, to reduce costs and enhance efficiency[29]. - The Group plans to optimize its supply chain structure and explore opportunities in Southeast Asia to leverage cost benefits associated with regional low tariff policies[29]. - The Group's hospitality supplies business generated approximately HK$1,930.1 million in revenue, accounting for 83.5% of total revenue, compared to 82.1% in the previous year[40]. - The Group is focusing on supply chain diversification to enhance operational resilience and capitalize on opportunities in Southeast Asia[39]. - The Group aims to enhance its production capabilities in Cambodia to achieve greater cost efficiency and leverage local tax policies for market expansion[97]. - The Group plans to optimize product categories and quality standards in the OS&E business and explore growth opportunities in Southeast Asia[85]. Market Trends - The global tourism industry is showing signs of recovery, with 1.4 billion international tourist arrivals recorded in 2024, indicating a rebound from the COVID-19 pandemic[24]. - The Group maintains a cautiously optimistic outlook on the future of the tourism industry, despite ongoing global economic uncertainties[30]. - An estimated 1.4 billion international tourists traveled in 2024, indicating a 99% recovery of pre-pandemic levels, representing an increase of 11% over 2023[73]. Financial Position - As of December 31, 2024, the Group's cash and cash equivalents amounted to approximately HK$328.6 million, down from HK$375.1 million as of December 31, 2023[48]. - The Group's net assets as of December 31, 2024, were approximately HK$1,263.3 million, an increase from HK$1,193.2 million as of December 31, 2023[49]. - The Group's total borrowings as at 31 December 2024 amounted to HK$26.1 million, a decrease from HK$49.2 million in 2023[60]. - The effective interest rate for secured bank borrowings remained at a floating rate of 1.7% per annum for both 2024 and 2023[57]. - The repayment terms indicate that borrowings within 1 year decreased to HK$14.6 million in 2024 from HK$22.8 million in 2023[60]. - The Group's foreign currency exposure primarily relates to Renminbi (RMB), with no foreign currency hedging policy currently in place[67]. - The carrying amounts of assets pledged as security for borrowings totaled HK$51.3 million as at 31 December 2024, down from HK$54.3 million in 2023[65]. - The Group has no material contingent liabilities as at 31 December 2024, consistent with the previous year[68]. Risk Management - The Group faces risks related to reliance on direct sales customers and distributors, which may affect business and profitability if purchase volumes decline[144]. - The Group is subject to price fluctuations of raw materials, which could adversely impact profits if costs cannot be managed[145]. - The Group's operations are influenced by various market risks, including currency fluctuations and liquidity risks[147]. - The Group emphasizes compliance with laws and regulations, which may incur significant expenditures if changes occur[152]. - The Group will continue to improve operational systems and enhance resource allocation efficiency to strengthen risk management[103]. Corporate Governance - The company has a strong executive team with extensive experience in the hospitality supplies industry and financial management[121]. - All Independent Non-Executive Directors have confirmed their independence in accordance with the Listing Rules[174]. - No significant transactions or contracts involving Directors or entities connected to them existed during the year ended December 31, 2024[182]. Strategic Initiatives - The Group aims for long-term and stable growth by aligning with trends in environmental-friendly production and circular economy development[31]. - The Group is committed to sustainability, focusing on environmental-friendly products and incorporating eco-friendly materials into production[98]. - The Group emphasizes long-term relationships with business partners by prioritizing high-quality products and exceptional services[99]. - The Group's strategic direction will be adjusted to capture market shares and solidify its leading position in the industry[103]. Management and Leadership - Mr. LIU Zigang has over 20 years of experience in the hospitality supplies industry and oversees sales in the Greater China Region[109]. - Mr. CHING Tsun Wah, with extensive experience in the hospitality supplies industry, oversees sales in Southeast Asia and overseas markets[110]. - Mr. KEUNG Kwok Hung has over 30 years of experience in accounting and financial management, serving as the Chief Financial Officer since 2014[113]. - Ms. CHAN Yim Ching has over 30 years of experience in the hospitality supplies industry and was responsible for export sales to overseas markets[114]. - Mr. HUNG Kam Hung Allan has over 30 years of senior management experience in hotel operations and investments, serving as an Independent Non-Executive Director since 2007[115]. - Mr. SUN Eric Yung Tson has been the managing director of Kin Hip Metal & Plastic Factory since 2006, focusing on positioning products in emerging markets[119]. - Mr. KWONG Tony Wan Kit has over 20 years of experience in accounting and financial management, currently serving as an Independent Non-Executive Director since 2021[120]. Cambodia Operations - The Group established a VIE Structure to exercise control over the operations of the Landholding Company due to foreign ownership restrictions in Cambodia[190]. - The Local Partner was replaced by Mr. CHING Tsun Wah, an Executive Director, as a shareholder of the Landholding Company on June 16, 2021[192]. - The Landholding Company remains a subsidiary of the Group, holding a land parcel and properties for investment purposes[193]. - The Group's business in Cambodia has matured and stabilized over time, with increased involvement from Mr. CHING Tsun Wah since 2018[194]. - Mr. CHING Tsun Wah holds 51% of the equity interests in the Landholding Company, while Ming Fai Holdings Limited holds 49%[198]. - The New Loan Agreement involves an interest-free loan of US$2,500,000 for the acquisition of 51% of the equity interests of the Landholding Company[200]. - The New Shareholders' Agreement and New Power of Attorney replace the previous agreements and establish a New VIE Structure[197]. - The change of local partner aims to better safeguard the interests of the Company in the Landholding Company[198]. - The New VIE Structure was established to ensure compliance with local regulations and enhance operational efficiency[199]. - The Group's business in Cambodia is gradually maturing and developing steadily[198].

Financial Performance - Total revenue and other income for the year reached RMB 34,778 million, an increase of 8.97% year-on-year[5] - Net profit attributable to the parent company was RMB 6,176 million, reflecting a year-on-year growth of 11.81%[5] - The total assets and equity of the group at year-end were RMB 697,597 million and RMB 133,349 million, respectively, representing year-on-year increases of 9.78% and 3.54%[5] - The return on equity (ROE) for the year was 5.08%, up by 0.36 percentage points year-on-year[5] - The operating expense ratio for the year was 56.80%, a decrease of 4.17 percentage points year-on-year[5] - The company reported a net profit of 1.5 billion yuan for the last quarter, representing a 20% increase year-over-year[43] - Profit before tax for 2024 was RMB 7,336,724 thousand, reflecting a growth of 20.43% from RMB 6,092,082 thousand in 2023[57] - Net profit attributable to shareholders for 2024 was RMB 5,210,662 thousand, up 13.12% from RMB 4,606,340 thousand in 2023[57] - The company's weighted average return on equity for 2024 was 5.08%, an increase of 0.36 percentage points from 4.72% in 2023[57] - The company's earnings per share for 2024 was RMB 0.21, representing a 16.67% increase from RMB 0.18 in 2023[57] Dividends and Shareholder Returns - The board proposed a cash dividend of RMB 0.46 per 10 shares, with a total dividend payout ratio of 30.27%[5] - The company plans to distribute a cash dividend of RMB 0.46 per 10 shares, totaling RMB 1,151,837,449.76, which represents 30.27% of the annual profit attributable to shareholders[22] - The total cash dividend for the year amounts to RMB 0.63 per 10 shares, with a total distribution of RMB 1,577,516,507.28[22] - The total number of shares for the dividend distribution is 25,039,944,560 shares as of December 31, 2024[22] Business Strategy and Development - The company aims to enhance its core competitiveness and achieve sustainable development by optimizing its top-level design and focusing on professional services[15] - The company plans to deepen financial technology empowerment and accelerate digital transformation to improve operational efficiency[17] - The company is focused on providing comprehensive financial services to support major national strategies and economic development[14] - The company aims to transform traditional brokerage services into wealth management services to expand its growth space[15] - The company is actively exploring market-oriented reforms to improve cost efficiency and operational effectiveness[17] - The company is committed to enhancing ESG management levels and promoting sustainable development[18] - The company is focused on enhancing risk management and compliance awareness among employees to avoid significant performance fluctuations[12] Technology and Innovation - The company launched the "Shencai Youdao" APP to enhance personal customer service experience and strengthen financial technology investment[9] - The company received 17 provincial-level financial technology awards and the second prize in the People's Bank of China's "2023 Financial Technology Development Award"[11] - Investment in R&D increased by 30%, focusing on innovative technologies and product development[43] - A strategic acquisition of a fintech startup was completed, expected to enhance service offerings and customer engagement[43] - The company introduced a new mobile app, which has already garnered 500,000 downloads within the first month[43] Market Position and Recognition - The company maintained a strong market position, leveraging its dual structure of "investment holding group + securities company" to enhance service offerings[70] - The company received multiple awards, including the "Best Practice Case for Investor Relations Management" and "Best Practice Case for Sustainable Development" in 2024[87] - The company was recognized as the "Best Bond Underwriter" and "Best Credit Bond Underwriter" in the 2024 New Fortune Best Investment Bank awards[99] - The company achieved significant recognition in the 2024 ESG awards, including "Best ESG Investment Bank" and "Best Investor Education Award" for its initiatives[99] Risk Management and Compliance - The company emphasizes the importance of understanding potential market, credit, liquidity, operational, policy, legal compliance, and innovation risks as outlined in the annual report[22] - The company emphasizes risk management, having established a comprehensive risk management system that meets regulatory requirements, ensuring healthy business development[133] Corporate Structure and Operations - The company operates through four subsidiaries providing securities services, including investment management and consulting[37] - The company has maintained its main business operations since its listing, with no changes reported[38] - The company is listed on both the Shenzhen Stock Exchange and the Hong Kong Stock Exchange[32] - The company’s business scope includes investment management, equity investment, and securities-related services[37] Future Outlook - The company expects revenue growth of 25% for the next fiscal year, driven by new product launches and market expansion[43] - Future guidance indicates a focus on sustainable practices, aiming for a 50% reduction in carbon emissions by 2025[43] - The company plans to focus on emerging industries and key technology sectors in 2025, enhancing its comprehensive financial service system[167] - The company aims to enhance its investment decision-making accuracy and post-investment management capabilities to improve the sustainability and stability of investment returns[167]

Financial Performance - For the year ended December 31, 2024, the Group reported revenue of RMB 1,212,949,000, a decrease of 2.8% compared to RMB 1,247,682,000 in 2023[18]. - Gross profit for the same period was RMB 354,906,000, reflecting a decline of 13.4% from RMB 409,739,000 in 2023, with a gross profit margin of 29.3%, down from 32.8%[18]. - Profit attributable to owners of the parent decreased by 77.8% to RMB 56,957,000, compared to RMB 257,048,000 in the previous year[18]. - The Group's total revenue decreased by approximately 2.8% from approximately RMB1,247.7 million in 2023 to approximately RMB1,212.9 million in 2024[77]. - Revenue from basic commercial property management services decreased by approximately 5.5% from RMB 262.5 million in 2023 to RMB 248.0 million in 2024, accounting for about 20.5% of total revenue[83]. - Revenue from other value-added services and rental income increased by approximately 7.4% from RMB 138.3 million in 2023 to RMB 148.5 million in 2024, accounting for about 12.2% of total revenue[84]. - Revenue from basic residential property management services increased by approximately 13.3% from RMB 621.0 million in 2023 to RMB 703.7 million in 2024, accounting for about 58.0% of total revenue[85]. - Other income and gains decreased significantly by approximately 48.9% from RMB 143.0 million in 2023 to RMB 73.1 million in 2024, mainly due to a decrease in bank interest income[92][97]. - Administrative expenses increased significantly by approximately 53.6% from RMB 193.0 million in 2023 to RMB 296.4 million in 2024, primarily due to impairment losses of trade receivables[93][98]. Assets and Liabilities - Total assets as of December 31, 2024, increased by 3.4% to RMB 3,512,406,000 from RMB 3,396,339,000 in 2023[20]. - Total liabilities increased by 8.1% to RMB 778,521,000 compared to RMB 719,886,000 in 2023[20]. - Total equity as of December 31, 2024, was RMB 2,733,885,000, a 2.1% increase from RMB 2,676,453,000 in 2023[20]. - As of December 31, 2024, the Group's total cash and bank balances amounted to RMB 1,299.8 million, an increase from RMB 1,157.4 million in 2023[103]. - The gearing ratio as of December 31, 2024, was nil, indicating no borrowings or pledged assets[105][106]. - As of December 31, 2024, the Group had no loans or contingent liabilities, maintaining a debt ratio of zero[107][110]. Operational Highlights - The Group managed a total contracted gross floor area of approximately 47.3 million sq.m. across 254 contracted projects as of December 31, 2024[6]. - The Group's services cover 60 cities across 19 provinces, municipalities, and autonomous regions in China[5]. - The total number of commercial properties under management as of December 31, 2024, was 17, including 15 SCE Funworld and 2 office buildings[28][30]. - The occupancy rate for the Group's commercial properties as of December 31, 2024, is 90.3%, slightly up from 90.2% in 2023[64]. - The total gross floor area (GFA) under management decreased to 1,862,911 sq.m. in 2024 from 2,025,676 sq.m. in 2023[64]. - The number of projects under management in the commercial segment decreased by two projects year-on-year, totaling 17 projects[57]. - The Group's GFA under management was approximately 32.5 million sq.m., representing a year-on-year increase of approximately 16.4%[71]. - The number of projects under management increased by 30 projects to a total of 203 projects[71]. Strategic Focus and Future Outlook - The Group anticipates that 2025 will present substantial opportunities for the retail sector, driven by refined management practices and the rise of young consumer groups[38]. - The Group's strategic focus includes cost reduction, increased efficiency, business integration, and deepening digitalization and supply chain integration[38]. - The Group aims to enhance operational efficiency through refined management and pursue growth opportunities via value innovation in response to industry challenges[42]. - The outlook for 2025 indicates continued opportunities in the retail sector, driven by the rise of young consumers seeking enhanced offline experiences[40]. - The Group's new business model, "Urban Outlet Mall," is entering a phase of scaled development, reflecting adaptation to changing consumer trends[67]. - The Group is targeting Generation Z with trendy commercial contents, including the "Largest Anime Space in Fujian" in the new mall[67]. Management and Governance - The Group's strategic planning and execution are overseen by Mr. Huang, who has been with the Group since 2010[146]. - The executive team collectively brings extensive experience from various sectors, enhancing the Group's operational capabilities and strategic direction[148][150][153]. - The Group's management structure includes various committees such as the Audit Committee and Remuneration Committee, ensuring effective governance[159][160]. - The company emphasizes the importance of independent directors in providing unbiased advice on operations and management[159][160]. - The company is committed to high standards of corporate governance to enhance operational efficiency and safeguard shareholder interests[171]. - The Board of Directors includes 5 executive directors and 3 independent non-executive directors, with Mr. Huang Youquan resigning on August 29, 2024[173]. Employee and Diversity - The total employee cost for the year was approximately RMB 537.4 million, a decrease from RMB 549.6 million in the previous year[115]. - The Group employed a total of 4,893 employees as of December 31, 2024, compared to 4,878 employees in the previous year[115]. - The Group recognizes the importance of gender diversity, with 3,180 male employees and 1,713 female employees as of December 31, 2024[115]. Environmental and Social Responsibility - The Group actively incorporates environmentally friendly practices into its operations, focusing on energy conservation and waste management[122]. - The Group has implemented a CRM Membership and Sales System to enhance customer satisfaction and loyalty in its shopping malls[128].