Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue from continuing operations in the jewelry new retail business was approximately RMB 157.6 million, a decrease from RMB 410.5 million in 2023[26]. - The profit attributable to owners from continuing operations was approximately RMB 3.7 million in 2024, a significant recovery from a loss of RMB 21.0 million in 2023[26]. - The overall gross margin for the company increased significantly to approximately 30.7% in 2024, compared to 9.0% in 2023[27]. - The company reported a revenue of approximately RMB 157.6 million for the year ended December 31, 2024, a significant decrease of about 61.6% compared to RMB 410.5 million in 2023, primarily due to a sharp decline in gold product sales[57]. - Silver product sales accounted for 87.3% of total revenue in 2024, generating RMB 137.6 million, while gold product sales dropped to 9.9% with revenue of RMB 15.6 million, down from 73.3% and RMB 300.7 million in 2023 respectively[58]. - The company's gross profit increased by approximately 31.1% to RMB 48.4 million in 2024, up from RMB 36.9 million in 2023, driven by higher sales of silver products which typically have a higher profit margin[61]. Business Strategy - The company plans to focus on high-margin silver jewelry and reduce sales of low-margin gold jewelry, leading to a turnaround in the core jewelry new retail business[27]. - The company is exploring suitable business opportunities within and outside the jewelry industry to diversify its business risks[27]. - The company aims to achieve strong business and profit growth in 2025 and beyond through strict cost control and restructuring measures[27]. - The company plans to enhance its core gold and silver jewelry business while seeking breakthroughs in product development and channel expansion following the divestment of its fresh food retail business[55]. - The company aims to transform into a significant gold resource enterprise with large-scale mining potential and has entered the semiconductor materials sector, which is expected to provide substantial profit growth opportunities[54]. Operational Changes - The total number of physical stores decreased from 16 in 2023 to 7 in 2024 as the group shifted its sales focus to online channels[28]. - The group strategically reduced marketing expenses for its cultivated diamond brand SISI, as the market for cultivated diamonds in China is still in its early development stage[30]. - The group completed the acquisition of 51% of Jiangxi Letong New Materials Co., Ltd., which owns 100% of Tibet Longtian Yong Mining Co., Ltd., enhancing its upstream business layout[48]. - The group completed the sale of 51% equity in Shenzhen Fresh Life Technology Co., which operates the fresh food retail business, on January 13, 2025[80]. Cost Management - The sales cost decreased significantly by approximately 70.8% from RMB 373.5 million in 2023 to RMB 109.2 million in 2024, mainly due to the decline in gold product sales[60]. - Sales and distribution expenses decreased by approximately 21.6% from RMB 198 million for the year ended December 31, 2023, to about RMB 155 million for the year ending December 31, 2024[63]. - Administrative expenses reduced by approximately 14.8% from RMB 277 million for the year ended December 31, 2023, to about RMB 236 million for the year ending December 31, 2024, due to cost control measures[64]. Corporate Governance - The company has adopted the corporate governance code and has complied with its provisions, except for the separation of the roles of chairman and CEO[92][93]. - The board consists of three executive directors and three independent non-executive directors as of the report date[101]. - The company aims to provide satisfactory and sustainable returns to shareholders while safeguarding the interests of business partners[95]. - The board regularly reviews the performance of directors to ensure they contribute adequately to the company's responsibilities[99]. - The company has established a whistleblowing policy allowing employees and stakeholders to report misconduct confidentially and anonymously[144]. Risk Management - The company faces various strategic, legal, compliance, third-party, and operational risks that could adversely affect its performance and operations[142]. - The company has established compliance and risk management policies to monitor adherence to significant legal and regulatory requirements, with no major violations reported for the year ending December 31, 2024[177]. - The audit committee is responsible for reviewing and monitoring the financial reporting process and the effectiveness of risk management and internal control systems[130]. - The company has established a risk management team to assist the board and audit committee in monitoring the effectiveness of its risk management and internal control systems[135]. Employee Relations - The group recognizes employees as its most valuable asset and aims to provide competitive compensation and development opportunities[180]. - The company has adopted two employee share ownership plans as a reward for eligible employees, with all shares granted and fully vested[197]. - Both employee stock ownership plans aim to align the interests of participants with those of the company and enhance employee motivation[199][200]. Shareholder Communication - The company has established a shareholder communication policy to ensure timely and transparent communication with shareholders[161]. - The board has conducted a satisfactory review of the execution and effectiveness of the shareholder communication policy[162]. - The company has adopted a dividend policy without a predetermined payout ratio, allowing the board to propose dividends based on financial conditions[169].

Financial Performance - The group's total revenue for the reporting period was approximately HKD 227.8 million, a slight decrease of about 3.3% compared to HKD 235.5 million in the previous year[8]. - The profit for the year was approximately HKD 18.7 million, representing a decrease of about 14.5% from HKD 21.9 million in the previous year[8]. - Revenue from the Chinese market was approximately HKD 201.9 million, down from HKD 210.8 million in the previous year[17]. - The sales cost for the reporting period was approximately HKD 166.3 million, accounting for about 73.0% of the total revenue, an increase of approximately 2.6% from 70.4% in the previous year[18]. - Other income and gains for the reporting period amounted to approximately HKD 11.1 million, an increase of about 10.1% compared to HKD 10.1 million in 2023, primarily due to increased waste sales and investment income[19]. - Net profit for the reporting period was approximately HKD 18.7 million, a decrease of about 14.5% from HKD 21.9 million in 2023, with a net profit margin of approximately 8.2% compared to 9.3% in 2023[22]. - Current assets as of December 31, 2024, were approximately HKD 109.4 million, down from HKD 124.2 million in 2023, with cash and cash equivalents at HKD 30.6 million compared to HKD 39.5 million in 2023[24]. - The company anticipates a slight decline in revenue for 2024 due to weak domestic demand and low consumer confidence in China[10]. Operational Efficiency - The company will continue to optimize production efficiency and reduce costs through improved production processes[11]. - Sales and distribution expenses decreased to approximately HKD 4.4 million, down about 10.7% from HKD 4.9 million in 2023, attributed to strict cost control measures[20]. - Employee costs for the reporting period were approximately HKD 34.3 million, up from HKD 32.9 million in 2023, with a total of 269 employees[34]. - The company had no major investments during the reporting period, consistent with the previous year[36]. Corporate Governance - The company has adopted and complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[43]. - The board consists of two executive directors and three independent non-executive directors, ensuring high independence and effective decision-making[52]. - The company has adopted a formal and transparent "Director Nomination Procedure" for evaluating and selecting board candidates, with all directors required to retire at least once every three years[55]. - The board has implemented a diversity policy, aiming for at least 20% female representation among directors in the coming years, with current gender ratio being 4 male to 1 female[58]. - The company has achieved gender diversity among employees, with a current ratio of 168 males to 101 females, recognizing the importance of diverse perspectives for competitive advantage[59]. - The company has received written confirmations of independence from all non-executive directors, affirming their independent status[60]. - The board of directors held a total of 4 meetings during the reporting period, with all members present at each meeting[66]. Risk Management - The company maintains a robust risk management and internal control system to achieve business goals and sustainable growth[109]. - The risk management committee assists the board in reviewing and monitoring significant risks[109]. - The company actively monitors operational risks related to safety and environmental standards in production[120]. - Legal risks are mitigated through contract review and regular compliance audits[121]. - The board has established an internal audit department to continuously monitor the group's risk management and internal control systems, which were reviewed for effectiveness for the year ending December 31, 2024[122]. Environmental, Social, and Governance (ESG) - The group has committed to evaluating its business impact on key environmental, social, and governance (ESG) issues and will include this in its reports[128]. - The report adheres to the guidelines set forth by the Hong Kong Stock Exchange regarding ESG reporting, ensuring compliance with the "comply or explain" principle[129]. - The company is committed to environmental protection, adhering to local environmental laws and regulations, including the Environmental Protection Law of the People's Republic of China[144]. - The company achieved a reduction in pollutant emissions and received tax incentives for meeting local emission standards during the reporting period[145]. - The company has implemented energy-saving measures to address climate change and reduce greenhouse gas emissions[146]. Employee Engagement and Development - The company emphasizes the importance of recruiting, retaining, and developing skilled employees to maintain competitiveness in the industry[162]. - Employee compensation includes competitive salaries and benefits, with performance assessments and salary adjustments in place to enhance motivation[162]. - A total of 267 employees participated in various training programs, accumulating 64,696 hours of training during the reporting period[173]. - The company strictly adheres to labor laws in China, prohibiting child labor and forced labor, ensuring compliance with human rights standards[174]. Product Quality and Safety - The company has established strict quality control measures, including random sampling tests for finished products, ensuring compliance with national standards such as GB/T25164-2010[180]. - The company emphasizes the importance of product safety and pressure resistance, conducting rigorous testing that exceeds national standards[186]. - The company has a structured product return and recall arrangement, ensuring effective communication with customers and thorough analysis of returned products[188]. - No quality issues or legal non-compliance related to product responsibility were reported between the company and its customers during the reporting period[189].

Market Performance - In 2024, the fluorosilicon chemical industry experienced significant market fluctuations, with some products like R22 and R32 seeing substantial price increases due to quota restrictions[6][11]. - The overall production of key products increased compared to 2023, contributing to the Group's stable performance amidst intense market competition[12][14]. - The refrigerants segment generated revenue of RMB3,247,702,000 with an operating margin of 24.83%, significantly up from RMB2,871,580,000 and an operating margin of 10.82% in 2023[35]. - The fluoropolymers segment reported revenue of RMB3,824,967,000, with an operating margin of 13.28%, compared to RMB4,552,407,000 and 7.40% in the previous year[35]. - The organic silicon segment saw revenue increase to RMB5,212,703,000, with a slight operating margin of 1.95%, recovering from a loss of RMB330,512,000 in 2023[35]. - The refrigerants segment experienced significant price increases for R22 and R32 due to quota policy impacts, contributing to revenue growth[45]. Financial Performance - For the year ended December 31, 2024, the Group recorded revenue of approximately RMB14,181,087,000, a decrease of 2.15% from RMB14,493,323,000 in the previous year[31]. - Gross profit margin increased to 21.62% compared to 16.81% in 2023, while operating margin rose to 10.01% from 4.49%[32]. - The Group achieved profit before tax of approximately RMB1,423,046,000, up from RMB653,171,000 in 2023, and net profit of approximately RMB987,497,000, compared to RMB611,085,000 in the previous year[32]. - The fluoropolymers segment achieved a profit of RMB508,088,000, an increase of 50.87% from RMB336,766,000 in the same period last year[39]. - The refrigerants segment recorded a profit of RMB806,356,000, up 159.63% from RMB310,574,000 in the previous year[44]. - The organic silicon segment turned a profit of RMB101,668,000, recovering from a loss of RMB330,512,000 in the previous year[49]. Research and Development - Total R&D expenses amounted to approximately RMB 707 million, with over 40 R&D projects contributing to revenue growth and cost reduction[13][15]. - The Group's R&D team comprised over 800 members, with more than 60% holding doctoral or master's degrees, and was granted 121 patents during the year[13][15]. - The Group plans to focus on R&D to establish market leadership and align efforts with actual market needs to avoid inefficient innovation[22]. Operational Efficiency - The Group maintained stable operations and reduced costs through effective internal control measures, leading to enhanced market competitiveness[16][18]. - The Group established a data analysis system across all production stages, improving production efficiency and reducing raw material and energy consumption[12][14]. - The Group aims to maintain stable production and improve production efficiency to capitalize on market opportunities in the fluorosilicone chemical industry[23]. - The management will continue to implement strict oversight and cost control to enhance profitability and efficiency[27]. Corporate Strategy - The Group has ceased its real estate business by the end of the review period, with substantial asset disposals reflecting its strategic withdrawal from the sector[17][19]. - The Group's main business is investment holding, with no significant changes in the nature of its operations during the year[102]. - The Group's subsidiaries include Shandong Dongyue Organosilicon Materials Co. Ltd, which is listed on the ChiNext of the Shenzhen Stock Exchange[90]. Shareholder Information - The Board recommended a final dividend of HK$0.10 per share, consistent with the previous year[33]. - The dividend policy aims to maintain adequate cash reserves for operational and capital requirements while enhancing shareholder value[109]. - The AGM is scheduled for 5 June 2025, during which the final dividend will be subject to approval[114]. - The Register will be closed from 2 June 2025 to 5 June 2025 for AGM attendance and voting eligibility[116]. - The Register will also be closed from 12 June 2025 to 16 June 2025 for entitlement to the final dividend[117]. Employee Information - The total number of employees as of December 31, 2024, was 6,922, a decrease from 6,977 in 2023[85]. - The Group's remuneration policy is based on performance, ensuring competitiveness in employee compensation[85]. Financial Position - The Group's total equity as of December 31, 2024, amounted to RMB17,471,837,000, up 3.15% from the previous year[69]. - The Group generated a net cash inflow of RMB2,071,697,000 from operating activities, significantly higher than RMB1,375,950,000 in the previous year[69]. - Capital expenditure for the year was approximately RMB1,800,565,000, mainly for the renovation of existing production lines and construction of ancillary facilities[68]. - As of December 31, 2024, the Group had no borrowing balance, maintaining a negative gearing ratio of -14.14%, indicating a net cash position[76]. - The Group's cash and equivalents exceeded its debt, which is generally viewed as a positive financial signal[76]. Governance and Management - Mr. Wang Weidong has over 30 years of experience in the chemical industry and is responsible for technology R&D and corporate management[90]. - Mr. Zhang Zhefeng has more than 20 years of experience in accounting and finance, currently serving as the CFO[91]. - Ms. Chung Tak Lai, appointed in March 2024, has over 20 years of experience in accounting, corporate finance, compliance, and strategic investment[93]. - The Group's executive directors have extensive backgrounds in finance, management, and compliance, contributing to the overall governance and strategic direction of the Company[92]. Legal and Compliance - The continuing connected transactions have been reviewed by the auditors, confirming compliance with relevant regulations[194]. - Independent Non-Executive Directors confirmed that the continuing connected transactions were conducted in the ordinary course of business and on terms no less favorable than those available to independent third parties[187].

Financial Performance - The company achieved profitability in the fiscal year ending December 31, 2024, despite a challenging economic environment[9]. - The group recorded total revenue of approximately HKD 367.7 million for the year ending December 31, 2024, representing an increase of about 3.3% compared to HKD 355.8 million for the previous year[26]. - Gross profit increased to approximately HKD 146.8 million, with a gross margin rising from 39.2% to 39.9% due to effective cost control measures[26]. - The group achieved a turnaround from a loss of approximately HKD 20.0 million in the previous year to a net profit of approximately HKD 1.2 million after tax for the current year[26]. - The company reported a year-on-year decline of 10.6% in national real estate development investment growth as of December 2024[20]. - The company has successfully turned losses into profits despite a turbulent market and intensified competition in the interior design industry[23]. Market Strategy and Expansion - New contract signings and contract amounts continued to grow, indicating a broader project scope and potential for future development[9]. - The company plans to expand its brand influence through a strategy of "youthfulness, diversification, and internationalization" in 2025[10]. - The company aims to focus on "youthfulness, diversity, and internationalization" to transform into a cross-disciplinary lifestyle brand[13]. - The company plans to expand its design business beyond real estate and private residences, targeting potential overseas markets in Southeast Asia, the Middle East, and Europe[13]. - The company is actively exploring overseas markets and other business sectors, including hotels and high-end membership clubs, to mitigate risks associated with over-reliance on the Chinese residential market[24]. - The company aims to leverage its established foundation to face new challenges and achieve mutual benefits with industry partners[10]. Cost Management and Efficiency - The company is focusing on enhancing core competitiveness and implementing cost reduction strategies to adapt to market changes[10]. - The company has implemented cost-reduction and efficiency-enhancement measures to navigate increased operational costs and financial pressures[23]. - The group implemented cost control measures that led to a reduction in selling and administrative expenses, contributing to improved profitability[26]. - Sales expenses decreased from approximately HKD 20.8 million to about HKD 19.4 million, a reduction of approximately 6.7% due to efficiency improvements and cost-saving measures[42]. - Administrative expenses decreased from approximately HKD 107.2 million to about HKD 105.8 million, a reduction of approximately 1.3% attributed to ongoing cost control and workforce optimization[43]. Corporate Governance - The company has maintained compliance with the corporate governance code throughout the year and up to the report date[97]. - The board of directors is responsible for leading and managing the group, overseeing business strategies and performance[98]. - The company has adopted a corporate governance manual to ensure adherence to the corporate governance code[96]. - The board consists of nine directors, including four executive directors, two non-executive directors, and three independent non-executive directors as of December 31, 2024[102]. - The company has established various board committees to oversee specific responsibilities[98]. - The company has a clear directive for management to report to the board before making any significant decisions[101]. Risk Management - The company is committed to enhancing its internal risk management functions, with the Risk Management Committee reviewing market, operational, and legal risks[142]. - The board is responsible for evaluating the acceptability of risks associated with achieving strategic objectives[153]. - The company continues to enhance internal controls and risk management procedures in response to market risks[156]. - The board has confirmed the effectiveness of the risk management and internal control systems, stating they are effective and adequate[154]. Environmental, Social, and Governance (ESG) Initiatives - The company’s environmental, social, and governance (ESG) report reflects its commitment to sustainable development and includes data from its expanded operational scope, including Shenzhen[170]. - The company emphasizes the importance of effective environmental, social, and governance (ESG) management for sustainable business development[178]. - The company conducted an ESG survey this year to engage various stakeholders, including senior management, employees, customers, and suppliers[183]. - The company is committed to monitoring identified environmental, social, and governance issues to allocate resources effectively[196]. - Total harmless waste decreased by 4% compared to the previous year[200]. Employee and Stakeholder Engagement - The total employee compensation for the year was approximately HKD 166.3 million, a decrease from HKD 171.2 million in the previous year, due to ongoing cost-saving measures[66]. - 53% of employees are female, and 59% have been with the company for 5 years or more[200]. - 71% of employees participated in internal training, with an average training time of 3.78 hours[200]. - The company encourages shareholders to submit inquiries and concerns in writing to facilitate effective communication[164]. - The company aims to create value for stakeholders by understanding and addressing their core concerns through effective communication[183].

Financial Performance - The Group's financial performance was adversely affected by intense competition in Mainland China and global market uncertainty, leading to a decline in sales orders and overall sales[17]. - Revenue for the year ended December 31, 2024, was RMB 466,031,000, a decrease of 16.9% from RMB 561,011,000 in 2023[32]. - Gross profit for 2024 was RMB 57,434,000, down from RMB 69,698,000 in 2023, resulting in a gross profit margin of 12.3%[32][40]. - Loss before tax increased to RMB 66,505,000 in 2024 from RMB 33,519,000 in 2023, indicating a significant rise in operational challenges[32]. - The net loss margin for 2024 was (13.6%), compared to (6.3%) in 2023, reflecting worsening financial performance[40]. - A net loss of approximately RMB 63.5 million was recorded for the year, compared to a net loss of approximately RMB 35.4 million in 2023[48]. - The Group recorded a gross profit of approximately RMB 57.4 million, a decrease of approximately RMB 12.3 million or approximately 17.6% compared to 2023, with a gross profit margin of approximately 12.3%[69]. - Other comprehensive loss for the year totaled approximately RMB 1,932,000, contributing to a total comprehensive loss of approximately RMB 65.5 million[46]. Revenue Breakdown - Revenue from the IT infrastructure system integration segment was approximately RMB 434.0 million for the year, down from approximately RMB 504.7 million in 2023[56]. - Revenue from the smart office software solutions business was significantly impacted, leading to a decline in sales due to conservative spending by multinational corporations[57]. - Revenue from the Hong Kong region's Library Project was approximately RMB 85.2 million, representing a decrease of approximately RMB 20.5 million or approximately 19.4% compared to 2023[54]. - Revenue from smart office software solutions decreased by approximately RMB 24.3 million or 43.2%, totaling approximately RMB 32.0 million for the Year[61]. Cost Management and Expenditures - Stringent controls on expenditures will be implemented to manage uncertainties related to economic and political conditions[26]. - The company will implement strict cost controls to manage uncertainties related to economic and political conditions[28]. - The cost of sales decreased by approximately RMB 82.7 million or 16.8% to approximately RMB 408.6 million for the Year, in line with the decrease in revenue[68]. - The Group's administrative expenses decreased by approximately RMB 0.3 million or 0.5% to approximately RMB 62.0 million for the Year[76]. Cash Flow and Financing - Cash flows from operating activities improved to RMB 7,640,000 in 2024, compared to a cash outflow of RMB 36,906,000 in 2023[44]. - The net cash from operating activities for the year was approximately RMB 7.6 million[103]. - The net cash used in financing activities was approximately RMB 3.0 million, primarily due to the repayment of bank borrowings of approximately RMB 195.8 million and new borrowings of approximately RMB 200.2 million[104]. - Capital expenditures for the year were approximately RMB 3.0 million, significantly lower than RMB 88.1 million in 2023[106]. Strategic Initiatives - The Group has incorporated AI into its product features to enhance innovation and improve customer productivity and efficiency[20]. - The Group plans to enhance product innovation in AI and green technology to align with global sustainability trends and improve competitive edge[26]. - The Group aims to enhance product innovation and competitiveness, particularly in AI and green technology, to strengthen its market position[131]. - The Group remains cautiously optimistic about business prospects due to new market opportunities created by China's "Going Global" strategy and the Belt and Road Initiative[130]. Market Environment - The worldwide IT market experienced a slight rebound in the second half of the year, driven by advancements in AI technologies, presenting both challenges and opportunities for the Group[20]. - The operational environment faced challenges including intense competition in the China market and uncertainties in the global economy, affecting customer demand and sales orders[48]. Governance and Leadership - The company has a diverse board with members holding various qualifications, including CPA and CFA designations, enhancing its governance and financial oversight[160]. - The Board consists of three executive Directors, one non-executive Director, and three independent non-executive Directors as of December 31, 2024[176]. - The Board held a total of 9 meetings during the Year, with 2 written resolutions passed[182]. - The Board is responsible for overseeing major matters, including financial objectives and risk management[181]. Employee and Operational Metrics - The total number of employees decreased to 323 in 2024 from 325 in 2023, with notable changes in various departments[124]. - The average turnover days for trade and bills receivables increased to 230 days as of December 31, 2024, from 202 days in 2023, due to longer collection periods[97]. - The Group's cash conversion cycle increased from 73 days in 2023 to 100 days in 2024, influenced by the rise in average turnover days for trade and bill receivables[98].

Financial Performance - Total revenue for 2024 was RMB 5,580,112 thousand, a decrease of 14.4% compared to RMB 6,514,585 thousand in 2023[7] - Gross profit for 2024 was RMB 4,024,343 thousand, down 12.0% from RMB 4,573,318 thousand in 2023[7] - The company reported a net profit of RMB 44,019 thousand for 2024, a significant decline from RMB 273,289 thousand in 2023[7] - The company's revenue for the reporting period was RMB 5,580.1 million, a decrease from RMB 6,514.6 million in 2023, with a net profit of RMB 44.0 million compared to RMB 273.3 million in 2023[22] - The revenue from self-operated game products was RMB 4,118.8 million, accounting for 73.9% of total revenue, while revenue from cooperative operations with game developers was RMB 3,844.4 million, representing 69.0%[39] - The revenue related to contract arrangements for the year ending December 31, 2024, is approximately RMB 4,721.6 million, a decrease from RMB 5,698.9 million in 2023[200] - The total assets related to contract arrangements as of December 31, 2024, are approximately RMB 4,538.1 million, down from RMB 6,302.8 million in 2023[200] Overseas Business - Overseas business revenue reached RMB 623.4 million, representing a 44.9% increase year-on-year and accounting for 11.2% of total revenue[13] - The overseas business revenue reached RMB 623.4 million, representing a year-on-year growth of 44.9%, increasing its share of total revenue from 6.6% in 2023 to 11.2%[22] Game Development and Strategy - The company launched its first strategy mobile game "Beast Lord: New World" in June 2024, marking its entry into the SLG game segment[12] - The company plans to launch multiple new games in 2025, expanding its product line and enhancing user engagement[11] - The company is focusing on a strategic transformation towards "AI + gaming" to enhance innovation and market competitiveness[10] - The company is implementing a "diversification + premiumization" strategy for its game product matrix, covering all categories and user groups[23] - The classic IP games, such as "Legend" and "Miracle," continue to maintain stable user activity and are supported by ongoing content updates[24] - The "Legend" IP games, including "Original Legend" and "Ancient Cloud Legend," are expected to capture approximately 6.1% to 9.2% of the total Chinese gaming market in 2024[25][27] - The company has a pipeline of 17 games ready for release, indicating a strong future product lineup[33] Financial Position and Assets - Non-current assets totaled RMB 1,599,422 thousand in 2024, a decrease from RMB 3,204,232 thousand in 2023[8] - Current liabilities amounted to RMB 3,101,143 thousand in 2024, down from RMB 4,836,197 thousand in 2023[8] - The cash and cash equivalents as of December 31, 2024, were RMB 515.0 million, an increase from RMB 486.9 million as of December 31, 2023[60] - The company's trade receivables net amount decreased by 23.7% to RMB 237.2 million as of December 31, 2024, from RMB 310.7 million in 2023[57] - The company's bank borrowings as of December 31, 2024, were RMB 199.6 million, down from RMB 213.7 million in 2023[61] - The debt-to-equity ratio as of December 31, 2024, was 0.10, compared to 0.18 in 2023[62] - Total capital expenditure for the year ending December 31, 2024, is approximately RMB 50.7 million, an increase of 120% compared to RMB 23.0 million for the same period in 2023[68] Employee and Management - The total employee compensation cost for 2024 is RMB 366.5 million, a decrease of 26.9% from RMB 501.7 million in 2023[71] - The group currently has 912 employees, down from 1,305 employees as of December 31, 2023[71] - The company has enhanced its internal training to improve employee skills and innovation capabilities, optimizing its talent structure to strengthen core competitiveness[16] - The company has established a compensation committee to determine and recommend the compensation policy for directors and senior management[166] Legal and Regulatory Compliance - The company has established mechanisms to manage underage consumer protection in response to new regulations, ensuring a healthy online environment for minors[20] - The company has complied with all relevant laws and regulations that significantly impact its business and operations[100] - The company has not incurred any fines or penalties for violations of health, safety, or environmental regulations during the reporting period[98] - The company is subject to various legal, regulatory, political, and economic risks that could adversely affect its international strategy and market capabilities[101] Corporate Governance - The board consists of two executive directors and three independent non-executive directors[90] - The company appointed a new independent non-executive director, Ms. Zheng Yi, on March 30, 2023[81] - The company has a strong management team, including Ms. Liang Wenhong as the newly appointed CEO[83] Shareholder Information - The interests of directors and major executives in the company's shares included Mr. Wu Xubo holding 49.45% and Ms. Wu Xuan holding 7.20% of the total issued share capital[141] - The company did not issue any debt securities during the reporting period[123] - The board does not recommend the distribution of a final dividend for the year ending December 31, 2024, consistent with 2023[125] Charitable Contributions - The group made charitable donations of RMB 5.2 million for the year ending December 31, 2024, compared to RMB 12.9 million in 2023[122] Contractual Arrangements - The company has established control over its Chinese operations through contractual arrangements, which may face legal uncertainties under the new Foreign Investment Law[188] - The board believes that the contractual arrangements are essential for the company's operational framework and economic benefits from Chinese entities[194] - The independent non-executive directors and auditors have confirmed compliance with contract arrangements and overall performance during the relevant period[196]

Sales Performance - For the year ended December 31, 2024, the Group achieved total contracted sales of RMB 641.7 million, a decrease from RMB 940.7 million in 2023, reflecting a significant decline in sales performance [22]. - The Group achieved total contracted sales value of approximately RMB641.7 million for the year ended December 31, 2024, a decrease from RMB940.7 million in 2023, and the contracted sales area was approximately 43,574 sq.m., down from 79,417 sq.m. in 2023 [47][50]. - Contracted sales for the year ended 31 December 2024 were approximately RMB641.7 million, down from RMB940.7 million in 2023 [97]. Revenue and Financial Performance - The Group's revenue decreased by approximately 66.6% from approximately RMB2,387.5 million for the year ended 31 December 2023 to approximately RMB796.4 million for the year ended 31 December 2024, primarily due to a decrease in revenue from property sales [89]. - Revenue from property development decreased by 73.3% from approximately RMB2,134.2 million in 2023 to approximately RMB569.4 million in 2024, attributed to a reduction in total GFA sold [96]. - Revenue from property leasing decreased by approximately 13.9% to approximately RMB126.6 million in 2024, primarily due to the termination of leases for five metro station shopping malls [98]. - Revenue from hotel operations decreased by 5.5% to RMB100.4 million in 2024, mainly due to reduced travel demand [99]. - The Group's total revenue for 2024 was comprised of 71.5% from property development, 15.9% from property leasing, and 12.6% from hotel operations [88]. Occupancy Rates - The average occupancy rate for property leasing was 84.0%, up from 83.5% in 2023, while the hotel operation occupancy rate decreased to 78.7% from 83.4% in the previous year [22]. - The average occupancy rate for hotel operations decreased, indicating potential challenges in the hospitality sector [22]. - The Group's completed investment properties totaled approximately 121,350 sq.m. as of December 31, 2024, with an average occupancy rate exceeding 84.0% [66][71]. Debt and Financial Stability - The Group faced pressures from declining cash recovery rates, debt maturity, and a significant decrease in contracted sales, necessitating price-off promotions, asset sales, and debt restructuring to alleviate cash flow pressure [22]. - As of December 31, 2024, the Group faced cross-default on bank loans totaling approximately RMB 335.96 million, secured against assets worth approximately RMB 2.06 billion [77]. - The Group has not paid cumulative interest of USD 91.91 million (approximately RMB 660.66 million) on preferred notes, leading to default events [77]. - The Group's net debt-to-equity ratio was approximately 2,069.3%, up from 387.3% in 2023 [127]. - The debt-to-asset ratio rose to approximately 95.4% as of December 31, 2024, compared to 86.0% in 2023 [132]. Strategic Focus and Future Outlook - The Group's strategic focus includes navigating the complex economic environment and addressing real estate corporate debt risks [21]. - The Group anticipates continued challenges in the property industry in 2025 due to difficult economic conditions and financial instability [28]. - The Group plans to accelerate property sales and maintain stricter cost control measures to ensure timely delivery of properties [28]. - The Group is actively seeking suitable projects and opportunities for future development under the guidance of the PRC government's efforts to stabilize the property market [30]. Property Development and Land Bank - As of December 31, 2024, the Group's total land bank is approximately 708,311 sq.m., including 149,079 sq.m. of completed but unsold properties [54]. - The Group has approximately 185,720 sq.m. of properties under development and 219,843 sq.m. of properties developed by joint ventures and associates [54]. - The Group's strategic focus includes expanding its land bank and enhancing property development capabilities through joint ventures and partnerships [54]. Cost Management and Expenses - The Group's cost of sales decreased from RMB2,316.2 million for the year ended 31 December 2023 to RMB823.8 million for the year ended 31 December 2024, primarily due to a decrease in property development costs [103]. - Selling and marketing expenses decreased by approximately 66.2%, from RMB96.1 million in 2023 to RMB32.5 million in 2024 [121]. - Administrative expenses decreased by approximately 6.9%, from RMB160.6 million in 2023 to RMB149.5 million in 2024 [123]. Environmental, Social, and Governance (ESG) Initiatives - The Group will continue to collect and monitor environmental and social data to enhance operational transparency as part of its ESG initiatives [196]. - The Group emphasizes the importance of ESG matters and conducts materiality assessments through stakeholder engagement processes [197]. - The Group aims to enhance energy efficiency and operational efficiency as part of its long-term development strategy, with new emission reduction targets set since 2022 [199]. - The Group is committed to increasing transparency in ESG disclosures, maintaining environmental performance indicators across six real estate projects [199].

Financial Performance - The company reported a revenue of RMB 7,152,407 thousand for the year ended December 31, 2024, representing a 54.59% decrease compared to RMB 15,751,478 thousand in 2023[4]. - The pre-tax loss was RMB 3,249,183 thousand, compared to a profit of RMB 1,076,351 thousand in the previous year[4]. - The company reported a net loss attributable to ordinary shareholders of RMB 2,992,483 thousand for 2024, compared to a profit of RMB 140,407 thousand in 2023[4]. - The company achieved operating revenue of RMB 715,240.7 million in 2024, a year-on-year decrease of 54.59%, primarily due to reduced income from the real estate development segment[84]. - The pre-tax loss amounted to RMB 324,918.3 million, with a core operating loss (excluding fair value changes) of RMB 256,287.0 million[84]. Assets and Liabilities - The total assets decreased to RMB 57,619,449 thousand in 2024 from RMB 65,155,827 thousand in 2023, a decline of approximately 11.8%[4]. - The total liabilities also decreased to RMB 39,268,837 thousand in 2024 from RMB 42,927,967 thousand in 2023, a reduction of about 8.5%[4]. - The total financing amount at the end of the period was RMB 2,390,768 million, with an overall average financing cost of 4.07%[82]. Business Strategy and Development - The company aims to enhance its core business and digital transformation while focusing on the exhibition and real estate sectors for future growth[13]. - The company is committed to exploring new transformation paths in real estate development amidst ongoing industry adjustments[13]. - The company is actively innovating its development model by promoting the integration of "exhibition + real estate" projects in response to current industry trends[25]. - The company plans to focus on the "high quality" and "large service" model in real estate development, transitioning towards composite real estate development[93]. - The company will strengthen the integration of various business segments, particularly in the exhibition and commercial property sectors, to drive growth and efficiency[87]. Market and Industry Trends - The real estate market saw a total sales area of 814.5 million square meters in 2024, a year-on-year decrease of 14.1%, with sales revenue of RMB 848.64 billion, down 17.6% year-on-year[25]. - The hotel industry is facing challenges with declining occupancy rates and average room prices due to weakened domestic business demand and intense price competition[24]. - The company anticipates broader development opportunities in the exhibition, hotel, and commercial property sectors due to supportive government policies and market demand[85]. Operational Highlights - The company hosted 2,243 events in its self-owned venues and hotels, a year-on-year increase of approximately 1.9%, with major events totaling 71 and attracting 5.8625 million attendees, up 20.6% year-on-year[27]. - The company achieved a significant breakthrough in the market-oriented operation of the 2024 Service Trade Fair, with participation from 85 countries and international organizations, over 8,000 enterprises, and a total audience of 258,000, marking a 20% increase in professional attendees compared to the previous year[32]. - The company successfully organized over 40 major events, enhancing its brand influence and recognition in the industry[27]. Corporate Governance - The company is committed to maintaining high corporate governance standards and has complied with all relevant regulations[102]. - The board of directors held 36 meetings in 2024, ensuring effective oversight and strategic direction for the company[106]. - The company conducts annual reviews of director remuneration policies to attract and retain high-quality talent[123]. - The board consists of at least one-third independent non-executive directors, ensuring independent viewpoints and opinions[117]. Human Resources and Talent Management - The company is actively addressing talent shortages by implementing various recruitment and training programs to build a high-quality talent pool[101]. - The gender ratio of the board members in 2024 is 7:2, while the employee gender ratio is 5:4, indicating a commitment to gender diversity[126]. - The company plans to enhance gender diversity in the board by considering it as a factor in future recruitment of board and senior management candidates[126]. Financial Management and Investments - The company has established a dividend policy to enhance transparency and operational effectiveness in profit distribution, which is available on its website[150]. - The company plans to invest RMB 145 million in fixed assets by 2025, funded by internal resources[97]. - The company has ongoing projects in various regions, including residential and commercial developments in Hebei, Anhui, Chongqing, Hainan, and Guangdong[74]. Risk Management - The company is facing market risks due to ongoing adjustments in the real estate market, which may affect sales collection efficiency[100]. - The board of directors believes that the risk management and internal control systems were effective and sufficient during the reporting period[147].

Financial Performance - Total revenue for 2024 was approximately RMB 1.34 billion, a decrease of 39.9% compared to the previous year[12]. - Gross profit decreased by 59.8% to approximately RMB 596.3 million, with a gross margin dropping from 66.6% to 44.5%[12]. - Adjusted net loss narrowed to approximately RMB 532.8 million from RMB 549.4 million in 2023[12]. - The company experienced a one-time price discount of approximately RMB 129 million related to advertising services, impacting total revenue by about RMB 299 million[12]. - Revenue reduction of approximately RMB 300 million was attributed to the divestment of the smart restaurant business and reduced investment in small and micro businesses[12]. - The adjusted gross profit decreased by 33.5% to approximately RMB 906 million in 2024[12]. - The operating cash flow for 2024 improved significantly from a cash outflow of approximately RMB 596 million in the same period last year to a cash outflow of approximately RMB 332 million, marking a continuous narrowing for three years[14]. - Subscription solutions revenue for 2024 was approximately RMB 919 million, a year-on-year decrease of 31.9%, with the number of paying merchants at 62,924, down 34.7%[15]. - The gross revenue from advertising support for merchants was approximately RMB 18.015 billion, a year-on-year increase of 24.5%, while merchant solution revenue was approximately RMB 421 million, a decrease of 52.1%[16]. - The average revenue per user increased by 4.2% to RMB 14,598, reflecting improved operational efficiency[15]. - The company reported a net loss attributable to equity holders of RMB 1,728.5 million in 2024, compared to RMB 758.3 million in 2023[35]. - The company recorded an operating loss of approximately RMB 1,431.2 million in 2024, compared to an operating loss of approximately RMB 604.3 million in 2023[71]. - Adjusted EBITDA for 2024 was RMB (1,228.6) million, reflecting an adjusted net loss of RMB (1,744.0) million, with a net loss margin of (130.2%) for the year[80]. Assets and Liabilities - The total assets decreased to RMB 6.96 billion in 2024 from RMB 7.87 billion in 2023[10]. - Non-current assets decreased to RMB 2.55 billion in 2024 from RMB 3.04 billion in 2023[10]. - Total liabilities increased slightly to RMB 5.15 billion in 2024 from RMB 5.07 billion in 2023[10]. - The company had cash and bank balances of approximately RMB 1,779.0 million as of December 31, 2024, including restricted cash of RMB 526.9 million[85]. - As of December 31, 2024, the company had total bank borrowings of approximately RMB 2,222.7 million, with various short-term and long-term loans listed[90]. - The company’s liquidity position remains stable with cash and cash equivalents of RMB 1,194.2 million as of December 31, 2024[85]. Business Strategy and Development - The company focused on AI technology development and optimization of business structure to improve operational efficiency[12]. - The AI product "WIME" launched for small and micro e-commerce operators improved product material creation efficiency by 80% and reduced team operation costs by 60%[17]. - The company has successfully integrated AI technology into its core business, launching 15 AI Agent products that cover 58 business scenarios in e-commerce and retail[20]. - The company aims to enhance its services in the WeChat ecosystem, leveraging its position as a core service provider to drive business growth for merchants[33]. - The company plans to expand AI Agent applications in e-commerce and retail sectors, focusing on high-performance, low-cost models to enhance operational efficiency[33]. - The company is exploring overseas market opportunities, particularly in North America, to drive product-led growth and capitalize on international business prospects[33]. - The company expanded its overseas business footprint to five major regions, with new market entries in East Asia and Africa during the reporting period[23]. Marketing and Customer Engagement - The company achieved a 24.5% year-on-year growth in advertising gross revenue, amounting to approximately RMB 18.015 billion[30]. - The number of paid merchants for marketing solutions decreased by 0.4% to 66,669, while the average spending per paid merchant increased by 25.0% to RMB 270,208[30]. - The average spending per advertiser increased from RMB 216,215 in 2023 to RMB 270,208 in 2024, contributing to the growth in gross revenue for merchant solutions[47]. - User retention rates improved to 85%, up from 80% in the previous quarter[8]. - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[1]. Cost Management and Efficiency - Sales and distribution expenses decreased by 34.6% from approximately RMB 1,551.5 million in 2023 to approximately RMB 1,014.0 million in 2024, primarily due to a reduction in contract acquisition costs and employee costs[62]. - Research and development expenses decreased by 30.7% from approximately RMB 586.7 million in 2023 to approximately RMB 406.3 million in 2024[66]. - Total sales costs slightly decreased by 0.2% from approximately RMB 744.2 million in 2023 to approximately RMB 743.0 million in 2024[50]. - Sales costs for subscription solutions increased to 79.1% of total sales costs in 2024, up from 61.4% in 2023[52]. - Adjusted sales costs for subscription solutions decreased by 9.5% from approximately RMB 449.1 million in 2023 to approximately RMB 406.6 million in 2024[54]. - Sales costs for merchant solutions decreased by 46.0% from approximately RMB 287.4 million in 2023 to approximately RMB 155.1 million in 2024[55]. Shareholder and Capital Management - The company reported a total issuance of convertible bonds amounting to $90 million on September 5, 2024, with a conversion price set at HKD 1.30 per share, potentially resulting in the issuance of up to 542,090,769 new shares[130]. - The net proceeds from the issuance of the convertible bonds are approximately $86 million, which will be utilized for strategic purposes as detailed in the report[130]. - The company completed a placement of 277,000,000 new shares at a price of HKD 1.13 per share, raising approximately HKD 313.0 million[141]. - The net proceeds from the 2024 placement are approximately HKD 308.0 million, aimed at improving the company's financial position and supporting long-term business expansion[141]. - The company believes that issuing the 2024 convertible bonds optimizes its capital structure and diversifies funding sources, supporting sustainable development[136]. - The company has the capacity to meet its redemption obligations under the 2024 convertible bonds based on its cash and cash equivalents as of December 31, 2024[136]. Compliance and Risk Management - The company is committed to maintaining compliance with all relevant laws and regulations, ensuring operational integrity[126]. - The company faces significant risks including reliance on Tencent's platform, evolving customer demands, and potential cybersecurity threats[128]. - The company emphasizes its commitment to environmental protection and resource conservation, adhering to relevant environmental laws and regulations without any reported violations during the period[127]. - The management team emphasized a commitment to sustainability initiatives, aiming for a 30% reduction in carbon footprint by 2025[10].

Economic Overview - In 2024, China's GDP growth was 5%, but the economy faced significant challenges, including a decline in consumer confidence and spending, leading to a "consumption downgrade" trend[25]. - The dairy industry in China was among the ten "profit declining industries," with almost all listed dairy companies reporting revenue declines[25]. - The total sales volume of dairy products decreased by approximately 1.5% in 2024, following a 2% decline in 2023[25]. Dairy Production and Pricing - The total raw milk production volume in China decreased by 2.9% to approximately 40.8 million tons, down from 42.0 million tons in 2023[27]. - The national average raw milk price fell from RMB4.4/kg in August 2021 to RMB3.1/kg in December 2024, marking a 30% decrease over more than three years[25]. - The average selling price of raw milk decreased by 17.0%, from RMB4,268/ton to RMB3,541/ton[106]. - The average selling price of raw milk fell to RMB3,541/ton in 2024 from RMB4,268/ton in 2023, while the total sales volume increased to approximately 815,937 tons from 783,028 tons[134][140]. Dairy Industry Challenges - The number of dairy cows in China's 10 major milk production provinces reduced by 6.7% during the first three quarters of 2024[27]. - Approximately 1.2 million dairy cows were eliminated from the dairy industry in 2023 and 2024 combined[27]. - The number of scaled dairy farms in China dropped by 20% from 4,600 in 2022 to 3,700 by the end of 2024[84]. - China imported 2.6 million tons of various dairy products in 2024, representing a decrease of 9.6% year on year[87]. Company Performance - The company recorded a revenue of approximately RMB3,683.8 million for the reporting year, representing a decrease of 6.1% compared to 2023[68]. - Gross profit decreased by 30.7%, from approximately RMB708.5 million to RMB491.0 million, primarily due to a 17.0% decrease in raw milk selling price and a 16.4% decrease in beef cattle selling price[69]. - The company reported a net loss of approximately RMB1,269.3 million, mainly attributable to losses from changes in the fair value of other biological assets amounting to RMB1,260.6 million[69]. - Cash EBITDA for the year was approximately RMB513.3 million, a decrease of 32.6% compared to the previous year[67]. Beef Cattle Market - The demand for high-quality beef, particularly premium products like Wagyu beef, is anticipated to grow significantly[29]. - Beef cattle sales volume increased significantly by 64.5% to 19,415 tons, while the selling price decreased by 16.4%[68]. - The gross loss from the beef cattle business increased significantly to RMB90.0 million in 2024, compared to a gross loss of RMB3.6 million in 2023, primarily due to lower selling prices[155]. Financial Metrics - The basic and diluted loss per share for the Company was RMB 1.81 in 2024, compared to a loss of RMB 0.70 per share in 2023[179]. - The pre-tax loss for the reporting year was RMB 1,250.5 million, compared to RMB 470.0 million in 2023, representing a significant increase in losses[180]. - Net cash flows from operating activities for the reporting year were RMB 813.6 million, significantly higher than RMB 184.0 million in 2023[189]. Investment and Development - The company is focusing on sustainable development and has made continuous investments in research and innovation related to carbon emission reduction[98]. - Research and development expenses amounted to RMB 13.6 million in 2024, compared to nil in 2023, primarily generated by the feed mill[172]. Debt and Financing - As of December 31, 2024, the total secured bank loans amount to RMB 3,498,392,000, an increase from RMB 3,400,323,000 as of December 31, 2023, reflecting a growth of approximately 2.9%[200]. - The effective interest rate for current secured bank loans ranges from 3.90% to 4.80% in 2024, compared to 4.00% to 4.80% in 2023[200]. - The overall financial strategy appears focused on managing interest rates and loan maturities effectively to optimize capital structure[200].