Financial Performance - The company recorded revenue of approximately RMB 580.4 million for the fiscal year 2024, an increase of about RMB 67.6 million or approximately 13.2% compared to RMB 512.8 million in fiscal year 2023[9]. - Gross profit decreased from approximately RMB 104.2 million in fiscal year 2023 to approximately RMB 54.4 million in fiscal year 2024, a decline of about 47.8%[10]. - The net loss for fiscal year 2024 was approximately RMB 75.2 million, compared to a net profit of approximately RMB 10.1 million in fiscal year 2023[10]. - Revenue from ready-mixed concrete sales increased from approximately RMB 259.0 million in fiscal year 2023 to approximately RMB 302.9 million in fiscal year 2024, an increase of about 17.0%[17]. - Revenue from precast concrete components sales decreased significantly from approximately RMB 85.4 million in fiscal year 2023 to approximately RMB 14.1 million in fiscal year 2024, a drop of about 83.5%[18]. - Revenue from iron ore tailings recovery and eco-brick sales increased from approximately RMB 168.4 million in fiscal year 2023 to approximately RMB 263.4 million in fiscal year 2024, an increase of about 56.4%[19]. - Sales cost increased by approximately RMB 117.4 million or about 28.7% from RMB 408.6 million in FY2023 to RMB 526.0 million in FY2024, primarily due to increased revenue from iron ore tailings recovery and eco-bricks[20]. - Gross profit decreased by approximately RMB 49.8 million or about 47.8% from RMB 104.2 million in FY2023 to RMB 54.4 million in FY2024, with overall gross margin dropping from approximately 20.3% to 13.9%[21]. - The gross profit from precast concrete components recorded a loss of approximately RMB 24.8 million in FY2024, compared to a profit of RMB 3.9 million in FY2023[23]. - Other income increased by approximately RMB 6.0 million or about 121.4% from RMB 4.9 million in FY2023 to RMB 10.9 million in FY2024, mainly due to increased government subsidies[25]. - Net other losses increased by approximately RMB 8.0 million or 22,269.4% from RMB 36,000 in FY2023 to RMB 8.1 million in FY2024, primarily due to losses from the sale of properties, plants, and equipment[26]. - Administrative expenses increased by approximately RMB 28.4 million or about 52.4% from RMB 54.3 million in FY2023 to RMB 82.7 million in FY2024, mainly due to production losses in precast concrete components and increased employee costs[28]. Production and Operations - The company has temporarily halted the production of precast concrete components in fiscal year 2024 to mitigate further losses[10]. - The company is optimistic about the prospects of iron ore tailings comprehensive utilization, with over 100 million tons of tailings available for processing in Hainan Province[12]. - The competitive landscape for ready-mixed concrete and precast concrete components remains intense, particularly against state-owned enterprises, impacting profit margins[10]. - The company plans to expand its precast concrete component production capacity, with an allocation of HKD 24.5 million, of which HKD 18.0 million has been utilized[44]. - The company anticipates increased competition in the Xiamen precast concrete and precast concrete component market, which may pressure revenue and gross margins[45]. - The company has identified the comprehensive utilization of iron ore tailings in Hainan as a significant future revenue source due to abundant supply and high demand in nearby areas[45]. Shareholder Information - The largest customer accounts for approximately 9.6% of total revenue for the fiscal year 2024, while the top five customers account for about 31.3%[60]. - The company does not recommend any final dividend for the fiscal year 2024, and there is no established dividend policy[50][51]. - As of December 31, 2024, the company's current liabilities net amount was approximately RMB 72.5 million, compared to a net current asset value of approximately RMB 21.1 million as of December 31, 2023[33]. - The debt-to-equity ratio as of December 31, 2024, was approximately 48%, down from 49% as of December 31, 2023[33]. - The company had no significant acquisitions or investments in FY2024[39][40]. - The net proceeds from the share sale amount to approximately HKD 238.7 million, with HKD 231.4 million already utilized as of December 31, 2023[44]. - As of December 31, 2024, the company has distributable reserves of approximately RMB 184.1 million, down from RMB 189.1 million the previous year[57]. - As of December 31, 2024, the company has 748,000,000 shares issued[73]. - Mr. Ye Zhi Jie holds 274,706,100 shares, representing 36.73% of the company's issued share capital[71]. - Mr. Huang Wen Gui owns 121,568,700 shares, accounting for 16.25% of the company's issued share capital[71]. Corporate Governance - The board of directors emphasizes the importance of good corporate governance standards to protect shareholder interests and enhance corporate value[96]. - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with established standards[99]. - The board of directors is responsible for strategic planning and ensuring sustainable development, with regular reviews of board composition and contributions[102]. - The company promotes a culture of integrity, accountability, and transparency among its directors and management[95]. - The company has established anti-corruption policies and reporting systems to maintain its corporate culture[95]. - The board believes that its corporate governance practices comply with the relevant codes and will continue to monitor and review these practices[98]. - The company has established a whistleblowing policy to encourage stakeholders to report any suspected fraud or misconduct[145]. - The board has delegated the responsibility for selecting and appointing directors to the nomination committee, which considers various diversity factors[147]. - The company has implemented a formal and transparent process for establishing remuneration policies for directors and senior management[123]. - The remuneration policy for directors and senior management is reviewed based on the company's performance and market data[80]. - The company has engaged an independent internal control consulting firm to review its major business processes and internal control systems for the fiscal year 2024[141]. - The board conducts an annual review of the effectiveness of the risk management and internal control systems[143]. - The company has established four committees: audit committee, remuneration committee, nomination committee, and strategic committee[113]. - The audit committee consists of three independent non-executive directors, with the chairperson possessing appropriate professional qualifications[115]. - The audit committee held two meetings in fiscal year 2024, with full attendance from its members[116]. - The company held one meeting of the Remuneration Committee in fiscal year 2024, with full attendance from all members[121]. - The Nomination Committee also held one meeting in fiscal year 2024, with all members present[126]. - The Strategic Committee is responsible for reviewing the company's expansion into emerging markets and the development of new products[129]. - The company confirmed that there are no significant uncertainties affecting its ability to continue as a going concern[131]. - The company secretary position was transitioned to Mr. Yuan Zhiwei effective August 8, 2024, following the resignation of Mr. Zhong Dezhu[134]. - The company ensures compliance with accounting standards and corporate governance codes as per the responsibilities outlined for the board of directors[131]. - All independent non-executive directors have confirmed their independence in accordance with listing rules[109]. - The board has a clear division of responsibilities between the chairman and the CEO to ensure a balance of power[108]. - The company has no plans for re-election of directors at the upcoming annual general meeting[70]. - In the fiscal year 2024, the company reported a total of 10 executives receiving compensation below RMB 1,000,000, a decrease of 18.18% from 11 in fiscal year 2023[85]. - There were no management or administrative contracts established for the majority of the company's business in fiscal year 2024[86]. - The details of remuneration for directors and the five highest-paid individuals are included in the financial statements[83]. - There are no indemnity provisions for any directors or associated companies during the fiscal year[81]. - There are no significant transactions or contracts involving directors with substantial interests during the fiscal year[78]. - The company has not established any arrangements that would result in directors holding interests in competing businesses during the fiscal year[79]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to environmental protection and sustainable development, implementing green office measures to reduce energy consumption[88]. - The board is responsible for identifying and assessing environmental, social, and governance (ESG) risks, and has formed a dedicated ESG working group to implement related measures[165]. - The ESG report covers the period from January 1, 2024, to December 31, 2024, aligning with the company's fiscal year[164]. - The ESG working group is tasked with collecting and monitoring ESG data, and reporting significant ESG matters to the board[168]. - The company emphasizes stakeholder engagement to understand and respond to their concerns regarding ESG issues[172]. - The company adheres to the "comply or explain" principle in its ESG reporting, ensuring transparency and accountability[170]. - The company has been recognized as a green factory by the Ministry of Industry and Information Technology of China[178]. - The company has established three environmental goals, promoting principles of "recycling," "reuse," "water conservation," and "energy saving" among employees[178]. - In the fiscal year 2024, the company complied with all applicable laws and regulations regarding emissions and waste management, with no significant claims or penalties related to environmental protection[179]. - The company has implemented an ISO 14001 certified environmental management system to reduce greenhouse gas emissions primarily from logistics activities[180]. - The company has established monitoring procedures to ensure water usage remains within reasonable limits, with no issues in obtaining applicable water sources in fiscal year 2024[184][185]. - The company produces minimal non-hazardous industrial waste during production, adhering to national standards for waste management[186]. - The company has installed automatic watering systems and dust-sealing designs in warehouses to minimize dust emissions during the loading process[187]. - The company encourages employees to cultivate water-saving habits and manages wastewater according to national discharge standards[184][185]. - The company has developed policies to minimize the use of natural resources and reduce the environmental impact of its operations[180]. - In fiscal year 2024, the company reported direct emissions (Scope 1) of 4,238 tons of CO2, a decrease of 49% from 8,317 tons in fiscal year 2023[189]. - Indirect emissions (Scope 2) increased to 16,118 tons of CO2 in fiscal year 2024, up 19% from 13,499 tons in fiscal year 2023[189]. - The company achieved a reduction in solid waste to 231 tons in fiscal year 2024, down from 398 tons in fiscal year 2023, representing a 42% decrease[192]. - Water consumption increased to 317 thousand cubic meters in fiscal year 2024, compared to 135 thousand cubic meters in fiscal year 2023, reflecting a 135% increase[192]. - The company aims to maintain current emission control and resource usage levels over the next two years, with plans to set and disclose new reduction targets thereafter[193]. - The company utilized 23,026 thousand kWh of electricity in fiscal year 2024, an increase of 19% from 19,284 thousand kWh in fiscal year 2023[192]. - The company plans to use vehicles that meet EU Stage VI standards for logistics activities to address future stricter emission standards[200]. - The company reported a significant reduction in sulfur dioxide (SOx) emissions to 1.05 tons in fiscal year 2024, down from 30.05 tons in fiscal year 2023, a decrease of 96.5%[189]. - The company is committed to managing suppliers and hiring environmentally friendly suppliers to meet customer expectations for green operations[200]. - The company has implemented a supply chain management plan to diversify its supply chain and monitor supplier financial and operational performance[200].

Financial Performance - For the fiscal year 2024, the company reported earnings per share (EPS) of HKD 1.91, a decrease of 56% compared to HKD 4.33 in 2023[22]. - Revenue for 2024 reached HKD 4,627,425,000, an increase of 2.96% compared to HKD 4,494,211,000 in 2023[26]. - Gross profit for 2024 was HKD 1,487,046,000, a decrease of 1.93% from HKD 1,515,118,000 in 2023[26]. - Profit before tax for 2024 was HKD 418,470,000, down 40.43% from HKD 702,004,000 in 2023[26]. - Net profit attributable to equity holders for 2024 was HKD 105,972,000, a decrease of 55.8% compared to HKD 239,548,000 in 2023[26]. - Total assets decreased to HKD 24,473,807,000 in 2024 from HKD 25,014,439,000 in 2023, a decline of 2.16%[26]. - Total liabilities decreased to HKD 6,400,040,000 in 2024 from HKD 6,762,389,000 in 2023, a reduction of 5.35%[26]. - Shareholders' profit for the year was HKD 106 million, a decrease of 56% year-on-year[62]. - The group's net profit attributable to shareholders was HKD 106 million, a decrease of 56% compared to the previous year[80]. Dividends and Payouts - The company declared a dividend of HKD 1.50 per share for 2024, down from HKD 2.50 in 2023, resulting in a dividend payout ratio of 78.37%[22]. - The company paid an interim dividend of 1.5 HKD cents per share on October 15, 2024, consistent with the previous year[149]. Financial Ratios - The interest coverage ratio decreased to 39.31 in 2024 from 56.17 in 2023, indicating a decline in the company's ability to meet interest obligations[22]. - The current ratio improved to 2.02 in 2024 from 1.78 in 2023, suggesting better short-term financial health[22]. - The total debt to equity ratio improved to 31.58% in 2024 from 33.00% in 2023, indicating a reduction in leverage[22]. - The average return on equity (ROE) decreased to 1.12% in 2024 from 1.91% in 2023, reflecting lower profitability relative to equity[22]. Business Operations and Strategy - The company operates several theme parks and cultural tourism destinations, with ownership stakes ranging from 46% to 100% in various subsidiaries[14][15][16]. - The company has a diversified portfolio in the hotel industry, owning 100% of several hotels and a significant stake in others, enhancing its market presence[19]. - The company is actively involved in the travel document services sector, fully owning its subsidiary in this area, which contributes to its overall business strategy[18]. - The company plans to continue expanding its market presence and exploring new strategies for growth in the tourism and hospitality sectors[13]. - The company plans to focus on market expansion and new product development in the upcoming fiscal year[27]. - The management indicated a strategic shift towards enhancing operational efficiency and cost management[27]. Market and Economic Outlook - The Chinese GDP for 2024 reached CNY 134.9 trillion, growing by 5.0% year-on-year, surpassing the global growth rate of approximately 3%[64]. - The company anticipates a steady recovery in the Hong Kong and mainland China economies by 2025, despite challenges from high market interest rates and geopolitical tensions[144]. - The company has maintained a cautious optimism regarding business prospects while remaining vigilant about global economic volatility[144]. Investments and Projects - The company plans to complete the design of the Ambara Resort project by 2025 and commence main construction, aiming for trial operations by the end of 2026[69]. - The company is committed to increasing its investment and asset proportions in Hong Kong, aiming to establish a leading tourism transportation investment platform in the Guangdong-Hong Kong-Macao Greater Bay Area[69]. - The company is actively exploring quality overseas investment opportunities while enhancing its strategic focus on Hainan[69]. - The company has established a joint venture with a registered capital of RMB 400 million to develop urban renewal and scenic area upgrades in Chongqing, with the company holding 55% equity[116]. - The company has initiated a project to establish a joint venture in Hainan to develop aerospace tourism, with a registered capital of RMB 10 million, aiming to create a significant tourism platform[117]. Management and Governance - 范志識先生 appointed as non-executive director in November 2022, bringing extensive experience in tourism and asset management[45]. - 謝祖墀先生 has nearly 30 years of experience in management consulting and corporate management, focusing on business strategy and overseas expansion[49]. - 陳志宏先生 served as chairman of life and general insurance for Zurich Insurance Group in the Asia-Pacific region, with a strong background in finance and accounting[54]. - 宋大偉先生 has held various senior positions in the Chinese government and state-owned enterprises, contributing to economic management and development[55]. - 公司董事会成员均具备丰富的行业经验和专业背景，涵盖旅游、保险、法律和经济管理等领域[48]. - 董事会成员的多样化背景有助于公司在市场扩张和新产品开发方面的战略决策[52]. Technology and Innovation - The company is actively exploring the application of new technologies such as AI and drones, launching the Xingtu AI creation platform and hosting five AIGC creation competitions[126]. - The company plans to strengthen AI capabilities in 2025 to provide personalized travel services and improve operational efficiency[126]. - The company launched a digital platform upgrade in 2024 to enhance booking processes and improve customer service experience, integrating with the parent company's platform[124]. Related Party Transactions - The company has ongoing related party transactions with China Travel Group, including travel permit management services and office leases, with specified annual caps for each[183]. - The actual amount for the management services agreement with China Travel Group for the year ending December 31, 2024, was RMB 0, while the annual cap is RMB 60.5 million[188]. - The independent non-executive directors confirmed that the ongoing connected transactions are conducted in the ordinary course of business and on fair and reasonable terms[191].

Financial Performance - Revenue increased by approximately HK$28.2 million or 7.6%, from approximately HK$370.2 million for the year ended 31 December 2023 to approximately HK$398.5 million for the year ended 31 December 2024[16] - The Group recorded a gross profit of approximately HK$71.4 million for the year ended 31 December 2024, compared to approximately HK$71.1 million in 2023[16] - Profit attributable to owners of the Company was approximately HK$31.5 million for the year ended 31 December 2024, up from approximately HK$25.2 million in 2023[16] - Basic earnings per share remained stable at approximately HK1.7 cents for the year ended 31 December 2024, consistent with 2023[16] - Profit for the year increased by approximately HK$6.3 million or 25.0%, from approximately HK$25.2 million for the year ended 31 December 2023 to approximately HK$31.5 million for the year ended 31 December 2024[49] - Net profit margin increased from approximately 6.8% for the year ended 31 December 2023 to approximately 7.9% for the year ended 31 December 2024[49] Revenue and Project Management - The Group's emphasis on large-scale infrastructure projects ensured a consistent revenue stream, resilient to economic fluctuations[19] - The Group's revenue increased by approximately HK$28.2 million or 7.6%, from approximately HK$370.2 million for the year ended 31 December 2023 to approximately HK$398.5 million for the year ended 31 December 2024, mainly due to higher works performed on sizeable projects[25] - As of 31 December 2024, the Group had 22 projects on hand with a backlog value of approximately HK$322.1 million, down from approximately HK$550.5 million as of 31 December 2023[26] - The Group is focusing on the collectability of trade receivables and the number of contracts in tendering to ensure steady revenue and cash flow streams[27] Cost and Expenses - The cost of services increased by approximately HK$27.9 million or 9.3%, from approximately HK$299.1 million for the year ended 31 December 2023 to approximately HK$327.1 million for the year ended 31 December 2024[35] - Gross profit remained stable at approximately HK$71.4 million for the year ended 31 December 2024, with a slight decrease in gross profit margin from approximately 19.2% to 17.9% due to lower margins on new projects[36] - Administrative expenses increased by approximately HK$7.4 million or 38.7%, from approximately HK$19.1 million for the year ended 31 December 2023 to approximately HK$26.5 million for the year ended 31 December 2024[43] Investments and Financial Management - The Group continued to invest in factory and machinery to enhance productivity and efficiency despite economic challenges[19] - The Group maintained a net current assets balance of approximately HK$218.9 million as of 31 December 2024, up from approximately HK$117.7 million in 2023[50] - Cash and cash equivalents increased to approximately HK$100.0 million as of 31 December 2024, compared to approximately HK$8.7 million in 2023[50] - Bank borrowings decreased to approximately HK$5.9 million as of 31 December 2024, down from approximately HK$9.9 million in 2023[52] - Gearing ratio decreased from approximately 9.5% as of 31 December 2023 to approximately 5.0% as of 31 December 2024[53] - Capital expenditures for the year ended 31 December 2024 were approximately HK$17.0 million, significantly up from approximately HK$1.4 million in 2023[59] Dividends - The Board resolved not to recommend the payment of a final dividend for the year ended 31 December 2024[16] - The Group declared an interim dividend of approximately HK$26.6 million in January 2024, with HK$10.0 million settled in cash and HK$16.6 million offset against amounts due from Directors and related companies[91] - No final dividend was recommended for the year ended December 31, 2024, following a previous declaration of HK$20 million in dividends for the year ended December 31, 2023[92] Corporate Governance and Leadership - The Group has a strong leadership team with extensive experience in their respective fields, enhancing its operational capabilities[113] - The Group's board includes controlling shareholders, ensuring alignment in strategic decision-making[111] - The Company has complied with the Corporate Governance Code and recommended best practices since the Listing Date[141] - The Board consists of eight Directors, including three executive Directors and three independent non-executive Directors[150] - The Company has established Board committees to delegate various duties and responsibilities[149] Workforce and Diversity - As of December 31, 2024, the Group employed 137 individuals, a decrease from 148 in 2023, with remuneration packages including salary and bonuses[77] - The Group has 137 employees as of December 31, 2024, with 15 females, representing approximately 10.9%[180] - The Group's target is to maintain the proportion of female employees at no less than 10% over the next three years[180] Risk Management - The Group did not experience any material difficulties or impacts on its operations or liquidity due to currency exchange fluctuations during the year ended December 31, 2024[72] - The Group did not use any financial instruments for hedging purposes during the year ended December 31, 2024, and will monitor exchange rate risks closely[73] Strategic Outlook - The Group remains cautiously optimistic about the structural steelwork industry in Hong Kong despite current economic challenges[30] - The Group aims to expand its market share by competing for structural steelwork projects[143] - The Group plans to increase its production capacity of structural steel[143] - The Group is committed to prudent financial management to ensure optimal finance costs and capital sufficiency[143] - The workforce is expected to be expanded as part of the Group's growth strategy[143]

Customer Base and Operations - The company serves approximately 20.1 million residential and commercial customers globally, providing clean, reliable, and affordable energy[6]. - The total length of the power supply network is 390,000 kilometers, while the gas and oil pipeline network spans 119,100 kilometers[15]. - UK Power Networks (UKPN) serves 8.5 million residential and commercial customers, covering over 29,000 square kilometers and accounting for about 28% of the UK's total distribution capacity[58]. - The company continues to see stable growth in its UK operations, serving up to 14 million residential and commercial customers[56]. Financial Performance - Shareholders' profit for 2024 reached HKD 6,119 million, representing an increase from HKD 6,003 million in 2023, marking a growth of approximately 1.93%[15]. - Earnings per share for 2024 was HKD 2.87, up from HKD 2.82 in 2023, reflecting a growth of 1.77%[15]. - The total equity amounted to HKD 87,076 million, a slight decrease from HKD 88,752 million in the previous year[15]. - The company reported a net profit of HKD 6.19 billion for the year ending December 31, 2024, representing a 2% increase from HKD 6.03 billion in 2023[27]. - The board proposed a final dividend of HKD 2.04 per share, maintaining the total annual dividend at HKD 2.82 per share, consistent with the previous year[28]. Investments and Acquisitions - The company is actively investing in innovative technologies to accelerate the transition to green energy, aligning with global carbon neutrality goals[7]. - The company is focused on strategic acquisitions and new development projects to ensure sustainable long-term growth[7]. - The company completed multiple acquisitions, including Phoenix Energy and UK Renewables Energy, enhancing its business portfolio and providing immediate cash flow and stable income[29]. - The company is actively expanding non-regulated projects to create additional cash flow and returns[32]. - The company is focusing on acquiring quality assets in mature energy markets, particularly those that meet sustainability objectives[38]. Renewable Energy and Sustainability - The company aims to achieve net-zero carbon emissions by 2050 as part of its climate action plan[50]. - The company is actively investing in clean hydrogen and biomethane projects in the UK and Australia, enhancing operational flexibility to accommodate renewable energy supply[37]. - The company plans to continue exploring new investment opportunities in the green sector, aligning with global decarbonization goals[37]. - The company is expanding its renewable energy portfolio, including the acquisition of a 20% stake in 32 onshore wind farms in the UK[53]. - The renewable energy generated from the wind farms avoided approximately 88,000 tons of carbon emissions[140]. Operational Efficiency and Reliability - The company maintains a power supply reliability rate exceeding 99.9999% in 2024, reflecting world-class standards[36]. - UKPN's electricity supply reliability reached 99.99% in the 2023/24 fiscal year, with London’s network being the most reliable in the UK[66]. - The company is modernizing its power grid and digitalizing operations to meet the increasing demand for electric vehicle charging and distributed renewable energy[42]. Governance and Management - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange's listing rules throughout the fiscal year ending December 31, 2024[176]. - The board consists of 12 directors, including 4 executive directors, 3 non-executive directors, and 5 independent non-executive directors[181]. - The company emphasizes a commitment to sustainable development and has outlined its policies on its website[177]. - The board's performance evaluation was conducted annually, with results reviewed in March 2025 for the fiscal year 2024[187]. - The company provides ongoing professional development training for directors to keep them updated on regulatory changes and their responsibilities[199]. Diversity and Inclusion - The board currently has one female independent non-executive director, and there are no specific targets or timelines set for further increasing gender diversity in board appointments[191]. - As of December 31, 2024, the gender distribution among employees is 67% male and 33% female, with a commitment to improving the representation of women at all levels[192]. - The company is committed to creating a diverse and inclusive work environment, although it currently does not set specific gender diversity targets for all employees[192].

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]