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

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

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

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

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]