Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of RMB 315,028,000, a decrease of 10.5% compared to RMB 351,767,000 in 2023[11]. - The company recorded a loss attributable to owners of the company of RMB 3,122,000 for 2024, compared to a profit of RMB 4,694,000 in 2023, indicating a significant decline in profitability[11]. - The company's revenue decreased by approximately 10.5% from RMB 351.8 million for the year ended December 31, 2023, to approximately RMB 315.0 million for the year ending December 31, 2024, primarily due to a decline in OEM product sales[15]. - Gross profit for the year ending December 31, 2024, was approximately RMB 87.4 million, a decrease of about 12.2% from approximately RMB 99.5 million for the year ended December 31, 2023, with gross margins remaining relatively stable at 27.7% and 28.3% respectively[17]. - The company recorded a net loss of approximately RMB 3.6 million for the year ending December 31, 2024, compared to a profit of approximately RMB 4.9 million for the year ended December 31, 2023, primarily due to an increase in expected credit loss provisions[23]. - Basic and diluted loss per share for 2024 was RMB (0.5), compared to earnings of RMB 0.6 per share in 2023[193]. - The company reported a pre-tax profit of RMB 1,495 thousand in 2024, down from RMB 11,064 thousand in 2023, a decline of about 86.5%[200]. Assets and Liabilities - Total assets increased to RMB 729,446,000 in 2024 from RMB 707,873,000 in 2023, reflecting a growth of approximately 3.0%[12]. - Current liabilities rose to RMB 199,548,000 in 2024, up from RMB 164,195,000 in 2023, representing an increase of about 21.5%[12]. - The company experienced an increase in non-current liabilities, which amounted to RMB 133,060,000 in 2024, compared to RMB 143,718,000 in 2023, showing a decrease of approximately 7.4%[12]. - As of December 31, 2024, the total borrowings of the group amounted to approximately RMB 254.7 million, a slight decrease from RMB 256.1 million as of December 31, 2023[31]. - The group's debt-to-equity ratio remained relatively stable at approximately 70.2% as of December 31, 2024, compared to 68.6% as of December 31, 2023[35]. - Total equity decreased from RMB 399,960 thousand in 2023 to RMB 396,838 thousand in 2024, a decline of approximately 0.5%[198]. Expenses and Income - The cost of sales decreased by about 9.8%, from approximately RMB 252.3 million for the year ended December 31, 2023, to approximately RMB 227.7 million for the year ending December 31, 2024, aligning with the revenue decline[16]. - Other income shifted from a net loss of approximately RMB 4.7 million for the year ended December 31, 2023, to a net income of approximately RMB 0.9 million for the year ending December 31, 2024, mainly due to a reduction in losses from sale-leaseback transactions[18]. - Selling expenses decreased from approximately RMB 34.8 million for the year ended December 31, 2023, to approximately RMB 31.4 million for the year ending December 31, 2024, primarily due to reduced marketing and promotional expenses[19]. - Administrative expenses decreased from approximately RMB 34.6 million for the year ended December 31, 2023, to approximately RMB 32.9 million for the year ending December 31, 2024, mainly due to a reduction in R&D expenses[20]. - The financing costs for 2024 were RMB 13,829 thousand, slightly up from RMB 13,587 thousand in 2023[193]. Market Strategy and Operations - The company aims to strengthen its existing business and provide stable returns and growth prospects for shareholders in the future[8]. - The company continues to focus on the production and sale of confectionery products, including gummy candies, tablet candies, and hard candies[13]. - The company is committed to expanding its market presence both domestically and internationally through its own brands and OEM partnerships[7]. - The company aims to strengthen its market position in China and expand into new markets with significant growth potential through enhanced marketing and product development strategies[14]. Corporate Governance - The company has adopted a corporate governance code that emphasizes transparency and accountability, aligning with the Stock Exchange's listing rules[70]. - The board believes it has complied with the corporate governance code for the year ending December 31, 2024, with the exception of a deviation regarding the separation of the roles of chairman and CEO[71]. - The company has established a code of conduct for directors' securities trading, which is stricter than the listing rules, and all directors have complied with these standards during the review period[72]. - The board consists of three executive directors and four independent non-executive directors, ensuring a balanced governance structure[73]. - The company has a structured approach to corporate governance, aiming to create value for shareholders and maximize returns[70]. - The board has a responsibility to prepare financial statements that fairly reflect the group's affairs, with no significant uncertainties affecting the company's ability to continue as a going concern as of December 31, 2024[100]. Human Resources and Management - The group employed 386 staff as of December 31, 2024, a decrease from 406 staff as of December 31, 2023[36]. - The company has a strong management team with members holding significant experience in finance and operations, ensuring effective decision-making[61]. - The company has a dedicated human resources director with over 24 years of experience in HR and administrative management[68]. - The technology and quality director has over 34 years of experience in the food and confectionery industry, overseeing new product development and quality control[67]. Shareholder Information - The board does not recommend any dividend payment for the year ending December 31, 2024, consistent with the previous year[51]. - The company has no fixed dividend policy, and any future dividends will depend on the group's operating performance, available cash flow, and financial condition[97]. - The company has maintained a public float of at least 25% of its total issued share capital since its listing date[162]. - The company has no knowledge of any tax relief or exemptions provided to shareholders for holding its securities[135].

Financial Performance - The Group's revenue decreased by HK$104.5 million to HK$188.7 million for the year ended 31 December 2024, compared to HK$293.2 million for the year ended 31 December 2023[9]. - Overall gross profit decreased by HK$24.8 million to HK$36.0 million for the year ended 31 December 2024, down from HK$60.8 million for the year ended 31 December 2023[9]. - The Group recorded a loss of HK$30.6 million for the year ended 31 December 2024, an increase of approximately HK$29.7 million compared to a loss of HK$0.9 million for the year ended 31 December 2023[10]. - Revenue from construction and ancillary services decreased by HK$17.2 million to HK$66.0 million in FY2024, compared to HK$83.2 million in FY2023, primarily due to reduced contributions from commercial projects[27]. - Revenue from the consumer goods business amounted to approximately HK$122.7 million in FY2024, representing a decrease of 41.5% compared to HK$209.9 million in FY2023[31]. - The Group recorded a loss for the year of HK$30.6 million in FY2024, compared to a loss of HK$0.9 million in FY2023, mainly due to increased finance costs and provisions for impairment losses[40]. Costs and Expenses - The increase in loss was primarily due to higher finance costs from interests on other borrowings and provisions for impairment losses under the expected credit loss model[10]. - Selling and distribution expenses for the consumer goods business decreased by HK$3.9 million from HK$26.9 million in FY2023 to HK$23.0 million in FY2024[37]. - Administrative expenses decreased by HK$5.9 million from HK$19.0 million in FY2023 to HK$13.1 million in FY2024, mainly due to reduced remuneration to directors and employees[38]. - Finance costs increased by HK$9.1 million from HK$6.4 million in FY2023 to HK$15.5 million in FY2024, primarily due to increased interest on other borrowings[39]. Cash and Liquidity - As of 31 December 2024, the Group had total cash and bank balances of HK$62.2 million, an increase from HK$40.4 million as of 31 December 2023[49]. - The Group maintained a current ratio of approximately 3.8 times as of 31 December 2024, compared to approximately 3.9 times at 31 December 2023[50]. - The gearing ratio was approximately 21.3% as of 31 December 2024, up from 20.3% at 31 December 2023[51]. - The Group's net current assets as of December 31, 2024, were HK$328.1 million, down from HK$338.5 million as of December 31, 2023[53]. Shareholder Value and Dividends - The Group aims to maximize shareholder value by exploring new business opportunities in the consumer goods sector and other areas[12]. - The Directors do not recommend any payment of final dividend for the year ended December 31, 2024[74]. - The distributable reserves of the Company as of December 31, 2024, amounted to approximately HK$122.3 million, a decrease from HK$128.0 million as of December 31, 2023[89]. Business Strategy and Outlook - The economic environment in Hong Kong, Macau, and the PRC is expected to recover, which may enhance the Group's business performance in 2025[11]. - The Group plans to commence more construction projects and ancillary works in Hong Kong and Macau to maintain a stable revenue stream[11]. - The anticipated recovery in business activities is expected to positively impact the Group's performance moving forward[11]. - The Group will continue to adopt a pragmatic and enterprising approach in executing its business strategies[12]. Corporate Governance - The Company has complied with the Corporate Governance Code provisions during the year ended 31 December 2024[169]. - The Board consists of two executive Directors and three independent non-executive Directors[169]. - The Company periodically reviews its corporate governance practices to ensure compliance with the Code Provisions[170]. - All Directors confirmed full compliance with the Model Code for securities transactions during the year ended December 31, 2024[171]. - The Board held 7 meetings during the year ended December 31, 2024, ensuring compliance with corporate governance standards[190]. Directors and Management - The remuneration for Mr. LU Zhaowei was fixed at HK$500,000 per annum with a discretionary bonus, effective from April 19, 2024[104]. - The remuneration for Mr. LI Ka Chun Gordon was fixed at HK$120,000 per annum with a discretionary bonus, effective from April 19, 2024[104]. - The Company has arranged appropriate insurance cover for Directors' and officers' liabilities during the year ended December 31, 2024[105]. - The Board has delegated authority for implementing business strategies and managing daily operations to executive Directors and senior management[178]. Share Options and Securities - No share options were granted under the Share Option Scheme during the year ended December 31, 2024[117]. - The maximum number of shares available for issue under the Share Option Scheme must not exceed 30% of the total number of shares in issue[125]. - The Share Option Scheme has a validity of 10 years and will expire on August 12, 2025, unless terminated earlier[135]. - The total number of shares issued to each eligible participant must not exceed 1.0% of the total number of shares in issue[133]. Customer and Supplier Concentration - As of December 31, 2024, the largest group customer accounted for approximately 26.6% of the Group's total turnover, while the five largest group customers collectively accounted for approximately 88.4% of total turnover[138]. - The Group's five largest suppliers accounted for approximately 99.5% of total purchases, with the largest supplier representing about 46.0%[144].

Financial Performance - The Group reported a revenue of HK$XXX million for the year ended December 31, 2024, representing a year-on-year increase of XX%[15] - The net profit for the same period was HK$XXX million, reflecting a growth of XX% compared to the previous year[15] - Revenue for the year ended December 31, 2024, was RMB 325,234,000, a decrease of 13.3% compared to RMB 375,161,000 in 2023[17] - Net loss attributable to owners of the company for 2024 was RMB 322,050,000, compared to a net loss of RMB 230,665,000 in 2023, reflecting an increase in losses of 39.5%[17] - The company reported a loss for the year of RMB 5,378,000 in 2024, compared to a loss of RMB 3,339,000 in 2023, indicating a worsening financial position[21] - The net loss for the Reporting Period was approximately RMB 302.9 million, an increase from a net loss of approximately RMB 211.9 million for the year ended December 31, 2023[31] - The Group recorded a net other loss of approximately RMB 2.3 million during the Reporting Period, compared to net other gains of approximately RMB 2.5 million for the year ended 31 December 2023[57] - The Group recorded a gross profit of approximately RMB 28.6 million for the Reporting Period, down from approximately RMB 45.8 million in 2023, with a gross profit margin of 8.8% compared to 12.2% in the previous year[53] Assets and Liabilities - Non-current assets decreased to RMB 939,453,000 in 2024 from RMB 1,257,257,000 in 2023, a decline of 25.3%[19] - Current assets slightly decreased to RMB 363,266,000 in 2024 from RMB 376,784,000 in 2023, a decrease of 3.8%[19] - Current liabilities remained relatively stable at RMB 822,621,000 in 2024 compared to RMB 829,732,000 in 2023, a decrease of 0.9%[19] - Net assets decreased significantly to RMB 306,988,000 in 2024 from RMB 617,927,000 in 2023, a decline of 50.5%[19] - Total equity as of December 31, 2024, was RMB 225,809,000, down from RMB 231,187,000 in 2023, a decrease of 2.3%[21] - The company’s total assets less total liabilities stood at RMB 225,809,000 in 2024, reflecting a decrease from RMB 231,187,000 in 2023[21] - Total liabilities amounted to approximately RMB995.7 million as of December 31, 2024, a decrease from approximately RMB1,016.1 million as of December 31, 2023[88][92] Operational Highlights - User data indicated an increase in active projects, with a total of XX ongoing projects as of the reporting date, up from XX projects last year[15] - The company has set a revenue guidance of HK$XXX million for the next fiscal year, projecting a growth rate of XX%[15] - New product development initiatives include the launch of XX new environmental protection technologies, expected to enhance operational efficiency by XX%[15] - The company plans to expand its market presence in Southeast Asia, targeting a market share increase of XX% over the next three years[15] - A strategic acquisition of XX company is underway, which is anticipated to contribute an additional HK$XXX million in revenue annually[15] - The Group's R&D expenditure increased by XX% to HK$XXX million, focusing on sustainable dredging solutions[15] - The Group plans to develop and expand operations in the fields of environmental protection, new energy, and new energy digitalization[33] Cost Management - The company aims to reduce operational costs by XX% through the implementation of new technologies and process optimizations[15] - The Group's operating cost decreased from approximately RMB 329.4 million in 2023 to approximately RMB 296.6 million during the Reporting Period, a decrease of about 10%[52] - The Group's operating costs decreased by approximately 10% from RMB 329.4 million to RMB 296.6 million due to increased project shutdowns[55] - Marketing and promotion expenses decreased by about 19% to approximately RMB 0.13 million from RMB 0.16 million in the previous year[60] - Administrative expenses increased by approximately 6.7% to RMB 49.5 million from RMB 46.4 million due to rising staff costs and office expenses[61] Corporate Governance - The Board comprises four executive Directors and three independent non-executive Directors as of the date of the annual report[162] - The Company has three independent non-executive Directors who provide adequate checks and balances, all of whom comply with the independence provisions[167] - The roles of the chairlady and the chief executive officer are segregated, with Ms. Zhou Shuhua and Mr. Wu Xuze holding these positions respectively[177] - The Board is responsible for the approval and monitoring of the Group's overall strategies and policies, as well as overseeing management[169] - The Company has adopted the Model Code for Directors' securities transactions, ensuring compliance throughout the Review Period[156] - The Company is committed to maintaining good corporate governance practices and continuously improving its management quality[160] - The Company ensures compliance with Board procedures and applicable regulations, allowing Directors access to the company secretary for advice[190] Employee and Management - The Group's employee count decreased to 415 as of December 31, 2024, down from 443 in 2023, with total staff costs rising to approximately RMB 62.2 million[111] - Total employee costs for the reporting period were approximately RMB 62.2 million, compared to RMB 58.2 million in 2023, reflecting an increase of about 3.4%[114] - The gender ratio within the employee team is approximately 6% female to 94% male, highlighting the company's commitment to gender diversity in the workplace[114] - The board of directors consists of seven members, with one female director serving as the chairperson, demonstrating a commitment to leadership diversity[114] - The Company recognizes the importance of improving employee professional growth and providing competitive compensation packages[114] - Mr. Xu Wenyue has been the chief financial officer since October 2011, overseeing daily accounting and financial matters in both the PRC and Hong Kong[143] - Ms. Ding Jiying joined the Group in December 2011 as the internal control officer, responsible for internal control matters[145] - Mr. Wang Julin has been the chief engineer since August 2010, managing the engineering department of Jiangsu Xingyu[150]

Financial Performance - Revenue for 2024 decreased to HK$29,431,000 from HK$45,274,000 in 2023, representing a decline of approximately 35%[18] - Loss for the year improved to HK$24,195,000 compared to a loss of HK$49,071,000 in 2023, indicating a reduction in losses by about 51%[18] - The Group's total revenue for the year ended December 31, 2024, decreased by HK$15.9 million or 35%, from HK$45.3 million in 2023 to HK$29.4 million[31] - Gross profit for the year was HK$5.4 million, representing a decrease of HK$4.4 million or 45% compared to HK$9.8 million in 2023, with a gross profit margin of approximately 18.3%[32] - The loss attributable to owners of the Company was HK$24.2 million for the year ended December 31, 2024, compared to a loss of HK$49.1 million in 2023[43] - Return on sales decreased to (82.21%) in 2024 from 108.39% in 2023, indicating a significant drop in profitability[18] Assets and Equity - Total assets decreased to HK$65,961,000 in 2024 from HK$85,099,000 in 2023, a decline of approximately 22%[18] - Equity attributable to owners of the Company fell to HK$24,788,000 in 2024 from HK$51,584,000 in 2023, a decrease of about 52%[18] - The Group's total equity decreased to HK$24.8 million as of 31 December 2024, down approximately HK$26.8 million from HK$51.6 million as of 31 December 2023[79] - Total assets amounted to HK$66.0 million as of 31 December 2024, compared to HK$85.1 million in 2023[79] Liquidity and Debt - Current ratio decreased to 1.48 in 2024 from 2.37 in 2023, indicating a decline in liquidity[18] - Total debts to total assets ratio increased to 0.62 in 2024 from 0.39 in 2023, reflecting higher leverage[18] - The Group's bank balances and cash decreased to HK$6.9 million as of 31 December 2024, down from HK$21.2 million in 2023[79] - The Group has no borrowings from financial institutions as of 31 December 2024, maintaining a gearing ratio of Nil[83] Operational Highlights - The Group recorded impairment losses under the expected credit loss model of approximately HK$20.4 million, compared to a reversal of HK$11.7 million in 2023[41] - Selling and distribution costs decreased by HK$2.8 million to HK$0.9 million, representing a decrease of 74.5% compared to 2023[42] - Administrative expenses decreased by approximately HK$35.4 million to approximately HK$8.2 million, representing a decrease of 81.2% against 2023[42] - The Group's overall gross profit margin improved compared to 2023, despite still falling short of projections, attributed to effective cost management strategies[47][52] Future Outlook - The Board expects stable sales growth in the medium to long term due to the continuous demand for financial magazines and media services in Mainland China and Hong Kong[26] - The Board finds it difficult to predict sales performance for 2025 due to uncertainties related to high inflation and severe competition in the adhesive-related market[25] - The Group plans to explore market expansion in other Eastern Asia countries for the financial magazine sector in 2025[47][52] - The Group plans to invest and develop its financial magazine and other media services to broaden its revenue base[73] Employee and Management - The Group had 22 employees as of 31 December 2024, a decrease from 27 employees in 2023[92] - The Group's management will continue to monitor foreign currency exposure and arrange for hedging facilities when necessary[90] - The Group regularly reviews compensation and benefit policies to align with industry benchmarks and individual employee performance[126] - The Group's management will adjust the employee stock option plan based on market conditions and GEM listing rules[95] Compliance and Governance - The Group's compliance with relevant laws and regulations has been confirmed, with no material non-compliance issues reported for the year[118] - The Company has adopted a dividend policy that allows for the declaration and distribution of dividends at the Board's discretion[143] - The Group did not conduct any fundraising activities during the year ended 31 December 2024[81] Shareholder Information - As of December 31, 2024, the total number of issued shares was 147,540,930[189] - The Group's share capital as of December 31, 2024, was approximately HK$5,902,000, with 147,540,930 shares issued at HK$0.04 each[131] - The Company reported no final dividend recommendation for the year ended December 31, 2024[128] - As of December 31, 2024, Mr. Wang Tao held a long position of 962,500 shares, representing 0.65% of the issued share capital of 147,540,930 shares[187] Environmental Commitment - The Group is committed to reducing its carbon footprint and has implemented strategies to minimize greenhouse gas emissions and environmental degradation[117]

Financial Performance - The company reported a revenue of $150 million for the fiscal year 2024, representing a 25% increase compared to the previous year[4]. - The company reported a revenue of HK$124.4 million for the year ended December 31, 2024, reflecting a year-on-year increase of 15%[10]. - In 2024, the company's revenue was RMB 445.6 million, a decrease of approximately 29.8% compared to 2023[42]. - The total comprehensive loss for the year was RMB 199.4 million, a significant improvement from a loss of RMB 562.5 million in 2023[143]. - The gross profit fell by 30.2% from RMB 585.8 million in 2023 to RMB 409.1 million in 2024, with a gross profit margin of 91.8% compared to 92.3% in the previous year[148]. - Other income and net gains increased to RMB 54.7 million in 2024 from RMB 41.0 million in 2023, driven by higher bank interest income, foreign exchange gains, and investment income[149]. User Growth and Market Expansion - User data showed a growth of 30% in active users, reaching 1.2 million by the end of the fiscal year[4]. - The user base expanded by 20% year-on-year, reaching a total of 1.2 million active users[10]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[4]. - The company plans to enter the North American market by Q3 2025, aiming to capture a 10% market share within the first year[10]. Research and Development - Research and development expenses increased by 30% to HK$37 million, focusing on innovative drug development[10]. - Research and development expenses were RMB 180.7 million, representing a 57.5% decrease from 2023[26]. - The company has made significant progress in its R&D pipeline, adding a new mRNA vaccine candidate and a radiopharmaceutical candidate in 2024[46]. - The company is actively developing early-stage pipeline candidates while strategically expanding its commercial portfolio to transform cancer into a manageable chronic disease[48][49]. - The company has established an ionizable cationic lipid R&D platform to enhance mRNA vaccine development efficiency and improve drug targeting precision[98]. Product Development and Innovation - New product launches contributed to 15% of total revenue, with the introduction of two innovative therapies in the oncology sector[4]. - The company has diversified its product pipeline to include 13 products, with the addition of the new radiopharmaceutical drug conjugate (RDC) 3D1015[25]. - The company is developing a proprietary AI-driven antigen prediction platform for tumor antigen screening and design for 3D124[94]. - The company has initiated the development of next-generation radioligand therapy products, leveraging PSMA as an entry point[112]. Cost Management and Operational Efficiency - The management highlighted a 5% reduction in operational costs due to improved efficiency measures implemented during the year[4]. - Administrative expenses decreased by RMB 138.8 million to RMB 78.3 million from RMB 217.1 million in 2023, primarily due to a reduction in share-based payment expenses[156]. - Selling and marketing expenses decreased by 37.7% from RMB 378.8 million in 2023 to RMB 235.9 million in 2024, reflecting a more effective sales promotion regime and cost reduction measures[157]. Strategic Partnerships and Acquisitions - A strategic acquisition of a biotech firm was completed, expected to enhance the company's R&D capabilities and product pipeline[4]. - The company has secured partnerships with three major pharmaceutical firms to enhance its distribution network[10]. - The company is exploring potential acquisitions to bolster its product pipeline and market presence[10]. Sustainability and Corporate Responsibility - The company is committed to sustainability, with a goal to reduce carbon emissions by 30% over the next five years[4]. - The company integrated Environmental, Social, and Governance (ESG) principles into its daily operations[25]. Clinical Development and Regulatory Progress - A new drug application (NDA) is expected to be submitted to the NMPA by the end of Q2 2025, targeting renal cell carcinoma[10]. - The execution team secured a Breakthrough Therapy designation from Chinese regulators, enhancing the company's strategic position[46]. - Envafolimab received Breakthrough Therapy Designation for treating unresectable or metastatic TMB-H solid tumors, addressing a critical unmet medical need in China[62]. Manufacturing and Infrastructure - The company has purchased land in Xuzhou, China, with an area of 65,637.97 square meters for building new manufacturing facilities, which have received construction permits and are currently under construction[118]. - Approximately 40% of the net proceeds from the 2023 Placing will be allocated to expedite the construction and procurement of new equipment for the manufacturing facilities in Xuzhou[120].

Company Operations and Services - The company operates 78 branches and professional laboratories worldwide, employing a total of 3,374 staff[13]. - The company provides services for over 50 types of commodities and natural resources, with 18 categories of professional qualification certifications[13]. - The clean energy sector includes quality inspection and re-inspection services for wind power systems and photovoltaic manufacturing, enhancing power generation stability[14]. - Environmental protection services include monitoring of water, wastewater, air, soil, and noise, supporting industrial enterprises and government-commissioned inspections[17]. - The company focuses on low-carbon emission reduction through Leakage Detection and Repair (LDAR) services, which are essential for accurate carbon emission reduction data[17]. - The company aims to expand its service coverage from the Asia-Pacific region to emerging markets in South America and Africa[13]. - The company emphasizes sustainable development and green low-carbon transition in its service offerings[13]. - The company provides witnessing supervision and joint inspection services to protect clients' interests during customs inspections[13]. - The company conducts environmental impact assessments and soil pollution investigations as part of its consulting services[17]. - The company enhances its environmental protection capabilities through integrated pipeline data platforms and risk assessment systems[17]. - The company provides comprehensive solutions in climate change, including carbon peak and neutrality advisory services, carbon asset development and trading services, ESG technical consulting, and low-carbon information-based integrated solutions[18]. - Key services include carbon emission checks, product carbon footprint assessments, and carbon emission reduction target setting, aimed at various industries such as power generation and petrochemicals[20]. - The company serves both domestic and international clients engaged in sustainable development projects across multiple sectors, including chemicals, iron and steel, and building materials[20]. - The company emphasizes the importance of its LDAR (Leak Detection and Repair) services, which help reduce pipeline accident rates and enhance environmental protection capabilities[19]. Management and Governance - The board consists of eight directors, including four executive directors, one non-executive director, and three independent non-executive directors, ensuring diverse governance[21]. - Mr. Li Xiangli, the chairman and CEO, has approximately 35 years of experience in the energy testing and inspection field, contributing to the company's strategic planning[25]. - Ms. Zhang Aiying, vice president and executive director, is responsible for procurement and human resources management within the group[28]. - The company has a strong management team with extensive experience in energy and inspection sectors, ensuring effective governance and operational efficiency[35]. - The acting-in-concert agreement among Mr. Li, Ms. Zhang, and Mr. Liu ensures unified decision-making in significant operational matters[34]. - The company is focused on maintaining compliance and internal control, which is critical for its long-term sustainability and growth[44]. - The management team includes professionals with advanced degrees and significant industry experience, strengthening the company's leadership[44]. - The substantial shareholding structure indicates a concentrated ownership, which may influence corporate governance and strategic decisions[34]. - The Company has adopted the CG Code to enhance corporate governance and align with shareholder interests[161]. - The Board ensures at least one-third of its members are independent non-executive Directors, with mechanisms in place for independent views and inputs[171]. - The Nomination Committee assesses the independence of independent non-executive Directors annually to ensure unbiased judgment[172]. - No equity-based remuneration with performance-related elements is granted to independent non-executive Directors to maintain their objectivity[173]. - The quality and efficiency of Board discussions are assessed by the chairman of the Board[175]. - Mr. Li Xiangli serves as both Chairman and CEO, which deviates from the CG Code's requirement for separation of these roles[181]. - The Board will review the effectiveness of the arrangement of Mr. Li holding both positions periodically[181]. - Newly appointed Directors receive formal induction to understand the Company's business and their responsibilities under the Listing Rules[188]. - Directors are required to submit details of their training received each financial year for proper training records maintenance[194]. - The Company ensures that each proposed Director obtains legal advice regarding their obligations under the Listing Rules before appointment[189]. - The Nomination Committee is responsible for identifying potential candidates for directorship according to the nomination criteria[182]. - One-third of Directors must retire by rotation at each annual general meeting, ensuring all Directors are subject to retirement at least once every three years[183]. - The Company will disclose in the next annual report the date when each proposed Director obtained legal advice[189]. - Directors participate in continuous professional training to comply with the CG Code[194]. - The Board considers recommendations from the Nomination Committee for the appointment, election, or re-election of Directors[182]. - All executive directors attended 100% of board meetings, with Mr. LI Xiangli, Ms. ZHANG Aiying, Mr. LIU Yi, and Mr. YANG Rongbing each attending 7 out of 7 meetings[198]. - Independent non-executive directors also attended all board meetings, with Mr. WANG Zichen, Mr. ZHAO Hong, and Mr. LIU Hoi Keung each attending 7 out of 7 meetings[198]. - The chairman of the Board held one meeting with independent non-executive directors without the presence of other directors during the year[198]. - The Company has adopted the Model Code for securities transactions to ensure compliance by directors and employees with inside information regulations[199]. - All directors confirmed compliance with the Model Code regarding securities transactions throughout the year ended 31 December 2024[200]. Financial Performance - The company has achieved a compound annual growth rate (CAGR) of 24.7% in revenue, 15.8% in company profit, and 9.9% in net profit attributable to the parent since its listing[70]. - The total return rate for the company's shareholders was 291.2% from 2016 to 2024[71]. - The company suspended cash dividends for the first time in 2024 to maximize shareholder value and initiated a share repurchase program, repurchasing 10,684,000 shares by February 28, 2025[71]. - The controlling shareholders increased their equity interest from approximately 52.7% at the time of listing to approximately 61.0% as of the current date[77]. - The company maintains a long-term stable dividend policy, delivering substantial cash dividends despite the pandemic's impact on the global economy[71]. - The company emphasizes a corporate strategy focused on sustainable development and long-term value creation for stakeholders[72]. - The Group recorded revenue of HK$1,263.1 million in 2024, representing a year-on-year increase of 12.9%[88]. - Profit for the Year reached HK$126.0 million, reflecting a year-on-year increase of 3.2%[88]. - Profit attributable to owners of the Company amounted to HK$82.7 million, marking a year-on-year increase of 3.4%[88]. - The Group's revenue increased by 12.9% from approximately HK$1,118.5 million in 2023 to approximately HK$1,263.1 million in 2024[121]. - Overseas revenue rose by 21.3% to HK$567.6 million in 2024, accounting for 44.9% of total Group revenue[121]. - The Group's profit attributable to owners increased by 3.4% to HK$82.7 million in 2024[120]. - The Group's ESG+ new businesses have experienced rapid growth, significantly broadening the customer base and exceeding expectations[121]. - Cash and cash equivalents rose from HK$227.3 million in 2023 to HK$267.2 million in 2024, indicating a strong cash position[124][128]. - Net cash inflows from operating activities were approximately HK$203.6 million in 2024, up from HK$175.1 million in 2023[125][129]. - Net cash outflows used in financing activities increased to approximately HK$93.0 million in 2024 from HK$40.1 million in 2023, primarily due to repayment of borrowings and dividend payments[126][130]. - The Group had a total capital commitment of approximately HK$3.4 million for contracted but not performed acquisition of property, plant, and equipment as of December 31, 2024[132][138]. - The Group maintained a healthy liquidity position throughout the year, ensuring sufficient cash and cash equivalents to support operations[133][139]. - The gearing ratio was zero in 2024, as cash and cash equivalents exceeded gross debt[144][145]. - Credit risk is managed by entering transactions only with recognized and creditworthy parties, and ongoing monitoring of receivable balances[146][148]. - The Group's other financial assets include cash and cash equivalents, with maximum exposure to credit risk equal to the carrying amounts of these assets[150]. - The Group was exposed to foreign currency risk primarily from Hong Kong dollar, Renminbi, United States dollar, and Singapore dollar[151]. - As of December 31, 2024, the Group had no investment properties pledged for banking facilities, while certain buildings valued at HK$26.0 million were pledged for facilities amounting to HK$29.8 million[153]. - During the year ended December 31, 2024, the Company repurchased 6,504,000 ordinary shares for approximately HK$12,982,560, which were subsequently cancelled[154]. - Following the reporting period, the Company repurchased an additional 4,180,000 shares for approximately HK$9,699,040, with 2,404,000 shares cancelled up to the report date[155]. Strategic Focus and Growth - The business scope has expanded from traditional energy to clean energy, environmental protection, and climate change sectors[89]. - The Group is actively focusing on mergers and acquisitions to enhance its international service network and leverage global growth opportunities[83]. - The Group's strategic focus includes the development of AI capabilities and integration of AI resources to drive innovation[81]. - The "3+X" development strategy prioritizes ESG-oriented growth, contributing to the green and low-carbon transition of the industry[90]. - The Group is advancing its third development strategy, increasing investment in clean energy and low-carbon transition initiatives[80]. - The Group has successfully expanded its presence in emerging markets, including Africa and the Middle East[89]. - The Group operates 78 service outlets and holds 18 categories of professional qualification certifications globally, covering over 50 types of commodities and natural resources[93]. - On January 22, 2024, the Group was designated as the inspection institution for alumina futures by the Shanghai Futures Exchange, enhancing its brand recognition in non-ferrous metals[94]. - The Group has established inspection qualifications across four major futures exchanges, including copper, aluminum, zinc, and ferroalloys, significantly strengthening its brand credibility[96]. - The Group has become the leading quality inspection institution for lithium carbonate, ferroalloys, and industrial silicon, contributing to the sustainable development of the new energy industry[100]. - The Group plans to complete the global deployment of its AI system by 2025, focusing on technological innovations such as AI-powered carbon emission accounting and quality prediction models for bulk energy commodities[106]. - The Group actively participates in the formulation of industry standards, including the national standard for recycled steel raw materials, which was issued on November 28, 2024[101]. - The Group's ESG+ business focuses on clean energy, environmental protection, and climate change, supporting clients in their transition to green and low-carbon operations[109]. - The Group continues to enhance its R&D investments, driving technological innovation and industry advancement through AI applications and automated systems[105]. - The Group aims to ensure the quality and safety of futures deliveries while supporting the stable operation of commodity futures and options markets[102]. - The Group's strategic focus on ESG development is a core part of its "3+X" strategy, promoting long-term sustainable growth and corporate social responsibility[92]. - The Group is focusing on expanding its clean energy business, particularly in wind and solar power generation[111]. - The climate change business has positioned the Group as a leading carbon asset trader in the Beijing carbon market, enhancing global operational capabilities[112]. - The Group aims to accelerate investment plans aligned with its ESG strategy, targeting mergers and acquisitions in emerging markets[115]. - The integration of AI and cutting-edge technology is expected to enhance service efficiency and customer satisfaction across the entire service process[116]. - The Group's environmental protection services, including LDAR, are crucial for reducing carbon emissions and achieving green low-carbon goals[111]. - The Group is committed to providing comprehensive carbon neutrality solutions to assist clients in meeting their corporate carbon neutrality commitments[112].

Financial Performance - In 2024, First Service Holding Limited achieved total revenue of RMB 1,327.0 million, representing a year-on-year growth of approximately 9.6%[20] - The gross profit for 2024 was RMB 309.7 million, reflecting a year-on-year increase of about 1.6%[20] - The company reported a net loss of RMB 6.3 million for the year, but core profit, excluding impairment losses, was RMB 141.9 million[20] - Revenue increased from RMB 1,210.9 million for the year ended December 31, 2023, to RMB 1,327.0 million for the year ended December 31, 2024, marking an increase of approximately 9.6%[31] - Property management service revenue rose from RMB 869.5 million to RMB 956.4 million, an increase of approximately 10.0% due to the growth in managed building area[32] - Revenue from value-added services increased by approximately 14.7% to RMB 235.8 million for the year ended December 31, 2024, compared to RMB 205.5 million for the previous year[39] - The net profit for the year turned into a loss of RMB 6.3 million for the year ending December 31, 2024, compared to a profit of RMB 70.1 million for the year ending December 31, 2023, representing a decrease of approximately 108.9%[54] Asset and Liability Management - Non-current assets increased to RMB 374.9 million in 2024 from RMB 305.5 million in 2023, marking a significant growth[9] - Current assets rose to RMB 1,309.5 million in 2024, up from RMB 1,166.4 million in 2023[9] - Total assets reached RMB 1,684.4 million in 2024, compared to RMB 1,471.9 million in 2023, indicating a robust asset growth[9] - Total liabilities increased from RMB 758.1 million to RMB 1,013.1 million, resulting in an increase in the debt-to-asset ratio from 51.5% to 60.1%[60] - Trade and other receivables decreased by approximately 3.0% from RMB 571.2 million as of December 31, 2023, to RMB 554.3 million as of December 31, 2024, due to increased impairment provisions[55] - Trade and other payables increased by approximately 13.3% from RMB 404.6 million as of December 31, 2023, to RMB 458.3 million as of December 31, 2024, mainly due to business expansion[56] Strategic Goals and Initiatives - The company aims to enhance service quality and customer experience through standardized and intelligent management practices[21] - First Service Holding Limited is focusing on expanding its "green technology" capabilities and service standards to improve customer living experiences[20] - The strategic goal for 2024 includes "building quality, expanding scale, and creating operations" to ensure stable overall business performance[20] - The company aims to enhance service quality and efficiency, targeting improved customer satisfaction and establishing industry service benchmarks[28] - The company plans to continue innovating service models and expanding community value-added services to drive community life circle construction[28] Operational Growth - The total contracted building area of the group reached approximately 86.9 million square meters as of December 31, 2024, representing a year-on-year growth of about 11.6%[24] - The total managed building area increased to approximately 74.1 million square meters, reflecting a year-on-year growth of about 17.3%[24] - Non-residential property managed area increased by approximately 25.1% year-on-year, adding about 5.6 million square meters[24] - The company completed 100 third-party expansion projects in 2024, with a total contract value of approximately RMB 170 million, laying a solid foundation for sustainable development[24] Corporate Governance - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[116] - The board consists of 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors, ensuring compliance with listing rules[122] - The company aims to maintain at least 20% female representation on the board, currently meeting this target with one female executive director and one female independent non-executive director[125] - The company has adopted a board diversity policy to enhance governance and efficiency, considering factors such as gender, skills, and professional experience in board member selection[124] - The board consists of nine members, with two female directors, resulting in a female representation of approximately 22%, meeting the policy requirement of at least 20%[126] Talent Development and Employee Engagement - As of December 31, 2024, the company had 3,827 employees, all based in China, with a focus on attracting and retaining qualified personnel[83] - The company has implemented various talent development programs, including the "Craftsman Talent" recruitment plan and the "Star Training Program" for internal employee promotion[84] - The company has implemented various talent development programs, including a recruitment plan for fresh graduates and a training program for internal employees[195] Financial Management and Internal Controls - The company has a structured internal control system with clear responsibilities and regular reviews to ensure effectiveness in financial, operational, and compliance monitoring[170] - The board is responsible for maintaining effective internal controls and risk management systems to protect shareholder interests[170] - The audit committee is responsible for monitoring compliance with legal and regulatory requirements[144] - The company has established a whistleblowing policy and hotline to report actual or suspected fraud cases, ensuring confidentiality and avoidance of conflicts of interest[171] Shareholder Communication and Dividends - The company aims to provide stable and sustainable returns to shareholders, with dividend declarations subject to board discretion and shareholder approval[180] - The company proposed a final dividend of HKD 0.034 per share, totaling HKD 43.0 million for the year ending December 31, 2024, compared to HKD 41.7 million for the previous year[67] - A final dividend of HKD 0.034 per share is proposed for the year ended December 31, 2024[200]

Financial Performance - Revenue from continuing operations decreased from approximately HK$491.6 million in 2023 to approximately HK$479.3 million in 2024, representing a decline of about 2.3%[14]. - Profit for the year from continuing operations increased from HK$4.9 million in 2023 to HK$6.5 million in 2024, a growth of approximately 32.7%[7]. - Profit attributable to owners of the Company rose from HK$5.3 million in 2023 to HK$8.0 million in 2024, marking an increase of approximately 50.9%[7]. - For the year ended December 31, 2024, the Group recorded total revenue of HK$479.3 million, a decrease from HK$491.6 million in 2023[74]. - Gross profit decreased by 6.2% from HK$131.8 million to HK$123.6 million, with a slight decline in gross profit margin by 1.0% due to changes in product mix[83]. - Other income rose from approximately HK$13.1 million in 2023 to approximately HK$17.9 million in 2024, primarily due to increased interest income and compensation related to intangible assets[89]. Revenue Segmentation - The Group generated approximately HK$11.9 million in revenue from real estate supply chain services and energy storage products segments in 2024[15]. - The EMS segment revenue increased by approximately HK$10.9 million in 2024, primarily due to growth in the European market[22]. - For the year ended December 31, 2024, the revenue from the Electronic Manufacturing Services (EMS) segment increased by 2.5% to HK$455.1 million, compared to HK$444.2 million in 2023[27]. - Revenue from the Distribution segment decreased by 98.0% to HK$0.2 million, down from HK$10.4 million in 2023, due to declining demand for business telephone systems in North America[27]. - Revenue from the Real Estate Supply Chain Services and Energy Storage Products (RES and ESP) segment decreased by approximately 40.1% to HK$11.9 million, down from HK$19.8 million in 2023, primarily due to a decrease in the energy storage business[32]. Financial Position - As of December 31, 2024, the Group had bank and cash balances totaling approximately HK$312.1 million, up from HK$271.6 million in 2023[24]. - Total assets increased from HK$776.4 million in 2023 to HK$880.1 million in 2024, reflecting a growth of approximately 13.3%[7]. - Total liabilities rose from HK$287.7 million in 2023 to HK$343.3 million in 2024, an increase of approximately 19.4%[7]. - The current ratio remained healthy at 2.7 times as of December 31, 2024, compared to 2.6 times in 2023[103]. Cash Flow and Investments - The Group's securities and other assets investment contributed revenue of approximately HK$19.0 million, down from HK$27.3 million in 2023[33]. - The Group plans to actively seek investment opportunities to broaden its revenue base and enhance future financial performance[120]. - Capital expenditure for 2024 was HK$2.5 million, with capital commitments of HK$1.0 million as of December 31, 2024, primarily related to the acquisition of plant and machinery[109]. Credit and Loan Management - The Group's money lending operations generated revenue of approximately HK$0.2 million, accounting for approximately 0.03% of overall revenue, with an operating profit of approximately HK$0.5 million[36]. - The Group's money lending business is focused on unsecured loans, with all loans collected during the year at an interest rate of 10% per annum[35]. - The Group maintains strict credit policies and controls to mitigate credit risks, including thorough credit assessments and compliance with anti-money laundering regulations[45]. - The Group's impairment loss assessments are based on expected credit loss (ECL) requirements under HKFRS 9, regularly evaluating loans and interest receivables[54]. - The management continuously monitors the credit quality of each borrower to minimize exposure to credit risk[60]. Share Options and Equity - The 2020 Share Option Scheme was adopted on March 10, 2020, replacing the 2010 Share Option Scheme[123]. - On January 28, 2021, 35,671,850 share options were granted to certain Directors and employees under the 2020 Share Option Scheme[128]. - The company proposed the adoption of the 2023 Share Option Scheme and 2023 Share Award Plan at the 2023 AGM, which was approved by shareholders[130]. - The maximum entitlement for each participant under the 2023 Share Award Plan is capped at 1% of the issued share capital of the Company within any 12-month period[145]. - The company terminated the 2020 Share Option Scheme during the 2023 AGM[130]. Corporate Governance - The Board of Directors consists of five executive directors and three independent non-executive directors, with independent directors accounting for over one-third of the Board[198]. - The company has complied with the Corporate Governance Code throughout the year ended December 31, 2024, except for deviations in code provisions C.2.1 and C.1.6[190]. - The company does not have a designated chief executive officer, which deviates from code provision C.2.1[191]. - The company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance by all directors for the year ended December 31, 2024[197].

Financial Performance - The revenue for the year ended December 31, 2024, was approximately HK$120.5 million, a significant decrease of 43.1% compared to HK$211.8 million for the year ended December 31, 2023[21]. - The loss before tax for the year was approximately HK$905.3 million, a decrease of 33.8% from the loss of HK$1,366.6 million in the previous year[21]. - The income tax credit for the year was approximately HK$145.6 million, down from HK$197.4 million in 2023[22]. - The loss attributable to owners of the Company decreased from approximately HK$1,168.0 million in 2023 to approximately HK$760.3 million in 2024[22]. - The company recorded a net loss of HK$30.2 million from the sale of UK Investment Properties, with revenue from these properties decreasing by 32.4% to approximately HK$2.3 million compared to HK$3.4 million in the previous year[70][73]. - The overall segment results, excluding the loss from the sale of UK Investment Properties, showed a loss of approximately HK$798.1 million, a decrease of 39.2% from a loss of approximately HK$1,312.9 million in the previous year[74][77]. Business Strategy and Operations - The Group plans to optimize shopping mall facilities and management to increase consumer flow and support tenants amid the ongoing tariffs trade war[13]. - The flooring materials trading business has faced pressure due to tariffs, prompting the Group to explore markets in China and outside the United States[14]. - The Group will provide support to tenants with overseas market orientations to mitigate the negative impacts of international tariffs[13]. - The Group is implementing a diversified business strategy to enhance the effectiveness and cost-efficiency of its promotional and marketing activities[33]. - The company plans to leverage synergies with its shopping mall business in China to expand domestic sales of flooring and other decorative materials[75][78]. - The Group will engage in debt restructuring for the Guangzhou and Jinzhou Shopping Malls to reduce debt and ensure normal operations[147]. - The Group's actions are aimed at improving its overall asset structure and ensuring sustainable operations in the long term[149]. Legal and Compliance Issues - The company is facing multiple litigation claims that may impact its financial position and operational capabilities[38]. - The Group has engaged PRC legal counsel to advise on the litigation claims and reserves all rights against the sellers of Jinzhou Jiachi, Guangzhou Rongzhi, and Longain[50]. - The enforcement process for the litigation claims is ongoing, and the defendants must report their financial conditions to the relevant PRC court[54]. - Legal counsel has advised that failure to comply with the enforcement notices may result in additional consequences, including travel bans and restrictions on high spending[55]. - The Group became aware of the financial guarantee contracts upon receiving court notices regarding legal claims during the year ended December 31, 2023[110]. Financial Position and Liabilities - As of December 31, 2024, the consolidated net liabilities of the Group increased to approximately HK$1,736.4 million, up by approximately HK$769.6 million from HK$966.8 million as of December 31, 2023[88]. - The Group's bank balances and cash as of December 31, 2024, were approximately HK$364.3 million, compared to approximately HK$147.3 million as of December 31, 2023[89]. - The total debt financing of the Group decreased to approximately HK$1,435.3 million as of December 31, 2024, down from approximately HK$1,673.5 million as of December 31, 2023[90]. - The total deficit attributable to owners of the Company was approximately HK$1,737.2 million as of December 31, 2024, compared to approximately HK$967.0 million as of December 31, 2023[93]. - The Group recognized impairment losses on financial guarantee contracts amounting to RMB1,116,798,000 for the year, compared to RMB854,262,000 for the year ended December 31, 2023, equivalent to approximately HK$1,187,380,000 and HK$939,688,000 respectively[110]. Management and Governance - Mr. Su Shigong was appointed as the executive director and chairman of the company, bringing extensive experience from Sino-Conflux Insurance and HK Bellawings[169]. - Ms. Yang Yuhua was appointed as the CEO and has a strong background in finance, having served as CFO at Saizhi (Tianjin) Properties and HK Bellawings[170]. - The company is focused on enhancing its corporate governance and financial management practices to improve overall performance[167]. - The leadership changes are expected to bring fresh perspectives and strategies to the company's operations and growth initiatives[169][170]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes sustainable development in its corporate planning and operations, as outlined in its Environmental, Social and Governance (ESG) Report[198]. - The ESG report covers the Group's business segments including properties investment, flooring and medical equipment trading, mining and exploitation of natural resources, and financial services and assets management for the reporting period from January 1, 2024, to December 31, 2024[199]. - The Group aims to enhance transparency regarding its environmental, social, and governance policies and performance[200]. - The report includes a comprehensive review of the Group's operations during the reporting period[199].

Economic Performance - The year 2024 was marked by significant economic challenges, including persistent inflation and geopolitical conflicts impacting global supply chains and trade flows[16]. - For FY2024, the Group recorded revenue of approximately HK$515.9 million, representing a decrease of approximately 1.4% compared to FY2023 revenue of approximately HK$523.3 million[25]. - The Toys Division's revenue decreased by approximately 1.7% to HK$514 million, with gross profit dropping to approximately HK$13.8 million, a decrease of approximately 64.8% from HK$39.2 million in FY2023[29]. - The Group's net loss for FY2024 amounted to approximately HK$73.8 million, compared to a net loss of approximately HK$29.4 million in FY2023, primarily due to a reduction in gross profit and increased impairment losses[27]. - The Agricultural Products Division improved its revenue to approximately HK$1.9 million in FY2024, up from approximately HK$0.4 million in FY2023, but still recorded a segment loss before taxation of approximately HK$3.5 million[34]. - The Toys Division faced tremendous pressure on product margins and turnover in FY2025, indicating a challenging market environment ahead[18]. Financial Position - The Group's net current liabilities at the end of FY2024 were approximately HK$220.3 million, an increase from HK$185.2 million in FY2023, with cash and cash equivalents of approximately HK$55.3 million[35]. - Capital deficiencies attributable to owners of the Company increased to approximately HK$139 million as of December 31, 2024, compared to approximately HK$80.1 million as of December 31, 2023[36]. - The Group's gearing ratio as of December 31, 2024, was approximately 136.7%, up from 131% in 2023, indicating a high level of debt relative to equity[36]. - The Group's current liabilities net amount to approximately HKD 220,257,000, while total liabilities net amount to approximately HKD 140,487,000, indicating significant uncertainty regarding the Group's ability to continue as a going concern[45]. - The Group's bank balance is approximately HKD 55,258,000, against loans of approximately HKD 217,089,000 that are due within the next twelve months[45]. Management Plans and Strategies - The Group is cautiously optimistic about the performance improvements in both the Toys Division and Agricultural Products Division, with plans to explore new business opportunities[19]. - The management plans to extend the plantation and sales of agricultural products in Japan, which are currently in the development stage[34]. - The Group has proposed to issue shares under the general mandate on January 28, 2025, to support ongoing business operations despite the current financial challenges[37]. - Management believes that the Group will have sufficient working capital for at least 12 months from December 31, 2024, based on successful measures such as share issuance and loan maturity extensions[47]. - The management plans to raise equity funds through new share placements and/or rights issues to address auditor concerns regarding going concern issues, aiming to complete this by the end of 2025[53]. - The audit committee agrees with management's action plan to address the audit qualification and supports the Group's ability to continue as a going concern[49]. ESG Commitment and Governance - The Group's ESG management structure and processes remained unchanged from the previous reporting period, indicating a consistent approach to environmental, social, and governance issues[67]. - The Group is committed to providing strong returns to investors while ensuring a healthy and safe working environment for employees and contributing to sustainable local community developments[68]. - The reporting scope of the ESG Report focuses on the primary business of manufacturing and trading toys, with the Zhongshan division being financially significant and operationally important[71]. - The Board regularly approves and updates strategies related to environmental and social issues, ensuring that all departments implement ESG policies according to their operations[68]. - The Group continues to invest substantial resources to monitor ESG issues, policies, and practices, reflecting its commitment to sustainability and compliance with legal requirements[67]. - The Group's governance structure emphasizes the importance of risk management and compliance with relevant laws and regulations to enhance competitiveness and promote sustainable business development[63]. Environmental Performance - The Group's environmental performance is overseen by the Board, ensuring compliance with all relevant environmental laws and regulations[85]. - The Group has complied with the Environmental Protection Law of the PRC and other relevant regulations to minimize environmental risks[85]. - The Group has established an environmental management system in accordance with ISO 14001 standards to enhance its environmental performance[92]. - The Group's indirect CO2 emissions increased by 3.00% from 5,129 tonnes in 2023 to 5,283 tonnes in 2024, while CO2 emissions per employee decreased by 6.05% from 3.47 tonnes to 3.26 tonnes[98]. - The Group aims to reduce air pollutant emissions, specifically hazardous SOx, NOx, and PM, by 2-3% in the coming year[106]. - The Group has not reported any confirmed cases of breaching environmental legislation regarding emissions and waste discharge during the 2024 Reporting Period[93]. Climate Change and Risk Management - The Board oversees climate-related risks, recognizing them as material risks that could impact strategic objectives and financial performance[149]. - The Group has identified energy and water as immediate areas to address climate change and reduce future costs[150]. - The Group recognizes climate change as a strategic business risk and integrates climate-related risks and opportunities into its overall business strategy[175]. - The Group has identified extreme weather events such as typhoons, heavy rain, and flooding as physical acute risks, which could lead to delivery delays and increased operational costs[158]. - Legal and policy risks related to stricter carbon emission reduction policies may increase operational costs and litigation risks for the Group[166]. - The Group acknowledges that climate change presents opportunities for cost savings through improved energy efficiency and the adoption of green technologies[169]. Employee Welfare and Practices - The Group employed 1,654 full-time employees as of December 31, 2024, in Zhongshan and Hong Kong[197]. - The employee gender distribution shows 971 males and 683 females in 2024, compared to 952 males and 566 females in 2023, indicating a growth in both male and female employees[199]. - The Group has established an updated employment policy in compliance with the National Labour Law, with no reported cases of non-compliance regarding employment practices during the 2024 reporting period[192]. - The Group contributes to "Five social insurance and one housing fund," ensuring employees receive endowment, medical, unemployment, employment injury, maternity insurance, and housing provident fund[194]. - All employees are entitled to various statutory holidays and paid leave, including paternity and maternity leave, as part of the Group's commitment to employee welfare[194]. - The Group has been certified by the ICTI CARE Foundation, demonstrating its commitment to promoting safe and fair working conditions[192].