Market Performance - In 2024, the sales of newly built commodity housing in China amounted to RMB 9,675.0 billion, representing a year-on-year decrease of 17.1%, with residential sales declining by 17.6%[25]. - The top 100 real estate enterprises in China experienced a double-digit decline in sales compared to the previous year, indicating a sluggish market growth[25]. - The first quarter of 2024 saw a sluggish market due to the impact of the Chinese New Year and underwhelming sales performance in March[25]. - The overall real estate market in 2024 continued to fluctuate at low levels, reflecting ongoing challenges in the sector[25]. - The market-wide expectation of price declines curbed the release of pent-up demand and intensified the wait-and-see sentiment among potential buyers[25]. Government Policies and Market Sentiment - The Chinese government's policies aimed at stabilizing the property market led to a short-term rebound in market sentiment, but the subsequent momentum proved insufficient[25]. - The introduction of new policies on May 17 provided some support to the market, but sales weakened once the policy impact faded[25]. - By the end of the third quarter, the government emphasized the need for the real estate market to "stop falling and recovery," leading to a slight year-end rebound in the fourth quarter[25]. - The introduction of robust stimulus measures at the end of the third quarter helped stabilize the market, leading to a year-end rebound[71][73]. Company Performance - In 2024, Yuzhou Group recorded contracted sales of RMB 7,953.11 million, representing a year-on-year decrease of 55.42%[29]. - The gross floor area (GFA) of contracted sales amounted to 545,787 sq.m., reflecting a year-on-year decrease of 49.84%, with an average contracted sales price of approximately RMB 14,572 per sq.m., down 11.12% year-on-year[29]. - The company achieved strong support for its debt restructuring plan, with over 90% of qualified creditors backing the agreement, surpassing the required 75% threshold[37]. - The total revenue of the Group in 2024 was RMB9,716.26 million, a decrease of 54.76% year-on-year, primarily due to a reduction in recognized property sales revenue[109]. - The loss attributable to owners of the parent for the year was RMB11,966.84 million, with a capital deficiency of RMB11,735.69 million[59]. Financial Strategies and Restructuring - Yuzhou Group has been utilizing debt restructuring, asset disposals, and relief funds to alleviate financial strain, relying primarily on sales proceeds for daily operations[36]. - A consensual and holistic offshore debt restructuring proposal was reached in February 2024, receiving strong support from over 90% of eligible creditors[36]. - The company submitted applications to the Grand Court of the Cayman Islands and the Court of First Instance of the High Court of Hong Kong for creditor meetings related to the restructuring schemes[36]. - The company aims to complete the offshore debt restructuring as soon as possible following the approval of the restructuring schemes[36]. Operational Initiatives - Yuzhou Group successfully delivered approximately 13,000 residential units across more than 14 cities, including Shanghai, Chongqing, and Wuhan, completing nearly 30 project batches in 2024[33]. - The company implemented the "Delivery Product Officer Plan" to enhance customer experience during the delivery process, involving core project members in the inspection[33]. - Yuzhou Group is focusing on asset optimization and enhancing operational capabilities to ensure key performance targets and new product offerings[46]. - The company plans to implement a standardized management strategy through the UYO Distinctive Commercial Management System, leveraging big data analytics to improve operational efficiency[39]. Market Trends and Consumer Behavior - Homebuyers became more rational and restrained in purchasing decisions during the market downturn, influenced by various price-off promotions and lowered listing prices[25]. - The average transaction price in the real estate market declined, reflecting a shift towards lower-priced, compact-sized units favored by buyers[54]. - The proportion of new home transactions continued to shrink, while second-hand home transactions stabilized and gradually recovered[54]. Sustainability and Innovation - The introduction of fourth-generation housing products is expected to enhance living experiences and attract significant consumer attention due to their eco-friendly and energy-efficient features[42]. - The Group's commitment to sustainability aligns with national "dual carbon" goals, promoting eco-friendly development practices[95]. - The "Ucube-Temperature Space" product system has been refined, focusing on "people-oriented" design principles and creating high-quality living spaces[98]. - Advanced architectural designs and environmental protection technologies are applied in multiple green building projects, promoting energy conservation and a high-quality living environment[100]. Financial Health and Risks - The Group's cash flow remains under pressure due to ongoing weak sales, necessitating reliance on sales receipts for daily operational funding[37]. - The total interest-bearing borrowings as of December 31, 2024, amounted to RMB 52.62022 billion, a decrease of 3.53% from RMB 54.54436 billion in 2023, with a weighted average interest rate of 8.07%[151]. - The asset-liability ratio, excluding advance receipts, was 115.10% as of December 31, 2024, an increase of 20.33 percentage points compared to the previous year[151]. - The basic loss per share for the year ended December 31, 2024, was RMB 1.87[145]. Human Resources and Corporate Governance - The Group's total staff decreased to 1,012 as of December 31, 2024, down from 1,211 in 2023[171]. - The Group's human resources initiatives focused on improving organizational efficiency and team vitality under the theme "30th Forge Ahead" in 2024[170]. - The Group's cultural assessment was integrated into talent selection and appointment processes to ensure high integrity and strong work ethic among employees[170].

Financial Performance - The company achieved a revenue of RMB 16.951 billion and an adjusted profit of RMB 650 million during the reporting period, with an investment of RMB 906 million in product and solution R&D[8]. - The company's revenue for 2024 was RMB 16,950,733 thousand, a decrease of 1.0% compared to RMB 17,116,894 thousand in 2023[92]. - Service revenue declined by 1.9% to RMB 16,314,168 thousand from RMB 16,631,560 thousand year-over-year[92]. - Annual profit decreased by 28.3% to RMB 511,145 thousand from RMB 712,667 thousand year-over-year[91]. - Basic earnings per share fell by 22.7% to RMB 20.01 from RMB 25.88 in the previous year[92]. - The adjusted profit for 2024 was RMB 650,240 thousand, an increase of 3.8% from RMB 626,350 thousand in 2023, with an adjusted profit margin of 3.8% compared to 3.7% in 2023[129]. - The company's annual profit attributable to owners was RMB 512,925 thousand in 2024, down 28.1% from RMB 713,394 thousand in 2023, resulting in basic earnings per share of RMB 20.01, a decrease of 22.7%[128]. - The company achieved a compound annual growth rate (CAGR) of 24.6% in total revenue and 30.8% in service revenue since its listing in 2003[102]. Research and Development - The company invested RMB 906 million in product and solution R&D[8]. - R&D expenses for 2024 were RMB 906,274 thousand, a decrease of 16.0% from RMB 1,078,296 thousand in 2023, with a focus on AI and ERP solutions[119]. - The company has developed over 50 general AI algorithms and launched 6 industry-specific smart terminal products, successfully implementing real-time monitoring in various scenarios across cities[16]. - The company has established a technology innovation center to enhance AI service capabilities, integrating AI computing services and engineering[94]. - The company has developed a self-research AI financial analysis tool that automates report generation and provides interactive decision support[22]. AI and Technology Integration - The company launched the Agentic AI platform suite Lumi and Lumi ONE, along with the training and inference integrated platform ARK Foundry, significantly shortening the innovation cycle for AI applications[12]. - The AI data analyst Agent, based on the AI native application engine, enhances data analysis efficiency and supports enterprise management and business decision-making[13]. - The company has established a digital power innovation center in collaboration with Huawei and Beijing Changping Future Science City, integrating DeepSeek models to provide comprehensive AI services[10]. - The model factory has been upgraded to 2.0, offering full lifecycle services from data governance to model training and deployment verification[9]. - The company aims to drive the intelligent upgrade of SMEs by integrating AI Agent service scenarios into their operations[12]. Market Expansion and Partnerships - The company has established a joint venture in Saudi Arabia as a strategic center for the Middle East market, signing a memorandum of cooperation with Huawei to promote regional digital development[21]. - The company is expanding its global market presence, using Hong Kong as a hub to reach Asia-Pacific and Middle Eastern regions[26]. - The company has partnered with state-owned banks and leading city commercial banks for AIGC projects, demonstrating its capabilities in the financial sector[20]. - The company has secured contracts worth HKD 410 million for the Hong Kong Police Central Digital Imaging Platform project, establishing a benchmark for government-controlled IT[21]. - The company has established cloud excellence centers (CCOEs) in key cities to enhance localized service capabilities and support AI cloud transformation for enterprises[71]. Operational Efficiency and Innovations - The company has achieved a 10x efficiency improvement in core services such as project review and acceptance through AI upgrades, utilizing a knowledge base covering over 100,000 project rules and experiences[39]. - The company has launched an intelligent risk control solution for bills, which automates compliance checks and risk detection, showcasing significant potential for cost reduction and risk management in the financial sector[40]. - The company has successfully implemented AI solutions in multiple sectors, including smart power, government, finance, and healthcare, showcasing the extensive application value of Agentic AI[20]. - The company has launched various AI applications in traditional manufacturing, focusing on enhancing production efficiency and market competitiveness[76]. - The company has established a layered defense architecture for AI applications, ensuring security through fine-grained access control and enhanced isolation mechanisms[33]. Corporate Governance and Compliance - The board of directors includes a mix of executive, non-executive, and independent directors, ensuring diverse expertise[140]. - The company emphasizes the importance of board diversity, considering various factors such as gender, age, and professional background in the selection of candidates[150]. - The audit committee reviewed the group's financial reporting procedures and internal control systems, ensuring compliance with applicable accounting standards[161]. - The company has established a clear delegation of authority to the executive directors and management for daily operations and business strategy[145]. - The company is committed to continuously optimizing its risk management system to enhance its risk management capabilities and ensure long-term growth and sustainability[172]. Social Responsibility and Sustainability - The company is committed to fulfilling corporate social responsibility (CSR) by aligning with SA8000 standards and promoting green innovation[181]. - The company is facing challenges in talent acquisition and retention due to intensified market competition for skilled personnel[181]. - The company is enhancing information security management and has achieved ISO27001 certification while introducing ISO27701 for personal privacy protection[182]. - The company aims to maintain its competitive edge by accelerating the transition from traditional IT services to high-value AI solutions[184]. - The company is committed to building a "healthy win-win" ecosystem with partners to enhance supply chain management and cost control[179].

Financial Performance - The company's revenue for the fiscal year ending December 31, 2024, was approximately HKD 343.71 million, a decrease of about 7.74% compared to the previous year[9]. - The operating loss for 2024 was approximately HKD 13.81 million, while the operating profit for the previous year was approximately HKD 23.60 million[12]. - The loss attributable to equity shareholders for 2024 was approximately HKD 186.70 million, compared to HKD 74.63 million in 2023, including a revaluation loss of investment properties of approximately HKD 112.37 million[9]. - Rental income for the fiscal year was approximately HKD 49.87 million, accounting for about 14.51% of total revenue, compared to 13.37% in the previous year[16]. - The toy and model train business generated revenue of approximately HKD 293.84 million, a decrease of about 8.96% from HKD 322.75 million in the previous year[14]. - As of December 31, 2024, the company's net asset value per share is approximately HKD 2.03, down from HKD 2.22 in 2023[29]. - The company's net current liabilities are approximately HKD 325.12 million, compared to HKD 287.23 million in 2023[29]. - Total bank borrowings amount to approximately HKD 673.71 million, an increase from HKD 659.01 million in 2023[29]. - The debt-to-equity ratio calculated from total bank borrowings is approximately 35.00%, up from 31.16% in 2023[29]. Business Strategy and Outlook - The company plans to diversify its business and seek new sales opportunities to enhance efficiency and cost control measures[13]. - The company remains optimistic about future shareholder returns despite the challenging economic environment[10]. - The company is taking necessary measures to meet the requirements for the revitalization of Kader Building, anticipating stable increases in value and rental income in the future[10]. - The company anticipates challenges in the upcoming year due to unpredictable global economic conditions and geopolitical conflicts, but plans to diversify its business and enhance production efficiency[35]. Governance and Board Structure - The board consists of four executive directors, one non-executive director, and four independent non-executive directors, ensuring a balanced governance structure[42]. - The company has adopted a standard code for securities trading by directors, confirming compliance throughout the year[41]. - The board meets at least four times a year, with additional meetings as necessary, ensuring regular oversight and decision-making[53]. - All directors participated in appropriate continuous professional development activities during the reporting year, enhancing their governance capabilities[50]. - The company has established three committees: the remuneration committee, audit committee, and nomination committee, to oversee various aspects of governance[55]. - The chairman and managing director is the same person, promoting strong and unified leadership[43]. - Independent non-executive directors account for more than one-third of the board, providing independent perspectives and judgments[48]. - The board is responsible for formulating the group's strategic policies and overseeing management, including risk management and internal control systems[52]. - All directors confirmed their compliance with the corporate governance code during the reporting year[50]. - The company established a diversity policy for its board members in August 2013, focusing on various criteria including gender, age, cultural background, and professional experience[68]. Audit and Risk Management - The audit committee conducted two meetings during the year to review financial statements and discuss risk management and internal controls[60]. - The audit committee is responsible for overseeing the relationship with external auditors, including their appointment and remuneration[61]. - The company aims to ensure that internal and external audit functions are adequately resourced and coordinated[66]. - The company emphasizes maintaining effective risk management and internal control systems to minimize operational risks[79]. - The internal audit function will review the effectiveness of financial, operational, and compliance controls in 2024[79]. - The company has implemented a robust risk management framework to address environmental, social, and governance (ESG) risks, enhancing resilience and integrating responsible practices into its operations[163]. Employee and Workplace Practices - The company employed 768 full-time employees as of December 31, 2024, a decrease from 817 in 2023[34]. - Employee costs for the year were approximately HKD 150.47 million, down from HKD 163.22 million in 2023[34]. - The company prioritizes employee satisfaction and development, providing training and opportunities for growth to empower its workforce[175]. - The company has established clear anti-discrimination guidelines and measures to handle discrimination and harassment issues within the workplace[176]. - The company has implemented strict policies to prevent child labor and forced labor, ensuring compliance with local laws and international standards[182]. - The company conducts thorough background checks on all potential hires to maintain integrity in the recruitment process[182]. - The company has a performance evaluation system in place to identify training needs and support personal development planning[189]. - A total of 383.50 hours of training were arranged in 2024, down from 435.00 hours in 2023, covering topics such as OHS, ISO requirements, and leadership skills[189]. Corporate Social Responsibility and ESG - The company is committed to sustainable business practices and has established an Environmental, Health, and Safety (EHS) management system[23]. - The company emphasizes its commitment to corporate social responsibility and sustainable development practices to create long-term value for stakeholders[161]. - The company has established an Environmental, Social, and Governance (ESG) committee to manage and monitor ESG issues, meeting at least annually to review performance and risks[162]. - The company has identified 26 key ESG issues through an independent consultant's survey, engaging stakeholders such as the board, employees, and consumers for prioritization[167]. - The company categorizes ESG issues into high, medium, and low importance, focusing on those most critical to its operations and stakeholders[173]. - The company has a structured framework for its quality policy aimed at continuous improvement and cost reduction[158]. Shareholder Communication and Participation - The company encourages shareholder participation in annual general meetings with a minimum of 21 days' notice[86]. - The company has established a shareholder communication policy to ensure timely and equal access to important information[89]. - The company maintains a website to provide shareholders and investors with the latest operational updates and disclosures[92]. Compliance and Legal Matters - The company has no significant contingent liabilities as of December 31, 2024[33]. - The company has not entered into any equity-linked agreements during the year[106]. - The company has not made any arrangements for directors to benefit from purchasing shares or bonds of the company or any other company during the year[139]. - There were no significant transactions, arrangements, or contracts in which the directors of the company had a direct or indirect material interest during the year[143]. - The company maintains strict compliance with labor laws and regulations, ensuring a harassment-free and non-discriminatory workplace[175].

Sales Performance and Market Presence - The company achieved significant sales success in new property projects, winning multiple sales championships from major developers, including projects like 吉㊧ and 明雋[15] - The company was awarded several accolades at the annual developer award ceremony, including "Highest Total Sales Agency" and multiple "Highest Sales Amount" awards for various projects[13] - The company continues to expand its market presence in Hong Kong, China, and Macau through various strategic business units, including property agency and financial services[5] - The residential property market in Hong Kong saw a 22.8% increase in transactions in 2024, contributing to an overall property registration volume increase of 17.1%, the highest in three years[42] - The overall property registration volume in November 2024 saw a substantial increase, reaching a new high since April 2024, indicating a recovery in market activity[45] Financial Performance - The group recorded revenue of approximately HKD 6.084 billion for the year ending December 31, 2024, representing a 49% increase compared to the previous year[40] - The group achieved a profit attributable to equity holders of approximately HKD 320 million, a significant turnaround from a loss of HKD 42 million in the previous year[40] - The group’s operating performance for the year ending December 31, 2024, significantly improved compared to 2023, driven by a rebound in the Hong Kong residential property market and optimized operational efficiency[44] Innovation and Technology - The company emphasizes innovation and technology in its operations, as demonstrated by its recent anniversary event that integrated digital technology elements[8] - The establishment of the "Market and Innovation Technology Center" aims to enhance digital intelligence development and optimize internal systems for business growth[19] - The group won multiple awards for its online platform, including silver awards for "Best Digital Targeted Audience Campaign" and "Best Digital Advertising Strategies" in 2024[21] - The company is focusing on digital transformation and has made significant investments to enhance digital marketing capabilities and internal online sales platforms[56] - The company has launched "KOL-led property viewings" and "AI • VR property tours" to enhance digital services, allowing customers to view properties through introduction videos and virtual reality technology[175] Employee Development and Training - The company is focused on enhancing employee training and professional development through its training center, 美聯大學堂[7] - The group received external recognition for its training efforts, being awarded the "Talent Enterprise" honor for over 10 consecutive years and ranking first among real estate agencies with 135 branches recognized by the regulatory authority in 2024[182] - Employee training programs are tailored to job roles and levels, with specialized training for frontline and support staff[180] - The company developed a digital learning management system to enhance employee training, allowing flexible access to online courses and live training sessions, improving engagement and collaboration[182] Corporate Governance - The company emphasizes integrity, transparency, accountability, and independence in its corporate governance practices[71] - The board consists of seven members, including four executive directors and three independent non-executive directors[77] - The company has maintained compliance with the Hong Kong Stock Exchange's corporate governance code throughout the fiscal year ending December 31, 2024[72] - The company is committed to maintaining high standards of corporate governance to enhance shareholder value and protect shareholder interests[71] - The company has established arrangements for stakeholders to raise concerns regarding financial reporting and internal controls[92] Corporate Social Responsibility - The company is committed to corporate social responsibility and governance, as reflected in its various reports and initiatives[20] - The company has been recognized for its corporate social responsibility efforts, receiving the "Caring Company" logo for 21 consecutive years[132] - The company has actively participated in various charitable activities, including donations and volunteer work, to support vulnerable communities[135] - The company has provided internship and employment opportunities to students, contributing to their market competitiveness[129] - The company has organized numerous free seminars and programs to educate the public on real estate and financial information[127] Environmental Sustainability - The company has been recognized for its commitment to environmental sustainability, receiving multiple awards including the "Hong Kong Green Organization" certification[148] - The company is committed to reducing its carbon footprint and has set energy efficiency targets, expecting to reduce energy consumption by 20% to 30% through the installation of energy-saving equipment[189] - The company actively monitors greenhouse gas emissions and prepares annual reports in accordance with ISO 14064-1:2018 standards, ensuring data accuracy through external audits[189] - The company has implemented a green procurement policy to prioritize environmentally friendly products and services[197] - The company encourages employees to practice the 4Rs principles (Reduce, Reuse, Recycle, Replace) to enhance environmental awareness[193]

Financial Performance - For the three months ended March 31, 2025, the company's unaudited revenue was HKD 16,932,000, a decrease of 12.7% compared to HKD 19,393,000 in the same period last year[5] - The unaudited loss attributable to shareholders for the same period was HKD 4,940,000, which is a reduction of 38.4% from a loss of HKD 8,022,000 in the previous year[11] - The company's equity decreased to HKD 14,154,000 from HKD 19,061,000 over the same period[5] Asset Management - Total assets as of March 31, 2025, were HKD 95,564,000, down from HKD 97,154,000 as of December 31, 2024[5] Production and Sales - The total production of cowhide leather was 226,000 square feet, a significant decrease of 72.6% from 825,000 square feet in the previous year[8] - Cowhide leather sales volume was 760,000 square feet, down 42.5% from 1,322,000 square feet in the previous year[9] - The company did not produce any grey leather during the period, compared to 364 tons produced in the previous year[8] Revenue Streams - External processing business revenue increased by 159.6% to HKD 10,575,000 from HKD 4,074,000 year-on-year[11] Operational Efficiency - The company implemented cost control measures that effectively reduced operating costs, leading to improved operational performance despite a decline in revenue[8] - The company aims to enhance production conditions and product quality through equipment modifications and deepening cooperation with customers[8]

Dividend and Profit Distribution - The company plans to distribute a final dividend of RMB 1.03 per share for the fiscal year 2024, subject to shareholder approval[4] - The company plans to distribute a final cash dividend of RMB 1.03 per share, which, combined with the interim dividend, represents 50% of the net profit attributable to shareholders[71] - The proposed cash dividend for the fiscal year 2024 is RMB 1.03 per share, totaling approximately RMB 16.131 billion, which represents about 50% of the net profit attributable to shareholders for the fiscal year 2024[176] - For the fiscal year 2023, the total cash dividend distributed was approximately RMB 11.867 billion, also around 50% of the net profit attributable to shareholders for that year[177] - The company declared a total annual dividend of RMB 1.55 per share, compared to RMB 0.74 per share in the previous year, marking an increase of 109.46%[83] Financial Performance - The company achieved a revenue of RMB 233.86 billion, a year-on-year increase of 33.29%[70] - EBIT reached RMB 70.15 billion, reflecting a year-on-year growth of 91.27%[70] - Net profit amounted to RMB 55.59 billion, up 95.77% year-on-year[70] - The net profit attributable to shareholders was RMB 49.17 billion, representing a 106.09% increase compared to the previous year[70] - The return on equity (ROE) improved to 22.63%, an increase of 10.83 percentage points year-on-year[70] - Basic earnings per share rose to RMB 3.08, marking an increase of 108.11% year-on-year[70] - The profit attributable to equity holders of the company was RMB 49,172,465 thousand, an increase of RMB 25,312,296 thousand from the previous year[86] - The gross profit margin improved to 28.94%, an increase of 13.21 percentage points compared to the previous year[83] - Operating profit for the year was RMB 59,023,154 thousand, an increase of RMB 34,372,608 thousand, representing a growth of 139.48%[85] - The net cash flow from operating activities was RMB 69,312,919 thousand, a significant increase of 206.91% from RMB 22,583,829 thousand in the previous year[88] Fleet and Operational Expansion - The company signed contracts for the dual-fuel retrofitting of four existing container ships, marking a global first for simultaneous MAN and WARTSILA dual-fuel retrofitting projects[21] - The company signed contracts for the construction of 12 methanol dual-fuel container ships, enhancing its fleet capabilities[65] - The company received 12 new vessels with a total capacity of 230,000 TEU, including several next-generation eco-friendly ships, bringing its self-operated fleet capacity to over 3.3 million TEU[73] - The self-operated container fleet consists of 538 vessels with a capacity of about 3.32 million TEUs, maintaining a leading position in the industry[147] - The company has ordered a total of 43 new vessels, with a combined capacity of nearly 750,000 TEUs[147] Digital and Green Initiatives - The company introduced three new digital supply chain products: "Flexible Distribution," "Sea-Rail Link," and "Global Easy," along with solutions for the automotive export and cross-border e-commerce logistics sectors[25] - The company collaborated with GSBN to launch the Hi-ECO green blockchain shipping product, completing a pilot program for issuing traceable and verifiable green certificates[27] - The company is committed to green and low-carbon development, exploring new energy fuel supply chains, including green methanol, to support its transition[186] - The company is actively developing green digital supply chain products to meet the growing demand for sustainability from customers[135] - The company aims to enhance operational efficiency and customer satisfaction through lean management and technological innovation, focusing on "digital intelligence" and "green low-carbon" initiatives[188] Market and Strategic Outlook - The global container shipping market is expected to see a demand growth of approximately 5%-7% in 2024, driven by improved global production activities and active service trade[134] - The company plans to accelerate globalization and digital transformation while focusing on high-quality development to address uncertainties in the container shipping industry[81] - The company aims to enhance global supply chain resilience through digital innovation and green low-carbon development strategies[140] - The company is focused on building a world-class digital supply chain enterprise centered on container shipping, integrating investment, construction, and operation[183] - The company anticipates that the global trade landscape will shift towards more resilient and diversified supply chain strategies[180] Risk Management - The company faces risks from geopolitical changes and international trade dynamics, which could impact its global operational goals[189][191] - Strategies to mitigate geopolitical risks include enhancing dynamic management and risk assessment mechanisms for key regions and clients[192] - Economic fluctuations pose a risk to trade demand in operational regions, influenced by global supply chain restructuring and inflation[195] Investment and Partnerships - The company strategically invested in Midea Group and Anji Logistics, increasing its stake in the logistics supply chain to 19%, enhancing strategic cooperation across the industry chain[80] - The company is actively pursuing investment opportunities in emerging markets and third-country markets to enhance its comprehensive service capabilities[144] - The company will continue to invest in and acquire resources along the supply chain to enhance its global service capabilities and operational efficiency[187]

Financial Performance - For the year 2024, the Group's revenue increased to approximately HK$660.5 million, representing an increase of approximately 42.9% compared to 2023[19] - Profit attributable to equity holders for the year increased to approximately HK$16.9 million, a significant recovery from a loss of HK$5.0 million in 2023[19] - Revenue from the Apparel Supply Chain Servicing Business was approximately HK$660.5 million in 2024, up from HK$462.3 million in 2023[20] - The increase in revenue for 2024 was primarily driven by increased sales from existing customers[20] - Gross profit rose by 107.1% to approximately HK$81.4 million, with a gross profit margin of 12.3%, up from 8.5% in 2023[37] - Net profit for 2024 was approximately HK$16.9 million, a significant turnaround from a net loss of HK$5.0 million in 2023, driven by increased sales orders and reduced finance costs[41] Operational Efficiency - The Group plans to enhance product innovation and creativity to explore new opportunities with existing and potential customers[22] - Production management will focus on simplifying processes to improve operational efficiency and reduce product delivery time[22] - The Group aims to consolidate fabrication with customers to achieve better material prices through mass procurement, enhancing cost competitiveness[24] - The Group's strategy includes simplifying its organizational structure to reduce costs[24] - The Group plans to continue implementing cost-saving measures to enhance profitability[37] Financial Position - The Group's total assets increased by 8.5% to HK$283.3 million as of December 31, 2024, compared to HK$261.0 million in 2023[29] - Bank borrowings decreased by 67.8% to HK$21.2 million, down from HK$65.9 million in 2023[29] - Net current assets increased by 41.2% to HK$83.0 million, compared to HK$58.8 million in 2023[29] - The current ratio improved to 1.4 in 2024, up from 1.3 in 2023[29] - Trade receivable turnover days decreased to 40 days in 2024, down from 47 days in 2023[29] Expenses and Costs - Sales and marketing expenses reduced to approximately HK$1.2 million in 2024, compared to HK$1.5 million in 2023[38] - Administrative expenses increased to approximately HK$49.0 million (2023: HK$40.3 million), primarily due to employee benefits rising from approximately HK$16.0 million in 2023 to approximately HK$27.2 million in 2024[49] - Other losses amounted to approximately HK$6.1 million in 2024, compared to other gains of HK$0.5 million in 2023, mainly due to losses on the disposal of a subsidiary[50] - Finance income decreased by 24.3% to approximately HK$2.4 million (2023: HK$3.2 million) due to a reduction in interest income from short-term deposits[51] - Finance costs decreased by 44.6% to approximately HK$4.0 million (2023: HK$7.1 million), primarily due to the repayment of bank borrowings[52] Corporate Governance - The company has complied with the Corporate Governance Code provisions during the year 2024, with the exception of the separation of roles between the chairman and the chief executive officer[118] - The Board currently consists of six directors, including two executive directors and four independent non-executive directors[122] - The company has adopted a code of conduct for securities transactions that meets or exceeds the standards set out in the Model Code[119] - The company is committed to ongoing enhancements of corporate governance principles and practices to balance the interests of shareholders, customers, and employees[117] - The Board is responsible for overseeing the Company's affairs, including adopting long-term strategies and supervising senior management[132] Risk Management - The Board is responsible for maintaining effective risk management and internal control systems to safeguard shareholder interests[181] - The Group's risk management process includes identification, assessment, evaluation, and treatment of risks[182] - The Audit Committee conducted an annual review of the effectiveness of the Group's risk management and internal control system for the year ended 31 December 2024, finding it effective and adequate[185] Environmental, Social, and Governance (ESG) - The Company focuses on integrating environmental, social, and governance (ESG) principles into its business strategy, prioritizing sustainable practices in its supply chain services and property development plans[198] - The Company aims to create long-term value for stakeholders while making positive contributions to the environment and society through its ESG initiatives[198] Shareholder Rights - Shareholders holding not less than one tenth of the paid-up capital have the right to requisition an extraordinary general meeting[188] - The notice period for proposals at general meetings varies, requiring at least 14 days for ordinary resolutions and 21 days for special resolutions[192]

Financial Performance - The total revenue for the fiscal year ending December 31, 2024, was approximately 122.5 million MYR, representing a slight increase of about 4.0% from 117.8 million MYR in the previous fiscal year[13]. - The distribution segment contributed 94.8 million MYR (77.3% of total revenue), while the manufacturing segment generated 27.8 million MYR (22.7% of total revenue) for the fiscal year 2024[19]. - The net profit after tax decreased to approximately 7.7 million MYR, down about 30.0% from 11.0 million MYR in the previous fiscal year, primarily due to additional project expenses incurred by a subsidiary[13]. - The manufacturing revenue decreased by approximately 19.0% or about 6.5 million MYR, from approximately 34.3 million MYR in the previous fiscal year to about 27.8 million MYR in the current fiscal year, attributed to intense price competition in the market[20]. - Distribution revenue increased from approximately 83.5 million MYR to about 94.8 million MYR, representing a growth of approximately 13.5% or about 11.3 million MYR[21]. - Gross profit slightly decreased from approximately 26.1 million MYR to about 25.8 million MYR, a decline of about 1.1%[23]. - Other income and gains rose from approximately 3.7 million MYR to about 5.3 million MYR, primarily due to increased bank interest income and foreign exchange gains[24]. - Administrative and other operating expenses increased by approximately 3.3 million MYR or 25.4% to about 16.3 million MYR, mainly due to additional project expenses from investments in Wenchang, Hainan[25]. - Profit for the fiscal year decreased from approximately 11.0 million MYR to about 7.7 million MYR, with earnings per share dropping from approximately 2.42 MYR to about 1.76 MYR[28]. - The effective tax rate increased from approximately 26.7% to about 33.0% due to an increase in non-deductible expenses[27]. Economic Outlook - The company anticipates continued economic challenges in 2025, including a sluggish outlook for major trading partners and ongoing geopolitical conflicts[15]. - The company is committed to monitoring global economic developments while maintaining a cautiously optimistic outlook[15]. - The company will maintain a vigilant cost management approach to mitigate adverse impacts while seeking domestic and international opportunities[15]. Corporate Governance - The company has a structured governance framework with committees for remuneration and audit, ensuring compliance and strategic oversight[63]. - The board consists of six members, with three being female, achieving a gender ratio of approximately 1.1:1[115]. - The board has adopted a nomination policy to ensure a balanced composition of skills, experience, and diversity[119]. - The company has established mechanisms to ensure the board receives independent opinions and advice, which are reviewed annually[127]. - The board has achieved all measurable targets set for diversity in the current financial year[118]. - The company has adopted a zero-tolerance policy towards bribery and corruption, aligning with the Malaysian Anti-Corruption Commission (Amendment) Act 2018[128]. - The board held a total of four meetings during the fiscal year, with all directors attending 100% of the meetings[135]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of its operations[141]. Environmental, Social, and Governance (ESG) Initiatives - The company reported a commitment to sustainable development through the establishment of an ESG working group to coordinate and implement sustainability initiatives[71]. - The ESG report indicates no legal or regulatory violations reported in Malaysia, the company's operational region[71]. - The company has maintained a consistent reporting scope and framework in the ESG report to ensure meaningful comparisons with the previous year[75]. - The company has a strong focus on stakeholder engagement, utilizing various communication channels to address their concerns and expectations[76]. - The company has adopted appropriate risk management policies to mitigate potential financial or reputational damage related to ESG performance[71]. - Total greenhouse gas emissions for the fiscal year 2024 were 529.0 tons of CO2 equivalent, slightly up from 522.6 tons in 2023, with Scope 1 emissions decreasing from 229.9 tons to 201.3 tons[78]. - The company achieved a reduction in nitrogen oxides (NOx) emissions from 0.9 kg in 2023 to 0.8 kg in 2024, and sulfur oxides (SOx) emissions decreased from 4.5 kg to 3.9 kg[77]. - The company has implemented waste management principles focusing on reduction, reuse, and recycling, and encourages employees to use reusable containers[82]. - There were no significant environmental violations reported in the fiscal year 2024, with no fines or penalties from the Malaysian Ministry of Environment[87]. Employee and Training Initiatives - The company has a total of 52 full-time employees, with 48% male and 52% female representation[94]. - Employee turnover rate is 16.0% for those under 30 years old, 25.9% for those aged 30 to 50, and 5.8% for those over 50[93]. - In the fiscal year 2024, a total of 37 employees participated in training, averaging 3 hours of training per employee[98]. - The percentage of trained employees is 46% male and 54% female, with 29% from senior management and 71% from middle management[99]. - Average training hours per employee are 17.0 hours for males and 20.0 hours for females[100]. Risk Management - The group has identified key risks including animal disease outbreaks and fluctuations in product demand and market prices, which could adversely affect financial performance[40]. - The group has implemented risk management policies to address various potential risks associated with its business operations[154]. - The board has confirmed the effectiveness and sufficiency of the group's risk management and internal control systems, which are designed to manage rather than eliminate risks[157]. Shareholder and Financial Policies - The company declared a special dividend of approximately 29.5 million MYR, equivalent to 0.11 HKD per share, to be paid on January 15, 2025[31]. - The company does not recommend a final dividend for the fiscal year, consistent with the previous year where no dividend was declared[174]. - The company has adopted a share option scheme to incentivize employees and other contributors, allowing the board to grant options at a price of HKD 1.00[182]. - The maximum number of shares that may be issued under the share option scheme is capped at 30% of the total issued shares at any time[183]. - The company will suspend share transfer registration from June 20 to June 25, 2025, to determine eligibility for the upcoming annual general meeting[175].

Financial Performance - The group recorded revenue of approximately RMB 1,253,500,000 for the fiscal year ending December 31, 2024, primarily from digital payment solutions in China[8]. - The company recorded revenue of approximately RMB 1,253,500,000, a decrease of about 11.7% compared to RMB 1,419,800,000 in the same period last year[21]. - Gross profit was approximately RMB 157,800,000, with a gross margin of about 12.06%, down from 14.5% in the previous year, representing a decline of approximately 23.3%[21]. - Other income decreased to approximately RMB 8,100,000 from RMB 11,300,000, primarily due to a drop in loan interest income from RMB 3,700,000 to RMB 435,000[22]. - The company reported a net loss of approximately RMB 142,500,000, an increase of about 91.6% compared to RMB 74,400,000 in the previous year[31]. - Cash and cash equivalents as of December 31, 2024, were approximately RMB 54,200,000, down from RMB 79,000,000 in the previous year[32]. - Interest-bearing borrowings increased to approximately RMB 17,300,000 from RMB 12,000,000, with a weighted average effective interest rate of about 3.94%[33]. - Administrative expenses increased to approximately RMB 72,500,000 from RMB 51,000,000, an increase of about 42.2%, mainly due to higher legal and professional fees[26]. Business Strategy and Expansion - The group plans to expand its lending business in Hong Kong, having successfully acquired a licensed money lender and completed its first loan transaction of HKD 15,000,000 in November 2024[18]. - The group aims to diversify its customer base by expanding its loan portfolio in 2025, offering a wider range of secured loans, corporate, and personal loans[18]. - The company plans to continue its light asset and service-oriented business strategy through 2025[19]. - The business strategy for 2025 includes expanding product offerings, enhancing brand recognition, and upgrading IT systems to improve operational efficiency[51]. - The group is committed to leveraging growth opportunities to enhance market share and brand influence in its lending business[18]. Corporate Governance - The board of directors held 22 meetings during the reporting period, with one annual general meeting and one special general meeting conducted[69]. - The company has adopted corporate governance principles in line with the interests of shareholders and has complied with the applicable corporate governance code provisions[61]. - The board believes that the dual role of the chairman and co-CEO enhances operational efficiency and ensures the smooth execution of business strategies[66]. - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee to enhance corporate governance[78]. - The audit committee is composed of three independent non-executive directors and is responsible for overseeing financial reporting and internal control processes[79]. - The company encourages all directors to participate in continuous professional development to ensure they contribute effectively to the board[76]. - The board retains decision-making authority on significant matters including policies, strategies, and financial data[75]. - The company has adopted a shareholder communication policy to provide timely and balanced information to shareholders and potential investors[116]. Risk Management - The group faces significant credit risk related to digital payment solutions, which could adversely affect profitability if customer payments are delayed or defaulted[48]. - The board is responsible for the continuous supervision of the group's risk management and internal control systems, ensuring shareholder interests and asset protection[104]. - An external consultant has been appointed to enhance the group's risk management and internal control, evaluating significant control situations including financial, operational, and compliance risks[105]. - The audit committee confirmed that the external consultant found no significant deficiencies or weaknesses in the internal control system during the review period[106]. Environmental, Social, and Governance (ESG) - The company is committed to sustainable development and adheres to environmental protection laws, aiming to enhance resource efficiency and reduce waste[146]. - The ESG report covers the company's digital payment solutions in China and optical product retail in Malaysia, with ongoing evaluations of ESG issues across different businesses[148]. - The board is responsible for the formulation and execution of the ESG strategy and regularly reviews ESG-related risks and opportunities[155]. - The company has engaged a professional consultancy to ensure the accuracy of environmental key performance indicators in the ESG report[149]. - The group has set specific environmental goals focused on energy conservation, emission reduction, and waste management to support local government carbon neutrality initiatives[167]. Employee Management and Development - The company is committed to providing competitive compensation and benefits to attract and retain talent, including health insurance and employee discounts[192]. - The company has a comprehensive human resources management policy that emphasizes equal opportunity, diversity, and anti-discrimination in recruitment and promotion processes[193]. - A total of 288 employees received training during the reporting period, with approximately 27% being male and 73% female; 94% of employees participated in training, averaging 100 hours each[197]. - The company has initiated a performance management system since 2022 to enhance employee development and ensure fairness and transparency in performance evaluations[200]. - The company is focused on improving workplace health and safety standards, aiming for zero or minimal reportable serious workplace injuries[194]. Diversity and Inclusion - The board diversity policy was adopted on March 23, 2020, emphasizing the importance of diversity for enhancing company performance[93]. - As of December 31, 2024, the gender ratio of employees was approximately 67.6% female and 32.4% male[96]. - The board currently has two female directors, reflecting gender diversity efforts[94]. - The company aims to improve female representation in senior management and provide career development opportunities for women[94].

Financial Performance - The Group's overall sales from continuing operations increased by 9.2% from RMB264.5 million for the year ended 31 December 2023 to RMB288.8 million for the Reporting Period[20]. - Gross profit margin improved significantly from 6.3% for the year ended 31 December 2023 to 15.5% for the Reporting Period[20]. - The Group recorded a net profit of approximately RMB6.6 million for the Reporting Period, compared to a net loss of approximately RMB31.5 million for the corresponding period in 2023[20]. - Gross profit for the reporting period was approximately RMB44.8 million, representing an increase of approximately 214.8% compared to RMB14.2 million for the year ended December 31, 2023[39]. - Total revenue for the Reporting Period was approximately RMB44.8 million, a 214.8% increase from RMB14.2 million in 2023, with a gross profit margin of 15.5% (2023: 5.4%)[41]. - Other income for the Group decreased to approximately RMB5.9 million for the Reporting Period (2023: approximately RMB8.5 million), primarily from government grants and bank interest income[46][50]. - Selling and distribution expenses increased by approximately 47.4% to approximately RMB3.5 million for the Reporting Period (2023: approximately RMB2.4 million), mainly due to increased transportation costs[48][52]. - Administrative expenses amounted to approximately RMB32.8 million for the Reporting Period (2023: approximately RMB31.7 million), representing a decrease of approximately 7.9% due to the disposal of the financial technology business[53][58]. - Income tax expense for the Reporting Period was approximately RMB3.5 million (2023: approximately RMB0.2 million), primarily due to increased profit before tax[57][62]. Business Strategy and Operations - The Group is focusing on diversifying its customer base and product offerings to broaden revenue sources and mitigate business risks[21]. - The Group actively adjusted order allocation between its Chongqing and Shenzhen factories to increase capacity utilization[20]. - The Group's strategy includes strict cost control measures at every stage of the production process[20]. - The Group aims to maintain a cautious approach towards spending and expansion to reduce financial risks[25]. - The Group plans to actively enrich or expand its customer base and product portfolio to broaden revenue sources and diversify business risks[24]. - The Group will continue to invest in developing in-house capabilities and stay updated with the latest technology advancements in the EMS business[25]. Financial Technology Business - The financial technology business recorded a loss of RMB12.3 million for the year ended 31 December 2023, leading to the decision to dispose of the business for RMB1.0[15]. - The Group has ceased its engagement in the financial technology business following the disposal of the related assets[15]. - The Group's entry into the financial technology sector through the acquisition of 60% of Shanghai Regan Financial Information was slower than expected due to intense competition[14]. Management and Governance - The Group has been expanding its management team with experienced professionals in the electronic products sector[101][103][107]. - The company has a focus on enhancing operational efficiency and strategic planning to drive business growth[98][101]. - The company emphasizes the importance of high corporate governance standards to enhance performance, transparency, and accountability[130]. - The company has adopted and complied with the Corporate Governance Code during the Reporting Period, with a noted deviation regarding the roles of chairman and chief executive officer being held by the same individual, Mr. Li[130]. - The Board consists of three independent non-executive Directors, providing independent perspectives to the decision-making process[131]. - The company has a structured approach to corporate governance, focusing on internal control and adequate disclosure[130]. - The company will continue to review and monitor its practices to comply with the Corporate Governance Code[131]. - The company has a commitment to earning the trust of shareholders and the public through sound governance practices[130]. Board and Committees - The Company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with defined terms of reference[168]. - The Audit Committee comprises three independent non-executive Directors, ensuring oversight of financial reporting and risk management[171]. - The Nomination Committee was established to make recommendations on the appointment of Directors and manage Board succession[184]. - The Remuneration Committee held two meetings during the Reporting Period to review and recommend remuneration policies for Directors and senior management for the years ended December 31, 2023, and December 31, 2024[179]. - The Nomination Committee will monitor the implementation of the Nomination Policy and report to the Board annually[195]. Employee and Financial Health - The Group's total remuneration for employees was approximately RMB64.8 million during the reporting period, down from approximately RMB85.7 million in 2023, with a reduction in the number of employees from 771 to 489[83]. - Net current assets increased to approximately RMB173.9 million as at 31 December 2024 (2023: approximately RMB139.9 million), with the current ratio rising from approximately 3.6 to 4.3[65]. - The Group's bank borrowings decreased to approximately RMB3.3 million as of December 31, 2024, down from RMB3.8 million in 2023, with secured assets valued at approximately RMB8.3 million[71]. - The gearing ratio improved to approximately 3.6% as of December 31, 2024, compared to 4.4% in 2023, reflecting a decrease in total borrowings and lease liabilities by approximately RMB2.1 million[72]. - Capital expenditure for the reporting period was approximately RMB19.9 million, a decrease from approximately RMB21.4 million in 2023, primarily for office equipment and plant improvements[75].