Financial Performance - The company reported a net loss of HKD 194.7 million for the year ending December 31, 2024, compared to a net loss of HKD 84.5 million for the previous year, primarily due to unrealized fair value losses of HKD 43 million and share of losses from associates amounting to HKD 60.6 million [6]. - Brokerage commission income from securities trading decreased by 8.3% to HKD 1.1 million, down from HKD 1.2 million in the previous year [8]. - Interest income from margin financing services fell by 58.3% to HKD 9.3 million, compared to HKD 22.3 million in the previous year [8]. - The group recorded total revenue of HKD 36.1 million, a decrease of 40.0% from HKD 60.2 million in the previous year, with financial services segment revenue at HKD 10.5 million [37]. - The group reported a net loss of HKD 194.7 million, compared to a net loss of HKD 84.5 million in the previous year, with basic and diluted loss per share at HKD 0.0315 [38]. - As of December 31, 2024, the group's total assets were HKD 3,217.8 million, down from HKD 3,888.4 million in 2023, and net assets were HKD 3,036.2 million [39]. - The group's cash and cash equivalents stood at HKD 282.4 million as of December 31, 2024, compared to HKD 348.1 million in 2023, maintaining a strong liquidity position with a current ratio of 7.1 [42]. - The company reported a reserve available for distribution to shareholders of approximately HKD 2,679,176,000 as of December 31, 2024, down from HKD 3,356,198,000 in 2023, representing a decrease of about 20.1% [73]. Credit Risk Management - The company maintains a unique lending model focusing on high-quality borrowers, including listed companies and individuals with valuable assets, ensuring low credit risk [9]. - The credit committee, consisting of two directors with over 20 years of experience in finance and credit, is responsible for assessing credit risks and approving loan applications [11]. - The company has implemented internal controls for credit risk assessment, requiring potential borrowers to disclose financial information and undergo legal due diligence [12]. - Loan terms are tailored based on the borrower's financial needs and credit risk assessment, with interest rates reflecting market conditions [13]. - The company actively monitors loan repayment status and communicates with borrowers to address any repayment difficulties [15]. - In cases of overdue loans, the company contacts borrowers to remind them of potential legal actions and seeks to understand the reasons for delays [16]. - As of December 31, 2024, the total net receivables from loans amounted to HKD 626,300,000, a significant increase from HKD 272,500,000 in 2023 [20]. - Interest income from receivables for the year was HKD 28,900,000, representing a 97.9% increase compared to HKD 14,600,000 in the previous year [21]. - The impairment provision for outstanding loans and interest increased to HKD 40,800,000 from HKD 11,100,000 in 2023, reflecting a rise of HKD 29,700,000 [25]. - New loans and interest classified as performing amounted to HKD 492,600,000, with a provision for losses of HKD 12,800,000 [29]. - The company provided attractive interest rates as low as 3% to maintain good relationships with borrowers who met satisfactory credit assessment results [21]. - The company has established a credit risk classification system to evaluate each receivable loan individually [24]. Investment Performance - The tactical and strategic investments segment reported a loss of HKD 46,300,000 for the year, compared to a loss of HKD 26,500,000 in the previous year [28]. - The company has a diversified investment portfolio, with significant holdings in listed and unlisted shares, including a 12.52% stake in Shengjing Bank [30]. - The company plans to consider liquidating certain investments based on internal resource requirements and alternative investment opportunities [28]. - The largest borrower accounted for HKD 59,800,000, approximately 9.5% of total receivables, while the top five borrowers collectively represented 41.6% of total receivables at HKD 260,300,000 [22]. Corporate Governance - The board of directors includes a mix of executive and independent non-executive members, ensuring compliance with independence guidelines [74]. - The audit committee consists of four independent non-executive directors and is responsible for reviewing the financial reporting process and internal controls [129]. - The board is responsible for overseeing the company's management, business strategies, policies, and annual budgets, ensuring effective governance [139]. - The company has complied with the corporate governance code as per the listing rules during the fiscal year ending December 31, 2024 [135]. - The nomination committee evaluates the independence of non-executive directors annually to ensure effective governance [151]. - The company has established procedures for directors to seek independent professional advice at the company's expense when necessary [139]. - The board actively participates in the subsidiary and associate companies' board meetings to ensure alignment with the company's overall strategy [148]. - The board emphasizes the importance of diversity, with 57% male and 43% female employees as of December 31, 2024 [175]. Employee Compensation and Shareholder Relations - The company continues to prioritize employee compensation based on market practices and individual performance, including salaries and discretionary bonuses [51]. - The remuneration policy for employees is determined by the remuneration committee based on performance, qualifications, and capabilities [121]. - The company has not sought shareholder approval to renew the share incentive authorization since it expired on June 12, 2023, resulting in no reward shares being available for issuance in the fiscal year ending December 31, 2024 [98]. - The company has established a shareholder communication policy to ensure effective communication with shareholders [188]. - The board reviewed the implementation and effectiveness of the shareholder communication policy during the year [191]. - The company is committed to enhancing communication with investors and maintaining open dialogue with institutional investors and analysts [188]. ESG Commitment - The company is committed to ESG reporting, covering environmental and social performance for the fiscal year ending December 31, 2024, in accordance with the Hong Kong Stock Exchange's guidelines [197]. - The ESG report includes key performance indicators (KPIs) and compliance with relevant laws and regulations, highlighting the company's operational impact in Hong Kong [199]. - The company emphasizes the importance of stakeholder feedback in assessing the materiality and relevance of ESG issues [200]. - The report outlines the management, measurement, and monitoring systems implemented for ESG strategies, detailing the company's operational priorities and goals [198].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 1,391,552, a decrease of 9.6% from RMB 1,539,942 in 2023[27]. - Gross profit for 2024 was RMB 786,889, down from RMB 871,436 in 2023, resulting in a gross profit margin of 56.5%[27]. - Profit before income tax decreased to RMB 68,400 in 2024 from RMB 95,156 in 2023[27]. - Profit for the year attributable to owners of the Company increased to RMB 48,247 in 2024 from RMB 20,830 in 2023[27]. - Basic and diluted earnings per share for 2024 were both 2.32 RMB cents, compared to 1.00 RMB cent in 2023[27]. - The net profit margin for 2024 improved to 3.5%, up from 1.4% in 2023[27]. Operational Efficiency - Average inventory turnover improved to 192.7 days in 2024 from 216.0 days in 2023[27]. - Average account receivable turnover increased to 43.0 days in 2024 from 35.9 days in 2023[27]. - Average payable turnover increased slightly to 73.2 days in 2024 from 71.2 days in 2023[27]. - The liquidity ratio for 2024 was 397.6, a slight decrease from 403.9 in 2023[27]. - The company is implementing a digital transformation plan to enhance efficiency in personnel and inventory management, starting in 2025[47]. - The company aims to increase gross profit and reduce inventory levels by 2025[52]. - The Group will continue to optimize its retail network and streamline store operations to avoid excessive inventory accumulation[189][192]. - The Company aims to improve single-store efficiency and control inventory, striving to increase same-store sales growth[200]. Market Trends and Growth Drivers - In 2024, China's GDP reached RMB 134,908.4 billion, marking a year-on-year growth of 5.0%[33]. - The footwear market in China has shown resilience, with increasing consumer demand for diversified and personalized products[34]. - The expansion of the middle class and demand for high-quality branded footwear are key drivers of market growth[37]. - E-commerce has opened new sales channels, significantly boosting sales, especially in second- and third-tier cities[38]. - Rising inflationary pressures are suppressing sales revenue and increasing inventory levels, impacting profitability[41]. - The government plans to implement policies to boost consumption and stabilize household spending, which is expected to enhance consumer market expansion[182][184]. - There are favorable conditions for sustained consumption growth, including stable employment and the expansion of new consumption scenarios[183]. Strategic Initiatives - The company aims to maintain its market leadership through a multi-brand strategy centered on its core brand, C.banner[45]. - The company is committed to innovation, quality, and service as core values to navigate the complex business environment[49]. - The company plans to develop five additional special systems for stores by 2025 to improve operational efficiency[50]. - The company will prioritize the creation of blockbuster products and enhance core products in 2025, shifting from a goods-oriented to a customer-centric approach[57]. - The company is exploring profit models for shopping mall stores, currently operating nearly 90 shopping mall stores, with plans to gradually increase this number[196]. - The Group has strengthened strategic cooperation with chain groups such as SHANSHAN, SASSEUR, and Bailian, planning to open more than 10 new outlet stores in 2025[199]. Corporate Governance and Compliance - The Group has complied with all relevant laws and regulations concerning labor rights, environmental protection, product safety, and health during the year[75]. - The Group is committed to providing a pleasant working environment and competitive remuneration packages to maintain a high employee retention rate[72]. - The Group has established long-term relationships with renowned international brands to ensure high-quality customer service[73]. - The Group's suppliers must meet specific assessment criteria and comply with anti-bribery policies[74]. - The Company is committed to maintaining high standards of corporate governance practices[163]. Shareholder Information - As of December 31, 2024, the Company had reserves available for distribution of approximately RMB584.7 million, up from approximately RMB189.4 million as of December 31, 2023[92]. - The Board did not recommend a final dividend for the year ended 31 December 2024, consistent with the previous year[76]. - The Company has adopted a share award scheme as an incentive for eligible employees[109]. - The Share Award Scheme has a total of 187,000,000 shares available for grant as of both January 1, 2024, and December 31, 2024[159]. - The Company did not enter into any equity-linked agreements during the review period[160].

Financial Performance - For the year ended December 31, 2024, the company reported a loss attributable to equity holders of RMB 213.0 million, compared to a profit of RMB 11.9 million in 2023[11]. - Revenue for the period was RMB 8,608.9 million, a decrease of 21.6% compared to the same period in 2023, driven by a 15.8% decline in new car sales to 27,107 units[13]. - The gross loss for the period was RMB 29.8 million, with a gross loss margin of 0.3%, down from a gross profit margin of 3.8% in 2023[13]. - The company’s after-sales service revenue decreased by 8.4% to RMB 1,154.2 million, while used car sales revenue increased by 2.3% to RMB 431.5 million[13]. - The company recorded a significant increase in used car transactions, achieving a total of 7,673 units sold during the period[23]. - The company’s pre-tax loss for the period was RMB 187.7 million, compared to a profit of RMB 18.0 million in 2023[13]. - Basic and diluted loss per share attributable to ordinary equity holders was RMB 0.36, compared to earnings of RMB 0.02 per share in 2023[12]. - The group achieved a revenue of RMB 8,608.9 million in 2024, with 37 operational outlets as of December 31, 2024[40]. - The group reported a 12.9% year-over-year increase in renewal policy numbers and a 14.8% increase in premiums, despite a competitive market environment[44]. - The group’s revenue for the year ended December 31, 2024, was RMB 8,608.9 million, a decrease of RMB 2,368.9 million or 21.6% compared to the same period in 2023[52]. - New car sales revenue was RMB 7,023.2 million, down RMB 2,272.4 million or 24.4% year-on-year, accounting for 81.6% of total revenue[52]. - The after-sales service revenue was RMB 1,154.2 million, a decrease of RMB 106.3 million or 8.4% year-on-year, representing 13.4% of total revenue[52]. - The used car sales revenue increased to RMB 431.5 million, up RMB 9.8 million or 2.3% year-on-year, contributing 5.0% to total revenue[52]. - The gross profit from dealership sales of used cars was RMB 20.7 million, an increase of 3.9% year-on-year[47]. - The cost of sales and services for the year was RMB 8,638.7 million, a decrease of RMB 1,919.0 million or 18.2% compared to 2023[55]. - The cost of new car sales was RMB 7,503.5 million, down RMB 1,896.1 million or 20.2% year-on-year[55]. - The company recorded a gross loss of RMB 298 million for the year ended December 31, 2024, compared to a gross profit of RMB 420.1 million for the same period in 2023, primarily due to a decline in new car sales profitability[56]. - The gross loss margin for the year ended December 31, 2024, was 0.3%, down from a gross profit margin of 3.8% in 2023[57]. - Other income and net gains increased by 30.4% to RMB 622.3 million for the year ended December 31, 2024, compared to RMB 477.4 million in 2023, driven by improved commission income from automotive financing agency services[58]. - Selling and distribution expenses decreased by RMB 97.8 million to RMB 445.4 million for the year ended December 31, 2024, a decline of 18.0% from RMB 543.2 million in 2023[59]. - Administrative expenses decreased slightly by RMB 2.7 million to RMB 238.5 million for the year ended December 31, 2024, a decrease of 1.1% from RMB 241.2 million in 2023[60]. - The company reported a loss before tax of RMB 187.7 million for the year ended December 31, 2024, compared to a profit before tax of RMB 18.0 million in 2023[62]. - The net loss for the year ended December 31, 2024, was RMB 213.0 million, a significant decline from a profit of RMB 11.9 million in 2023[65]. - Cash inflow from operating activities increased to RMB 523.2 million for the year ended December 31, 2024, compared to RMB 365.7 million in 2023[67]. - Inventory decreased by 20.8% to RMB 1,011.5 million as of December 31, 2024, down from RMB 1,277.5 million in 2023, reflecting improved inventory management[69]. - The company's bank loans and other borrowings decreased by 18.2% to RMB 2,062.9 million as of December 31, 2024, compared to RMB 2,521.1 million in 2023[70]. - The total capital expenditure for the group amounted to RMB 257.5 million for the year ending December 31, 2024, a decrease of RMB 82.2 million from RMB 339.7 million for the year ending December 31, 2023, representing a reduction of approximately 24.2%[73]. - Employee costs decreased by 17.2% to RMB 319.8 million for the year ending December 31, 2024, down from RMB 386.0 million for the previous year, due to active adjustments in personnel and performance schemes[74]. Market Trends - In 2024, the domestic GDP reached RMB 13,490.84 billion, growing by 5.0% year-on-year[28]. - The total retail sales of consumer goods in 2024 amounted to RMB 4,878.95 billion, an increase of 3.5% compared to the previous year[28]. - In Shaanxi Province, the GDP for 2024 was RMB 3,553.88 billion, with a year-on-year growth of 5.3%[29]. - The retail sales of new energy vehicles in Shaanxi Province increased by 36.9% year-on-year in 2024[29]. - In 2024, the production and sales of new energy vehicles reached 12.89 million and 12.87 million units, respectively, marking year-on-year growth of 34.4% and 35.5%[33]. - The market share of new energy vehicles in total vehicle sales reached 40.9%, up by 9.3 percentage points from 2023[33]. - The total number of motor vehicles in China reached 453 million, with 35.3 million being cars, and new registrations of electric vehicles accounted for 41.83% of total new car registrations[34]. - In 2024, Porsche delivered a total of 310,718 vehicles globally, with 56,887 units delivered to Chinese customers, representing 18.31% of its global market share[34]. - BMW Group's sales in China reached 714,530 units in 2024, maintaining its position as the top luxury car seller in the market[35]. - Mercedes-Benz sold 1.9834 million passenger cars in 2024, with over 714,000 units delivered to Chinese customers, continuing to lead the luxury car market[35]. - Audi's global sales for 2024 reached 1.6712 million vehicles, with over 649,000 units delivered in China, a decrease of approximately 11% year-over-year, accounting for 39% of global sales[36]. - BYD's global sales of new energy vehicles in 2024 totaled 4.27 million units, with passenger car sales increasing by 41.1% year-over-year to 4,250,370 units, making it the top seller in the Chinese automotive market[38]. - The total sales of Seres Group's new energy vehicles in 2024 reached 426,885 units, representing a year-over-year growth of 182.84%, with the Wanjie series accounting for 386,300 units, or 90% of total sales[38]. - In 2025, China's total automobile sales are expected to reach 32.9 million units, a year-on-year increase of 4.7%[86]. - The domestic passenger car market is projected to achieve a total sales volume of 28.9 million units in 2025, reflecting a year-on-year growth of 4.9%[86]. - The sales of new energy vehicles in China are anticipated to reach 16 million units in 2025, representing a year-on-year growth rate of 24.4%[86]. Strategic Initiatives - The company introduced competitive new energy brands, which are expected to become a core growth driver in the future[22]. - The company is focusing on enhancing customer service through the establishment of specialized centers in key cities[23]. - The overall replacement rate for used cars improved year-on-year, indicating a positive trend in the used car business[23]. - The group is focusing on enhancing customer satisfaction and loyalty through a digital management platform and customized services[50]. - The group has expanded its used car business by establishing sales centers in Xi'an, Lanzhou, and Yinchuan, leading to increased sales scale in these regions[48]. - The company is actively enhancing its digital infrastructure, implementing advanced technologies such as electronic work badges and large models[92]. - The company plans to continue expanding its network and collaboration with leading new energy brands in key regions like Shaanxi, Gansu, and Ningxia[88]. - The company is exploring new market opportunities and potential acquisitions to expand its market presence and enhance competitive advantage[94]. - The company plans to continue enhancing its talent reserve and management of human resources to align with business volume changes[74]. - The company is committed to providing ongoing training and professional development for its directors to keep them informed of legal and regulatory developments[125]. Governance and Compliance - The company adheres to the corporate governance code, ensuring compliance and regular reviews to protect shareholder interests[110]. - The board is responsible for overall development and strategic approval, ensuring operational and financial performance monitoring[113]. - Independent non-executive directors are encouraged to actively participate in board meetings, ensuring compliance with listing rules[113]. - The company has mechanisms in place for independent opinions to assist the board in fulfilling its responsibilities[113]. - The board conducted an independence assessment for all directors, with satisfactory results reported[113]. - The board of directors held 4 meetings during the reporting period, discussing and approving the overall strategy and policies of the company[118]. - All directors attended the board meetings with a 100% attendance rate, ensuring active participation in decision-making[119]. - The company has no significant uncertainties that could cast doubt on its ability to continue as a going concern[126]. - The independent non-executive directors are deemed independent and have no relationships that could significantly interfere with their independent judgment[117]. - The company has adopted corporate governance codes to ensure compliance with legal and regulatory requirements[125]. - The board reviewed and approved the audited annual results for the year ending December 31, 2023, and the unaudited interim results for the six months ending June 30, 2024[118]. - The company has established a risk management and internal control system, which was reviewed during the board meetings[118]. - The board consists of 2 female directors and 5 male directors, meeting the requirement of at least one different gender director as per listing rules[129]. - The current gender diversity in the board is 28.57% female, with 25% of senior management being female, and 39.6% of the total workforce being female[132]. - The company has appointed three independent non-executive directors, fulfilling the requirement that they constitute at least one-third of the board[139]. - The audit committee is composed of three independent non-executive directors, responsible for reviewing the financial reporting process and risk management[141]. - The company has established a board diversity policy, which considers various factors such as gender, age, and professional experience in board member selection[129]. - The board has formed four committees: audit, remuneration, nomination, and finance and investment, each with clear written terms of reference[140]. - The company has purchased directors' liability insurance for all directors[128]. - The chairman and CEO positions are separated, with Mr. Hu Delin serving as the chairman and Ms. Zhao Min as the CEO[135]. - The nomination committee is responsible for the selection and appointment of directors, ensuring they possess the necessary skills and experience[133]. - The audit committee held 2 meetings during the reporting period, with a 100% attendance rate from all members present[142]. - The remuneration committee reviewed the remuneration packages for senior management, with 2 individuals earning between RMB 0-500,000 and 1 individual earning between RMB 500,001-1,000,000 for the year ending December 31, 2024[150]. - The nomination committee confirmed the diversity of the board, including two female members and members with deep understanding of automotive dealerships and financial experience[156]. - The finance and investment committee held 1 meeting during the reporting period, with a 100% attendance rate from all members present[158]. - The audit committee reviewed the annual financial statements for the year ending December 31, 2023, and the interim financial statements for the six months ending June 30, 2024[143]. - The remuneration committee recommended the reappointment of Chen Wei as an executive director, along with her remuneration and contract terms[151]. - The finance and investment committee evaluated the independence of independent non-executive directors during the reporting period[159]. - The audit committee discussed the performance and effectiveness of the risk management and internal control systems[143]. - The nomination committee is responsible for identifying and recommending suitable candidates for the board[153]. - The company plans to reappoint external auditors based on the audit committee's recommendations[143]. - The audit fee for the year ending December 31, 2024, is RMB 2,280,000, with no non-audit service fees incurred[167]. - The board has confirmed that the risk management and internal control systems are effective and adequate for the year ending December 31, 2024[170]. - The company held one annual general meeting on May 30, 2024, with a 100% attendance rate from all executive directors[175]. - The company has implemented a series of risk management measures, including property protection control and performance evaluation control, to keep risks within acceptable limits[171]. - The company has adopted a written guideline for employees regarding securities trading, which is as stringent as the standard code[167]. - The company has established a management system for insider information to ensure compliance with disclosure regulations[172]. - The company emphasizes effective communication with shareholders through various channels, including annual meetings and performance briefings[173]. - The company has conducted professional training for the company secretary, totaling no less than 15 hours for the year[165]. - The board has reviewed the effectiveness of the risk management and internal control systems once during the reporting period[170]. - The company has adopted a policy to ensure timely disclosure of information to facilitate informed investment decisions by shareholders[173]. - The company plans to distribute dividends not exceeding 30% of distributable profits for each financial year, subject to board discretion based on financial performance and cash flow[181]. - The company remains committed to enhancing environmental performance and implementing energy-saving measures in its operations[191]. - The company operates in a highly regulated industry, requiring various licenses and permits for automotive dealership and maintenance services[193]. - The company provides a comprehensive range of automotive sales and services, including after-sales services and value-added services[190]. - The board emphasizes effective communication with shareholders and encourages active participation in company affairs[182]. - The company has established multiple channels for ongoing dialogue with shareholders, including announcements and a corporate website[183][184]. - The company has not reported any significant legal or regulatory violations that could adversely impact its operations as of December 31, 2024[193]. - The company continues to focus on risk management and has discussed major risks and uncertainties faced during the financial year[189]. - The company’s main business nature has not undergone significant changes during the financial year ending December 31, 2024[188]. - The board has reviewed the implementation of the shareholder communication policy and found the results satisfactory[182]. - The company will hold its 2025 Annual General Meeting on May 28, 2025, with a suspension of share transfer registration from May 23 to May 28, 2025[196]. - The board has decided not to recommend any final dividend for the year ending December 31, 2024[197]. - Details regarding changes in property, plant, and equipment for the year are included in the financial statements note 13[198]. - As of the report date, the company's authorized share capital is $100,000.00, divided into 1,000,000,000 shares with a par value of $0.0001 each, with no changes in issued shares during the year[199]. - Changes in reserves for the company and the group during the year are detailed in financial statements notes 42 and 32, with distributable reserves for shareholders also outlined in these notes[200].

Financial Performance - Revenue for 2024 is projected to be HK$8,101,694, a decrease of 6.5% from 2023's HK$8,665,765[11] - Profit attributable to owners of the Company for 2024 is expected to reach HK$650,253 million, reflecting a growth of 12% from 2023's HK$580,420 million[11] - Basic earnings per share for 2024 are expected to be HK$28.83, an increase from HK$25.73 in 2023[11] - In 2024, the Group's principal business revenue reached HK$8,102 million, with a profit attributable to shareholders of HK$650 million, representing a year-on-year increase of 12.0%[110] - Earnings per share for 2024 amounted to HK28.83 cents, reflecting a year-on-year increase of 12.0%[110] - Total dividends distributed for the year were HK9.8 cents per share, marking a year-on-year increase of 12.6%[110] - The Group's total revenue decreased by 6.5% to HK$8,102 million for the year ended December 31, 2024, compared to HK$8,666 million in 2023[150] - Profit attributable to owners increased to HK$650 million, up 12.0% from HK$580 million in 2023, with basic earnings per share rising to HK28.83 cents from HK25.73 cents[150] Assets and Liabilities - Total assets increased to HK$11,502,371 million in 2024, up from HK$10,641,662 million in 2023, representing a growth of 8.1%[11] - As of December 31, 2024, the Group had cash and bank balances of HK$983 million, an increase from HK$713 million in 2023, while total borrowings rose to HK$1.58 billion from HK$1.19 billion[164] - The Group's net gearing ratio as of December 31, 2024, was approximately 23.4%, up from 20.7% in 2023, indicating a higher level of debt relative to net assets[164] - The Group recorded a cumulative new contract amount of HK$11.02 billion for the year ended December 31, 2024, with a backlog of contracts amounting to approximately HK$34.02 billion, including unfinished contracts of about HK$18.53 billion[162] Market and Project Developments - The Company has expanded into overseas markets with the incorporation of Far East Facade (Singapore) Pte. Ltd. in January 2024[23] - In April 2024, the Company won the bid for the facade project of New Central Site 3A, a significant international-level project in Hong Kong[33] - The Company achieved a first-place ranking in Tencent Group's third-party safety assessment for 14 consecutive months during the construction of the Tenova future project[35] - Major new projects awarded included the New Central Harbourfront 3A Commercial Project and the Kwu Tung North residential project, contributing to the Group's strong performance in Hong Kong[114] - The Galaxy (phase 4) project in Macau, the largest single facade contract globally, is progressing smoothly and meeting its phased targets[115] - The Group is focusing on the facade market development along the "Belt and Road" initiative, with plans to explore large potential projects in the Middle East and Southeast Asia[121][123] Sustainability and Innovation - The Company was awarded the "Hong Kong Green Organisation Certification" for the eighth consecutive year, highlighting its commitment to sustainability[19] - In May, the newly established Far East Photovoltaic Technology (Guangdong) Company Limited will focus on research and development of building integrated photovoltaic (BIPV) products[41] - The Group plans to enhance its facade business through building-integrated photovoltaics (BIPV), with ongoing projects in Hong Kong and the Chinese Mainland[137] - The Group is committed to sustainability and will continue to deepen climate risk management initiatives and enhance technology research and development for BIPV projects[139] - The project BIM Design Team won the Gold Award in the 2024 Seventh "Youlu Cup" National BIM Technology Competition, highlighting the company's commitment to innovation in construction technology[83][84] Corporate Governance and Leadership - Mr. Zhu Haiming was appointed as Executive Director and CEO on June 1, 2024, bringing over 18 years of experience in construction engineering management and infrastructure investment[184] - Mr. Wong Man Cheung, appointed as Executive Director and CFO on July 1, 2022, has over 28 years of experience in accounting, financial management, and corporate financing[188] - The company is focused on sustainability, with key members of the board involved in the Sustainability Committee[187][191] - The board comprises a diverse group of professionals with extensive experience across various sectors, including construction, finance, and legal services[187][194] - The company aims to enhance its corporate governance through the expertise of its independent directors[191] Operational Performance - The facade and general contracting business segment's revenue decreased by 6.4% to HK$7,224 million, with gross profit down 2.4% to HK$862 million and operating profit down 4.0% to HK$782 million[153] - The operating management business segment's revenue decreased to HK$877 million, while operating profit increased to HK$56 million due to effective cost control measures[154] - Administrative, selling, and other operating expenses decreased to HK$210 million from HK$288 million in 2023, reflecting improved cost management[156] - Finance costs decreased to HK$75 million from HK$82 million in 2023, attributed to stringent finance cost control measures[156] Employee and Workforce - The Group employed a total of 4,006 employees as of December 31, 2024, down from 4,498 employees in 2023[178]

Financial Performance - The Company reported a reduced loss attributable to shareholders of approximately US$4.48 million, primarily due to operating and R&D expenses of approximately US$4.99 million[2]. - The Group recorded a reduced loss attributable to shareholders of approximately US$4.48 million in 2024, down from US$25.05 million in 2023[15][34]. - Total revenue for 2024 was US$656,000, compared to a loss of US$539,000 in 2023, indicating a significant improvement[34]. - The operating loss after impairment losses and provisions for 2024 was US$4.34 million, a decrease from US$30.38 million in 2023[34]. - Revenue for the year ended December 31, 2024, increased to US$0.72 million, a 148.28% increase from US$0.29 million in 2023[191]. - Other income rose to US$0.08 million, reflecting a 166.67% increase from US$0.03 million in the previous year[191]. - Total loss attributable to shareholders decreased to US$4.48 million for the year ended December 31, 2024, an 82.12% reduction from US$25.05 million in 2023[191]. - Capital deficiency increased to approximately US$5.90 million as of December 31, 2024, up from approximately US$1.55 million as of December 31, 2023[194]. - The Group recorded no amortization of intangible assets for the year ended December 31, 2024, compared to US$22.18 million in 2023[198]. - The Group's income tax credit for the year ended December 31, 2024, was approximately US$26,000, a 99.45% decrease from US$5.42 million in 2023[198]. Product Development and Market Strategy - Wanbang Biopharmaceutical submitted the NDA to NMPA at the end of 2024, with approval expected within 12 months, and upon approval, the Group expects to receive US$5 million and an additional US$2 million upon first commercial sale of Senstend™ in China[2][7]. - The manufacturing and supply agreement was signed between Wanbang Biopharmaceutical, Genetic S.p.A., and Plethora Solutions Limited for the production of Senstend™ for the PRC market[2]. - The rights to Fortacin™ were out-licensed to Kobayashi Pharmaceutical Co., Ltd. for the Japanese market[2][7]. - The Company has completed the evaluation of two proposals for Phase 3 clinical studies of Fortacin™ in the US[2]. - The potential market for Senstend™ in China is approximately 9 million patients in its first year, growing to over 170 million patients by its tenth year[8]. - The Company is focused on the successful commercialization of Fortacin™/Senstend™ in key markets including China, the US, and Japan[4][5]. - The Company aims to commercialize its deep learning aging clock technology and partner with clinics and insurance companies[4][5]. - Deep Longevity is integrating its AI-led deep learning technology to build and commercialize various aging clocks[6]. - The Group aims to improve its financial performance and reduce losses in the upcoming fiscal year, as indicated by the significant decrease in losses reported[189]. Financial Position and Assets - Total assets decreased from US$80,310,000 in 2020 to US$610,000 in 2024, representing a decline of approximately 99.24%[37]. - Current liabilities increased significantly from US$9,105,000 in 2020 to US$5,649,000 in 2024, indicating a rise of about 62.5%[37]. - The Group's net liabilities reached US$5,901,000 in 2024, compared to net assets of US$50,305,000 in 2020, marking a substantial shift in financial position[37]. - The Group's current assets dropped from US$12,790,000 in 2021 to US$601,000 in 2024, a decrease of approximately 95.3%[37]. - The Group's intangible assets were fully impaired, decreasing from US$72,418,000 in 2020 to zero in 2024[37]. Corporate Governance and Compliance - The Group has complied with relevant laws and regulations that significantly impact its operations, ensuring adherence to applicable standards[42]. - The Group's financial risk management objectives and policies are detailed in the consolidated financial statements, indicating a structured approach to managing financial uncertainties[38]. - The company has applied all principles of the Corporate Governance Code and complied with applicable provisions during the year ended December 31, 2024[100]. - All directors have confirmed compliance with the Securities Dealing Code and the Model Code during the year ended December 31, 2024[99]. - The company has a strong governance structure with experienced professionals in key management positions, including a Chartered Secretary and a Chartered Governance Professional[188]. Share Options and Capital Structure - As of December 31, 2024, the total issued ordinary share capital consisted of 228,438,619 shares, unchanged from the previous year[55]. - The Share Option Scheme (2016) allows for 2,456,532 options available for grant as of December 31, 2024[64]. - No options were granted or exercised during the year ended December 31, 2024[65]. - The total number of options vested/unvested as of December 31, 2024, was 6,229,723[68]. - The company has not experienced any lapsing or cancellation of options during the year ended December 31, 2024[87]. - As of December 31, 2024, the company's distributable reserves amounted to approximately US$294 million, unchanged from 2023[88]. Leadership and Management - Jamie Alexander Gibson has been the CEO since May 2002, focusing on corporate finance and emerging market investment products[172]. - Jayne Allison Sutcliffe co-founded the Group in 1990 and has extensive experience in fund management, previously serving as Group Chief Executive of Charlemagne Capital Limited[175]. - Stawell Mark Searle has over 30 years of experience in investment management and has been an Independent Non-Executive Director since October 2001[175]. - Adrian Alan Chan has over 25 years of experience in accounting and financial management, serving as CFO for multiple companies including Enviro Energy International Holdings Limited[176][179]. - The management team includes experienced professionals such as Paul Eric Jones, who has over 30 years in the energy industry and corporate finance, and Michael Grant Wyllie, who has over 30 years in the pharmaceutical industry[185]. - The leadership team includes directors with diverse backgrounds in finance, law, and investment management, enhancing strategic decision-making[176][179]. Auditor and Financial Reporting - The Company has appointed RSM Hong Kong as the new auditor effective from June 21, 2023, following the resignation of BDO Limited[158]. - The company announced the resignation of RSM as the external auditor effective from July 16, 2024, due to a disagreement on the audit fee for the financial year ending December 31, 2024[162]. - Baker Tilly Hong Kong Limited was appointed as the new auditor effective from July 16, 2024, to fill the vacancy left by RSM, with a term until the next annual general meeting tentatively scheduled for June 2025[163]. - The consolidated financial statements for the year ended December 31, 2024, have been audited by Baker Tilly, which has expressed its willingness to continue in office and will seek re-appointment at the 2025 AGM[164]. - The Audit Committee reviewed RSM's audit fee proposal and deemed it inappropriate considering the current operational scale of the group and prevailing market rates[162].

Financial Performance - In 2024, the company's revenue reached RMB 417.3 million, representing a year-on-year growth of 69.4%[8] - The company's revenue for the fiscal year 2024 reached RMB 417,307 thousand, a significant increase of 69.3% compared to RMB 246,367 thousand in 2023[12] - The company achieved a revenue of RMB 417.3 million, representing a year-on-year growth of 69.4%, with a gross margin of approximately 53.9%[17] - Ophthalmic product sales revenue surged by 87.8%, contributing RMB 384.3 million in 2024 compared to RMB 204.7 million in 2023[41] - Gross profit for 2024 was RMB 225,065 thousand, representing a gross margin of approximately 54%[12] - Gross profit rose by 55.9% from RMB 144.4 million in 2023 to RMB 225.1 million in 2024, aligning with revenue growth[43] - The adjusted net loss for the reporting period was RMB 183.6 million, a decrease of 24.5% year-on-year, primarily due to increased revenue and gross profit from ophthalmic products[17] - The net loss attributable to the company for 2024 was RMB 268,274 thousand, an improvement from a net loss of RMB 379,787 thousand in 2023[13] - The adjusted net loss for 2024 was RMB 183,642 thousand, compared to RMB 243,237 thousand in 2023, indicating a trend towards reduced losses[13] Product Development and Innovation - The core product, OT-401, saw significant sales growth after being included in the national medical insurance catalog, further expanding market coverage[8] - The company’s innovative drug, OT-1001, was approved for market launch in 2024, with OT-702 and OT-502 having submitted NDA applications[7] - The new drug, Zhiweitai® (0.24% cetirizine eye drops), was approved for commercialization in September 2024, with two additional innovative products entering the registration phase[17] - The pipeline includes three products in Phase III clinical trials and two innovative drugs in the commercialization registration phase[17] - The NDA for OT-502 (DEXYCU®) was accepted by the National Medical Products Administration in September 2024, with expectations for commercialization approval within the year[25] - OT-702 (博優景®) completed Phase III clinical trials in April 2024, showing significant improvement in best-corrected visual acuity compared to baseline, and the BLA was accepted in July 2024[23] Strategic Partnerships and Collaborations - The company established a long-term strategic relationship with Alcon Group, acquiring and licensing a total of 8 products, 7 of which are commercially validated with stable sales foundations[9] - The partnership with Alcon is expected to enhance the company's brand recognition and influence in the international ophthalmic field[9] - The Alcon transaction granted the company rights to eight products in China, including seven commercialized products and one in clinical development, enhancing its market position[29] - The company entered into a manufacturing and supply agreement with Alcon Pharma to purchase transferred products for commercialization in China[190] Operational Efficiency and Management - The company is committed to enhancing its commercialization capabilities and optimizing sales team efficiency, which is expected to lead to significant revenue growth in the short term[9] - The company’s Suzhou factory optimized production processes and management levels, achieving commercial batch production of its own products and providing complex ophthalmic formulation CDMO services[8] - The company plans to optimize production and supply chain management, focusing on stable supply and product quality in 2025[32] - The company completed 11 batches of commercial production during the reporting period, ensuring a stable and efficient supply of products[30] Research and Development - Research and development expenses decreased to RMB 113,935 thousand in 2024 from RMB 123,768 thousand in 2023, indicating a focus on cost management[12] - Continuous investment in R&D is prioritized to maintain technological leadership and explore new treatment areas[37] - The company has established a comprehensive ophthalmic drug product line with 34 drug assets, including 21 products in the commercialization stage[17] Market Expansion and Future Outlook - The company aims to continue improving its commercialization system and sales efficiency to ensure sustained revenue growth in 2025[10] - The company plans to leverage international cooperation to enhance its overall strength and move towards becoming a global leader in ophthalmic innovative drugs[10] - The company plans to accelerate new product development and commercialization, aiming for at least one NDA approval in 2025[31] - The company is focused on addressing the significant unmet needs in China's ophthalmic healthcare market[17] Corporate Governance and Management Structure - The company has a commitment to high levels of corporate governance to protect shareholder interests and enhance corporate value[93] - The board consists of two executive directors, three non-executive directors, and three independent non-executive directors, ensuring compliance with listing rules[99] - The company has established effective mechanisms to support an independent board and independent viewpoints, ensuring good corporate governance[107] - The company has a gender diversity policy in place, aiming to maintain a balanced representation of female members on the board[104] Shareholder Communication and Relations - The company has adopted a shareholder communication policy to enhance investor relations and ensure timely disclosure of information to shareholders and potential investors[148] - The company emphasizes the importance of effective communication with shareholders to strengthen investor relations and provide insights into its business and strategies[147] - The company maintains regular communication with shareholders to ensure the quality and effectiveness of information disclosure[178] Risk Management - The company has established a risk management manual clarifying responsibilities and processes for risk management across departments[141] - The board has reviewed and confirmed the effectiveness of the risk management and internal control systems as of December 31, 2024, ensuring adequate protection for stakeholders[142] - The group faces risks related to the successful completion of clinical trials and obtaining regulatory approvals for new drug candidates[167] Employee and Organizational Development - The total employee count increased to 489 as of December 31, 2024, up from 444 in the previous year[69] - Employee training programs are provided to ensure compliance with company policies and procedures, with a focus on both formal and on-the-job training[69] - The company encourages all directors to attend relevant training courses, with costs covered by the company[109]

Financial Performance - The company's operating revenue for Q1 2025 was CNY 405,735,194.47, a decrease of 16.17% compared to CNY 484,002,973.06 in the same period last year[6] - The net profit attributable to shareholders was a loss of CNY 35,281,525.82, an improvement from a loss of CNY 45,922,679.29 in the previous year[6] - The net cash flow from operating activities was a negative CNY 13,707,748.31, compared to a negative CNY 22,987,313.49 in the same period last year[6] - Total revenue for the current period is CNY 405,735,194.47, a decrease of 16.2% compared to CNY 484,002,973.06 in the same period last year[34] - Total operating costs amount to CNY 475,357,834.06, down 15% from CNY 558,402,603.99 year-over-year[33] - Net loss for the current period is CNY -22,635,691.07, an improvement from CNY -34,980,470.90 in the previous year[36] - Earnings per share (EPS) for the current period is CNY -0.0386, compared to CNY -0.0503 in the same period last year[39] Assets and Liabilities - Total assets at the end of the reporting period were CNY 5,101,113,317.55, down 4.13% from CNY 5,320,807,895.66 at the end of the previous year[8] - Current assets totaled RMB 3,496,433,398.65, down from RMB 3,730,401,134.18, indicating a decrease of about 6.28%[26][29] - The company reported a total liability of RMB 1,734,130,113.79, down from RMB 1,931,188,750.83, representing a reduction of approximately 10.19%[30] - Total liabilities and shareholders' equity amount to CNY 5,101,113,317.55, reflecting a decrease from CNY 5,320,807,895.66 at the beginning of the year[31] - The equity attributable to shareholders decreased by 1.13% to CNY 3,079,012,871.78 from CNY 3,114,294,647.60 at the end of the previous year[8] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 67,175[15] - The top shareholder, Hong Kong Central Clearing Limited, holds 26.64% of the shares, totaling 243,474,507 shares[16] - The largest shareholder, Hong Kong Central Clearing Limited, holds 243,474,507 shares, accounting for 26.64% of the total issued shares[22] - Panda Electronics Group Co., Ltd. holds 210,661,444 shares, representing 23.05% of the total shares[21] - The actual controller, China Electronics Corporation, indirectly holds 29.98% of the shares through subsidiaries[21] - Panda Group has pledged 105,091,430 shares, which is 49.89% of its holdings and 11.50% of the total shares[22] - The report indicates that certain shares held by major shareholders are subject to unknown restrictions[18] Cash Flow - Operating cash inflow totaled $723,622,354.13, down 9.8% from $802,221,146.42 in the same period last year[43] - Operating cash outflow amounted to $737,330,102.44, a decrease of 10.6% compared to $825,208,459.91 in the previous year[44] - The net increase in cash and cash equivalents was $18,063,358.51, a decline of 91.1% from $202,843,530.96 in the same period last year[46] - The ending balance of cash and cash equivalents was $684,585,465.21, down from $1,001,263,284.05 at the end of the previous year[46] Investments and Transactions - The company plans to sell goods and provide services to related subsidiaries with an estimated annual transaction amount not exceeding RMB 100 million, RMB 10 million, and RMB 6 million respectively[23] - Ericsson intends to purchase a 49% stake in ENC from the company and other Chinese shareholders, with expected recoverable amounts of no less than RMB 250 million[24] - Cash received from investment activities was $391,459,395.74, down 21.5% from $498,631,157.45 in the same period last year[45] - Net cash flow from investment activities was $38,986,634.33, a significant decrease of 83.1% compared to $230,637,612.84 last year[45] - Cash outflow from investment activities reached $352,472,761.41, an increase of 31.4% from $267,993,544.61 in the previous year[45] Operational Challenges and Strategies - The company reported a significant decrease in operating income primarily due to reduced orders in information network equipment and intelligent manufacturing sectors[12] - The company is actively advancing the implementation of equity disposal, although uncertainties remain due to ongoing negotiations and required procedures[25] - The company disclosed ongoing litigation involving its subsidiary, with further details to be provided in future reports[25] - The company is focusing on market expansion and new strategies, although specific details were not disclosed in the current report[25]

Financial Performance - In 2024, the company's total revenue decreased by approximately 34.9% to RMB 277.5 million, primarily due to consumer hoarding behavior and changes in purchasing power [8]. - The gross profit margin for 2024 was 76.1%, an increase from 75.2% in 2023, indicating a strong market position and premium branding [8]. - The company's revenue from DHA algae oil products contributed approximately 96.1% in 2024, compared to 94.7% in 2023, highlighting the product's significance in the revenue stream [15]. - The sales volume of DHA algae oil products in 2024 was 1,276 thousand units, with an average selling price of RMB 209.0 per unit [15]. - The sales volume of DHA algae oil products decreased from 1,918 thousand units in 2023 to 1,276 thousand units in 2024, reflecting market challenges [15]. - In the fiscal year 2024, the company's total revenue was approximately RMB 277.5 million, a decrease of 34.9% from RMB 426.5 million in fiscal year 2023 [16]. - Gross profit for fiscal year 2024 was approximately RMB 211.1 million, a decline of 34.2% year-over-year, with a gross margin of 76.1% compared to 75.2% in fiscal year 2023 [19]. - Other income increased to approximately RMB 17.5 million in fiscal year 2024 from RMB 13.5 million in fiscal year 2023 [20]. - Selling and distribution expenses were approximately RMB 90.6 million in fiscal year 2024, down from RMB 102.6 million in fiscal year 2023 [21]. - Profit attributable to owners decreased by 53.0% to approximately RMB 74.9 million in fiscal year 2024 from RMB 159.3 million in fiscal year 2023 [24]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and transparency to create value for shareholders and the community [9]. - The company has a focus on corporate governance and compliance, as evidenced by the qualifications of its board members [46][49]. - The company is expanding its board with experienced professionals to enhance its governance structure [48]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests [130]. - The board consists of six members, including two executive directors and three independent non-executive directors, ensuring diverse governance [71]. - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, each with defined responsibilities [158]. - Independent non-executive directors confirm their independence in writing, ensuring the board's independence is maintained [156]. - The audit committee, composed entirely of independent non-executive directors, is responsible for reviewing the integrity of the group's financial reporting and internal control systems [160]. - The company has adopted a board diversity policy, ensuring at least one female director is included, with two female directors currently serving [149]. - The company has established a remuneration committee to review the remuneration structure for directors and senior management [108]. Market Strategy and Growth - The company plans to enhance marketing efforts and brand awareness through online and offline channels to expand market coverage in the Chinese nutrition industry [9]. - The company is optimistic about the growth potential of the nutrition industry in China, particularly in the maternal and infant sector, driven by increasing health awareness and disposable income [14]. - The company aims to strengthen its sales and distribution network, particularly in regions with lower penetration rates in China [14]. - The company plans to enhance marketing efforts and expand its sales network into Hong Kong [137]. - The company is committed to expanding its business into new regions, although this expansion carries inherent risks and uncertainties [74]. - The company is strategically positioned for future growth with a focus on expanding its market presence and enhancing its operational efficiency [52]. Employee and Management Changes - The group employed 44 employees as of December 31, 2024, down from 46 in 2023, with employee costs approximately RMB 11.7 million compared to RMB 16.6 million in 2023 [34]. - The company has seen significant management changes, with Mr. An Yong currently serving as the general manager, bringing over 17 years of experience in the food industry [56]. - The financial management team includes Ms. Sun Mei, who has over 15 years of experience in accounting and financial management, currently serving as the financial manager since February 2014 [60]. - The company has appointed a new financial director and company secretary effective February 1, 2025, indicating a change in leadership [63]. - The company has confirmed that there are no major transactions, agreements, or contracts involving significant interests held by directors or related entities [118]. Risk Management - The company faces risks related to brand reputation, supplier concentration, and reliance on online sales channels, which could impact future performance [74]. - The company believes that its risk management and internal control systems are effective and adequate during the reporting period [174]. - The audit committee is responsible for overseeing the internal control procedures and ensuring compliance with regulatory requirements [173]. Shareholder Information - The board recommends a final dividend of RMB 0.05 per ordinary share for the year ended December 31, 2024, subject to approval at the 2025 Annual General Meeting [36]. - The company has approximately RMB 376.5 million available for distribution to shareholders as of December 31, 2023, down from RMB 410.1 million in 2022 [96]. - The company’s dividend declarations are subject to approval by shareholders at the annual general meeting and cannot exceed the amount recommended by the board [181]. - The company will hold its annual general meeting on May 30, 2025 [120]. Environmental, Social, and Governance (ESG) - The company is committed to implementing comprehensive ESG principles and practices [199]. - A sustainability working group has been established at the management level, consisting of senior management members to handle environmental, social, and governance matters [200]. - The company has conducted a materiality assessment to identify significant environmental and social issues impacting investors and stakeholders [197]. - The company’s environmental, social, and governance (ESG) report covers its performance in these areas during the reporting period from January 1, 2024, to December 31, 2024 [194]. - The report includes the overall environmental and social performance of the company’s DHA product series sold in mainland China, with operations conducted from four offices and warehouses totaling 3,917.88 square meters [195].

Clinical Development and Innovation - KN035 (Envafolimab) has been commercialized since November 2021 and received registration in Macau for treating unresectable or metastatic MSI-H/dMMR adult solid tumor patients in 2024[6]. - KN026 is undergoing three Phase III clinical trials in China, with breakthrough therapy designation granted for HER2-positive gastric cancer patients who failed first-line treatment[7]. - JSKN003, a dual-target HER2 ADC, is in three Phase III clinical trials and has received breakthrough therapy designation for platinum-resistant ovarian cancer, with potential milestone payments up to RMB 3.08 billion[7]. - JSKN033, the world's first subcutaneous ADC combination therapy, has received ethics approval in Australia and is in I/II clinical trials for HER2-expressing advanced solid tumors[8]. - KN046, a bispecific antibody targeting PD-L1 and CTLA-4, has multiple ongoing clinical trials in China, the US, and Australia, with recent publications in major journals[8]. - Three clinical studies for the HER2 bispecific antibody KN026 are progressing positively, focusing on second-line GC/GEJ and first-line HER2-positive breast cancer[14]. - The ongoing clinical studies for JSKN016 are exploring multiple indications and treatment regimens, demonstrating the company's commitment to innovation[16]. - The JSKN033, a high-concentration combination formulation of ADC and immune checkpoint inhibitors, is the first subcutaneously administered ADC drug to enter clinical trials[16]. - Encouraging PFS and OS benefits were reported in a Phase II clinical trial of KN046 combined with albumin-bound paclitaxel for advanced triple-negative breast cancer, with results published in Nature Communications in February 2024[34]. - JSKN003 demonstrated promising initial anti-tumor activity and good tolerability in a Phase I clinical trial for advanced/metastatic solid tumors, presented at the AACR annual meeting in April 2024[35]. - JSKN003 was granted CDE approval to initiate a Phase III clinical trial for treating platinum-resistant recurrent epithelial ovarian cancer in December 2024[36]. - JSKN033's I/II clinical trial for advanced metastatic malignancies received CDE approval for IND application in December 2024[36]. - KN046 combined with lenvatinib showed promising results in a Phase II clinical study for advanced unresectable or metastatic HCC, published in Nature Communications in February 2025[37]. Financial Performance - The company achieved a significant year-on-year revenue growth of 192.58%, marking its first annual financial profit[18]. - The company reported a revenue of RMB 640,083,000 for the year ending December 31, 2024, representing a significant increase from RMB 218,774,000 in 2023, which is a growth of approximately 192%[32]. - Gross profit for the same period was RMB 579,767,000, up from RMB 163,537,000 in 2023, indicating a gross margin improvement[32]. - The company reported a total comprehensive income for the year ended December 31, 2024, was RMB 166.3 million, compared to a total comprehensive loss of RMB 211.4 million for the previous year[43]. - The company recorded a profit of RMB 166.3 million for the year ended December 31, 2024, compared to a loss of RMB 210.6 million in 2023[56]. - The company achieved a profit before tax of RMB 166,342,000, a turnaround from a loss of RMB 210,593,000 in the previous year[32]. - The gross margin improved to 65%, up from 60% in the previous year, due to cost optimization measures[22]. - The company plans to invest $50 million in research and development over the next two years to accelerate innovation[26]. - The company provided an optimistic outlook, projecting a revenue growth of 30% for the next fiscal year, driven by new product launches and market expansion[25]. Market Expansion and Strategic Initiatives - The global first subcutaneous PD-(L)1 inhibitor, KN035, is expanding its market presence with registration in Macau and development in the Asia-Pacific and Middle East regions[14]. - The company is actively integrating global resources to enhance its international presence and accelerate value transformation through collaborations with leading pharmaceutical companies[18]. - The company is expanding its market presence in Europe, with plans to establish a new distribution center in Germany by mid-2024[27]. - A strategic acquisition of a biotech firm was announced, which is expected to enhance the company's R&D capabilities and product pipeline[24]. - The company has maintained a focus on strategic partnerships and potential acquisitions to enhance its competitive position in the industry[32]. Corporate Governance and Leadership - The company has a strong leadership team with key figures like Ms. Liu, who has extensive experience in human resources and supply chain management, and has been with the group since October 2018[84]. - The board includes independent directors with significant industry experience, such as Dr. Guo, who has been a professor at Nanjing University since May 1999[88]. - The company is committed to maintaining high standards of governance with independent directors overseeing board activities[88]. - The board believes that having the same person serve as both chairman and CEO is beneficial for the company's operations and management[102]. - The company has adopted the principles and code provisions of the corporate governance code as its governance standard[100]. - The company has appointed new independent non-executive directors to enhance board oversight and independent judgment[95]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors[105]. - The company has established a policy for insider information to comply with the Securities and Futures Ordinance and Listing Rules[104]. - The company has adopted the standard code of conduct as per the Listing Rules Appendix C3, with no reported violations during the reporting period[104]. Employee and Corporate Culture - The company aims to make tumors controllable and treatable diseases, focusing on employee-centric culture and continuous innovation[97]. - The company has strengthened its cultural framework and requires all new employees to participate in onboarding training to understand corporate culture and policies[97]. - The company has a zero-tolerance policy for discrimination based on gender, age, race, nationality, and disability, and aims for improved diversity by 2025[135]. - As of December 31, 2024, the total number of employees is 420, with 45% male (189) and 55% female (231)[134]. - The age distribution of employees shows that 26% (109) are aged 18-30, 72% (301) are aged 31-50, and 2% (10) are over 50[134]. Risk Management and Compliance - The board of directors is responsible for risk management and internal control systems, which are reviewed annually for effectiveness[143]. - The company emphasizes a culture of risk awareness among employees, integrating risk management into strategic and operational processes[144]. - The company has established a whistleblowing policy to address employee concerns confidentially and anonymously[144]. - The board has implemented an anti-corruption policy as part of the corporate governance framework, emphasizing the commitment to ethical business practices[147]. - The company has no significant contingent liabilities or pending litigation that could adversely affect its business or financial condition as of December 31, 2024[77]. Research and Development - The company is continuously improving its biopharmaceutical research and development technology platforms, enhancing its core competitiveness[18]. - The company has established a differentiated and internationally competitive product matrix covering ADC, bispecific antibodies, and other advanced fields[14]. - The company has maintained stable business relationships with major suppliers for approximately six years[170]. - The company has a commitment to high corporate governance standards to protect shareholder interests and enhance company value[99].

Financial Performance - The total revenue for the year ended December 31, 2024, was approximately HKD 51,900,000, representing a 74.8% increase from HKD 29,688,000 in 2023[9] - The net loss for the year was approximately HKD 16,111,000, compared to a loss of HKD 12,567,000 in 2023, primarily due to increased administrative expenses related to business expansion[9] - The company's revenue increased by 74.8% from HKD 29,688,000 for the year ended December 31, 2023, to HKD 51,900,000 for the current year[44] - The net asset value improved from HKD 42,579,000 as of December 31, 2023, to HKD 48,220,000 as of December 31, 2024, indicating enhanced financial stability[44] - The company recorded an operating loss despite the revenue growth, highlighting ongoing challenges in operational efficiency[44] Assets and Liabilities - Total assets as of December 31, 2024, were approximately HKD 64,275,000, up from HKD 57,913,000 in 2023[17] - Total liabilities increased to approximately HKD 16,055,000 as of December 31, 2024, from HKD 15,334,000 in 2023, mainly due to an increase in trade and other payables[17] - The net current assets as of December 31, 2024, were approximately HKD 40,612,000, compared to HKD 34,283,000 in 2023[18] - The cash and cash equivalents as of December 31, 2024, were approximately HKD 22,906,000, down from HKD 37,986,000 in 2023[18] - The debt-to-asset ratio as of December 31, 2024, was 15.6%, compared to 17.3% in 2023[18] Capital Expenditures and Funding - The group has committed capital expenditures of approximately HKD 4,107,000 as of December 31, 2024, up from HKD 3,695,000 in 2023[22] - The net proceeds from the 2023 placement amounted to approximately HKD 7,080,000, fully utilized for general working capital[25] - The total amount raised from the 2024 rights issue was approximately HKD 19,780,000, with a net amount of about HKD 17,400,000 allocated for energy-saving projects and general working capital[26] - The net proceeds from the 2024 placement were approximately HKD 4,560,000, intended for the electric vehicle charging business[29] - The company plans to use approximately HKD 8,000,000 from the 2024 rights issue for existing and new energy-saving projects[26] Share Capital and Options - The total number of shares increased to 203,446,544 as of December 31, 2024, compared to 113,028,363 shares in 2023, following the completion of a rights issue and a placement of new shares[19] - The share placement price for the 2024 placement was set at HKD 0.138 per share, with the closing price on October 25, 2024, being HKD 0.152[29] - The new share option plan was adopted on June 2, 2023, and is valid for ten years, expiring on June 1, 2033[85] - The maximum number of shares that can be issued upon exercise of all options under the new plan is capped at 10% of the issued shares as of the date of shareholder approval[88] - The company aims to attract and retain talented employees through the share option plan, which includes various eligible participants[85] Governance and Management - The board of directors includes experienced professionals with extensive backgrounds in finance and engineering, enhancing governance and strategic oversight[40] - The company has not appointed a chairman or chief executive officer, with roles shared among four executive directors[126] - The board consists of seven members, including four executive directors and three independent non-executive directors[128] - The company has adhered to the corporate governance code throughout the year, with some deviations noted[120] - The board is responsible for evaluating the effectiveness of the group's internal control and risk management systems[162] Risk Management - The management has identified operational risks that cannot be completely eliminated, emphasizing the need for effective risk management strategies[48] - Credit risk assessments are conducted for loan financing, including background checks on potential clients and evaluation of repayment sources[49] - The company has a structured approach to managing operational risks through standard operating procedures and internal controls[48] - The group faces credit risk despite conducting credit assessments, with monthly monitoring of loan repayment status by the finance department[51] - The board believes that the risk management and internal control systems are reasonable and effective for the current year[166] Environmental and Social Responsibility - The company aims to integrate environmental and social goals into its business operations and decision-making processes[184] - The board is responsible for overseeing environmental, social, and governance matters and regularly reviews related risks and performance[187] - The company is committed to ethical business practices and aims to provide a safe and healthy work environment for employees[181] - The company focuses on providing energy-efficient solutions through the design and implementation of ultra-high-performance device control systems[189] - The company continues to advocate for energy-saving and water-saving behaviors as part of its overall environmental management agenda[200] Employee and Operational Metrics - The total employee cost for the year was approximately HKD 8,992,000, an increase from about HKD 6,616,000 in 2023, with a total of 27 employees as of December 31, 2024[24] - The number of employees rose from 20 in 2023 to 27 in 2024, leading to a decrease in energy consumption intensity per employee by 10%[190] - Greenhouse gas emissions intensity per employee increased by 209%, from 0.43 tons CO2 equivalent in 2023 to 1.33 tons CO2 equivalent in 2024[192] - The company encourages employees to use electronic documents instead of paper, resulting in an increase in paper consumption per employee from approximately 5.50 kg in 2023 to about 14.87 kg in the current year[196] - The company promotes water conservation practices among employees, although specific water usage data is not available due to the nature of its office operations[197]