Revenue and Financial Performance - The revenue from the provision of wet trades works and related ancillary works amounted to approximately HK$110.0 million, representing an increase of approximately HK$23.2 million or 26.8% compared to HK$86.7 million for the year ended December 31, 2023[17]. - The Group's revenue increased by approximately HK$23.3 million or approximately 26.8%, from approximately HK$86.7 million for the year ended 31 December 2023 to approximately HK$110.0 million for the Year[39]. - The gross loss reported for the year was approximately HK$12.9 million, primarily due to competitive project pricing, delays in certification of works, and increased direct costs[17]. - The gross loss for the Year was approximately HK$12.9 million, a decrease of approximately 40.0% from approximately HK$21.5 million for the year ended 31 December 2023, with a gross loss margin of approximately 11.7% compared to 24.8% in the previous year[43]. - Other gains for the Year amounted to a net gain of approximately HK$0.1 million, representing a decrease of approximately 97.3% from a net gain of approximately HK$3.4 million for the year ended 31 December 2023[41]. - Impairment losses under the expected credit loss model for the Year were approximately HK$21.5 million, a decrease of approximately 11.6% from HK$24.3 million for the year ended 31 December 2023[45]. - The net loss attributable to owners of the Company decreased by approximately HK$8.3 million or 16.0% to approximately HK$43.3 million for the Year, mainly due to improvements in gross loss margin and impairment loss allowances[48]. - Administrative expenses for the Year were approximately HK$8.9 million, a decrease of approximately 2.0% from approximately HK$9.1 million for the year ended 31 December 2023, maintaining a stable level[46]. - Finance costs for the Year were approximately HK$214,000, a decrease of approximately 36.3% from approximately HK$336,000 for the year ended 31 December 2023, primarily due to repayment of borrowings[47]. Business Strategy and Expansion - The Group intends to commence a new beauty business, providing high-quality beauty services and nutritional healthcare products, to diversify its income sources[20]. - The Group's strategic focus includes capitalizing on emerging opportunities in the beauty industry due to changing consumer lifestyles and health awareness[20]. - The Group aims to provide better returns to shareholders through diversification of its business operations[21]. - The Group is exploring business opportunities and expanding geographical coverage beyond the Hong Kong market to enhance future development and strengthen revenue bases[21]. - The Group's proactive approach in expanding its service offerings and exploring new business opportunities is aimed at strengthening its revenue base and ensuring long-term growth[32]. - The Group intends to commence a new beauty business focused on comprehensive consumer services, including cosmetics, beauty and skin care products, and health management, with plans to establish joint ventures and physical stores in first- and second-tier cities in China[36]. Market Conditions and Challenges - The Group is facing challenges in the Hong Kong construction market due to a decrease in new construction projects, intense market competition, and increased direct costs impacting gross margin[31]. - The ongoing economic slowdown and slower-than-expected recovery have increased credit risk in the construction industry, leading to potential financial constraints for construction companies[31]. - The Group will continue to monitor market conditions and seek opportunities to expand its customer base and market share in the wet trades works industry[32]. - The Group plans to increase involvement in private sector projects to mitigate reliance on government infrastructure projects[199]. - Demand for residential and commercial buildings is expected to sustain growth in the construction industry, prompting the Group to acquire new machinery[200]. Operational Efficiency and Management - The gross loss margin decreased compared to the previous year, indicating potential improvements in operational efficiency despite the loss[17]. - The Group's management is confident in its competitive position due to its reputation and experienced management team in the wet trades works industry[32]. - The establishment of an online platform to provide information on wet trade services aims to assist customers in reviewing contractor payment requests, leveraging the Group's expertise in construction information technology[35]. - The Group has implemented safety measures, including recruiting safety officers and conducting semi-annual safety audits, to minimize industrial accidents[197]. - The Group conducts regular aging analysis of receivables to manage financial liquidity and understand customer solvency[198]. Shareholder and Corporate Governance - The Board has resolved not to recommend the declaration of a final dividend to shareholders for the year[77]. - The Company has adopted a Dividend Policy to allow shareholders to participate in profits while retaining adequate reserves for future growth[139]. - The Board will consider various factors, including the Group's financial condition and market conditions, when deciding on dividend proposals[147]. - The Company considers all independent non-executive Directors to be independent under the Listing Rules, with annual confirmations of independence received[131]. - Each controlling shareholder has complied with non-competition undertakings during the year[151]. - The Company has arranged for appropriate insurance coverage for Directors' and officers' liabilities arising from corporate activities[156]. Employee and Management Contracts - The total staff costs for the year were approximately HK$5.0 million, down from approximately HK$5.6 million for the year ended December 31, 2023[74]. - The Group employed a total of 13 employees as of December 31, 2024, compared to 14 employees as of December 31, 2023[74]. - The service contracts for executive Directors are typically for a term of three years, with a notice period of not less than three months for termination[132]. - Ms. Zhang Lingke has entered into a service contract for an initial term of 2 years starting from October 21, 2024, with automatic renewal for 1 year[133]. - Mr. Zhu Qi has a service contract for an initial term of 2 years starting from November 29, 2024, also with automatic renewal for 1 year[133]. - Ms. Ding Xin has a letter of appointment for a term of 1 year, subject to termination with one month's notice[133]. Share Option Scheme - The Company adopted a share option scheme on July 22, 2019, to incentivize directors and employees[107]. - The total number of shares available for issue under the Share Option Scheme is 26,000,000 Shares, representing approximately 8.33% of the Shares in issue after the ten-to-one Share Consolidation effective on August 15, 2023[113]. - No options have been granted under the Share Option Scheme since its adoption, resulting in no options being exercised, cancelled, or lapsed during the year, and no options outstanding as of December 31, 2024[118]. - The maximum entitlement of each participant under the Share Option Scheme is limited to 1% of the Shares in issue as at the date of grant, requiring shareholder approval for any further grants exceeding this limit[114]. - The remaining life of the Share Option Scheme is approximately 4 years and 4 months as of the date of the annual report[123]. - Each eligible participant must accept the offer of the grant of a share option within 21 days, with a consideration of HK$1.00 for each option[116]. - The subscription price for any share option granted must not be less than the highest of the closing price on the date of grant, the average closing price for the five trading days preceding the grant, or the nominal value of a Share[117]. Shareholding Structure - As of December 31, 2024, Mr. Adam Cheung holds a long position of 195,000,000 shares, representing 62.5% of the company's shareholding[163]. - Wonderful Renown Limited, a corporation beneficially owned by Mr. Adam Cheung (84%) and Ms. LC Cheung (16%), holds 195,000,000 shares, equating to 62.5% of the total issued share capital[171]. - Ms. LC Cheung and Ms. Chan Shui King also have interests in the same 195,000,000 shares, each representing 62.5% of the company's shareholding[171]. - No other directors or chief executives reported interests or short positions in the shares or underlying shares of the company as of the report date[166]. - The company did not purchase, sell, or redeem any of its listed securities during the year[173]. - There were no arrangements for directors to acquire benefits through the acquisition of shares or debentures of the company during the year[174]. - No substantial shareholders other than those disclosed hold interests or short positions in the shares or underlying shares of the company as of December 31, 2024[172]. - The company has not been notified of any additional interests or short positions in its shares that would require disclosure under the SFO provisions[172]. Customer and Revenue Concentration - The largest customer accounted for 24.1% of total revenue for the year ended December 31, 2024, down from 80.8% in the previous year[179]. - The five largest customers collectively represented 59.8% of total revenue for the year ended December 31, 2024, compared to 97.7% in 2023[179]. - The largest cost of services incurred accounted for 53.4% of total service costs for the year ended December 31, 2024, a decrease from 85.9% in 2023[179]. - The five largest costs of services collectively represented 90.8% of total service costs for the year ended December 31, 2024, compared to 81.8% in 2023[179]. Compliance and Regulatory Matters - The Group has maintained a sufficient amount of public float for its shares as required under the Listing Rules during the year[188]. - The Group's operational results may vary significantly due to factors such as political and economic environment, competitiveness, and subcontractor performance[192].

Financial Performance - The company recorded total revenue of approximately SGD 29.4 million for the fiscal year ending December 31, 2024, a decrease compared to the previous fiscal year[7]. - The company incurred a loss of approximately SGD 4.2 million for the fiscal year ending December 31, 2024, compared to a loss of approximately SGD 1.1 million for the fiscal year ending December 31, 2023[7]. - The increase in loss was primarily due to impairment losses on interests in associates and increased administrative expenses[7]. - The group's revenue decreased by approximately SGD 1.3 million or about 4.2% to approximately SGD 29.5 million for the year ending December 31, 2024, primarily due to a reduction in frozen product orders and a decline in selling prices[13]. - The group's gross profit decreased by approximately SGD 1.1 million or about 5.9% to approximately SGD 7.4 million for the year ending December 31, 2024, while the overall gross profit margin remained unchanged at approximately 27%[15]. - Administrative and other operating expenses increased by approximately SGD 1.5 million or about 23.8% to approximately SGD 7.6 million for the year ending December 31, 2024, mainly due to rising employee costs[17]. - The group recorded a loss of approximately SGD 4.2 million for the year ending December 31, 2024, an increase of approximately SGD 3.1 million from a loss of approximately SGD 1.1 million for the year ending December 31, 2023, mainly due to impairment losses on associates and increased administrative expenses[21]. - The total comprehensive loss for the year amounted to SGD 5,198,000, compared to SGD 853,000 in 2023, indicating a substantial increase in overall losses[181]. Revenue and Cost Management - The company continues to explore diverse opportunities to broaden revenue sources and enhance market share[11]. - The company aims to expand its customer base and cultivate new customers to achieve long-term growth despite a challenging business environment[7]. - The company is actively seeking various business and investment opportunities to maximize overall benefits for itself and its shareholders[7]. - The company supplies a variety of food products, including canned goods, packaged beverages, dairy products, and frozen desserts, primarily to customers in Singapore[10]. Financial Position and Ratios - The group's current ratio improved to approximately 2.13 times as of December 31, 2024, compared to 0.94 times in 2023, primarily due to an increase in cash and cash equivalents by SGD 5.2 million[25]. - The total borrowings of the group as of December 31, 2024, were approximately SGD 7.4 million, down from SGD 10.9 million in 2023, resulting in a debt-to-equity ratio of approximately 31.5% compared to 79.0% in 2023[26]. - The total liabilities decreased from SGD 18,211 thousand in 2023 to SGD 13,505 thousand in 2024, a decline of about 26%[183]. - The total equity rose from SGD 13,759 thousand in 2023 to SGD 23,392 thousand in 2024, reflecting an increase of approximately 70%[183]. Shareholder and Governance Matters - The board does not recommend the payment of a final dividend for the year ending December 31, 2024, consistent with the previous year[42]. - The company has a shareholder communication policy in place to ensure that shareholder opinions and concerns are properly addressed[143]. - The company has established procedures for shareholders to propose candidates for the board of directors, requiring written notice and consent from the nominee[145]. - The board consists of both male and female members with diverse backgrounds and experiences, ensuring a balanced composition[123]. - The company has adopted a diversity policy that will be reviewed annually to ensure its effectiveness in promoting a diverse board composition[123]. Risk Management and Compliance - The board believes that the risk management and internal control systems are effective and adequate for the year ending December 31, 2024[135]. - The company has established a risk management policy to identify, assess, and manage various types of risks[133]. - The company has adopted a whistleblowing policy to encourage employees and stakeholders to report concerns confidentially regarding financial reporting and compliance[138]. - The company has complied with all relevant laws and regulations, with no significant violations reported for the year ending December 31, 2024[91]. Employee and Operational Insights - The group employed 60 employees as of December 31, 2024, with total employee costs of approximately SGD 4.8 million, up from SGD 4.1 million in 2023[35]. - The company emphasizes the importance of maintaining good relationships with suppliers, customers, and stakeholders, with no major disputes reported for the year ending December 31, 2024[92]. - The company is committed to environmental sustainability, promoting energy-saving practices and recycling materials at its headquarters[90]. Cash Flow and Investment Activities - Operating cash flow turned negative at SGD (5,267) thousand in 2024, down from a positive cash flow of SGD 525 thousand in 2023[187]. - The financing activities generated a net cash inflow of SGD 10,445,000 in 2024, compared to a net cash outflow of SGD 2,269,000 in 2023[188]. - The total cash and cash equivalents increased to SGD 6,842,000 at the end of 2024, up from SGD 1,607,000 at the beginning of the year[188]. - The company raised SGD 17,163,000 from rights issue in 2024, while no funds were raised from share placements[188]. Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements fairly present the group's financial position as of December 31, 2024[159]. - The company has been operating under the Hong Kong Financial Reporting Standards and has complied with the disclosure requirements of the Hong Kong Companies Ordinance[159]. - The financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[191].

Financial Performance - Total revenue for 2024 was RMB 7,200,338, a slight decrease of 0% compared to RMB 7,227,231 in 2023[16] - Revenue from highway service area operations increased by 6% to RMB 5,233,405 from RMB 4,954,993 in 2023[16] - Net profit for 2024 rose by 7% to RMB 229,293 compared to RMB 213,827 in 2023[16] - The gross profit margin improved to 9.03% in 2024 from 8.95% in 2023, reflecting a 1% increase[17] - Total assets increased by 1% to RMB 8,724,060 in 2024 from RMB 8,603,368 in 2023[17] - The equity attributable to shareholders of the parent company rose by 9% to RMB 2,086,140 from RMB 1,914,432 in 2023[17] - Basic earnings per share increased by 17% to RMB 0.30 in 2024 from RMB 0.25 in 2023[16] - The total profit for 2024 was RMB 308,088 thousand, an increase of 3.1% compared to RMB 298,565 thousand in 2023[124] - Net profit attributable to shareholders was RMB 236,508 thousand in 2024, up from RMB 201,888 thousand in 2023, reflecting a growth of 17.1%[124] Operational Developments - The company aims to deepen its operational model focusing on digitalization and resource value enhancement in the transportation sector[4] - The company launched a new "one-click rescue" service on the WeChat platform in January 2024, addressing issues related to complex rescue steps and low efficiency on highways[18] - The company opened its first self-operated KFC store in January 2024, covering an area of nearly 200 square meters and accommodating 100 guests[18] - The company launched the "Yue Tong Yi" project in June 2024, integrating various member benefits and discounts into a comprehensive product package[22] - The company’s online mall for the "Le Yi" brand was officially launched in June 2024, with a pickup feature set to go live in September[24] - The company launched a digital microgrid demonstration project at the Dahuai Service Area on the Shenhai Expressway, which includes integrated charging facilities and distributed photovoltaic power generation[29] - The company has established a digitalization promotion leadership group to implement a unified cash register model for new signed merchants by June 2025[28] - The company is focused on improving its logistics and distribution capabilities, optimizing retail logistics routes to reduce costs and enhance efficiency[50] Market Expansion and Strategic Initiatives - The company plans to establish 107 self-built gas stations by the end of 2024, with expectations to exceed 138 by the end of the 14th Five-Year Plan, becoming the core business support[34] - The company has formed multiple joint ventures with major energy companies like Sinopec and PetroChina to enhance cooperation in capital and operations, aiming to strengthen oil supply partnerships and expand storage, wholesale, and transportation services[34] - The company is actively exploring new business models in the "low-altitude economy" sector, particularly in the Xuwen service area[66] - The company is investing in alternative energy sources such as natural gas, hydrogen, and solar energy to reduce reliance on fuel and mitigate price volatility risks[117] - The company plans to invest in digital advertising resources, with an initial selection of 18 service areas for lightbox advertising facilities by 2025[52] Corporate Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules for the year ending December 31, 2024, with exceptions noted in clauses C.1.6 and C.2.1[145] - The company emphasizes the importance of corporate governance to enhance reliability and transparency, aligning with shareholder interests[145] - The company appointed Mr. Zhu Fang as the new Chairman of the Board, effective March 21, 2024, following the resignation of Mr. Guo Junfa[147] - The company has established a robust independence assessment mechanism for the board to ensure strong independent judgment and protect shareholder interests[149] - The board is satisfied with the implementation of the independence assessment mechanism, which is functioning smoothly and achieving its intended effects[152] - The company has committed to maintaining high standards of corporate governance and will consider separating the roles of Chairman and CEO when appropriate[147] Risk Management - The company established a risk management system to manage significant risks rather than eliminate them, ensuring reasonable assurance against material misstatements or losses[193] - The company has a risk control office responsible for advancing specific risk control tasks and an internal audit department evaluating the effectiveness of internal controls[193] - The company has made appropriate insurance arrangements to transfer risks related to its business and assets[197] - The company faces risks related to international oil price fluctuations, which could impact the profitability of its energy business, necessitating ongoing risk management strategies[116] Employee and Board Engagement - The company has a total of 11,476 employees as of December 31, 2024, with female employees accounting for approximately 22.95% of the total workforce[179] - The company has adopted a standard code of conduct for securities trading, ensuring compliance by all directors and supervisors[162] - Training is provided to new directors to ensure they understand their responsibilities and legal obligations under Hong Kong listing rules[163] - The company encourages directors to participate in professional development courses to update their knowledge and skills[163] Financial Management - The company maintains a cautious financial management policy, relying on operational cash flow and bank loans for future investment needs[55] - The company has no immediate or long-term financing plans but will assess funding needs based on market conditions[55] - The available credit balance from banks and financial institutions at the end of 2024 was RMB 5,149,000 thousand, ensuring sufficient operational loan support[102] - The company completed the sale of a 51% stake in a subsidiary for RMB 99,612,282.00 on October 9, 2024, which will no longer be consolidated in the financial statements[111]

Financial Performance - The Group's revenue for the year ended 31 December 2024 increased to approximately RMB353 million, representing a growth of approximately 20.1% compared to 2023[13]. - The Group recorded a profit of approximately RMB11 million for the year ended 31 December 2024, a significant recovery from a loss of approximately RMB93 million in 2023[13]. - Revenue increased from approximately RMB 294 million for the year ended 31 December 2023 to approximately RMB 353 million for the year ended 31 December 2024, representing an increase of approximately 20.1%[34]. - Cost of sales increased from approximately RMB 273 million for the year ended 31 December 2023 to approximately RMB 323 million for the year ended 31 December 2024, representing an increase of approximately 18.3%[35]. - Gross profit increased by approximately RMB 10 million, or 47.6%, from approximately RMB 21 million for the year ended 31 December 2023 to approximately RMB 31 million for the year ended 31 December 2024[36]. - The gross profit margin increased from approximately 7.1% for the year ended 31 December 2023 to approximately 8.5% for the year ended 31 December 2024[36]. Revenue Breakdown - Revenue from POE umbrella products decreased by approximately RMB16 million, or 27.1%, from approximately RMB59 million in 2023 to approximately RMB43 million in 2024[14]. - Revenue from nylon umbrella products increased by approximately RMB31 million, or 27.2%, from approximately RMB114 million in 2023 to approximately RMB145 million in 2024[14]. - Revenue from umbrella parts increased by approximately RMB44 million, or 36.4%, from approximately RMB121 million in 2023 to approximately RMB165 million in 2024[15]. - Approximately 70.6% of the Group's total revenue for 2024 was generated from overseas customers, with key markets including Japan, Hong Kong, and the Republic of Korea[25]. - The Group's domestic market accounted for approximately 29.4% of total revenue in 2024, with sales primarily through existing product selections designed by the research and development team[26]. Business Strategy - The Group aims to shift its business focus from upstream manufacturing to downstream distribution and brand building to enhance margins and shareholder returns[21]. - The Group is exploring and developing new business opportunities and projects to diversify its operations[21]. - The Group is shifting its business focus from upstream manufacturing to downstream distribution network and brand building to promote higher-margin branded umbrellas[29]. Financial Position - The Group's bank balances and cash amounted to approximately RMB 27 million as at 31 December 2024, compared to approximately RMB 36 million as at 31 December 2023[47]. - The current ratio increased from 2.2 times as at 31 December 2023 to 2.3 times as at 31 December 2024[48]. - As of December 31, 2024, the Group's cash and bank balances were approximately RMB 27 million, a decrease from approximately RMB 36 million in 2023, while short-term bank borrowings increased to RMB 81 million from RMB 73 million in 2023[52]. - The current ratio improved from 2.2 times in 2023 to 2.3 times in 2024, indicating better short-term financial health[52]. - Inventory as of December 31, 2024, was approximately RMB 136 million, up from RMB 115 million in 2023, with inventory turnover days decreasing from approximately 165 days in 2023 to approximately 142 days in 2024[55][59]. - Trade receivables increased to approximately RMB 114 million in 2024 from RMB 93 million in 2023, with average trade receivables turnover days decreasing from approximately 150 days in 2023 to approximately 107 days in 2024[56][60]. - Trade and bills payables rose to approximately RMB 51 million in 2024 from RMB 45 million in 2023, with average turnover days slightly decreasing from approximately 70 days in 2023 to approximately 55 days in 2024[57][61]. Corporate Governance - The Board comprises four executive Directors and three independent non-executive Directors, committed to high standards of corporate governance[80][87]. - The independent non-executive Directors did not attend the annual general meeting held on May 31, 2024, due to other business engagements[81][84]. - The Board has established three committees to oversee different areas of the Company's affairs, including Audit, Remuneration, and Nomination Committees[86][89]. - The Audit Committee held four meetings during the year ended December 31, 2024, to review the Group's annual and interim results and assess the appointment of Infinity CPA Limited as the new auditor[113]. - Infinity CPA Limited was appointed as the new auditor of the Group on October 29, 2024, following the resignation of Elite Partners CPA Limited[112]. - The Company has received confirmations from all independent non-executive Directors regarding their independence, in compliance with Listing Rules[105]. - The Board is supported by three committees: Audit Committee, Nomination Committee, and Remuneration Committee, each with defined terms of reference approved by the Board[106]. - All Directors are committed to continuous professional development to ensure their contributions to the Board remain informed and relevant[102]. - The Company has arranged appropriate insurance coverage for potential legal actions against its Directors and officers[100]. - The Audit Committee's review included significant internal controls, financial matters, and compliance with Listing Rules and statutory requirements[113]. Risk Management - The Group's business is subject to risks including loss of key customers, fluctuations in raw material prices, and exchange rate risks, which could adversely affect financial performance[62][64][66]. - The Group has established risk management procedures to address significant risks associated with its business[150]. - The Board is responsible for evaluating and determining the nature and extent of risks it is willing to take in achieving the Group's strategic objectives[147]. - The management identifies risks associated with the Group's business by considering internal and external factors, prioritizing them based on impact and occurrence opportunity[155]. - The Audit Committee reviews significant risk management and internal controls on an ongoing basis, considering the adequacy of resources and qualifications of staff[148]. - The Group has engaged an external advisory firm to conduct the internal audit function, identifying no significant deficiencies in the internal control system[157]. - The Board assessed that the risk management and internal control system, covering all material controls including financial, operational, and compliance controls, were reasonably effective and adequate for the year ended December 31, 2024[158]. Employee and Management - The Group employed a total of 523 employees as of December 31, 2024, an increase from 449 employees in 2023, reflecting growth in operational capacity[69]. - The company’s executive directors have extensive experience in management and finance, with backgrounds in various industries[189][190][191][192]. - The senior management includes a manager for the research and development department who has been with the company since 2000, focusing on product design and R&D operations[198]. - The company has been expanding its management team with experienced professionals in project management and business planning, particularly in the consumer electronics sector[194]. - The independent non-executive directors bring diverse expertise, including finance, administration, and industrial design, enhancing the company's governance[197]. - The management team is well-educated, with qualifications from reputable institutions, contributing to the company's strategic direction[196]. Shareholder Engagement - The Company encourages shareholder participation in general meetings, providing opportunities for direct communication with the Board[175]. - Shareholders have the right to participate in general meetings and vote on significant matters, with notices sent at least 20 business days prior[182]. - The company encourages shareholders to attend meetings and make proposals directly to the Board or via written notice[176]. - Poll voting is adopted at shareholders' meetings to ensure each share has one vote, with results posted on the company's website[184]. - Shareholders holding at least 10% of the paid-up capital can requisition an extraordinary general meeting[180]. - The company has a dedicated email for shareholder inquiries, promoting direct communication with the Board[178]. - All reasonable expenses incurred by requisitionists for convening meetings due to the Board's failure will be reimbursed by the company[180].

Financial Performance - The overall revenue for the year ended December 31, 2024, increased by RMB 30.6 million or 413.5% to RMB 38.0 million compared to RMB 7.4 million in the previous year[8]. - The net loss for the year ended December 31, 2024, was RMB 53.4 million, a decrease of 62.8% from a net loss of RMB 143.6 million in the same period of 2023[8]. - Revenue from digital services and sales agency fees increased by RMB 30.6 million or 413.5% to RMB 38.0 million, primarily due to the new digital services segment starting in 2024[16]. - The cost of sales for the year ending December 31, 2024, was approximately RMB 32.7 million, resulting in a gross profit of about RMB 5.3 million, a decrease of approximately RMB 2.1 million or 28.4% compared to the previous year[17]. - The total comprehensive loss attributable to owners of the company from continuing operations was RMB 53.4 million, compared to RMB 33.5 million in the previous year, with basic and diluted loss per share at RMB 20.20[20]. - Total debt as of December 31, 2024, was RMB 552.96 million, up from RMB 515.66 million in 2023, with a net debt of RMB 543.34 million[25]. - The debt-to-asset ratio increased to 165.52% in 2024 from 156.68% in 2023, indicating a higher leverage position[30]. - The company recorded a net loss from continuing operations of approximately RMB 53.4 million for the year ended December 31, 2024, compared to a net loss of approximately RMB 33.5 million in the previous year[12]. Business Model and Strategy - The company has transitioned from a heavy asset business model to a light asset model, focusing on cost control and improving financial conditions[12]. - The company plans to launch its "AI + Medical Industry" transformation in 2025, establishing new departments in China to support comprehensive medical services[13]. - The company has successfully created the "Faimeng - Smart Medical Health Management" brand, establishing a unique position in the market as the only provider of a complete smart health management ecosystem[7]. - The company aims to develop a comprehensive health platform focusing on orthopedic diseases, including drug supply, rehabilitation management, and digital medical services[11]. - The company is leveraging artificial intelligence to create personalized medical solutions to meet the growing patient demand[13]. - The company has transformed into a light-asset operation focusing on "AI + healthcare," with major business segments including OEM production, agency sales of medical products, and digital healthcare services[14]. Corporate Governance - The board consists of two executive directors, two non-executive directors, and three independent non-executive directors, with independent non-executive directors making up 43% of the board[45]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules and has complied with all applicable provisions for the year ending December 31, 2024, except for the separation of roles between the chairman and CEO[64]. - The board has established procedures to ensure that the selection and nomination of board candidates consider a wide range of backgrounds and experiences[73]. - The board of directors held four regular meetings in 2023, with a 100% attendance rate for all members[78]. - The audit committee reviewed the group's internal controls, risk management, and financial reporting, including the annual results for the year ending December 31, 2023[87]. - The company has received annual confirmations of independence from all current independent non-executive directors, affirming their ability to make independent judgments[67]. Employee and Labor Practices - The total number of full-time employees increased to 22 as of December 31, 2024, compared to 16 in 2023[43]. - Total compensation, benefits, and social security costs amounted to RMB 6.1 million for the year ended December 31, 2024, up from RMB 3.6 million in 2023[43]. - Employee turnover rate for the fiscal year 2024 is 9.09%, down from 12.5% in 2023, with 2 employees leaving in both years[167]. - The company adheres to a comprehensive compensation system, ensuring fair and reasonable salaries and rewards for employees[161]. - The company has a strict policy against discrimination in hiring, compensation, training, and promotion based on race, religion, gender, and other factors[162]. - The company emphasizes employee health and safety, implementing policies to prevent occupational hazards and risks[170]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report outlines the company's initiatives and performance for the fiscal year ending December 31, 2024[128]. - The ESG report includes a commitment to sustainable development and highlights the importance of stakeholder engagement in identifying significant issues[135]. - The company plans to expand its ESG reporting scope to include offices in Hainan and Beijing for the 2024 report[129]. - The company has established a governance framework to integrate sustainability principles into daily management and operations[133]. - The company emphasizes the importance of stakeholder feedback in its sustainability efforts, addressing concerns related to product quality and environmental management[135]. - The company has implemented measures to reduce energy consumption, including shutting down idle appliances and replacing old equipment with more energy-efficient models[150]. Financial Management and Liquidity - The company is actively negotiating to obtain new financing sources to repay overdue borrowings[53]. - The board believes that the company will have sufficient operating funds to meet financial obligations due in the next 12 months[52]. - The company has not purchased, sold, or redeemed any of its listed securities during the year ended December 31, 2024[44]. - The company has adopted a dividend policy to maintain sufficient cash reserves for operational needs and future business growth[123]. - The company is preparing to launch an AI-based bone density detection product in 2025, expanding its product offerings in the healthcare sector[14]. Risk Management - The company faces significant uncertainties regarding its ability to continue as a going concern due to various factors, including the need for new financing sources[114]. - The board is responsible for maintaining an effective risk management and internal control system, which is reviewed annually[101]. - The company has established a code of conduct to define ethical standards for all employees[101]. - The company is engaged in a competitive market environment, which may lead to decreased sales, price reductions, and loss of market share[106]. Community Engagement and Corporate Social Responsibility - The company emphasizes community investment, encouraging employees to participate in charitable activities and fundraising initiatives[191]. - The company is committed to corporate social responsibility, actively participating in community activities to foster a positive corporate culture[191]. - The company plans to enhance its community engagement efforts to further contribute to societal well-being[191].

Financial Performance - Total revenue for the fiscal year ending December 31, 2024, was approximately HKD 545,873,000, compared to HKD 196,195,000 in 2023, representing a significant increase [11]. - Net profit for the year was approximately HKD 223,196,000, a turnaround from a loss of HKD 23,561,000 in 2023, indicating improved financial performance [11]. - Earnings per share for the year were HKD 0.64, compared to a loss per share of HKD 0.08 in 2023, showcasing a positive shift in profitability [11]. - The investment holding segment recorded revenue of approximately HKD 501.7 million for the year ending December 31, 2024, compared to HKD 149 million for the previous year, representing a significant increase [34]. - Profit for the investment holding segment was approximately HKD 456.4 million for the year ending December 31, 2024, up from HKD 57.6 million in the previous year [34]. - The company reported a profit attributable to owners of the company of approximately HKD 222.8 million for the year ending December 31, 2024, compared to a loss of HKD 24.8 million in the previous year [37]. - Investment income surged by 128% to HKD 25.96 million in 2024, compared to HKD 11.38 million in 2023 [30]. Asset Management and Investment Strategy - The net impairment provision for loans, investments, and other receivables decreased to approximately HKD 39,179,000 from HKD 49,389,000 in the previous year, reflecting better asset quality management [11]. - The reduction in net impairment provisions suggests a strategic focus on improving financial health and operational stability [11]. - The company is committed to building a diversified investment portfolio to seize market recovery opportunities [11]. - The company's investment strategy focuses on sectors such as healthcare and renewable energy, aiming for strategic acquisitions to optimize industry layout [12]. - The company is actively pursuing investments in high-growth areas, particularly in fintech and clean energy solutions, to capture value in a favorable market cycle [23]. - The company has implemented a dynamic exit mechanism for non-core businesses to concentrate resources on high-value segments [21]. Market Environment and Economic Outlook - The global economic environment showed moderate growth with easing inflation, benefiting the company's performance in the second half of the year [10]. - The global economic growth rate for 2024 is projected at 3.2%, lower than the historical average of 3.7% from 2000 to 2019 [16]. - In 2024, Hong Kong's GDP is expected to grow by 2.5%, with external demand being a key growth driver [17]. - The projected growth rate for the Asian economy is 5.2%, with India achieving a growth rate of 6.5% despite industrial slowdowns [16]. - The company anticipates continued challenges in the market, particularly in the real estate sector and consumer confidence, which may affect future investment intentions [10]. Operational Efficiency and Cost Management - The company focused on optimizing organizational structure and enhancing cost management and risk control to navigate a challenging external environment [11]. - The company aims to enhance operational efficiency through a five-pronged development path: cost reduction, risk clearance, precise investment, capability reshaping, and strategic positioning [20]. - The company plans to continue its dual-driven strategy of "high-value asset allocation + agile cost governance" to enhance its financial resilience and shareholder value [30]. - Total operating expenses increased by approximately 48.3% to HKD 217.8 million for the year ending December 31, 2024, primarily due to increased employee costs [35]. Corporate Governance and Board Composition - The board of directors consists of eight members, including three executive directors, one non-executive director, and four independent non-executive directors [136]. - The company has undergone changes in its board composition, with several appointments and resignations noted during the year [84]. - The company has appointed several independent non-executive directors, confirming their independence as per listing rules [85]. - The company has established strong relationships with employees, clients, and business partners, ensuring a safe working environment and effective collaboration [73]. - The company has complied with the corporate governance code provisions as of December 31, 2024 [133]. Risk Management and Internal Controls - The company emphasizes a robust internal control and risk management system to ensure stable business development [12]. - The group faces significant risks including credit risk, interest rate risk, liquidity risk, operational risk, and market risk, which are detailed in the financial risk management section of the annual report [67]. - The board is responsible for assessing and determining the nature and extent of risks to achieve the group's strategic objectives, ensuring effective risk management and internal control systems [188]. - The company has a comprehensive set of policies and procedures in place to safeguard assets and ensure the reliability of financial information [188]. Employee and Director Compensation - The annual salary of the CEO, Mr. Li Feng, has been revised to HKD 3,000,000, effective from April 1, 2024 [126]. - The annual salary of the Chief Risk Officer, Mr. Xie Fang, has been revised to HKD 2,300,000, effective from April 1, 2024 [126]. - The company contributes 5% of employees' relevant income to the Mandatory Provident Fund, with a monthly cap of HKD 1,500 per employee [115]. - The compensation policy for directors and senior management is based on individual performance and market competitiveness [169]. Shareholder Information and Dividends - The group reported no dividends for the year ending December 31, 2024, consistent with the previous year, which also had zero dividends [76]. - The company has proposed a share consolidation of every 20 existing shares into 1 consolidated share, pending shareholder approval [124]. - Major shareholder Rose Holdings holds approximately 27.01% of the issued share capital, totaling 10,043,000,000 shares [109]. Environmental and Social Responsibility - The group is committed to enhancing environmental sustainability through energy-saving measures and recycling programs implemented in its offices [70]. - The company has a zero-tolerance policy towards financial crimes, including corruption and fraud, and has established independent reporting channels for employees [189].

Property Development and Investment - The Group's property development and investment projects, including Guorui Square Block B in the PRC and Juxon House in London, significantly contributed to its growth during the year[11]. - The Group aims to enhance its income base through stable rental incomes generated from properties acquired in recent years[15]. - Future investments will focus on property management and services in core cities globally, leveraging strengths in asset management and community operation[16]. - The Group plans to develop an integrated ecosystem encompassing "intelligent real estate and digital healthcare," targeting family doctors and community healthcare services[16]. - The management team is committed to maintaining a prudent approach in capturing investment opportunities in international markets such as the USA and Europe[15]. - The Group's strategy includes the potential divestment of investments that yield decent returns[15]. - The business portfolio will continue to be optimized and rationalized to support future development and growth[18]. - The Group's focus remains on executing existing projects to enhance operational performance and facilitate development[15]. - The Group's property management services in the PRC have been a significant contributor to its overall performance[12]. - As of December 31, 2024, AOCEAN managed 18 major residential and commercial property projects located in the PRC[23]. - The Santa Monica project has a total site area of approximately 40,615 square feet, with 91% of the commercial area and 97% of the residential area leased out during the year[29]. - The Culver City project allows for the development of 139 residential units, with construction having started in September 2021[30]. - Juxon House, located in London, contributed approximately £5.8 million in rental income for the year[36]. - The Group holds all units in Guorui Square Block B, with a gross floor area of approximately 68,685 square meters for office use[37]. - The property management segment operates primarily in the PRC, while the property development and investment segment operates in the PRC, USA, and UK[22]. - The Group plans to optimize and rationalize its business portfolio by 2025 to drive future growth[20]. - The Group aims to diversify its property development operations in the USA through strategic projects like Culver City[31]. Financial Performance - The Group generated revenue of approximately HK$310,017,000 for the year ended 31 December 2024, a decrease of 12.1% compared to HK$352,640,000 for the year ended 31 December 2023[41]. - The Group recorded a loss of approximately HK$919,344,000 for the year, significantly higher than the loss of approximately HK$129,307,000 in the previous year, primarily due to a fair value loss of investment properties of approximately HK$618,718,000[41][44]. - Total assets decreased to approximately HK$5,423,471,000 as of 31 December 2024, down from HK$6,412,623,000 as of 31 December 2023[40]. - The gearing ratio increased to 110.7% as of 31 December 2024, compared to 74.5% as of 31 December 2023, mainly due to a decrease in net assets[43]. - The outstanding balance of bank and other borrowings was approximately HK$2,605,486,000 as of 31 December 2024, a slight decrease from HK$2,650,828,000 as of 31 December 2023[42]. - Available cash and bank balances decreased to approximately HK$193,151,000 as of 31 December 2024, down from HK$305,556,000 as of 31 December 2023[43]. - The total remuneration for employees increased to approximately HK$86,742,000 for the year, compared to approximately HK$73,376,000 in the previous year, reflecting a growth of 18.5%[47]. - Investment properties and properties held for sale amounted to approximately HK$4,603,293,000 as of 31 December 2024, down from approximately HK$5,483,381,000 as of 31 December 2023[55]. - Certain trade and lease receivables of approximately HK$61,324,000 were pledged to secure bank and other loans as of 31 December 2024, an increase from approximately HK$48,031,000 in the previous year[56]. - The Board resolved not to declare any final dividend for the year, consistent with the previous year[50]. - As of December 31, 2024, the Group had contracted but not provided for commitments for construction in progress for an investment property amounting to approximately HK$59,439,000, down from approximately HK$70,301,000 as of December 31, 2023[58]. - The Group had no material contingent liabilities as of December 31, 2024, consistent with the previous year[60]. - The total number of outstanding share options under the Share Option Scheme is 30,000,000, representing approximately 0.9% of the total number of issued shares of the Company[63]. - No significant investments, acquisitions, or disposals of subsidiaries, associates, and joint ventures were made during the year[61]. - The Group plans to continue focusing on property development and investment, as well as relevant asset management services, to create value for shareholders[71]. Environmental, Social, and Governance (ESG) Initiatives - The Group's ESG report emphasizes the importance of materiality, quantitative analysis, balance, and consistency in its reporting practices[83]. - The Board is responsible for overseeing ESG issues and evaluates the Group's performance against ESG-related targets at least annually[90]. - The Group has established a CSR Policy to integrate corporate social responsibility into its business strategy, focusing on marketplace, workplace, community, and environment[92]. - Environmental targets were set for the first time in 2021, covering emissions reduction, waste management, and resource conservation[92]. - The ESG Working Group, consisting of senior management, is tasked with implementing ESG measures and reporting to the Board at least annually[91]. - The Group aims to achieve carbon neutrality in response to the PRC government's goals and stakeholder expectations[92]. - The report includes a complete index for easy reference, ensuring transparency and accessibility of information[83]. - The Group's approach to ESG reporting has remained consistent with the previous year, with specific changes noted regarding GHG emissions and energy calculations[85]. - The Group has established an Environmental, Social, and Governance (ESG) Working Group that reports to the Board at least annually, responsible for implementing ESG measures and analyzing related data[94]. - The Group's Corporate Social Responsibility (CSR) policy aims to integrate CSR into business strategies, focusing on sustainable value creation in economic, social, and environmental aspects[95]. - The Group set environmental targets in 2021 to align with China's "carbon neutrality" goal, focusing on emissions reduction, waste management, and resource conservation[95]. - The Group engages with stakeholders continuously to understand their views and collect feedback, ensuring sustainable growth and long-term value[100]. - The materiality assessment identifies key ESG issues such as "quality of working environment," "environmental protection," and "community contributions," which are reviewed annually[109]. - The Group's material ESG issues will remain unchanged for 2024, reflecting stable business development and industry standards[114]. - The Group conducts annual reviews of the materiality assessment results, which are approved by the Board and the ESG Working Group[113]. - Key ESG issues influencing stakeholder assessments include emissions control, waste management, energy conservation, and employee remuneration[115]. - The Group emphasizes high-quality services, rigorous supply chain management, and ethical practices as part of its sustainability commitment[97]. - The Group's sustainability strategy is rooted in a people-oriented approach, aiming to enhance environmental sustainability and support disadvantaged community groups[98]. Waste and Resource Management - The Group generated approximately 5.04 kg of non-hazardous waste per 1,000 m² in 2024, down from 5.40 kg per 1,000 m² in 2023[133]. - The Group aims to reduce non-hazardous waste intensity by at least 2% by 2026 compared to the 2020 level of approximately 14.69 kg/1,000 m²[133]. - The total chargeable area for property management increased from approximately 1,539,316.41 m² in 2023 to 1,668,350.55 m² in 2024[127]. - The number of households managed increased from approximately 14,934 units in 2023 to 16,089 units in 2024[127]. - The Group plans to continue monitoring GHG emissions and set new targets for reduction activities[128]. - The Group set a target to reduce non-hazardous waste density by at least 2% from the 2020 level of approximately 14.69 kg/1,000 m² by 2026, achieving a current density of approximately 5.04 kg/1,000 m², down from 5.40 kg/1,000 m² in 2023[134]. - The total amount of non-hazardous waste for 2024 is reported at 8.41 tonnes, a 1% increase from 8.32 tonnes in 2023[136]. - The average non-hazardous waste per household decreased by 6% to 0.52 kg/household in 2024 from 0.56 kg/household in 2023[136]. - The average non-hazardous waste intensity by area decreased by 7% to 5.04 kg/1,000 m² in 2024 from 5.40 kg/1,000 m² in 2023[136]. Energy and Water Management - The Group consumed approximately 17.43 MWh of energy per 1,000 m² chargeable area in the current year, representing a decrease of approximately 5% from 18.44 MWh/1,000 m² in 2023[144]. - The Group encourages employees to classify waste and promotes a "paperless" office initiative to enhance waste reduction awareness[137]. - The Group implements environmental protection policies including green management and the use of environmentally friendly equipment to reduce emissions[139]. - The Group aims to promote waste reduction practices among external stakeholders, encouraging the use of eco-friendly bags and recycling[138]. - The Group has established plans for energy and water saving, including maintaining air conditioning temperatures at 26ºC in summer and 22ºC in winter[141]. - The Group plans to install energy-efficient systems and promote environmental awareness training for employees[143]. - Direct energy consumption decreased significantly, with petrol down 57% to 10.84 MWh and diesel down 67% to 5.31 MWh[146]. - Total energy consumption decreased by 11% to 691.17 MWh, while indirect energy consumption increased by 3% to 28,384.41 MWh[146]. - The average energy consumption per household decreased by 5% to 1.81 MWh[146]. - Water consumption increased by 2% to 218,004 m³, while water consumption intensity per area decreased by 6% to 130.67 m³/1,000 m²[155]. - The Group aims to reduce water consumption intensity by at least 2% by 2026 compared to 2020 levels[152]. - The Group has implemented various water conservation measures, including rainwater recycling and automatic faucets[151]. - The introduction of an IoT system for lighting control aims to improve energy efficiency[149]. - The Group has set a target to organize energy consumption control activities annually to raise employee awareness[148]. Employee and Workplace Management - The Group maintains a workplace culture of equality and diversity, ensuring employee well-being and safety[175]. - There were no reported non-compliance incidents with relevant labor laws in the operating locations during the year[176]. - The Group offers competitive remuneration and welfare packages to attract and retain talent, including various benefits such as social insurance and housing provident fund contributions[181]. - As of December 31, 2024, the Group had a total of 428 employees, up from 305 in 2023, indicating a significant increase in workforce[182]. - The employee turnover rate for the year was approximately 52.80%, a substantial rise from 15.08% in 2023[182]. - The average training hours per employee were approximately 32.07 hours in 2024, slightly down from 36.00 hours in 2023, with 100% of staff receiving training[200]. - The number of days lost due to work injuries increased to 180 days in 2024, compared to 98 days in 2023[193]. - The Group's employee distribution by gender in 2024 was 108 males and 287 females, reflecting a gender ratio of approximately 27% male to 73% female[184]. - The Group's employee distribution by age shows a notable increase in employees aged 21-30, from 66 in 2023 to 90 in 2024[189]. - The Group's senior management category saw an increase from 42 employees in 2023 to 80 in 2024, indicating a focus on strengthening leadership[186]. - The Group has implemented health and safety measures, achieving OHSAS18001:2007 certification, to enhance workplace safety[192]. - The Group did not report any work-related fatalities over the past three years, maintaining a focus on employee safety[193]. - The Group's commitment to a diversified workplace includes regular performance assessments to inform salary adjustments and performance pay[199].

Financial Performance - Revenue for the year ended December 31, 2024, reached RMB 5,473,251 thousand, a 22.3% increase from RMB 4,472,172 thousand in 2023[4] - Gross profit for 2024 was RMB 498,831 thousand, resulting in a gross margin of 9.1%, slightly down from 9.4% in 2023[4][6] - The company reported a net loss attributable to equity holders of RMB 70,970 thousand for 2024, compared to a profit of RMB 41,045 thousand in 2023[4] - Adjusted net profit attributable to equity holders was RMB 87,888 thousand for 2024, up from RMB 68,249 thousand in 2023[4] - Total revenue for the year ended December 31, 2024, was approximately RMB 5,473.3 million, an increase of approximately RMB 1,001.1 million or 22.4% compared to RMB 4,472.2 million for the year ending December 31, 2023[44] - The revenue from digital technology and cloud services reached approximately RMB 2,144.5 million, with a year-on-year growth of about 22.4%, accounting for approximately 39.1% of the company's total revenue[10] - The company recorded a net loss of approximately RMB 58.2 million for the fiscal year due to impairment provisions of about RMB 130.9 million related to goodwill from the acquisition of Shanghai Sire[11] - The company recorded a revenue of approximately RMB 5,473.3 million for the year ending December 31, 2024, an increase of approximately RMB 1,001.1 million or 22.4% compared to RMB 4,472.2 million for the year ending December 31, 2023[19] - The general service outsourcing segment generated revenue of approximately RMB 3,010.1 million, reflecting an increase of approximately RMB 594.4 million or 24.6% from RMB 2,415.7 million in the previous year[22] - The digital technology and cloud services segment achieved revenue of approximately RMB 2,144.5 million, an increase of approximately RMB 392.0 million or 22.4% compared to RMB 1,752.5 million in the prior year[19] Assets and Liabilities - Total assets increased to RMB 2,651,049 thousand in 2024, up from RMB 2,291,357 thousand in 2023[5] - Current assets rose to RMB 2,248,878 thousand in 2024, compared to RMB 1,753,778 thousand in 2023, indicating improved liquidity[5] - The company’s total equity decreased to RMB 1,418,884 thousand in 2024 from RMB 1,504,528 thousand in 2023[5] - Current liabilities increased to RMB 1,201.82 million in 2024 from RMB 768.22 million in 2023, marking a rise of approximately 56.2%[74] - Trade receivables, contract assets, and notes receivable amounted to RMB 1,730.90 million as of December 31, 2024, up from RMB 1,301.90 million in 2023, reflecting a growth of approximately 33.0%[75] - The company's trade and other payables rose to approximately RMB 701.1 million as of December 31, 2024, an increase of about RMB 160.1 million or 29.6% from RMB 541.0 million on December 31, 2023[85] - Borrowings increased by approximately RMB 271.1 million or 147.0% to about RMB 455.6 million as of December 31, 2024, compared to RMB 184.5 million on December 31, 2023[87] Employee and Workforce - The number of information technology talents employed by the company exceeded 11,800, with a significant increase of 2,365 employees, representing a growth rate of about 25.0% compared to the previous year[17] - The internal growth of flexible staffing employees increased to 26,319, up by 3,399 from the previous year, representing a growth rate of approximately 14.8%[17] - The company increased its flexible workforce from 35,908 employees as of December 31, 2023, to 41,868 employees by December 31, 2024, driven by internal growth[19] - The average adjusted profit per employee increased from approximately RMB 100.9 thousand to about RMB 105.1 thousand year-on-year[12] - The average adjusted profit per internal employee increased to RMB 105.1 thousand in 2024, up from RMB 100.9 thousand in 2023, reflecting a growth of 2.1%[31] - As of December 31, 2024, the company had a total of 44,058 employees, including 1,168 internal employees and 42,890 outsourced employees[32] Strategic Initiatives - The company aims to leverage digital transformation and international development opportunities in the human resources sector[8] - A global expansion strategy is being implemented to enhance localized service capabilities in multiple countries and regions[8] - The company plans to accelerate its international business investments and establish overseas subsidiaries to provide localized human resource services in over 20 countries and regions[13] - The company is focusing on enhancing its integrated human resource ecosystem through self-developed technology and investing in AI recruitment platforms to improve hiring efficiency[13] - The company aims to maintain rapid business growth and restore profitability by leveraging its experience in the human resources industry and ongoing global expansion strategies[11] - The company is focusing on global expansion by providing localized HR services to clients' subsidiaries outside of China, enhancing multi-dimensional service offerings[41] - The company is investing in the Wancai Youcai recruitment platform to explore AI technology applications in recruitment, aiming to improve efficiency and precision[42] Governance and Compliance - The company is preparing for its upcoming listing on the Hong Kong Stock Exchange in May 2024, indicating growth and expansion plans[128] - The company is focused on maintaining compliance with listing rules and enhancing corporate governance through experienced board members[136] - The independent directors bring diverse backgrounds in finance, accounting, and corporate governance, which is expected to strengthen the company's strategic initiatives[135] - The company has seen significant leadership changes with the appointment of various independent directors with extensive experience in finance and compliance[135] - The board includes members with qualifications from prestigious institutions, enhancing the company's governance and strategic direction[136] Risks and Challenges - Major risks include reliance on new economy industry clients for general outsourcing services, which could significantly impact business performance if demand slows[142] - The company has a limited operational history, which poses challenges in managing current and future growth in a rapidly changing market[142] - The company is subject to foreign investment restrictions in the value-added telecommunications business as per the old negative list and the Ministry of Industry and Information Technology consultations[185] - The interpretation and implementation of the Foreign Investment Law of the People's Republic of China may create substantial uncertainty affecting the company's structure and governance[191] Shareholder Information - As of December 31, 2024, the company has issued a total of 156,699,879 shares[166] - Zhang Jianguo holds 46,970,500 shares, representing 29.97% of the company's equity[166] - Major shareholder Wang Fen holds 61,066,300 shares, representing 38.97% of the equity[169] - The board does not recommend the payment of a final dividend for the year ending December 31, 2024, while the previous year had a dividend of HKD 0.09 per share[151] Research and Development - The company invested approximately RMB 60.5 million in research and development for the integrated human resources ecosystem in 2024[26] - Research and development expenses amounted to RMB 60.5 million, a 4.0% increase from RMB 58.2 million in 2023[58]

Financial Performance - In 2024, the Group's revenue from corrugated packaging decreased by 5.7% year-on-year, with a 1.5% increase in the first half followed by a 12% decrease in the second half compared to the respective periods in 2023[23]. - The Group recorded a loss in 2024, although it was an alleviated loss compared to 2023, attributed to decreased procurement costs, reduced impairment losses, lower depreciation expenses, and a decrease in staff numbers[13]. - The Group recorded revenue of HK$211.5 million in 2024, a decrease of HK$12.9 million (5.7%) from HK$224.4 million in 2023 due to a reduction in customer orders[28][34]. - Cost of sales decreased from HK$210.4 million in 2023 to HK$193.7 million in 2024, primarily due to reduced overseas containerboard procurement and lower domestic containerboard prices[29][34]. - Gross profit increased from HK$13.9 million in 2023 to HK$17.8 million in 2024, with the gross profit margin rising from 6.2% to 8.4%[29][34]. - Other income fell from HK$6.7 million in 2023 to HK$2.7 million in 2024, mainly due to a decline in bank interest and service income[30][34]. - The Group recorded a loss of HK$95.2 million in 2024, an improvement of HK$5.6 million compared to a loss of HK$100.8 million in 2023, with the net loss margin increasing from 44.9% to 45.0%[38][43]. - As of December 31, 2024, the Group's bank balances and cash were HK$33.6 million, down from HK$47.3 million in 2023, while bank borrowings increased from HK$72.8 million to HK$92.4 million[39][44]. - The Group's net borrowings level rose to HK$58.2 million as of December 31, 2024, compared to HK$25.6 million in 2023, with a gearing ratio of 12.7%[40][44]. - Capital expenditures for property, plant, and equipment in China were HK$2.1 million in 2024, significantly lower than HK$8.5 million in 2023[41][45]. - Debtors, creditors, and inventory turnover improved to approximately 53 days, 43 days, and 33 days respectively in 2024, compared to 62 days, 52 days, and 46 days in 2023[42][45]. Business Environment - The business environment for the corrugated packaging industry is expected to remain challenging due to geopolitical tensions and sluggish demand in the post-pandemic era[19]. - The corrugated packaging industry is expected to face a challenging business environment due to rising manufacturing costs and weakening market demand[47]. - The Group anticipates that the upstream business will resume operations after transitioning from coal-fuel to gas-fuel boilers, enhancing competitive advantage through vertical integration[47]. - The growth of e-commerce is projected to increase the demand for corrugated packaging materials for safe and efficient product shipping[48]. Operational Strategies - The Group continues to purchase containerboard from third-party suppliers to ensure a stable supply for its downstream corrugated packaging business[24]. - Key strategies include enhancing pricing power, increasing sales volume, improving production efficiency, and reducing energy usage and raw material wastage[49]. - The Group's management emphasizes good capital management to enhance operational efficiency and cope with market volatility for long-term sustainable development[19]. Legal and Tax Matters - The Group has not made provisions for certain tax payments due to ongoing appeals, with management believing it is probable to succeed in these appeals[60]. - The independent auditor's report includes a qualified opinion regarding uncertainties related to tax payment assessments[56]. - The Group's management considers that uncertainties concerning tax obligations could be resolved by a court decision expected before December 31, 2025[63]. - The Company is awaiting a final decision from the Mainland China courts regarding tax liabilities, expected in 2025, which may resolve current audit issues[70]. - The Group's PRC legal advisor indicated that the State Administration of Taxation no longer has the right to appeal, leading to the removal of contingent liabilities related to the "Tax Matter Notice" this year[71]. - The Company filed a retrial application on August 10, 2023, against a judgment from July 5, 2023, regarding value-added tax invoices, which has been accepted for retrial by the Guangdong Higher People's Court[86][90]. - The Audit Committee has reviewed the management's position on audit issues and agreed that no provision should be made unless an irrevocable decision is reached by the courts[68]. - The auditor's view is that audit modifications can be removed if a final decision is made by the courts in 2025 and relevant provisions are recorded in the financial statements[77]. - The management believes that the audit issues will be resolved similarly to previous years, following effective action plans[71][78]. Corporate Governance - The Company has adopted the Corporate Governance Code as the basis for its governance practices[131]. - The Company has established a corporate governance framework based on the CG Code to enhance oversight on business conduct[132]. - The Company complied with all code provisions of the CG Code for the year ended December 31, 2024, except for provisions C.2.1, D.3.3, and E.1.2[133]. - The Company has a Code of Conduct for Directors' dealings in securities, which has been confirmed as complied with throughout the year[138]. - The Company has established policies and procedures to enhance the Board's ability to implement governance[132]. - The Company has confirmed that there are no financial, business, family, or other material relationships among the members of the Board[141]. - The Board comprises six Directors, including three Executive Directors and three Independent Non-executive Directors[140]. - The Company has established a Nomination Committee to identify suitable candidates for directorship, ensuring at least three independent non-executive directors represent one-third of the Board[145][149]. - The Board has reviewed the effectiveness of its mechanisms for ensuring independent views and considers them effective as of December 31, 2024[150]. - Each independent non-executive director has provided written annual confirmation of their independence in accordance with Listing Rules[154]. - The independent non-executive directors are appointed for a specific term of around two years, subject to renewal[155]. - The Board is responsible for leadership and control of the Company, overseeing strategic decisions and performance[157]. - The management is required to provide monthly updates to the Board on the Company's performance, position, and prospects[165]. - The Company has mechanisms in place to ensure compliance with internal control and risk management systems[158]. - The Chairman and Chief Executive Officer roles are held by Mr. Hui Sum Ping and Mr. Hui Sum Tai, respectively, with clear and distinctive responsibilities[147][148]. - The Company provided induction training and legal advice to newly appointed Directors to ensure understanding of business operations and responsibilities under Listing Rules[168]. - Continuous Professional Development (CPD) records for Directors included training sessions and relevant reading materials to keep them updated on regulatory developments[171]. - The Audit Committee held two meetings to review the interim and annual financial results for the year ended December 31, 2024, focusing on financial reporting and internal control systems[183]. - The Remuneration Committee met twice during the year to review the remuneration policy and structure for Directors, including the New Share Option Scheme[187]. - Directors' remuneration is determined based on their duties, responsibilities, performance, and the Group's results, with annual reviews conducted by the Remuneration Committee[188]. - The Company has established three Board committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with defined terms of reference[174]. - The Audit Committee consists of three Independent Non-executive Directors, ensuring oversight of financial reporting and risk management[176]. - The Remuneration Committee is responsible for establishing transparent procedures for developing remuneration policies to prevent conflicts of interest[186]. - The Company provided e-learnings on updates related to Listing Rules for all Directors during the year ended December 31, 2024[170]. - The Company encourages all Directors to attend relevant external training courses at the Company's expense to enhance their skills[169]. - Senior management remuneration details for the year ended December 31, 2024, include 2 members earning between HK$0–HK$1,000,000, 1 member earning between HK$5,000,001–HK$5,500,000, and 1 member earning between HK$5,500,001–HK$6,000,000[197]. - The Nomination Committee consists of three Independent Non-executive Directors, with Mr. Tso Sze Wai serving as the chairman[198]. - The Nomination Committee's principal duties include reviewing Board composition and making recommendations on the appointment and succession planning of Directors[199]. - The Nomination Committee considers factors concerning Board diversity as outlined in the Company's Board Diversity Policy[200].

Financial Performance - Total revenue for 2024 was RMB 5,906.4 million, a decrease of 19.0% compared to RMB 7,294.5 million in 2023[17]. - The company reported a core net loss attributable to shareholders of RMB 2,946.8 million, an increase of 71.7% from RMB 1,716.7 million in 2023[17]. - Contracted sales amount for 2024 was RMB 2,077.2 million, down 45.2% from RMB 3,787.4 million in 2023[18]. - The average contracted sales price per square meter decreased by 13.1% to RMB 15,646.2 from RMB 17,995.0 in 2023[18]. - The gross loss margin for 2024 was (4.3%), a significant decline from a gross profit margin of 6.4% in 2023[19]. - The net loss for the year 2024 was RMB 3,245.1 million, with the loss attributable to equity holders of the company amounting to RMB 3,003.8 million[78]. - Revenue from property sales is RMB 4,976.4 million, a decline of 20.6% from RMB 6,265.8 million in 2023, primarily due to a decrease in property delivery area[44]. - The rental income was RMB 133.3 million, accounting for 2.2% of total revenue, which is a decline of 21.8% from RMB 170.4 million in the previous year[61]. - The property management services generated revenue of RMB 775.0 million, which is 13.1% of total revenue, showing a slight decrease of 2.3% from RMB 793.7 million in the previous year[61]. Debt and Liquidity - The net debt to equity ratio surged to 2,281% in 2024, compared to 386% in 2023, indicating increased financial leverage[19]. - The net debt-to-capital ratio as of December 31, 2024, was 2,281%, significantly higher than 386% as of December 31, 2023[86]. - The company has ongoing and planned projects with a total building area of 894,261 square meters, of which 546,514 square meters are post-equity[40]. - The total outstanding borrowings decreased from RMB 16,876.1 million as of December 31, 2023, to RMB 15,942.3 million as of December 31, 2024, representing a reduction of 5.5%[81]. - The company is actively taking steps to mitigate current liquidity issues, including the possibility of deferring or restructuring repayment schedules[176]. - The company is negotiating with lenders to extend the repayment schedule for certain borrowings[178]. - The company is seeking new financing from other financial institutions to address liquidity issues[180]. Operational Strategy - The company operates 112 projects across 24 cities in China as of the end of 2024[10]. - The company aims to enhance operational capabilities and asset value while focusing on core cities and urban areas[22]. - Future strategies include improving product quality and operational precision to achieve high-quality development[22]. - The company aims to enhance asset management capabilities and improve liquidity through various marketing strategies and value-added services[34]. - The company is actively exploring new operational strategies to reduce debt and leverage, while enhancing product quality and core competitiveness[33]. - The company is closely monitoring the collection of unrecognized sales revenue and ensuring timely mortgage loan disbursements to customers[177]. Corporate Governance - The board emphasizes the importance of high standards in corporate governance to protect shareholder interests and enhance corporate value[108]. - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules, ensuring compliance with principles and code provisions[108]. - The company deviated from the corporate governance code by having the same individual serve as both chairman and CEO, which is against the code's recommendation[109]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independence[109]. - The company aims to provide satisfactory and sustainable returns to shareholders while maintaining high ethical business standards[110]. - The company will continue to review and enhance its corporate governance practices to ensure compliance with the corporate governance code[109]. Employee and Diversity - The company employed 2,661 full-time employees as of December 31, 2024, down from 2,990 employees a year earlier[58]. - The total number of employees as of December 31, 2024, is 2,661, with male employees accounting for 53.4% and female employees accounting for 46.6%[129]. - The board consists of five male and two female members, indicating a significant improvement in gender diversity[127]. - The company has adopted a board diversity policy since March 18, 2014, which was revised on December 19, 2018, to ensure a diverse governance structure[126]. Market Outlook - The global economic growth forecast for 2024 is 3.2%, with emerging markets, particularly in Asia, expected to grow at 4.2%[41]. - The overall real estate market is expected to show weak balance and differentiation in 2025, with core city prices likely to remain stable or slightly increase, while third and fourth-tier cities may face adjustment pressure[96]. - The new housing market sales and investment scale may continue to decline, but the rate of decline is expected to narrow; the second-hand housing market is projected to maintain a certain level of activity[96]. Shareholder Communication - The company has implemented a shareholder communication policy to enhance investor relations and ensure timely disclosure of information[186]. - The company is committed to maintaining effective communication channels with shareholders to gather their opinions and feedback[187]. - The company will issue appropriate announcements regarding any significant developments in accordance with listing rules and securities regulations[180].