Financial Performance - For the fiscal year 2024, the Group recorded revenue of RMB200.3 million, representing an increase of 0.3% from RMB190.7 million in fiscal year 2023[27]. - Loss attributable to owners of the Company for fiscal year 2024 amounted to RMB33.8 million, a significant reduction from RMB341.0 million in fiscal year 2023[27]. - The Group's operating loss improved to RMB32.1 million in fiscal year 2024 from a loss of RMB356.3 million in fiscal year 2023[13]. - Rental income increased by 2.5% to RMB187.5 million in FY2024 from RMB182.9 million in FY2023, primarily due to a decrease in the vacancy rate[43][45]. - Direct sales surged by 66.2% to RMB12.3 million in FY2024 from RMB7.4 million in FY2023[43][45]. - Other operating revenue decreased to RMB27.2 million in FY2024 from RMB29.9 million in FY2023, mainly due to a reduction in government grants[47][52]. - Other gains – net amounted to RMB25.4 million in FY2024, down from RMB57.5 million in FY2023, due to rental reductions and changes in lease liabilities[48]. - Fair value loss on investment properties decreased to RMB139.5 million in FY2024 from RMB156.0 million in FY2023[49]. - Employee benefit expenses rose by 14.8% to RMB31.8 million in FY2024 from RMB27.7 million in FY2023, mainly due to the reversal of accruals[51]. - The Group's results for the year ended December 31, 2024, are detailed in the consolidated income statement[107]. Assets and Liabilities - Total assets as of December 31, 2024, were RMB2,169.5 million, down from RMB2,342.4 million in 2023, indicating a decrease of approximately 7.4%[15]. - Total liabilities decreased to RMB1,418.8 million in 2024 from RMB1,556.6 million in 2023, reflecting a reduction of about 8.8%[15]. - As of December 31, 2024, the Group's cash and cash equivalents decreased by 17.6% to RMB55.4 million from RMB67.2 million as of December 31, 2023[74]. - The gearing ratio increased to 74.3% as of December 31, 2024, compared to 70.8% as of December 31, 2023[75]. - As of December 31, 2024, the Group's long-term and short-term borrowings were RMB507.3 million and RMB50.8 million, respectively, compared to RMB520.3 million and RMB36.2 million in 2023[172][176]. Business Strategy and Operations - The Group is focusing on community business strategies, introducing a new brand targeting young lifestyles to enhance competitiveness[24]. - The Group aims to create a 24-hour community business ecosystem by operating convenient stores, gyms, restaurants, and pharmacies around the clock[27]. - Online platforms and membership loyalty programs are being utilized to enhance customer engagement and shopping experience[28]. - The Group plans to consolidate resources and enhance market position to meet diverse consumer needs and explore future market opportunities[30][33]. Employee and Management Information - The total number of employees in the Group as of December 31, 2024, is 199, a decrease from 216 employees as of December 31, 2023, reflecting a reduction of approximately 7.9%[87]. - The Group's executive management includes Ms. Huang Xue Rong, who has over 15 years of experience in administrative and business matters, and Mr. Yang Ti Wei, who has been with the Group since June 2009[91][92]. - Mr. Chow Chun Pong has been appointed as the chief financial officer and company secretary since September 1, 2022, overseeing financial and compliance matters[101]. - The Group has implemented key performance indicators to enhance performance and operational efficiency[87]. Legal and Compliance Matters - The legal proceedings initiated by certain suppliers and an ex-employee are related to disputes over contract terms and employment contract terms[84]. - The Group's directors believe that the accumulated provision is adequate to cover any potential liabilities arising from the ongoing claims[84]. - The Group has confirmed compliance with a deed of non-competition by the controlling shareholders for the year ended December 31, 2024[157][161]. - The Group has not reported any significant changes in its financial resources or liquidity position[87]. Shareholder Information - As of December 31, 2024, the Company's accumulated loss amounted to RMB671.1 million, while the share premium was RMB751.0 million[120]. - The Company is primarily engaged in department store operations and property development in the People's Republic of China[106]. - The largest customer contributed 23.3% of the Group's total revenue, while the top five customers accounted for 37.3%[165][170]. - The largest supplier represented 17.7% of the Group's total purchases and cost of services, with the top five suppliers making up 60.3%[165][170]. Dividends and Donations - The Company has decided not to recommend any final dividend for the year ended December 31, 2024[108]. - No charitable donations were made by the Group for the year ended December 31, 2024[121].

Financial Performance - For the fiscal year ending December 31, 2023, the company's revenue was RMB 397,998,000, a decrease of 1.8% compared to RMB 403,729,000 in 2022[11] - The gross profit for the same period was RMB 21,366,000, resulting in a gross margin of 5.37%, slightly down from 5.25% in 2024[11] - The company reported a loss attributable to shareholders of RMB 20,160,000, which is an improvement from a loss of RMB 27,452,000 in 2022[11] - Total assets as of December 31, 2023, were RMB 303,278,000, while total liabilities increased to RMB 238,699,000[11] - The total revenue for the year ended December 31, 2024, was RMB 385,482,322, a decrease of 3.14% compared to RMB 397,998,097 in 2023[43] - The comprehensive gross profit for the year was RMB 20,222,876, with a gross margin of 5.25%, down from 5.37% in the previous year[43] - The group reported a loss attributable to owners of RMB 27,802,241 for the year ended December 31, 2024, compared to a loss of RMB 20,159,658 for the year ended December 31, 2023, with a loss per share of RMB 1.46[50] Business Operations - The company operates in two main business areas: bio-composite fertilizers and elderly care services, with ongoing efforts in both sectors[7] - The company plans to expand its elderly care services and integrate management operations across the nation[7] - The gross profit margin for the bio-composite fertilizer segment has shown fluctuations, indicating potential areas for operational improvement[11] - The company established an e-commerce sales platform to expand market coverage and introduced new products such as liquid fertilizers and water-soluble compound fertilizers[17] - The company aims to enhance market marketing management and adjust product structure to improve market share in the compound fertilizer sector[23] - The company has expanded its product offerings to include liquid fertilizers and water-soluble compound fertilizers to meet market demand[34] Research and Development - The company is committed to enhancing its research and development capabilities in both fertilizer and healthcare sectors[7] - The company is actively developing new environmentally friendly fertilizer products in response to increasing quality demands from farmers[30] - The company is committed to integrating advanced technologies into its healthcare services to accelerate digital and intelligent upgrades in the elderly care sector[24] Market Trends - In 2024, the compound fertilizer market experienced structural adjustments, with nitrogen fertilizer prices fluctuating at low levels due to capacity release, while phosphate fertilizer remained high due to resource costs[16] - The national food production target is set to stabilize above 1.3 trillion jin, which is expected to drive rigid growth in fertilizer demand[17] - The fertilizer industry has improved its supply-demand balance and industry concentration due to structural reforms and stricter environmental policies[64] Corporate Governance - The company has appointed independent non-executive directors with extensive experience in accounting and law, enhancing governance and oversight[94][95][96] - The company is committed to ensuring compliance with its articles of association regarding board and supervisory board member requirements[87] - The board is led by Chairwoman Sun Li, who is responsible for the company's development strategy and risk management[126] - The company will seek to enhance corporate governance transparency and independence in the near future[129] Environmental Responsibility - The company maintains a corporate social responsibility strategy focused on employee care, environmental protection, and social responsibility[162] - The company adheres to strict environmental regulations, ensuring that emissions meet national standards[165] - Waste management practices include comprehensive utilization of solid waste, with all solid waste being recycled[165] - The company has implemented energy-saving measures and pollution control technologies in its operations[163] Financial Management - The audit committee held two meetings during the fiscal year and reviewed the financial reporting procedures of the group[117] - The financial statements for the year ending December 31, 2024, were audited by Fan Chen CPA Limited[121] - The company has provisions for shareholders to convene a special general meeting if they hold at least 10% of the issued share capital[157] - The total remuneration for executive director Sun Li for the fiscal year 2024 was RMB 516,303, a decrease of 16.7% from RMB 620,127 in 2023[153] Shareholder Engagement - The company emphasizes high transparency and timely disclosure of relevant information to shareholders[160] - The company encourages shareholder participation in annual general meetings, providing opportunities for direct dialogue[160]

Financial Performance - The company reported a record quarterly performance for Q1 2025, with total revenue and other income reaching HKD 6.857 billion, a 32% increase compared to Q1 2024[9]. - Major business revenue increased by 36% year-on-year to HKD 6.315 billion, driven by higher trading and settlement fees from increased trading volumes in the spot, derivatives, and commodities markets[9]. - The company’s EBITDA for Q1 2025 was HKD 5.254 billion, reflecting a 42% increase from HKD 3.705 billion in Q1 2024, with an EBITDA margin of 78%[9]. - Shareholder profit attributable to the company was HKD 4.077 billion, a 37% increase compared to HKD 2.970 billion in Q1 2024[9]. - The group's revenue and other income hit a new high of HKD 6.9 billion, a 32% increase compared to Q1 2024, driven by increased trading and settlement fees[14]. - The EBITDA margin improved to 91% in Q1 2025, up from 84% in Q1 2024, with EBITDA increasing by 89%[19]. - Total revenue for the three months ended March 31, 2025, was $5.496 billion, a 43% increase from $3.847 billion for the same period in 2024[76]. - Operating profit for the three months ended March 31, 2025, reached $4.896 billion, compared to $3.360 billion for the same period in 2024, reflecting a 46% increase[76]. - Basic earnings per share for the three months ended March 31, 2025, were $3.23, up from $2.35 in the same period of 2024, representing a 37% increase[76]. - The total comprehensive income for the three months ended March 31, 2025, was $4.238 billion, compared to $2.993 billion for the same period in 2024, indicating a 42% increase[77]. Trading Activity - The average daily trading value for equity securities products reached HKD 225.44 billion, a 153% increase from HKD 89.1 billion in Q1 2024[7]. - The average daily trading value for the Hong Kong Stock Connect was HKD 109.94 billion, up 255% from HKD 31.0 billion in the same period last year[7]. - In Q1 2025, the average daily trading volume in the cash market reached a record high of HKD 242.7 billion, more than double that of Q1 2024 and up 30% from Q4 2024[12]. - The average daily trading volume of derivative contracts reached 1.866 million, a 24% increase from Q1 2024 and a 13% increase from Q4 2024[12]. - Northbound trading fees from the Stock Connect program increased by 41% to HKD 1.57 billion, reflecting a 44% rise in average daily trading volume[17]. - The revenue from the Stock Connect program rose 61% to HKD 942 million, with HKD 757 million coming from trading and settlement activities[21]. - The average daily trading value of ETPs reached a record high of HKD 39.4 billion, up 197% from Q1 2024[26]. - The average daily trading amount for the Southbound trading of the Stock Connect reached HKD 67.34 billion, significantly up from HKD 17.5 billion in Q1 2024[23]. - The average daily trading volume of stock options reached 964,803 contracts, a 50% increase from Q1 2024[42]. - The average daily trading volume for all transactions, including administrative trades, totaled 742,000 lots in Q1 2025, compared to 696,000 lots in Q1 2024[49]. IPO and Listings - The number of new IPO applications in process rose to 120 as of March 31, 2025, compared to 84 applications at the end of December 2024[4]. - The number of new listings in Q1 2025 was 17, raising a total of HKD 18.7 billion through initial public offerings, nearly four times the amount raised in Q1 2024[25]. - The number of IPO applications being processed rose to 120 as of March 31, 2025, compared to 84 on December 31, 2024[12]. - The number of companies listed on the main board as of March 31, 2025, was 2,308, an increase from 2,285 in the previous year[23]. - The number of newly listed derivative warrants reached 2,009 in Q1 2025, up from 1,622 in Q1 2024[40]. Capital Expenditure and Investments - Capital expenditure increased by 73% year-on-year to HKD 481 million, primarily due to upgrades in the spot settlement system and the development of a new trading platform[9]. - The acquisition of multiple floors in the Trading Plaza for a total consideration of 6.3 billion was approved, marking a strategic investment to establish a permanent headquarters[60]. - As of March 31, 2025, margin deposits amounted to 207.6 billion, an increase of 18.7 billion from 188.9 billion on December 31, 2024, due to increased positions in certain futures and options[66]. - The investment income net amount from margin and clearing funds increased by 10 million (1%) in Q1 2025, totaling 817 million compared to 807 million in Q1 2024[64]. - The company plans to expand its data platform offerings, aiming to attract more users and enhance market data services[54]. Operating Expenses and Financial Position - Operating expenses increased by 7% compared to Q1 2024, primarily due to a HKD 90 million fine paid to the UK FCA and increased charitable donations[14]. - The company reported a total operating expenses of $1.516 billion for the three months ended March 31, 2025, compared to $1.411 billion in the same period of 2024[76]. - The company’s financial position showed no significant changes compared to the financial status disclosed in the annual report for the year ended December 31, 2024[73]. - Total assets as of March 31, 2025, amounted to HKD 380.431 billion, a slight decrease from HKD 381.629 billion as of December 31, 2024[78]. - Total liabilities increased to HKD 327.904 billion from HKD 327.222 billion, reflecting a rise of approximately 0.2%[78]. Market Developments and Strategic Initiatives - The Hong Kong stock market saw a significant rebound in equity financing activities, ranking second globally in total financing amount[12]. - The Hong Kong Stock Exchange is preparing for the implementation of a paperless securities market, expected to launch in early 2026, pending regulatory approval[22]. - The company continues to promote sustainable finance through its Core Climate platform and the Hong Kong Sustainable and Green Exchange (STAGE)[62]. - LME introduced new warehouse delivery locations in Hong Kong and Jeddah, Saudi Arabia, enhancing market accessibility[48]. - LME Clear implemented measures to improve market resilience, including changes to margin calculations effective March 3, 2025[51].

Stock Options - As of April 1, 2023, the number of stock options available for grant was 85,786,500, representing approximately 6.23% of the company's issued shares[3] - As of March 31, 2024, the number of stock options available for grant increased to 88,226,500, representing approximately 6.41% of the company's issued shares[3]

Financial Performance - The company achieved an operating revenue of RMB 1.664 billion in 2024, with a total profit of RMB 377 million, marking an increase compared to the previous year[11] - The company recorded a revenue of RMB 1.66412 billion for the year, an increase of 3.2% compared to RMB 1.61180 billion last year[22] - Solid waste treatment and electricity and steam sales generated revenue of RMB 1.27586 billion, up 12.4% from RMB 1.13542 billion last year[22] - For continuing operations, EBITDA was RMB 7.3084 billion, an increase of 6.9% or RMB 469.1 million from RMB 6.8393 billion last year, while net profit rose by 30.7% to RMB 3.2637 billion from RMB 2.4979 billion[31] - The company reported a pre-tax profit from continuing operations of RMB 376,784,000, up 48.4% from RMB 253,826,000 in 2023[178] - Total comprehensive income for the year was RMB 299,581 thousand, compared to RMB 213,141 thousand in 2023, indicating a growth of 40.5%[174] Waste Treatment and Environmental Initiatives - The waste treatment volume exceeded 4.66 million tons, and the electricity generated reached over 1.45 billion kWh, both showing growth from the previous year[11] - The company processed 4.37 million tons of household waste in 2024, approximately 12,000 tons per day, representing a year-on-year growth of 3.8%[18] - The company generated 1.728 billion kWh of electricity, a 7.8% increase from the previous year[18] - The company has successfully applied for over 730,000 green certificates in carbon asset development, indicating significant progress in environmental initiatives[11] - The company aims to contribute to building a beautiful China and a waste-free city through its operational strategies[13] - The company emphasizes sustainable development and invests in energy-saving and emission-reduction technologies[141] Operational Efficiency and Market Expansion - The company plans to enhance operational efficiency and sustainable development capabilities in response to the green transformation of the economy[13] - The company is actively expanding its market presence through light asset businesses such as equipment contracting and entrusted operations[12] - The company plans to focus on expanding the solid waste treatment market and enhancing operational efficiency to achieve its strategic goals by 2025[21] - The company reported a significant increase in diversified revenue from collaborative sludge disposal and external heating supply compared to the previous year[11] Financial Management and Cost Control - The company’s administrative expenses decreased by 11.6% to RMB 1.7312 billion due to effective cost control measures[27] - The company’s financial costs decreased by 31.9% to RMB 1.1111 billion, primarily due to the repayment of an RMB 800 million loan[28] - The company’s total liabilities decreased significantly, with bank loan repayments amounting to RMB 78,684,000, down from RMB 573,809,000 in 2023[179] - The company’s cash flow from financing activities generated RMB 110,013,000, a recovery from a net outflow of RMB 1,349,091,000 in the previous year[179] Governance and Management - The company has a diverse board with members holding advanced degrees from prestigious institutions, enhancing its strategic decision-making capabilities[63][64][65][66][67][68][69] - The company emphasizes a culture of integrity and requires all directors and management to adhere to a code of conduct related to integrity and ethical behavior[74] - The company has appointed a new independent non-executive director, Ms. Miao Li, on May 22, 2024[77] - The company’s management team has extensive experience in planning, market development, and engineering construction[70] - The company has established an internal audit department to regularly review its internal control systems, ensuring any significant deficiencies are addressed[96] Risk Management and Compliance - The company emphasizes risk management and compliance, focusing on internal control mechanisms and ESG system construction[12] - The board is responsible for risk management and internal control systems, continuously assessing and managing major risks in areas such as safety and financial security[96] - The company has confirmed that its risk management and internal control systems are adequate and effective[97] Employee and Social Responsibility - The group has approximately 1,200 employees as of December 31, 2024, with compensation based on performance, experience, and market practices[117] - The company continues to improve employee welfare, training, and occupational health and safety policies[144] - The group made charitable donations totaling approximately RMB 180,000 during the year[150] Audit and Financial Reporting - The audit report was issued without reservation, confirming the integrity of the financial statements as of March 27, 2024[163] - The company’s governance is responsible for overseeing the financial reporting process and ensuring compliance with applicable accounting standards[167] - The auditors communicated significant audit findings and any material weaknesses in internal controls to the governance team[170] Shareholder Relations - The company emphasizes the importance of effective communication with shareholders and provides comprehensive operational and financial performance information through annual and interim reports[106] - The company did not recommend any dividend payment for the year[116]

Financial Performance - Revenue for the fiscal year 2024 was HKD 157,235,000, a decrease of approximately 17.8% from HKD 191,422,000 in 2023[6] - The pre-tax loss for 2024 was HKD (175,157,000), representing 111.4% of revenue, an improvement from 145.4% in 2023[6] - Medical product sales revenue was approximately HKD 72,200,000, a slight increase of 0.4% compared to the previous year[9] - Sales revenue from plastic toys decreased by approximately 37.9% to about HKD 4,500,000 due to intense market competition[9] - The company's consolidated revenue for the year ended December 31, 2024, was approximately HKD 157.2 million, a decrease of about 17.9% compared to HKD 191.4 million in 2023[33] - The gross profit margin for the year ended December 31, 2024, was approximately 62.5%, down 6.5 percentage points from 69.0% in the previous year[33] - The net loss for the year was HKD 174,286,000, an improvement from a net loss of HKD 279,395,000 in 2023, representing a 37.5% reduction in losses[147] - Total comprehensive expenses for the year amounted to HKD 178,997,000, compared to HKD 252,510,000 in 2023, reflecting a decrease of 29.1%[147] Asset and Equity Position - The total assets decreased to HKD 824,714,000 from HKD 1,377,016,000 in 2023[6] - The company's equity attributable to owners was HKD 249,626,000, down from HKD 428,581,000 in 2023[6] - The company's total assets decreased to HKD 754,717,000 from HKD 1,301,062,000, indicating a significant reduction in asset base[148] - The company's equity attributable to owners decreased to HKD 249,626,000 from HKD 428,581,000, a decline of 41.8%[150] Liquidity and Financial Ratios - The current ratio dropped to 1.5 from 6.7 in 2023, indicating a decline in liquidity[6] - The current ratio as of December 31, 2024, was approximately 1.5, compared to 3.0 on December 31, 2023[34] - The debt-to-equity ratio as of December 31, 2024, was approximately 145.7%, down from 172.7% in 2023[34] Credit Risk Management - The group aims to minimize credit risk in its lending operations through stringent internal policies and regular monitoring of loan repayments[14] - The company reported an impairment loss of HKD 156,300,000 for accounts receivable as of December 31, 2024[23] - The expected credit loss provision decreased due to improvements in borrowers' financial conditions, enhancing their ability to meet debt obligations[23] - The aging analysis of receivables showed that overdue loans amounted to HKD 494.2 million as of December 31, 2024, compared to HKD 37.9 million in 2023[31] - The company has implemented a debt recovery procedure for overdue loans, including sending demand letters and considering legal action if necessary[19] Operational and Administrative Expenses - The administrative expenses for the year were HKD 55.9 million, an increase of 60.2% from HKD 34.9 million in 2023, mainly due to higher employee costs[33] - The financing costs decreased by 46.1% to HKD 28.2 million from HKD 52.3 million in the previous year, primarily due to bond redemptions during the year[33] Corporate Governance - The board consists of three executive directors and three independent non-executive directors[52] - A total of five board meetings were held in the fiscal year ending December 31, 2024, to review and approve financial and operational performance[58] - All independent non-executive directors have confirmed their independence according to the listing rules[53] - The company has implemented mechanisms to ensure the board's independence and has reviewed their effectiveness for the fiscal year ending December 31, 2024[55] - The company provides comprehensive onboarding materials to new directors, covering their responsibilities and the company's business[59] Shareholder Communication and Transparency - The company emphasizes effective communication with shareholders to enhance investor relations and ensure transparency in disclosures[88][89] - The annual general meeting is scheduled for June 26, 2025, providing a platform for direct communication between the board and shareholders[88] - The company has established a website to provide the latest information on business operations, financial data, and corporate governance practices[94] Audit and Compliance - The audit committee consists of three independent non-executive directors, with Mr. Yu serving as the chairman, and held three meetings during the year[76][79] - The audit committee is responsible for reviewing the financial reporting process, internal control systems, and providing recommendations to the board[77][78] - The company paid HKD 700,000 for audit services to its external auditor for the year ending December 31, 2024, with no non-audit services provided[87] - The auditor's report indicates that the financial statements present a true and fair view of the company's financial position as of December 31, 2024[127] Financial Instruments and Reporting Standards - The company has adopted new and revised Hong Kong Financial Reporting Standards, which are expected to have no significant impact on the financial performance and position[161] - The consolidated financial statements must be prepared in accordance with the Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance, ensuring a true and fair view[139] - Financial assets and liabilities are recognized when the company becomes a party to the contractual provisions of the instrument[197]

Financial Performance - For the year ended December 31, 2024, the Group recorded revenue of approximately HK$300,101,000, a decrease of 9.6% from HK$332,034,000 in 2023[17]. - EBITDA decreased from approximately HK$219,443,000 in 2023 to approximately HK$174,027,000 in 2024, a decline of 20.7%[19]. - Profit attributable to owners of the Company decreased by approximately HK$42,185,000 or 60.7% to approximately HK$27,344,000 for the year ended December 31, 2024, primarily due to increased impairment provisions and other operating expenses[29][33]. - The EBITDA margin decreased by 8.1% year-on-year to 58.0%, while the net profit margin decreased by 11.8% year-on-year to 8.9% for the year ended December 31, 2024[30][33]. - Revenue for the year ended 31 December 2024 decreased by approximately HK$33,593,000 or 10.6% year-on-year to approximately HK$282,777,000, primarily due to technical problems in certain gas fields, resulting in a gas production decrease of approximately 9.8% to approximately 431.0 million cubic meters[67][71]. Production and Operations - The Group produced approximately 431.0 million cubic meters of natural gas, representing a decrease of approximately 9.8% compared to the previous year[18]. - The Group's revenue from the production and distribution of natural gas decreased by approximately HK$31,933,000 year-on-year[18]. - The technical issues in certain gas fields, such as water and slurry blockage, contributed to the decrease in production[18]. - Segment profit before income tax for the Kashi Project was approximately HK$87,191,000 for the year ended December 31, 2024, down from approximately HK$114,598,000 in 2023, representing a decline of about 23.9%[51][55]. - Revenue from the Karamay Project increased by approximately HK$1,660,000 or 10.6% to approximately HK$17,324,000 for the year ended 31 December 2024[81][85]. Impairment Provisions - Provision for impairment of property, plant, and equipment increased from approximately HK$1,803,000 in 2023 to approximately HK$9,121,000 in 2024[22]. - Provision for impairment of intangible assets rose from approximately HK$3,330,000 in 2023 to approximately HK$4,554,000 in 2024[22]. - The carrying amount of the Kashi Project's cash-generating unit (CGU) as of December 31, 2024, was approximately HK$2,040,678,000, exceeding the recoverable amount of approximately HK$2,031,791,000, resulting in an impairment provision of approximately HK$4,554,000 for intangible assets and approximately HK$4,333,000 for property, plant, and equipment[23][27]. - The impairment provision for property, plant, and equipment increased from approximately HK$1,803,000 for the year ended December 31, 2023, to approximately HK$9,121,000 for the year ended December 31, 2024, including a provision of approximately HK$4,778,000 for properties in Hong Kong[26][33]. Operating Expenses - Other operating expenses increased by approximately HK$10,457,000 or 103.0% to approximately HK$20,607,000, primarily due to duty fees on the gain from the transfer of mining rights[28][33]. - Operating expenses increased by approximately HK$11,475,000 or 40.0% to approximately HK$40,166,000 for the year ended December 31, 2024, driven by higher office and administration expenses[70][74]. - Direct costs increased by approximately HK$3,393,000 or 8.8% to approximately HK$41,835,000 for the year ended December 31, 2024, attributed to higher repair and maintenance work volume compared to 2023[68][72]. Financial Position - The gearing ratio improved to approximately 24.9% as of June 30, 2024, down from approximately 34.0% as of December 31, 2023[90]. - As of December 31, 2024, the Group's outstanding secured and unsecured borrowings were approximately HK$203,700,000 and HK$58,108,000 respectively, compared to HK$353,160,000 and Nil in 2023[91]. - The Group's cash and cash equivalents decreased to approximately HK$34,346,000 in 2024 from approximately HK$45,203,000 in 2023[91]. - The current ratio was approximately 44.7% in 2024, down from 47.9% in 2023[91]. - The total liabilities to total assets ratio improved to approximately 21.1% in 2024 from 26.8% in 2023[91]. Corporate Governance - The company is committed to maintaining good corporate governance standards and has complied with the Corporate Governance Code during the reporting period, with some deviations noted[149]. - The company has established a framework for reviewing its governance structure to adapt to changing circumstances and ensure effective leadership[149]. - The company has appointed independent non-executive directors with extensive experience in accounting and corporate governance to strengthen its board[143]. - The Company has implemented a Whistleblowing Policy to allow confidential reporting of misconduct by employees and business partners[160]. - The Company has an Anti-corruption Policy that mandates strict compliance with conduct guidelines and the Prevention of Bribery Ordinance[161]. Management and Leadership Changes - Mr. Liu Dong appointed as CEO and executive Director effective April 30, 2024[128]. - Mr. Yan Danhua appointed as non-executive Director and member of the Audit Committee on July 19, 2024[131]. - Mr. Chen Jianxin appointed as non-executive Director and member of the Audit Committee on July 19, 2024[135]. - The company is focused on expanding its leadership team with experienced professionals in the energy sector[134]. - The appointments of new directors are expected to enhance the company's strategic direction and operational efficiency[140]. Employee and Diversity Initiatives - As of December 31, 2024, the company had 54 employees, with a gender ratio of approximately 2:1 (Male: Female), reflecting a reasonable balance of gender diversity in the natural gas exploration and development industry[193]. - The company values diverse talents and experiences among its employees to foster innovative ideas and drive enterprise growth[193]. - All board appointments are based on meritocracy, considering objective criteria and the benefits of diversity, including gender, age, cultural background, and professional experience[192]. - The Company has adopted a Board Diversity Policy to ensure a balance of skills, experience, and diverse perspectives necessary for executing its strategic objectives[191].

Financial Performance - For the year ended December 31, 2024, the Group's revenue was approximately RMB 38,294.5 million, representing an increase of approximately 20.9% compared to the previous year[16]. - The profit for the year attributable to owners of the Company was approximately RMB 2,699.2 million, reflecting an increase of approximately 145.5% compared to the previous year[16]. - The Group's gross profit for 2024 was RMB 7,006.0 million, compared to RMB 4,590.4 million in 2023[9]. - The return on equity for 2024 was 11.0%, up from 5.0% in 2023[11]. - The net profit for the year was approximately RMB 2,777.0 million, representing an increase of approximately 141.4%, with a net profit margin of approximately 7.3%[80]. - The basic earnings per share for the year was approximately RMB 248.2 cents, representing an increase of approximately 146.4% compared to the previous year[82]. - Revenue from the Optical Components operating segment was approximately RMB 11,708.1 million, an increase of approximately 22.5% year-on-year, driven by higher sales of handset and vehicle lens sets[66]. - Revenue from the Optoelectronic Products operating segment was approximately RMB 26,156.8 million, reflecting a year-on-year increase of approximately 21.1%, mainly due to growth in handset camera modules and vehicle modules[67]. - The gross profit for the year was approximately RMB 7,006.0 million, an increase of approximately 52.6%, with a gross profit margin of approximately 18.3%, up 3.8 percentage points from the previous year[71]. Assets and Liabilities - Total assets as of December 31, 2024, were RMB 53,807.3 million, an increase from RMB 50,297.1 million in 2023[10]. - The total liabilities as of December 31, 2024, were RMB 28,514.4 million, compared to RMB 27,415.5 million in 2023[10]. - As of December 31, 2024, the Group's current assets were approximately RMB 37,470.0 million, an increase of approximately 6.6% from RMB 35,144.0 million as of December 31, 2023[91]. - The Group's gearing ratio was approximately 11.0% as of December 31, 2024, indicating a sound financial position with total borrowings relative to total capital[111]. Operational Highlights - The Group's vehicle lens set business maintained its global No. 1 position in market share, achieving a shipment volume milestone of 100 million units[16]. - The Group's vehicle camera business maintained its position as the global market leader, with shipments exceeding 100,000,000 units[18]. - The Group's smartphone camera and module products saw improvements in average selling price and gross margin, maintaining the number one market share globally[18]. - The Group's shipment volume of vehicle lens sets increased by approximately 12.7% to approximately 102,314,000 units in 2024, maintaining its global No. 1 position in market share[37]. - The shipment volume of handset lens sets increased by approximately 13.1% to approximately 1,324,370,000 units in 2024, also maintaining its global No. 1 position in market share[42]. - The Group achieved mass production of various new handset lens sets with 7 pieces of plastic lens ("7P") and hybrid handset lens sets in 2024[42]. - The Group's 8-mega pixel vehicle modules continue to hold the global No. 1 market share, with significant recognition from both domestic and overseas vehicle manufacturers[48]. - The Group's XR vision modules maintain a global No. 1 market share, with significant advancements in optical module integration for MR devices[52]. Research and Development - R&D expenditure for the year was approximately RMB 2,924.1 million, an increase of approximately 13.9%, accounting for approximately 7.6% of the Group's revenue[74]. - The Group completed the R&D of 8-mega pixel heating vehicle lens sets and 8-mega pixel ultra-low-reflection coating vehicle lens sets, obtaining designated projects from well-known vehicle manufacturers[37]. - The Group has mastered advanced large-lens manufacturing processes for XR optical elements, optimizing display performance and interactive experience[41]. - The Group developed a new 3D super-depth digital microscope in 2024, enhancing its capabilities in high-end precision manufacturing and scientific research[64]. Market Trends and Future Outlook - Global sales of new energy vehicles reached approximately 17,800,000 units in 2024, marking a year-on-year growth of approximately 22.8%[27]. - The digital economy and AI technology are expected to create vast opportunities for the optoelectronics field in 2025[20]. - The robotics market experienced robust growth in 2024, with increasing demand for advanced sensor technologies[31]. - The demand for specifications innovation in smartphone cameras is increasing, with key R&D focuses on large image size, variable apertures, and high optical zoom[33]. Corporate Governance and Social Responsibility - The Group has received an "AA" rating from MSCI and is included in several sustainability indices, reflecting its commitment to ESG principles[19]. - The Group plans to expand its board size and increase the number of female directors to enhance board diversity[19]. - The Group's financial assets include various instruments, representing the maximum exposure to credit risk, with no significant concentration of credit risk due to a diverse customer base[149]. Human Resources and Talent Development - The Group had 33,884 full-time employees as of 31 December 2024, with a focus on competitive compensation and a talent development system[180]. - The Group's talent development system includes modules for new employee development, professional technical personnel, and leadership development[181][182]. - The Group emphasizes a corporate culture centered on "create together" to enhance organizational vitality[188][190]. Leadership - Mr. Wang Wenjian, aged 57, has been appointed as the CEO and executive director since November 26, 2024, bringing extensive experience in operation management and strategic planning[197]. - Mr. Wang Wenjian graduated from Zhejiang University in 1989 and has been with the group since then, indicating a long-term commitment to the company[197]. - Mr. Wang Wenjian was awarded the title of senior economist in December 2022, reflecting his recognized expertise in financial management and capital markets[197].

Financial Performance - The company's total revenue for the fiscal year was approximately RMB 518.52 million, a decrease of about 6.64% compared to RMB 555.38 million in the previous year[11]. - The manufacturing and trading segment generated revenue of approximately RMB 382.78 million, down about 7.10% from RMB 412.04 million, primarily due to the impact of U.S. tariff policies on export sales[11]. - The automotive distribution and service segment reported revenue of approximately RMB 135.73 million, a decline of about 5.30% from RMB 143.33 million, attributed to the closure of unauthorized brand stores and intense competition in the passenger vehicle market[11]. - The overall gross profit for the year was approximately RMB 87.26 million, down about 8.70% from RMB 95.57 million, with a gross margin decrease from 17.21% to 16.83%[12]. - The gross profit from the manufacturing and trading segment was approximately RMB 78.81 million, a decrease of about 10.45%, with the gross margin declining from approximately 21.36% to 20.59%[12]. - The automotive distribution and service segment's gross profit increased to approximately RMB 8.44 million, up about 11.71% from RMB 7.56 million, with the gross margin rising from approximately 5.27% to 6.22%[14]. - Other income for the year was approximately RMB 8.18 million, down from RMB 15.86 million, primarily due to reduced interest income from loans provided to a related company[15]. - The group's loss before tax for the year is approximately RMB 71,316,000, a reduction from RMB 83,669,000 in the previous year, despite a decrease in gross profit and an increase in administrative expenses[19]. - The loss attributable to equity shareholders for the year is approximately RMB 67,923,000, down from RMB 87,320,000 in the previous year, with a loss per share of approximately RMB 0.39 compared to RMB 0.51 in the previous year[21]. - The net cash inflow from operating activities for the year is approximately RMB 56,586,000, a significant decrease from RMB 413,598,000 in the previous year[22]. Expenses and Liabilities - Distribution costs for the year are approximately RMB 34,862,000, down about 7.55% from RMB 37,709,000 in the previous year, mainly due to reduced sales personnel salaries and strict control of marketing expenses[16]. - Administrative expenses for the year are approximately RMB 85,298,000, an increase of about 29.99% from RMB 65,621,000 in the previous year, primarily due to new management hires and increased depreciation expenses[16]. - The financing cost for the year is approximately RMB 21,149,000, a decrease of about 16.12% from RMB 25,213,000 in the previous year, attributed to a lower weighted average borrowing rate[18]. - As of December 31, 2024, the total bank and other borrowings amount to approximately RMB 305,141,000, with about 22.51% borrowed in HKD and 77.49% in RMB[22]. - The group has a current ratio of 0.91 as of December 31, 2024, down from 1.04 in the previous year, indicating a decrease in liquidity[22]. - The company's liabilities as of December 31, 2024, were approximately RMB 858,480,000, up from RMB 769,635,000 as of December 31, 2023[32]. Investments and Strategic Initiatives - The company made a strategic investment in a hydrogen technology company, which is expected to enhance its competitiveness in the hydrogen energy sector[9]. - The company plans to expand its product offerings in smart parking power systems and off-grid energy storage systems, with research and development initiatives set to continue into 2025[9]. - The company aims to actively seek external investment opportunities and partnerships to drive business development and improve its industry chain layout[9]. - The company has signed a letter of intent to acquire 28.4755% equity in a domestic company for RMB 15,000,000, focusing on new energy vehicle charging services[35]. - The company invested RMB 140,000,000 in Tianjin Hongzhuo, which focuses on new energy and new materials, with a fair value of the investment at approximately RMB 111,300,000 as of December 31, 2024[38]. - The company has signed a compensation agreement for land acquisition, expecting to receive approximately RMB 368,881,000, with RMB 66,399,000 already received and recorded as deferred income[30]. Operational Developments - The construction of a pipeline project for industrial high-pressure steam is approximately 98% complete, with an expected completion date of May 31, 2025[39]. - The company has entered into a purchase agreement for a fuel cell system production line for a total price of RMB 298,000,000, including additional equipment and services[42]. - The company is constructing the Qingdao Laixi Automotive Electronics Industrial Park in Shandong, China, with a total cost of RMB 290,212,000, of which RMB 207,000,000 has been paid as of the report date[44]. - The construction of one building in the industrial park has been topped out, with completion expected by June 30, 2025, due to delays in the delivery of fire protection equipment[44]. - The company has invested RMB 55,000,000 and RMB 85,000,000 in Shihezi Yike, acquiring approximately 29.03% and 44.87% equity, respectively[45]. - The company has established an independent engineering department and a new laboratory under the R&D department to enhance its organizational structure and product planning[73]. Market and Industry Trends - In the automotive industry, China's vehicle sales reached approximately 31.436 million units, a year-on-year increase of about 4.5%[67]. - The hydrogen energy industry in China has seen significant progress, with around 1,200 hydrogen refueling stations built, a year-on-year increase of about 40%[68]. - Fuel cell vehicle sales reached approximately 15,000 units, reflecting a year-on-year growth of about 50%[68]. - The average cost of fuel cell systems is expected to decrease by approximately 15% in 2024 compared to 2023, driven by technological advancements and economies of scale[68]. - The manufacturing and trading business reported a revenue decline of approximately 7% compared to 2023, with export revenue decreasing by about 10% in RMB terms, while domestic trade revenue grew by approximately 7%[72]. Governance and Compliance - The company has improved its internal control systems and established an independent internal audit function to enhance governance and compliance[90]. - The board consists of experienced directors who contribute valuable business knowledge and expertise[109]. - The company has established audit, remuneration, and nomination committees to oversee specific areas[117]. - The company has adopted a diversity policy to create an inclusive work environment based on various factors including gender, age, and ethnicity[135]. - The company has established a formal and transparent process for determining the remuneration policies for directors and senior management[122]. - The company has implemented a system for the timely identification and publication of inside information, ensuring compliance with listing rules and regulations[146]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to creating value for shareholders while promoting environmental protection and effective corporate governance[164]. - The company has a zero-tolerance policy towards corruption and implements strict regulations to govern employee and corporate behavior[157]. - The company has identified 17 key environmental, social, and governance issues impacting its operations[170]. - The company aims to maintain or reduce greenhouse gas emission intensity in the next reporting year[178]. - The company reported a 100% reduction in hazardous waste from used tires, batteries, and wastewater in 2024, as these were no longer generated[181]. - The company emphasizes the importance of stakeholder engagement to enhance sustainability performance[173]. Employee Development and Safety - The company employs a total of 714 full-time employees, an increase from 684 in the previous year, with a focus on attracting and retaining talent[62]. - The company provides comprehensive safety training and equipment to ensure employee health and safety[2]. - New employees receive onboarding training to familiarize them with the company's culture, operations, and safety protocols[197]. - The company emphasizes the importance of employee development as a key asset for its ongoing growth[197]. - The overall employee turnover rate improved to -4.2% in 2024, down from 19% in 2023, reflecting better employee retention[191].

Financial Performance - Total revenue decreased by approximately 15.0% to about HKD 148.0 million for the year ended December 31, 2024, compared to HKD 174.2 million in 2023[9]. - Gross loss amounted to approximately HKD 0.3 million, a decrease of about 101.7% from a gross profit of approximately HKD 17.5 million in 2023[9]. - The company reported a net loss attributable to shareholders of approximately HKD 94.8 million, an increase of about 47.8% from a loss of HKD 64.2 million in 2023[10]. - The gross profit margin declined from approximately 10.0% in 2023 to a gross loss margin of about 0.2% in 2024, resulting in a gross loss of approximately HKD 0.3 million[29]. - The loss attributable to the company's owners increased by approximately 47.7% to about HKD 94.8 million in 2024, compared to a loss of HKD 64.2 million in 2023[20]. - The total expenses attributable to the company owners increased by approximately 52.7% to about HKD 95.6 million in 2024, compared to HKD 62.6 million in 2023[20]. - The financial asset impairment loss increased by approximately 165.2% to about HKD 47.2 million in 2024, compared to HKD 17.8 million in 2023[30]. - The company's revenue for the fiscal year 2024 was approximately HKD 148.0 million, a decrease of about 15.0% compared to HKD 174.2 million in fiscal year 2023, while total assets decreased by approximately 23.6% to HKD 395.0 million[58]. Sales and Operations - Fiber optic sales faced challenges with no external sales recorded in the fiscal year 2024, while cable prices and sales volumes decreased by 7.0% and 3.2%, respectively[15]. - The company plans to install several production lines in its existing factory in Hong Kong to manufacture optical cables, aiming to enhance productivity in both Hong Kong and Thailand[22]. - The new butterfly-shaped optical cable production project is expected to achieve an annual production capacity of 200,000 core kilometers and an annual output value of HKD 40 million, targeting the optical fiber access market in Hong Kong and ASEAN[22]. - The company will continue to promote the development of the digital economy and upgrade the optical communication market and technology by 2025[24]. - The revenue from sales of optical fibers to a customer in Thailand decreased from approximately HKD 53.5 million to about HKD 35.2 million, while sales to overseas customers increased from approximately HKD 53.8 million to HKD 58.0 million[27]. Assets and Liabilities - Non-current assets decreased to HKD 244.7 million in 2024 from HKD 265.4 million in 2023[11]. - Current assets decreased significantly to HKD 150.4 million in 2024 from HKD 251.7 million in 2023[11]. - As of December 31, 2024, the group's cash and cash equivalents amounted to approximately HKD 17.8 million, compared to about HKD 14.5 million as of December 31, 2023[40]. - The total bank borrowings as of December 31, 2024, were approximately HKD 25.3 million, down from about HKD 37.6 million as of December 31, 2023[41]. - The debt ratio decreased from approximately 8.3% as of December 31, 2023, to about 7.1% as of December 31, 2024, primarily due to a greater percentage decrease in bank borrowings compared to the total equity reduction caused by the loss during the year[42]. Employee and Workforce - The total employee cost for the fiscal year 2024 was approximately HKD 22.8 million, down from about HKD 25.0 million in fiscal year 2023, with the number of employees decreasing from 174 to 157[50]. - As of December 31, 2024, the total number of employees is 157, a decrease from 174 in 2023, representing a reduction of approximately 9.77%[194]. - The employee turnover rate for the group is 29.30%, up from 16.67% in 2023, indicating a significant increase in turnover[199]. - The number of employees under 30 years old increased to 50 (32%) in 2024 from 48 (28%) in 2023, while those aged 30-50 decreased to 101 (64%) from 119 (68%) in the same period[195]. - The gender distribution shows 54% male (84 employees) and 46% female (73 employees) as of December 31, 2024, compared to 45% male and 55% female in 2023[196]. Corporate Governance - The company has complied with the corporate governance code and continues to review and improve its governance practices[80]. - The company has not separated the roles of Chairman and CEO, believing that this arrangement aids in executing business strategies effectively[81]. - The company will continue to regularly review and monitor its corporate governance practices to ensure compliance with the corporate governance code and maintain a high level of corporate governance[82]. - All directors have confirmed compliance with the standard code of conduct for securities transactions for the year ending December 31, 2024[83]. - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring compliance with listing rules regarding board composition[87]. Environmental, Social, and Governance (ESG) - The ESG report outlines the company's commitment to sustainability and its performance in environmental, social, and governance measures for the fiscal year from January 1, 2024, to December 31, 2024[139]. - The company has established a governance structure that integrates ESG considerations into its decision-making processes, with the board retaining ultimate oversight of ESG issues[141]. - The report adheres to the ESG reporting guidelines set by the Hong Kong Stock Exchange, ensuring compliance with mandatory disclosure requirements[144]. - The company emphasizes the importance of stakeholder feedback to continuously improve its ESG performance and has engaged third-party professionals for materiality assessments[153]. - The total emissions of nitrogen oxides (NOx) for the year 2024 were 93.40 kg, compared to 92.61 kg in 2023, indicating a slight increase[163]. Emissions and Resource Management - Total greenhouse gas emissions decreased from 3,225.52 thousand kg CO2 equivalent in 2023 to 2,387.39 thousand kg CO2 equivalent in 2024, representing a reduction of approximately 26%[167]. - The recycling rate for mixed metals improved to 98.21% in 2024 from 89.00% in 2023, while the recycling rate for paper increased to 99.66% from 96.3%[170]. - The company has implemented various measures to reduce emissions from vehicle exhaust, including using unleaded and low-sulfur fuels and optimizing routes to reduce fuel consumption[165]. - The company has established an environmental management system certified to ISO 14001:2015 to regulate its environmental management practices[161]. - The company aims to enhance resource efficiency and reduce its carbon footprint by closely monitoring monthly energy and water consumption[174].