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].

Financial Performance - The Group recorded total revenue of approximately RMB58,814,000 for the year ended December 31, 2024, a decrease of 16.4% compared to RMB70,377,000 in 2023[36][38]. - Revenue from the provision of technical support services decreased by approximately 15.8% year-on-year, contributing significantly to the overall revenue decline[39]. - The Group recorded an operational loss of approximately RMB11,617,000 in 2024, representing a year-on-year increase of 40.6% from RMB8,264,000 in 2023[28][30]. - The Group's revenue from software product sales decreased by approximately 56.0%, while hardware product sales increased by approximately 1.5 times, and technical support services revenue decreased by approximately 15.8% compared to the previous year[80]. - Loss attributable to shareholders for the year ended December 31, 2024, was RMB (11,617,000), compared to RMB (8,264,000) in 2023, indicating a worsening of 40.5%[130]. - Total assets decreased to RMB 60,202,000 in 2024 from RMB 70,360,000 in 2023, a decline of 14.9%[130]. - Total liabilities increased to RMB 40,629,000 in 2024 from RMB 39,170,000 in 2023, reflecting a rise of 3.7%[130]. - Net assets decreased to RMB 19,573,000 in 2024 from RMB 31,190,000 in 2023, a significant drop of 37.4%[130]. Cost Management - The cost of sales decreased by 8.3% to approximately RMB51,146,000 in 2024, down from RMB55,803,000 in 2023[40]. - The overall gross profit margin decreased by approximately 7.7% to 13.0% in 2024, compared to 20.7% in 2023[40]. - Administrative expenses decreased by 20.8% to approximately RMB12,336,000 for the year ended 31 December 2024, down from RMB15,568,000 in 2023[42]. - Distribution and selling expenses increased by 16.2% to approximately RMB5,125,000 for the year ended 31 December 2024, compared to RMB4,412,000 in 2023[42]. - Other income decreased by 69.9% to approximately RMB463,000 for the year ended 31 December 2024, down from RMB1,537,000 in 2023[42]. - Impairment losses under the expected credit loss model decreased by 85.8% to approximately RMB324,000 for the year ended 31 December 2024, compared to RMB2,280,000 in 2023[43]. - Research and development expenses increased by 19.0% to approximately RMB7,893,000 for the year ended 31 December 2024, up from RMB6,631,000 in 2023[44]. Strategic Outlook - Significant sales performance growth is anticipated in 2025 due to the expansion of the client base and market development efforts[21]. - The Group anticipates increased opportunities in 2025 due to the recovery of the global economy and advancements in fintech[31][33]. - The innovative application of cutting-edge technologies is expected to provide immense market potential for the Group's products and services[31][33]. - The transition to an integrated "product + operations" service model is expected to enhance profitability and support steady revenue growth[27]. - The Group aims to improve financial results in the coming year through increased sales and effective cost control measures[55]. Human Resources - The total staff costs for the year amounted to approximately RMB55,954,000, down from approximately RMB61,375,000 in 2023, with the number of employees decreasing from 622 to 418[82]. - The Group aims to attract and retain key personnel by providing competitive remuneration packages[119]. Risk Management - The Group's financial condition and business prospects may be affected by various risks, including market risks related to foreign exchange rates, interest rates, and equity prices[104]. - The Group does not currently have a foreign currency hedging policy but monitors foreign exchange exposure and will consider hedging when necessary[110]. - Liquidity risk management involves monitoring cash flows and maintaining an adequate level of cash and cash equivalents to finance operations[112]. - The Group's operational risk management is guided by standard operating procedures and regular assessments of key operational exposures[113]. - Investment risk assessment is a core aspect of the investment decision process, with a proper authorization system in place[118]. - Cybersecurity measures are being enhanced to protect against potential data breaches and maintain operational integrity[121]. Corporate Governance - The Group did not have any material acquisitions or disposals of subsidiaries and affiliated companies during the year[71]. - The Group did not have plans for material investments and capital assets as of the date of the report[84]. - Throughout 2024, there were no incidences of non-compliance with relevant laws and regulations that significantly impacted the Group's business[161]. - The Company has not reported any major events affecting the Group since the end of the financial year 2024[160]. Shareholding Structure - Goldcorp Industrial Limited holds 136,307,500 shares, representing 10.35% of the total shareholding, and is controlled by Mr. Hung Yung Lai and Great Song Enterprises Limited[189]. - Mdm Iu Pun, as the spouse of Mr. Hung Yung Lai, holds an interest in 174,840,000 shares, which is 13.27% of the total shareholding[189]. - Mr. Lin Xue Xin holds 118,560,000 shares, representing 9.00% of the total shareholding, and has 4,992,682 share options[191]. - Ms. Zhou Cuilian, spouse of Mr. Lin Xue Xin, is deemed to have an interest in 123,552,682 shares, which is 9.38% of the total shareholding[189]. - Mr. Li Dong holds 65,860,000 shares, representing 5.00% of the total shareholding, and has 5,323,950 share options[191]. - As of December 31, 2024, there were no distributable reserves available for shareholders, consistent with 2023[185]. - The company directors and chief executives were not aware of any other persons with interests or short positions in shares that would require disclosure under the SFO[193]. - As of December 31, 2024, none of the Directors and chief executives had any interests or short positions in any shares or debentures that required notification to the Company or the Stock Exchange[200].

Financial Performance - Revenue decreased from RMB 48,620 million in 2022 to RMB 46,260 million in 2023, and is projected to decline further to RMB 42,957 million in 2024, representing a year-over-year decrease of 4.7% in 2023 and 2.8% in 2024[6]. - Profit attributable to owners of the Company fell from RMB 808 million in 2022 to a loss of RMB 160 million in 2023, with a projected recovery to RMB 149 million in 2024[6]. - EBITDA decreased from RMB 2,357 million in 2022 to RMB 1,279 million in 2023, with an expected increase to RMB 1,500 million in 2024[6]. - The adjusted profit for the year (a non-HKFRS measure) dropped from RMB 513 million in 2022 to RMB 4 million in 2023, with an expected recovery to RMB 266 million in 2024[6]. - The Company reported a loss before income tax of RMB 315 million in 2023, compared to a profit of RMB 756 million in 2022, with a projected profit of RMB 228 million in 2024[6]. - The overall gross profit increased by approximately 147.1% to approximately RMB 1.77 billion, marking a significant turnaround from a net loss to a net profit[48]. - The net profit for 2024 was approximately RMB 225 million, an increase of approximately 214.5% compared to the net loss of approximately RMB 196 million in 2023[48]. - The consolidated gross profit for 2024 was RMB 1,027 million, an increase of approximately 165.4% compared to RMB 387 million in 2023[117]. - The gross profit per tonne of steel products increased from RMB 50 in 2023 to RMB 143 in 2024, reflecting an increase of 186.0%[120]. Sales and Production - The average selling price per tonne of self-manufactured steel products decreased from RMB 3,974 in 2022 to RMB 3,557 in 2023, and is projected to decline further to RMB 3,432 in 2024[18]. - Total sales volume of self-manufactured steel products increased from 7,102,000 tonnes in 2022 to 7,733,000 tonnes in 2023, but is expected to decrease to 7,169,000 tonnes in 2024[13]. - H-section steel products accounted for 46.1% of total sales volume in 2024, with a sales volume of 3,302,000 tonnes, down 8.3% from 3,600,000 tonnes in 2023[109]. - Strips and strip products represented 40.5% of total sales volume in 2024, with a sales volume of 2,900,000 tonnes, down 3.8% from 3,014,000 tonnes in 2023[109]. - The total sales volume for 2024 was 7,169,000 tonnes, a decrease of approximately 7.3% from 2023's 7,733,000 tonnes[107]. - The Group's annual production output capability of steel products was more than 10 million tonnes in 2024[110]. Market and Industry Trends - In 2024, the total profit of the iron and steel industry in China was approximately RMB 29.19 billion, representing a year-on-year decrease of approximately 54.6%[40]. - The national production volume of pig iron, crude steel, and steel products in 2024 was approximately 852 million tonnes, 1.005 billion tonnes, and 1.400 billion tonnes respectively, with decreases of approximately 2.3% and 1.7% for pig iron and crude steel, while steel products saw an increase of approximately 1.1% compared to 2023[40]. - The global economy is expected to continue a slow recovery in 2025, benefiting from declining inflation and easing monetary policies, but faces challenges such as trade protectionism and geopolitical tensions[79]. - The iron and steel industry anticipates improved downstream demand and rising product prices, with no significant decline in annual steel consumption expected in 2025[80]. Strategic Initiatives - The Company plans to focus on improving operational efficiency and exploring new market opportunities to enhance profitability in the upcoming years[6]. - The Group aims to enter the Fortune Global 500, focusing on specialization, industry chain extension, and high-tech development[33]. - The Group aims to enhance core competitiveness through digitalization, lean management, and the development of high-value-added products, with several green and low-carbon factory projects expected to launch in 2025[83]. - The Group plans to diversify its business by expanding into trading steel products, precast components, and recycling solid waste residues[88]. - The Group is committed to achieving carbon neutrality by 2050, investing in emission-reduction technologies and environmental protection projects[92]. Environmental and Sustainability Efforts - Jinxi Limited achieved an annual emission reduction of approximately 1.10 million tonnes of carbon dioxide, 53 tonnes of nitrogen oxide, and 26 tonnes of sulfur dioxide in 2024[45]. - The self-generated electricity rate for Jinxi Limited increased to approximately 52.4%, while externally purchased electricity was reduced by approximately 260 million kWh per year[45]. - Policies in the iron and steel industry are focusing on energy efficiency improvement, green and low-carbon transformation, and achieving carbon peak by 2027[43]. - Jinxi Limited was rated as a "Grade A in Environmental Protection Performance Rating" enterprise, being the second enterprise in Tangshan City to achieve this[60]. - The Group has implemented various green energy projects, resulting in a reduction of approximately 1.1 million tonnes of CO2 emissions annually[61]. Financial Position and Investments - As of December 31, 2024, the Group had unutilized banking facilities of approximately RMB 14.5 billion, an increase from RMB 13.9 billion in 2023[136][138]. - The current ratio of the Group was 1.3 times as of December 31, 2024, compared to 1.2 times in 2023, while the gearing ratio was 50.2%, slightly up from 50.1% in 2023[139][144]. - Cash and cash equivalents amounted to approximately RMB 3,516 million as of December 31, 2024, down from RMB 3,618 million in 2023[140][144]. - The debt-to-capital ratio of the Group increased to 65.8% in 2024 from 63.0% in 2023[142][145]. - The Group reported investment gains from steel products, iron ore, and related raw materials derivative financial instruments of approximately RMB22 million for the year ended 31 December 2024, compared to losses of approximately RMB40 million in 2023[156][159]. Dividends and Shareholder Returns - The Group proposed a final dividend of HK$0.01 per ordinary share and a special dividend of HK$0.05 per ordinary share for 2024[75]. - The Group aims to assess the possibility of increasing dividend distribution to reward shareholders for their support[96]. - The Board proposed a final dividend of approximately HK$37 million (approximately RMB34 million) and a special dividend of approximately HK$186 million (approximately RMB172 million) for the year ended 31 December 2024[157][160].

Company Overview - The company changed its name from China Resources Cement Holdings Limited to China Resources Building Materials Technology Holdings Limited on November 3, 2023[5]. - As of the report date, the total number of issued shares is 6,982,937,817, with China Resources Group holding approximately 68.72% of the issued shares[5]. - The company was re-listed on the main board of the Stock Exchange on October 6, 2009, by way of a global offering[4]. - The company was originally incorporated on March 13, 2003, in the Cayman Islands as an exempted company with limited liability[3]. - The company was privatized in 2006 and subsequently withdrew its shares from the Stock Exchange on July 26, 2006[4]. - The company operates in the cement, concrete, and aggregates sectors under the China Resources Group[3]. - The company has a significant presence in the Chinese market, focusing on building materials technology[5]. - The company aims to enhance its market position through strategic investments and technological advancements in the building materials sector[5]. - The company has established a strong governance structure with various committees overseeing strategic and operational decisions[9]. - The company maintains relationships with multiple principal bankers to support its financial operations[14]. Production Capacity and Operations - As of December 31, 2024, the Group operates 101 cement grinding lines with an annual production capacity of 90.2 million tons and 49 clinker production lines with a capacity of 63.3 million tons[27]. - The Group has 68 concrete batching plants with an annual production capacity of 44.2 million cubic meters[27]. - In Guangdong, the Group has 32 cement production lines with a capacity of 27.7 million tons, and 12 clinker production lines with a capacity of 15.5 million tons[28]. - In Guangxi, the Group operates 35 cement production lines with a capacity of 34.8 million tons and 19 clinker production lines with a capacity of 27.9 million tons[28]. - The Group's products are primarily used in infrastructure projects such as railways, highways, and airports, as well as high-rise buildings and rural development[26]. - The Group's operations cover key provinces including Guangdong, Guangxi, Fujian, Hainan, Yunnan, Guizhou, Shanxi, and Hunan[26]. - The concrete production capacity in Guangdong is 16.0 million cubic meters, while in Guangxi it is 19.6 million cubic meters[28]. - The Group's cement and clinker production capacities are strategically located to support regional infrastructure needs[26]. - The total production capacity for cement, clinker, and concrete across all facilities is 90.2 million tons, 63.3 million tons, and 44.2 million cubic meters respectively[28]. Financial Performance - The Group's consolidated turnover for the year ended December 31, 2024, was RMB 23,037.8 million, a decrease of 9.8% compared to the previous year[40]. - The consolidated profit attributable to owners of the Company for the year was RMB 210.9 million, representing a decrease of 67.2% from the previous year[40]. - Basic earnings per share for the year was RMB 0.030, down from RMB 0.092 in the previous year[40]. - The Group's total annual production capacities include 64.7 million tons of cement, 37.0 million tons of clinker, and 8.4 million m³ of concrete[31]. - The Group's attributable annual production capacities are 22.3 million tons of cement, 12.0 million tons of clinker, and 3.9 million m³ of concrete[31]. - The Group's gearing ratio improved to 34.6% from 36.9% in the previous year[35]. - Total assets as of December 31, 2024, were RMB 71,963.1 million, slightly down from RMB 72,792.2 million in the previous year[35]. Market and Economic Context - In 2024, China's GDP grew by 5.0% year-on-year to RMB134.9 trillion, while national fixed asset investment (excluding rural households) increased by 3.2% year-on-year to RMB51.4 trillion[46]. - The GDPs of key provinces where the Group operates showed year-on-year increases, with Guangdong at RMB14.2 trillion (3.5%), Guangxi at RMB2.9 trillion (4.2%), and Fujian at RMB5.8 trillion (5.5%)[47]. - In 2024, approximately RMB4.7 trillion of new local government bonds were issued, with RMB4.0 trillion being new special bonds, and national infrastructure investments increased by 4.4% year-on-year[50]. - The floor space of new commodity housing sold in China decreased by 12.9% year-on-year to 970 million m², with sales amounting to RMB9.7 trillion, a decrease of 17.1%[51]. - The total cement production in China in 2024 was approximately 1,830 million tons, representing a year-on-year decrease of 9.5%[55]. - The Group's operational regions saw varied fixed asset investment changes, with some provinces like Hunan showing a 5.3% increase while others like Guizhou saw a decrease of 7.7%[44]. - The railway fixed asset investment reached approximately RMB850.6 billion in 2024, marking an 11.3% year-on-year increase, the highest in five years[50]. Environmental and Social Responsibility - The Group emphasizes corporate social responsibility, focusing on energy saving, emission reduction, and the development of new products and technologies[32]. - The Chinese government aims for 50% of cement and clinker production capacity to complete ultra-low emission upgrades by the end of 2025, with a target of 80% by the end of 2028[63]. - The "2024–2025 Action Plan for Energy Saving and Carbon Reduction" sets specific goals for reducing energy consumption per unit of GDP and carbon emissions per unit of GDP in the building materials industry[67]. - The comprehensive energy consumption per unit product of cement and clinker is targeted to decrease by 3.7% compared to 2020 by the end of 2025[63]. - The Chinese government emphasizes the importance of production safety and occupational health to foster sustainable development in the building materials industry[60]. - The introduction of policies aims to promote green, low-carbon transformation and high-quality development in the cement industry[60]. - The Group is focusing on green and sustainable development, promoting energy conservation and emission reduction initiatives[83]. - The Group's project for producing low-carbon cement and concrete from waste rocks was recognized as reaching international advanced levels, with key technologies achieving international leading status[88]. - The Group was ranked 13th in the "China Listed Companies ESG Pioneer 100" list for the second consecutive year, with a five-star ESG performance rating[88]. Technological Innovation - The Group is actively promoting R&D of new products and technologies, including raw material roller press and energy-saving carbon reduction technologies in cement grinding[87]. - The Group's intelligent logistics system upgrade was completed at 16 production plants, enhancing operational efficiency and reducing hardware maintenance costs[165]. - The Group's digital transformation project for marketing models was fully launched across all business sectors, achieving a 100% coverage rate[164]. - The Group developed a carbon capture and utilization research platform with an annual CO2 capture capacity of 100,000 tons, aiming for carbon neutrality in the cement industry[168]. - The independently developed cement carbon reduction and grinding aid technology has been applied at 10 new production plants, reducing the cement clinker coefficient by 4%–6%[170]. - The Group's R&D team consists of 552 technology professionals, including 150 dedicated R&D personnel[167]. - The Group's collaboration with Fuzhou University led to the formulation of technical guidelines for wear-resistant and low-shrinkage pavement cement, enhancing its competitive advantage in the market[138]. Production and Cost Management - The Group implemented a strategy to systematically reduce production costs, resulting in a significant reduction in the costs of most products compared to the corresponding period last year and the budget[113]. - The Group's coal cost represents a significant cause for volatility in cement production costs, making coal price fluctuations a principal risk[105]. - The Group is actively promoting the use of alternative fuels to reduce standard coal consumption per ton of clinker products compared to 2023[115]. - In 2024, the Group established a cost reduction management system across the entire value chain, focusing on production, procurement, logistics, and workforce efficiency to restore the advantage of the lowest total costs[117]. - The Group's total coal procurement in 2024 was approximately 6.3 million tons, a decrease from 6.6 million tons in 2023, with 68% sourced from northern China, 9% from nearby production areas, and 23% from overseas[127]. - The average coal price purchased in 2024 was RMB802 per ton, a decrease of 13.7% from RMB929 per ton in 2023, while the average coal cost per ton of clinker produced decreased by 14.9% to RMB104.3 from RMB122.6 in 2023[191]. - The average electricity cost decreased by 7.1% to RMB28.8 per ton of cement, with electricity consumption at 68.3 kWh per ton, and the company achieved a cost saving of approximately RMB669.8 million in 2024[194]. - The Group's focus on "Deepening Reform, Born Anew" aims to enhance core competitiveness and promote the application of intelligent, green, and high-end technologies[98]. Employee and Operational Management - As of December 31, 2024, the Group employed a total of 17,030 full-time employees, a decrease from 17,939 in the previous year[173]. - The total staff costs for the year were approximately RMB 2,829,743,000, down from RMB 3,056,899,000 in 2023[177]. - The Group launched the "2024 Outstanding Engineers Practical Advancement Project," training a total of 64 outstanding engineers[172]. - The Group's project management included monthly meetings and risk assessments to expedite project processes and ensure compliance with safety standards[123]. Sales and Market Performance - In 2024, the external sales volume of cement products decreased by 7.6 million tons, concrete increased by 3.7 million m³, and aggregates increased by 23.8 million tons, representing a decrease of 10.9%, an increase of 39.6%, and an increase of 52.1% respectively compared to 2023[182]. - The average selling prices of cement products, concrete, and aggregates in 2024 were RMB243.7 per ton, RMB319.5 per m³, and RMB36.4 per ton, reflecting decreases of 10.6% and 12.9% for cement and concrete, while aggregates increased by 2.8% compared to 2023[184]. - The internal sales volume of cement for concrete production was 2.6 million tons, representing 4.2% of total cement sales, an increase from 2.7% in 2023[183]. - The gross profit margins for cement products, concrete, and aggregates in 2024 were 15.1%, 12.2%, and 35.1% respectively, compared to 11.7%, 11.9%, and 54.3% in 2023[199]. - The Group achieved a brand terminal coverage rate of 95.4% and customer satisfaction rate of 98.2% in 2024, maintaining a satisfaction rate of no less than 98% for two consecutive years[143].

Financial Performance - For the year ended December 31, 2024, the Group reported total revenue of approximately RMB 6.97 billion, a slight decrease from RMB 7.01 billion in 2023[10]. - Revenue from non-related parties reached approximately RMB 6.80 billion, representing a year-on-year growth of about 5.6% and accounting for approximately 98% of total revenue[13]. - The Group's net loss for the year was RMB 433.14 million, compared to a loss of RMB 393.18 million in 2023[10]. - The gross profit for the year ended December 31, 2024, was approximately RMB 1,527.3 million, down from RMB 1,667.9 million in 2023, reflecting a decrease of about 8.4%[32]. - The gross margin decreased to approximately 21.9% in 2024 from 23.8% in 2023, a decline of about 1.9 percentage points[32]. - Community living services revenue decreased by approximately RMB 30.8 million (approximately 6.5%) to about RMB 443.0 million for the year ended December 31, 2024[23]. - The gross profit margin for property management and operation services decreased from approximately 23.8% in 2023 to 20.9% in 2024, mainly due to increased maintenance costs[33]. Assets and Liabilities - The Group's total assets as of December 31, 2024, were RMB 10.59 billion, down from RMB 11.64 billion in 2023[11]. - The total equity of the Group decreased to RMB 5.32 billion in 2024 from RMB 6.24 billion in 2023[11]. - The net amount of trade and other receivables was approximately RMB 3,590.2 million as of December 31, 2024, a decrease of about RMB 727.4 million from RMB 4,317.6 million as of December 31, 2023, primarily due to an increase in trade receivables and impairment provisions[45]. - The group's available funds totaled approximately RMB 4,068.8 million as of December 31, 2024, a decrease of about RMB 366.8 million from RMB 4,435.6 million as of December 31, 2023, mainly due to cash outflows for dividends[47]. - The current ratio was approximately 1.5 times as of December 31, 2024, compared to approximately 1.7 times as of December 31, 2023[47]. - The group has no loans or borrowings as of December 31, 2024, maintaining an asset-to-liability ratio of zero[47]. Revenue Breakdown - Property management and operation services revenue increased by approximately RMB 221.0 million (approximately 3.6%) to about RMB 6,379.6 million for the year ended December 31, 2024, driven by an increase in managed building area[22]. - The proportion of revenue from core cities in the group's contracts reached approximately 98%, an increase of about 6 percentage points year-on-year[15]. - The community living service business achieved revenue of approximately RMB 2.2 billion, representing a year-on-year growth of about 5% and accounting for about 50% of total community living service revenue[16]. - The revenue from convenience services was approximately RMB 215.84 million, remaining stable compared to RMB 216.35 million in 2023[24]. - Space operation services revenue decreased by approximately RMB 26.0 million to RMB 117.19 million, primarily due to the active reduction of non-core business operations[25]. - Non-owner value-added services revenue was approximately RMB 146.9 million, a significant decrease of about RMB 230.2 million (approximately 61.0%) from RMB 377.1 million in 2023[29]. Operational Metrics - The number of managed properties increased to approximately 2.91 million square meters, reflecting a year-on-year growth of about 7%[14]. - The number of managed households rose to approximately 1.7 million, marking an 8% increase compared to the previous year[14]. - The renewal rate of contracts increased by 4 percentage points to approximately 95%[14]. - The group invested over RMB 60 million in 541 projects in 2024 to enhance service quality and address owner concerns, resulting in over 80% improvement in collection rates[14]. Governance and Management - The management team includes experienced professionals with over 20 years in the real estate industry, enhancing strategic decision-making capabilities[54][55][56]. - The company emphasizes the importance of good corporate governance and has adopted the corporate governance code as its own[70]. - The board consists of eight members, including two executive directors, three non-executive directors, and three independent non-executive directors[73]. - The company has established various board committees, including the audit committee, remuneration committee, nomination committee, and ESG committee[71]. - The company has confirmed the independence of all independent non-executive directors in accordance with listing rules[76]. ESG and Risk Management - The group has a strong focus on environmental, social, and governance (ESG) initiatives, led by the CEO who also chairs the ESG committee[55]. - The company has committed to integrating ESG and climate-related expectations into its business decision-making processes[98]. - The company has established a clear risk management structure, with the board overseeing risk management and the audit committee reviewing its effectiveness[106]. - The company has implemented effective risk management procedures, including risk identification, analysis, response, and monitoring responsibilities[109]. Shareholder and Dividend Information - The group plans to declare a final dividend of RMB 0.143 per share for the year 2024, totaling approximately RMB 437 million, which represents about 55% of the core net profit attributable to shareholders[16]. - The company maintains a dividend policy aimed at providing stable and sustainable dividends while ensuring sufficient financial resources for business growth[137]. - The proposed final dividend for the year ending December 31, 2024, is RMB 0.143 per share, totaling approximately RMB 437 million, subject to shareholder approval[139]. Strategic Investments and Future Plans - The company plans to seek strategic investment and acquisition opportunities related to its core property management and community operations[124]. - The company has allocated HKD 1,480 million for further expansion of community value-added services, with HKD 431 million utilized to date[128]. - The company plans to upgrade its smart management service system with an allocation of HKD 768 million, of which HKD 415 million has been utilized[128].

Financial Performance - In 2024, the company's net interest income was RMB 21,542.7 million, a decrease of 3.2% compared to RMB 22,263.0 million in 2023[19]. - The net profit for 2024 increased by 8.2% to RMB 3,469.7 million, up from RMB 3,206.3 million in 2023[19]. - The company's operating income for 2024 was RMB 25,955.3 million, a slight decrease of 0.9% from RMB 26,183.4 million in 2023[19]. - The cost-to-income ratio improved to 38.80% in 2024, down from 40.07% in 2023[19]. - The net interest margin decreased to 1.52% in 2024, down from 1.56% in 2023[19]. - The company reported a return on average equity of 3.47% in 2024, an increase from 3.11% in 2023[19]. - The total operating income for the bank was RMB 25,955.3 million, a slight decrease from RMB 26,183.4 million in the previous year[146]. - Interest income from loans and advances was RMB 31.8418 billion, down RMB 1.783 billion or 5.3% year-on-year, attributed to the company's efforts to lower financing costs for enterprises by reducing interest rates[64]. - Interest expenses for the year ended December 31, 2024, amounted to RMB 26.493 billion, a decrease of RMB 1.949 billion or 6.9% year-on-year, primarily due to reduced interest expenses on deposits and issued bonds[73]. Asset and Liability Management - Zhongyuan Bank's total assets exceeded RMB 1.3 trillion as of the end of the reporting period[13]. - The total assets of the company reached RMB 1,365,197.0 million, reflecting a growth of 1.4% from RMB 1,346,446.5 million in 2023[22]. - Total assets reached RMB 1,365.197 billion, an increase of RMB 18.751 billion compared to the previous year[39]. - The total amount of absorbed deposits was RMB 942.459 billion, with an average interest rate of 1.98%, compared to RMB 865.444 billion and 2.28% in the previous year[75]. - The bank's total liabilities were not explicitly stated but are implied to be consistent with the growth in total assets[92]. - The balance of interbank and other financial institution deposits was RMB 52,658.6 million, up RMB 13,954.6 million, marking a 36.1% increase from the previous year[115]. Loan and Credit Quality - The non-performing loan ratio improved slightly to 2.02% in 2024, down from 2.04% in 2023[22]. - The company's non-performing loan balance was RMB 144.58 million, with a non-performing loan ratio of 2.02%, a decrease of 0.02 percentage points from the previous year[124]. - The normal loan category accounted for 94.76% of total loans, while the substandard, doubtful, and loss categories represented 0.47%, 0.16%, and 1.39% respectively[126]. - The overdue loan total was approximately RMB 292.51 billion, representing 4.09% of the total loan amount, an increase of about 0.11 percentage points from the previous year[144]. - The non-performing loan balance for mortgage loans was RMB 6,880.8 million, with an NPL ratio of 2.44% as of December 31, 2024[136]. Market Position and Recognition - In 2024, Zhongyuan Bank ranked 144th in The Banker’s list of the world's top 1,000 banks, improving by one position from the previous year[16]. - The bank received multiple awards in 2024, including the "Outstanding Brand Communication Award" and "Pioneer in Digital Transformation"[17]. - Zhongyuan Bank was recognized as one of the top 20 in ESG comprehensive performance among city commercial banks in China[17]. - In 2024, the company was awarded the "2024 Golden Quality Bank Brand" and "Outstanding Bank Wealth Management Institution" by various financial media[17]. Strategic Initiatives and Development - The bank aims to enhance its market position by focusing on high-quality development and local economic service[14]. - The bank's strategy includes continuous improvement in asset quality and operational performance to support local economic development[14]. - The company's mission is to be "the bank of the people of Central China," aligning with regional government goals[14]. - The company signed strategic cooperation agreements with nine local governments, enhancing service capabilities[40]. - The bank continues to focus on expanding its market presence and enhancing its product offerings to support future growth[100]. Customer and Service Expansion - The bank's retail customer base expanded to 35.4361 million, with an increase of 1.605 million customers, reflecting a growth rate of 4.53% year-on-year[175]. - The number of registered mobile banking users reached 17.56 million, an increase of 1.64 million compared to the end of the previous year[195]. - The bank's mobile banking service for rural areas has reached 3.4275 million users[191]. - The bank provided clearing services for 434 million transactions, amounting to RMB 142.875 billion for acquiring customers[176]. - The bank's wealth management services continued to grow, emphasizing personalized and diversified offerings for clients[177]. Digital Transformation and Technology Integration - The bank emphasized digital transformation and technology integration to enhance service quality and operational efficiency[200]. - The bank launched its first green inclusive collaborative model for green government procurement loans and green corporate overdraft products in 2024[162]. - The bank's mobile banking app version 6.0 was released, focusing on "simple, intelligent, and secure" financial services[193]. - The company has developed a comprehensive online product operating system that combines financial and non-financial services, serving 28,764 clients in financial management[164]. Awards and Recognition - The bank received multiple awards for its wealth management services, including the "Golden Hazelnut Award" and "Golden Reputation Award" in 2024[184].

Magnesium Production and Market Trends - In 2024, global magnesium production reached approximately 1.13 million tons, with China contributing 1.026 million tons, accounting for 90.8% of the total, reflecting a year-on-year increase of 25%[20] - The average domestic price of magnesium in 2024 was RMB 17,920 per ton, a year-on-year decrease of 13%, with prices hitting a low of RMB 16,000 per ton in December, resulting in overall industry losses[20] - China's magnesium ingot exports grew by 13.6% year-on-year in 2024, but the average export price fell by 7.1%[21] - The magnesium-aluminum price ratio dropped to 0.76 as of February 21, 2025, indicating a significant cost advantage for magnesium, with magnesium priced at RMB 15,800 per ton compared to aluminum at RMB 20,800 per ton[28] - The total national inventory of magnesium is expected to exceed 80,000 tons by December 2024, marking a historical high due to weak demand and significant capacity release[23] - The magnesium industry is facing challenges from weak demand in traditional sectors and increased electricity costs due to China's "dual carbon" policy[22] - The magnesium price has been under pressure due to inventory buildup and cautious procurement by downstream companies[21] - The magnesium industry is experiencing accelerated consolidation, leading to the exit of smaller capacities and further price depressions[22] - The magnesium market is currently facing a "strong supply and weak demand" pattern, with prices under downward pressure due to environmental and cost challenges[59] Company Financial Performance - The Group's revenue for 2024 was HK$242.7 million, a decrease of 7.9% compared to HK$263.5 million in 2023[64] - The overall gross loss for the year was HK$51.4 million, improved from a gross loss of HK$85.3 million in 2023[64] - Loss attributable to shareholders was HK$408.4 million, slightly improved from HK$423.6 million in 2023[64] - The sales volume of magnesium products increased from 12,300 tons in 2023 to 13,678 tons in 2024, but the average selling price dropped from HK$21,337 per ton to HK$17,564 per ton[67] - Administrative expenses decreased to approximately HK$57.5 million from HK$83.7 million in 2023, mainly due to cost-cutting measures[72] - The Group recognized a non-recurring impairment provision of HK$252.1 million on non-current assets, reflecting ongoing losses in the magnesium business[77] - The gearing ratio increased to 69.8% in 2024 from 47.7% in 2023, indicating higher financial leverage[79] - Cash at bank decreased to HK$24.7 million in 2024 from HK$39.9 million in 2023[83] - The recoverable amount of the cash-generating unit was estimated at HK$741.5 million, based on five-year cash flow projections[85] - The Group recorded a consolidated net loss of approximately HK$408,419,000 for the year ended 31 December 2024[176] Operational and Strategic Initiatives - The company is focusing on the lightweighting of new energy vehicles, with magnesium alloys being applied in structural components, achieving a 30% weight reduction and 40% cost savings compared to aluminum alloys[29] - Magnesium alloys are expected to drive the development of a 200,000-ton magnesium alloy electric motor housing industry, with a weight reduction of 30% compared to aluminum[38] - The company aims to balance short-term pressures with long-term strategic layouts amidst a sluggish industry environment[19] - The company is exploring new applications for magnesium alloys in aerospace, robotics, and building templates, leveraging their lightweight and high-performance properties[45] - The company plans to upgrade its production facilities to meet ultra-low emission standards by 2026, requiring substantial investment[56] Governance and Compliance - The Company has complied with the Code on Corporate Governance Practices throughout the year ended December 31, 2024, with specific deviations disclosed[128] - The Board held a total of four meetings during the year ended December 31, 2024, ensuring regular oversight of the Group's strategies and financial performance[139] - All Directors confirmed compliance with the Model Code for Securities Transactions throughout the year ended December 31, 2024[128] - The Board comprises five Directors, including the Chairman and Chief Executive Officer, responsible for overall strategy formulation and financial performance monitoring[137] - The Company has established relevant committees to enhance internal controls and transparency in business operations[127] - The Audit Committee held four meetings in the year ended December 31, 2024, reviewing the final results for the period ended December 31, 2023, and the interim results for the six months ended June 30, 2024[158] - The Audit Committee confirmed that the accounting principles and practices adopted, as well as the disclosures made in the financial statements, were appropriate, accurate, and fair[158] - The Company has adopted the Terms of Reference of the Audit Committee in compliance with the Code[156] - The Company does not have a separate chairman and Chief Executive Officer, with Mr. Shum Sai Chit holding both positions, which deviates from the Corporate Governance Code[151] Risk Management and Challenges - The Group's liquidity risk is exacerbated by the need for significant capital investment for environmental upgrades amidst tight cash flow[99] - The Group has authorized a team to manage credit risk by determining credit limits and monitoring overdue debts, ensuring regular assessments of all clients[88] - The Group's management regularly assesses operational risks and implements measures to improve internal controls[97] - Investment risk is a core aspect of the Group's decision-making process, with established procedures for investment assessment and due diligence[103] - The local government has mandated the completion of facility upgrades to ensure compliance with environmental standards, impacting operational timelines[56] Employee and Corporate Social Responsibility - The Group employed approximately 340 employees as of 31 December 2024, with no significant labor disputes affecting normal operations[115] - The Group is committed to improving corporate governance practices to enhance transparency and protect stakeholder interests[122] - The Group has adopted green initiatives including resource recycling, energy saving measures, and water saving practices in daily operations[109] - The Company recognizes the benefits of diversity among its Board members and bases appointments on meritocracy and competence[177] Financial Management and Audit - The total remuneration paid/payable to external auditors for audit services was HK$790,000 and for non-audit services was HK$145,000, totaling HK$935,000 for the year ended December 31, 2024[179] - The Remuneration Committee held one meeting in the year ended December 31, 2024 to review the remuneration policies of Directors and senior management[168] - The Nomination Committee also held one meeting in the year ended December 31, 2024 to review the structure and diversity of the Board[172] - The Company Secretary has over 10 years of experience in auditing, accounting, financial management, and corporate finance[182] - The Company Secretary participated in no less than 15 hours of relevant professional training during the year ended December 31, 2024[183]

Financial Performance - The Company reported solid performance in 2024, highlighting a resilient business model and improved margin profile[2]. - Net sales for the year ended December 31, 2024, were $3,588.6 million, a decrease of 2.5% compared to $3,682.4 million for 2023[46]. - Gross profit for 2024 was $2,152.2 million, reflecting a decrease of 1.4% from $2,182.8 million in 2023[46]. - Operating profit decreased by 15.4% to $629.3 million in 2024 from $743.7 million in 2023[46]. - Profit for the year attributable to equity holders was $345.6 million, down 12.9% from $396.9 million in 2023[46]. - Adjusted net income for 2024 was $369.8 million, a decrease of 5.8% compared to $392.4 million in 2023[46]. - Adjusted EBITDA for 2024 was $683.0 million, down 3.7% from $709.3 million in 2023[46]. - Basic earnings per share decreased by 13.0% to $0.239 in 2024 from $0.275 in 2023[46]. - Diluted earnings per share decreased by 13.1% to $0.237 in 2024 from $0.273 in 2023[46]. - The Company recorded net sales of US$3,588.6 million for the year ended December 31, 2024, a decrease of only 0.2% year-over-year[61]. - The Company's profit margin for 2024 was 10.4%, down from 11.7% in 2023[190]. Sales and Market Trends - Year-over-year constant currency net sales performance improved sequentially across regions in Q4 2024 compared to Q3 2024, despite an uncertain macroeconomic environment affecting consumer sentiment[18]. - Net sales for Q1 2025 are expected to decline low to mid-single digits on a constant currency basis compared to Q1 2024, with growth trends anticipated to improve throughout 2025[18]. - Sales in mature markets are expected to increase, while penetration in emerging high-growth regions will deepen[19]. - The Company recognizes the impact of trends in the travel industry, particularly air travel, on its business[30]. - The Company believes that strong travel trends in the coming years will support long-term business growth[19]. - The Company anticipates low to mid-single digits decline in net sales for Q1 2025 compared to Q1 2024, but expects growth trends to improve over the course of 2025[122]. - The global bags and luggage industry had approximately $87 billion in retail sales during 2024, with the company's travel products comprising 65.7% of its net sales[147][150]. Strategic Initiatives - The Company aims to increase shareholder value through sustainable revenue and earnings growth, focusing on brand elevation and innovation[16]. - The Company plans to expand its brand portfolio through accretive M&A and deepen penetration in emerging, high-growth regions[18]. - The Company is focused on expanding its travel and non-travel product offerings through innovation and sustainability improvements[18]. - The Company is preparing for a potential dual listing of its securities in the United States to enhance value creation for shareholders[22]. - The Company aims to expand its product offerings and market reach, particularly in the non-travel category[30]. - The Company plans to deepen penetration in emerging markets with higher growth potential while increasing sales in established markets[30]. - The Company is excited about new products and marketing programs surrounding the TUMI brand, which is celebrating its 50th anniversary in 2025[123]. - The Company believes it has significant opportunities to grow net sales by expanding into adjacent product categories and leveraging brand recognition[168]. Cost Management and Profitability - The Company is confident in maintaining a robust margin profile and delivering positive operating leverage through disciplined expense management[18]. - The Company aims to generate strong adjusted free cash flow, providing flexibility for future investments and shareholder returns[19]. - Adjusted free cash flow increased by US$26.5 million to US$311.0 million for the year ended December 31, 2024, compared to US$284.5 million for 2023[53]. - The Company maintains substantial liquidity of $1.4 billion as of December 31, 2024[77][79]. - The Company expects its strategy to broaden its product offering within the non-travel category will help mitigate the impact of global travel trends over time[174]. - The Company anticipates that the growth rate of its sales costs will be lower than the growth rate of its net sales in the long term due to strict cost management and a shift towards higher-margin brands, product lines, and channels[198]. Sustainability and Innovation - The Company is committed to sustainability and addressing climate change-related matters[31]. - The Company continues to focus on sustainability and innovation in its product offerings, aligning with evolving consumer demands[143]. - The share of the Company's net sales from products incorporating recycled materials increased to approximately 40% in 2024, up from about 34% in 2023[117]. - The Company invested significantly in research and development for new materials and innovative designs to enhance product desirability and sustainability[155][158]. Operational Highlights - The Company emphasizes a decentralized management structure to foster innovation and efficient decision-making[15]. - The performance of the Company's direct-to-consumer (DTC) channel, including the expansion of retail stores and e-commerce platforms, is a key focus[30]. - Direct-to-consumer (DTC) net sales increased by 2.7%, with DTC e-commerce net sales rising by 5.8% year-over-year, contributing 39.8% of total net sales[64]. - The Company operates robust DTC e-commerce platforms worldwide, contributing to significant growth across its brands and regions[162]. - The Company has streamlined its retail store fleet to focus on driving profitable growth and employs a targeted approach to new store openings[162]. Economic Outlook - The macroeconomic outlook remains uncertain, but global travel and tourism is expected to see steady growth in 2025, supporting consumer demand for the Company's products[83]. - International tourist arrivals are expected to grow by 3% to 5% in 2025 compared to 2024, according to the United Nations World Tourism Organization[9]. - The Company is aware of the risks related to consumer spending and general economic conditions affecting its operations[32]. - Macroeconomic factors have led to consumers becoming more selective with their spending, adversely affecting the Company's net sales during the year ended December 31, 2024[169].

Financial Performance - The company reported operating revenue of approximately RMB 16,866.52 million, representing a year-on-year increase of 31.42% compared to RMB 12,833.61 million in the same period last year[6]. - The net loss attributable to shareholders was approximately RMB 1,234.60 million, a decrease in loss of 5.65% from RMB 1,308.58 million in the previous year[6]. - The company experienced a 31% increase in operating income, primarily due to growth in the green building materials and real estate sectors[12]. - Total operating revenue for Q1 2025 reached ¥16.87 billion, a 31.7% increase from ¥12.83 billion in Q1 2024[27]. - Net loss for Q1 2025 was ¥2.13 billion, compared to a net loss of ¥2.08 billion in Q1 2024, reflecting a slight increase in losses[28]. - The company reported a total profit of -¥1.96 billion for Q1 2025, compared to -¥1.99 billion in Q1 2024[28]. Cash Flow - The net cash flow from operating activities was negative at RMB 5,430.79 million, worsening by 10.39% compared to RMB 4,919.45 million in the same period last year[6]. - In Q1 2025, cash inflow from operating activities was CNY 20.20 billion, an increase of 15.4% compared to CNY 17.54 billion in Q1 2024[35]. - The net cash flow from operating activities in Q1 2025 was -CNY 5.43 billion, worsening from -CNY 4.92 billion in Q1 2024[35]. - Cash inflow from investment activities in Q1 2025 totaled CNY 1.05 billion, up from CNY 461.97 million in Q1 2024[36]. - The net cash flow from investment activities was -CNY 2.09 billion in Q1 2025, compared to -CNY 1.24 billion in Q1 2024[36]. - Cash inflow from financing activities in Q1 2025 was CNY 22.35 billion, down from CNY 26.25 billion in Q1 2024[36]. - The net cash flow from financing activities was CNY 6.70 billion in Q1 2025, compared to CNY 7.60 billion in Q1 2024[36]. - The total cash and cash equivalents at the end of Q1 2025 were CNY 14.06 billion, a decrease from CNY 15.18 billion at the end of Q1 2024[36]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 266,567.77 million, an increase of 0.97% from RMB 263,995.72 million at the end of the previous year[6]. - The equity attributable to shareholders decreased by 4.36% to RMB 70,502.15 million from RMB 73,717.50 million at the end of the previous year[6]. - Current liabilities decreased to CNY 92.84 billion from CNY 96.78 billion, a reduction of about 4.0%[20]. - Non-current liabilities rose to CNY 85.32 billion from CNY 75.10 billion, an increase of approximately 13.5%[20]. - The company reported a total liability of CNY 178.16 billion, up from CNY 171.88 billion, reflecting an increase of about 3.8%[20]. - The total equity of the company decreased to CNY 88.41 billion from CNY 92.12 billion, a decline of approximately 4.0%[21]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 110,647[13]. - The largest shareholder, Beijing State-owned Capital Operation Management Co., Ltd., holds 4,832,665,938 shares, accounting for 45.26% of the total shares[13]. - The company has reported no changes in the participation of major shareholders in financing and securities lending activities[14]. Operational Costs and Income - Operating costs increased by 29%, attributed to the rise in revenue[12]. - The company reported a significant increase of 1,545% in business taxes and additional charges, mainly due to tax refunds related to land appreciation tax from real estate projects[12]. - Other income rose by 56%, largely due to an increase in government subsidies recognized during the reporting period[12]. - The company’s cash outflow for purchasing goods and services in Q1 2025 was CNY 21.85 billion, compared to CNY 14.32 billion in Q1 2024, indicating increased operational costs[35]. Investment Activities - The company’s investment activities generated a net cash flow decrease of 68%, reflecting increased investment expenditures during the reporting period[12]. - The company plans to increase its shareholding through centralized bidding, with an initial purchase of 6,682,600 shares for RMB 8,525,554 on August 23, 2024[15]. - As of March 31, 2025, the total non-current assets amount to RMB 139,123,123,000.00, showing a slight increase from the previous period[19]. - The company has a plan to continue increasing its shareholding over the next 12 months, with a total of 35,308,366 shares purchased so far[15].

Financial Performance - Q1 2025 sales revenue reached HKD 31.2 billion (USD 4.02 billion), down 0.5% year-on-year and down 8.2% quarter-on-quarter[6] - Total new orders amounted to HKD 33.5 billion (USD 4.31 billion), up 4.8% year-on-year and up 2.9% quarter-on-quarter[6] - Operating profit was HKD 1.60 billion, down 33.3% year-on-year but up 3,044.6% quarter-on-quarter[6] - Adjusted profit was HKD 832 million, down 53.1% year-on-year but up 1.6% quarter-on-quarter[13] - The total profit for the period was HKD 82.6 million, compared to HKD 4.2 million in the previous quarter and HKD 177.5 million in the same quarter last year[21] - The company’s basic earnings per share for the period was HKD 0.01, compared to HKD 0.43 in the same quarter last year[20] - Basic and diluted earnings per share for the three months ended March 31, 2025, were HKD 0.20, compared to HKD 0.01 in the previous quarter[25] Segment Performance - Semiconductor Solutions segment sales revenue increased to HKD 19.9 billion (USD 2.56 billion), up 44.7% year-on-year[14] - Semiconductor Solutions segment gross margin was 46.3%, up 368 basis points quarter-on-quarter and up 167 basis points year-on-year[14] - The Surface Mount Technology Solutions segment reported total new orders of HKD 1,620.8 million (USD 208 million), a quarterly increase of 46.5% but a year-over-year decrease of 1.4%[16] - Sales revenue for the segment was HKD 1,134.8 million (USD 146 million), reflecting a quarterly decline of 20.3% and a year-over-year decline of 35.6%[16] - The gross margin for the segment was 31.5%, up 180 basis points quarter-over-quarter but down 827 basis points year-over-year[17] - The segment recorded a loss of HKD 5.3 million, indicating a negative profitability rate of -0.5%[18] - The semiconductor solutions segment achieved a profit margin of 11.9%, up from 3.8% in the previous quarter[24] - The surface mount technology solutions segment reported a loss margin of -0.5%, down from a profit margin of 1.4% in the previous quarter[24] Future Outlook - The company expects Q2 2025 sales revenue to be between USD 410 million and USD 470 million, with a median forecast of +3.0% year-on-year and +9.6% quarter-on-quarter[5] - The company expects sales revenue for the second quarter of 2025 to be between USD 410 million and USD 470 million, with a year-over-year increase of 3.0% at the median[19] - The company remains confident in the demand for advanced packaging solutions, particularly in artificial intelligence and high-performance computing applications[19] Cost Management - Operating expenses decreased by 11.3% quarter-on-quarter due to stringent cost control measures[13] - The group incurred restructuring costs of HKD 879 for the three months ended March 31, 2025, compared to HKD 95,325 in the previous quarter[27] Market Conditions - The segment's performance is influenced by the ongoing weakness in the overall market, despite some stabilization in the automotive and industrial end markets[16] - The company will continue to monitor the impact of tariffs and adjust its strategies accordingly to maintain flexibility in its global production layout[19] Other Financial Metrics - Interest income for the three months ended March 31, 2025, was HKD 25,710, a decrease from HKD 27,999 in the previous quarter[24] - Total sales revenue for the group was HKD 3,124,593, down 8.2% from HKD 3,403,352 in the previous quarter[24] - The group reported a pre-tax profit of HKD 106,733 for the three months ended March 31, 2025, compared to HKD 11,380 in the previous quarter[24] - Adjusted profit for the three months ended March 31, 2025, was HKD 83,224, reflecting a slight increase from HKD 82,093 in the previous quarter[27] - Semiconductor solutions revenue for the three months ended March 31, 2025, was HKD 1,989,768, an increase of 0.1% compared to HKD 1,978,748 for the previous quarter[24] - Surface mount technology solutions revenue decreased by 20.3% to HKD 1,134,825 from HKD 1,424,604 in the previous quarter[24]