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].

2024 週年報告 ANNUAL REPORT 2024 A NNUAL RE P O R T 週年報告 目錄 CONTENTS 1 稀鎂科技集團控股有限公司 2024 週年報告 2 公司資料 Corporate Information 4 主席報告 Chairman's Statement 12 管理層討論及分析 Management Discussion and Analysis 58 綜合財務狀況表 21 企業管治報告 Corporate Governance Report 60 綜合權益變動表 36 董事及高級管理人員簡介 Directors and Senior Management Profiles 62 綜合現金流量表 39 董事會報告 Report of the Directors 64 財務報表附註 48 獨立核數師報告 Independent Auditors' Report 56 綜合損益及其他全面收入表 Consolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Stateme ...

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]

Financial Performance - For the year ended December 31, 2024, revenue decreased by 0.4% to RMB 1,442,291,000 compared to RMB 1,448,376,000 in 2023[16] - Gross profit declined by 2.4% to RMB 978,205,000, resulting in a gross profit margin of 67.8%, down from 69.2%[16] - Loss before tax increased significantly by 195.8% to RMB 155,665,000, compared to a loss of RMB 52,625,000 in the previous year[16] - The loss for the year escalated by 228.6% to RMB 165,849,000, compared to RMB 50,475,000 in 2023[16] - Earnings attributable to owners of the Company turned into a loss of RMB 176,621,000, a drastic change from a profit of RMB 7,429,000 in the prior year, representing a 2,477.5% decline[16] - Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 287.9% to RMB 121,397,000, compared to RMB 31,295,000 in the previous year[16] - Adjusted non-HKFRS earnings for the year increased by 77.9% to RMB 75,230,000, up from RMB 42,289,000[16] Revenue and Sales Metrics - In 2024, Youzan achieved a gross merchandise volume of approximately RMB102.8 billion, with an average sales per merchant of approximately RMB1,840,000, representing a year-on-year increase of about 14%[21] - Youzan's revenue for 2024 was approximately RMB1.44 billion, with a year-on-year increase of over 4% in the second half of the year, and adjusted EBITDA of approximately RMB121 million, reflecting a year-on-year increase of approximately 288%[27] - The revenue renewal rate for the target customer group increased to 68%, with the new retail target customer group achieving a renewal rate of 86%[24] - Revenue from Subscription Solutions decreased by 6.9% year-on-year to approximately RMB780,638,000, primarily due to a decrease in the number of paying merchants[82] - Revenue from Merchant Solutions increased by 8.6% year-on-year to approximately RMB658,215,000, mainly driven by growth in logistic solutions[84] Asset and Equity Growth - The company reported a net current assets increase of 59.1%, rising from RMB222,928,000 in 2023 to RMB354,575,000 in 2024[18] - Youzan's total assets grew by 9.6% from RMB5,395,014,000 in 2023 to RMB5,911,211,000 in 2024[18] - The total equity attributable to owners increased by 5.5%, from RMB1,021,330,000 in 2023 to RMB1,077,159,000 in 2024[18] Operational Efficiency and Cost Management - Selling expenses decreased by 15% year-on-year, and the selling expense ratio decreased to 39%[66] - Staff costs decreased by 15.9% year-on-year to approximately RMB100,291,000, attributed to a reduction in headcount[92] - Administrative expenses decreased by 11.0% year-on-year to approximately RMB137,864,000 in 2024, compared to RMB154,949,000 in 2023, primarily due to reduced legal and professional fees related to the acquisition of approximately 48.10% equity in Youzan Technology[103][106] - The Group recorded a 15.3% year-on-year decrease in selling expenses to approximately RMB556,423,000, down from RMB657,038,000 in 2023[102][106] Technology and Innovation - Youzan has integrated intelligent technologies to help merchants increase transaction volumes and reduce operational costs[36] - The company aims for "Jarvis Intelligence" to help merchants double their existing team's productivity by 2025, completing over 1 million intelligent tasks daily[39][41] - In 2024, the company integrated DeepSeek for multi-channel food delivery product association and marketing plan generation, enhancing its intelligent capabilities[40] - The company plans to achieve business growth while maintaining a steady increase in profit margins and increasing the "silicon content" in all business processes to build an intelligent organization[46] Merchant Engagement and Community Building - The company has held nearly 200 offline meetings in 2024, with an average of over 200 merchants participating in each meeting, fostering extensive ecological cooperation[34] - Nearly 70% of active merchants are chain store merchants, indicating a strong market presence in various retail sectors[29] - The company aims to help merchants improve customer retention and operational efficiency through its Youzan Beauty solutions, targeting the beauty and health care sectors[57] Financial Position and Liquidity - The cash balance at the end of 2024 was approximately RMB889 million[66] - As of December 31, 2024, the Group's borrowings amounted to approximately RMB 338,725,000, down from RMB 470,444,000 in 2023[152] - The Group's gearing ratio as of December 31, 2024, was 5.7%, a decrease from 8.7% as of December 31, 2023, primarily due to increased balances with the central bank and reduced interest-bearing borrowings[154] Share Options and Employee Incentives - The Share Option Scheme 2019 was adopted on June 12, 2019, and terminated on June 29, 2023, but the validity of outstanding share options remains unaffected[184] - The Company approved a new Share Option Scheme 2023 at the 2023 annual general meeting, with no share options granted, exercised, lapsed, or cancelled under this scheme during the year ended December 31, 2024[192] - The Share Award Scheme, adopted on May 31, 2018, aims to recognize contributions by eligible persons and provide incentives for retention and attraction of suitable personnel[194] - The total number of shares granted across various awards reflects the company's commitment to employee retention and performance[199]

Financial Performance - In 2024, the Company reported revenue of RMB 5,258,919, a decrease of 3.2% compared to RMB 5,430,974 in 2023[15] - The profit before tax for 2024 was RMB 726,229, recovering from a loss of RMB 928,334 in 2023[15] - The profit attributable to owners of the Company for 2024 was RMB 646,742, compared to a loss of RMB 783,258 in 2023[15] - Basic earnings per share for 2024 was RMB 0.44, an improvement from a loss of RMB 0.53 in 2023[15] - The Group achieved a revenue of approximately RMB5,258.9 million and a net profit of approximately RMB624.9 million, marking significant year-on-year growth[27] - The Group achieved an operating revenue of approximately RMB5,258.9 million in 2024, representing a year-on-year decrease of approximately 3.2%[49] - Gross profit increased by approximately 84.9% year-on-year to approximately RMB1,739.3 million, with a gross margin of approximately 33.1%, up by approximately 15.8 percentage points year-on-year[49] - The Group turned from loss into profit, reporting a net profit of approximately RMB624.9 million, with net profit attributable to equity holders of the Company at approximately RMB646.7 million[49] - The Group's overall operating revenue was approximately RMB5,258.9 million, a year-on-year decrease of approximately 3.2%, while gross profit increased by approximately 84.9% to RMB1,739.3 million, with a gross margin of approximately 33.1%[52] - The impairment amount for inventory in 2024 was only approximately RMB7.6 million, significantly lower than RMB855.4 million in 2023, contributing to improved gross profit margins[102] - Finance costs decreased by approximately RMB82.9 million to approximately RMB145.2 million, representing a decrease of approximately 36.3% compared to 2023[106] - Income tax expense for the reporting period was approximately RMB 101.3 million, compared to a tax credit of approximately RMB 126.2 million in 2023[111] Assets and Liabilities - Total assets decreased to RMB 17,343,524 in 2024 from RMB 19,203,417 in 2023, reflecting a decline of 9.7%[16] - Total liabilities also decreased to RMB 5,141,403 in 2024, down from RMB 7,215,040 in 2023, a reduction of 28.8%[16] - The asset-liability ratio was approximately 29.6% as of December 31, 2024, down from approximately 37.6% in 2023[127] - As of December 31, 2024, the group's cash and bank balances were approximately RMB 1,421.8 million, down from approximately RMB 1,765.6 million in 2023[118] - The group recorded short-term loans of approximately RMB 2,367.2 million and long-term loans of approximately RMB 1,081.0 million as of December 31, 2024[119] - The Group's total financial indebtedness decreased to approximately RMB3,544.8 million from RMB5,562.8 million as of December 31, 2023, representing a reduction of about 36.4%[140] - The Group's interest-bearing bank and other borrowings were approximately RMB3,448.2 million as of December 31, 2024, down from RMB5,434.6 million in the previous year, indicating a decrease of approximately 36.5%[140] - The Group's lease liabilities decreased to RMB96.6 million as of December 31, 2024, from RMB128.2 million as of December 31, 2023, a reduction of about 24.6%[140] Business Strategy and Operations - The Company emphasized its commitment to innovation-driven and globalization strategies, enhancing its global marketing network[24] - The Company aims to consolidate its leading position in the international heparin market through a vertically integrated industry chain[24] - The Company has transformed from a local enterprise to a global leader in the heparin field over the past decade[24] - The heparin business, as the core pillar, set a historical best performance with a significant leap in market share due to enhanced local operations and market penetration[28] - The CDMO business exhibited strong growth, forming a "dual-wheel drive" development pattern, enhancing market competitiveness and overall performance[29] - The Group plans to further optimize the vertical integration of the heparin industry chain to enhance product competitiveness and market share[37] - The Group aims to accelerate the clinical progress of the H1710 project and explore more opportunities for innovative drug research and development[37] - The Group will strengthen the diversified operations of SPL and Cytovance to promote sustained growth in CDMO and specialty product businesses[37] - The Group remains cautiously optimistic about its business prospects while focusing on cost control to ensure stable financial benefits and cash flow levels[38] - The Group plans to further optimize the heparin supply chain's vertical integration to enhance product competitiveness and market share[40] - The CDMO business experienced rapid growth during the Reporting Period, with both business revenue and gross margin increasing year-on-year[48] - The Group aims to enhance its global presence and brand influence while increasing market penetration in the heparin industry despite trade protectionist challenges[82] - The Group plans to optimize marketing strategies and improve sales share in the finished dosage form business, targeting growth in Asia-Pacific and Latin America[84] Research and Development - The innovative drug H1710 project completed its IND application in China, marking a breakthrough in the Group's innovation efforts[30] - H1710, a candidate drug targeting heparanase, has shown significant anti-tumor effects in various animal models and received approval for clinical trials from the National Medical Products Administration in February 2025[73] - Oregovomab, an anti-CA125 immunotherapy drug, completed a Phase II clinical trial and is under further evaluation after not meeting its intended objectives in Phase III trials[74] - RVX-208 (Apabetalone) completed Phase III clinical trial (BETonMACE) to reduce major adverse cardiovascular events in high-risk patients, receiving FDA Breakthrough Therapy Designation[79] - The Group is actively exploring cooperation opportunities to accelerate the strategic layout of innovative drugs and diversify commercialization capabilities[76] Market Performance - The annual sales volume of enoxaparin sodium formulations achieved double-digit growth, successfully expanding the global formulation market share[47] - The Group maintained its market share as one of the top two in Europe for enoxaparin sodium formulation, successfully increasing the bid-winning rate to expand market share[56] - In the United States, the Group's sales revenue showed impressive growth, benefiting from a dual strategy of self-operated and agency-driven approaches[57] - The Group obtained market entry licenses in Thailand and New Zealand, enhancing its international market share and creating new sales opportunities[61] - The Group is actively working to increase market share in China while addressing pricing pressures from the national centralized procurement platform[58] Management and Governance - The Group's executive directors have over 30 years of experience in the pharmaceutical industry, contributing to strategic planning and decision-making[142] - The Group's strategic focus includes innovative drugs and CDMO sectors, with active participation from executive directors in formulating and implementing business strategies[149][152] - The Group's management team includes experienced professionals who oversee various aspects of the business, including production capacity, logistics, and human resources[152][149] - Ms. Li Tan has over 30 years of experience in the pharmaceutical industry and is responsible for major decisions and business development activities[155] - Mr. Shan Yu also has over 30 years of experience in the pharmaceutical industry, overseeing capacity, safety, logistics, and external matters[156] - Mr. Zhang Ping has extensive experience in manufacturing and operations, having served as General Manager at Hangzhou Innovax Biotech Co., Ltd. and Head of Industry Affairs at Sanofi, managing seven plants in China[157][161] - Dr. Lu Chuan has been an independent non-executive director since December 2019 and has extensive experience in investment banking and management[158][162] - Mr. Huang Peng, an independent non-executive director, has a Ph.D. in Management and has served as an independent director for multiple companies listed on the Shanghai and Shenzhen Stock Exchanges[164] - Mr. Yi Ming, another independent non-executive director, has a Master's degree in Finance and has held senior management positions in asset management companies[165] - Mr. Zheng Zehui, chairman of the Supervisory Committee, has served as general manager of URIT Medical Electronic Sales Co., Ltd. and has a background in biochemistry[166] - Ms. Tang Haijun has been with the company since February 2001 and serves as a Supervisor, managing the GXP document control department[167] Corporate Actions - The Company completed its initial public offering and listing of its A Shares on the Shenzhen Stock Exchange on May 6, 2010, and its H Shares on the Hong Kong Stock Exchange on July 8, 2020[181] - The Group proposed a final cash dividend of RMB2.5 (tax inclusive) per ten ordinary shares, compared to nil in 2023[187] - The Group has not incurred any additional costs specifically attributable to environmental compliance during the year ended December 31, 2024[191] - The Group has no current plans for significant acquisitions or capital asset investments as of December 31, 2024[138] Reporting and Analysis - A detailed analysis of the Group's revenue and operating profit for the year ended December 31, 2024, is provided in the "Management Discussion and Analysis" section of the annual report[182] - The business review includes discussions on principal risks and uncertainties faced by the Group, as well as an analysis of performance using financial key performance indicators[183] - Important events affecting the Group during the year ended December 31, 2024, are highlighted in the annual report[183] - Future developments in the Group's business are indicated in the annual report[183] - The Group's financial performance indicators and major events impacting the business are discussed in the "Chairman's Statement" and "Management Discussion and Analysis" sections of the annual report[186] - The Group's audited consolidated results for the reporting period are detailed on pages 85 to 86 of the annual report[188] - The Group's reserves and movements for the current and prior years are presented in the consolidated statement of changes in equity on pages 89 to 90 of the annual report[200]

Financial Performance - Revenue decreased by approximately 36.4% to approximately RMB119.5 million in 2024 compared to RMB188.0 million in 2023[14] - Gross profit for the Group was approximately RMB27.9 million in 2024, down from approximately RMB69.5 million in 2023[14] - The Group's loss for the year increased by approximately 239.5% to approximately RMB88.6 million in 2024, compared to RMB26.1 million in 2023[14] - Basic loss per share was approximately RMB3.28 cents in 2024, compared to RMB0.92 cents in 2023[14] - The Group's total revenue decreased by 36.4% year-on-year to approximately RMB 119.5 million, primarily due to weakening disposable incomes in European and American households amid persistent inflation[79] - The Group's net loss amounted to approximately RMB 88.6 million, compared to a net loss of approximately RMB 26.1 million in 2023[79] - Gross profit decreased to approximately RMB27.9 million in 2024, down approximately 60.0% from RMB69.5 million in 2023, with the gross profit margin declining from 37.0% to 23.3%[99] - The Group's basic and diluted loss per ordinary share was approximately RMB3.28 cents for 2024, compared to RMB0.92 cents in 2023[97] Strategic Initiatives - The Company adopted a dual production base strategy to mitigate operational risks, with production in both domestic and overseas locations[17] - Construction of the new production facility in Southeast Asia was completed, and trial production commenced in the second half of 2024[17] - The newly established overseas factory received positive customer feedback, evidenced by an increase in orders, including from new customers[17] - The company plans to phase out retail operations of its in-house sofa brand to reduce marketing expenses while focusing on export OEM business[21] - The Group established a joint venture with a local renowned furniture brand in the U.S. to enhance market exposure and leverage their sales capabilities[84] - The Group's strategic focus on product quality and innovative designs has helped to consolidate existing customer bases and penetrate new markets despite challenging economic conditions[86] - The Group's strategic adjustments aimed to bolster competitiveness and capture additional market share amid significant market challenges[82] Market Conditions - The Company faced significant economic challenges in major markets, particularly in the U.S., Europe, and China, due to high home prices and elevated mortgage rates[16] - The global household market is projected to reach USD 1,087.5 billion by 2032, with significant demand for personalized home decor products in the United States[25] - Southeast Asia has seen a continuous uptrend in furniture exports throughout 2024, supported by government policies aimed at fostering the furniture industry[20] - The consumer price index in China hit a decade-low, while the GDP growth rate reached 5%, aligning with the national target, indicating a challenging economic backdrop[78] - Challenges in the U.S. economy include budget deficits, public debt, and labor market issues, which have adversely impacted the Group's business due to changing trade policies with China[180] - The Group has assessed the business risks arising from changes in U.S.-China trade policies and is exploring various means to mitigate these risks[181] Corporate Governance - The Company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[183] - The Board of Directors is responsible for overseeing management and financial performance, holding regular meetings to discuss business operations[189] - The composition of the Board includes both executive and independent non-executive Directors, with specific roles and responsibilities outlined[194] - The board of directors consists of 3 executive directors, 2 non-executive directors, and 4 independent non-executive directors[196] - Independent non-executive directors represent more than one-third of the board, ensuring adequate control and balance for shareholder interests[200] - The independent non-executive directors provide independent and objective opinions to protect the overall interests of shareholders[199] Financial Management - The company has implemented prudent financial management practices, refraining from acquiring additional bank loans to maintain a robust financial position[26] - The Group's liquidity policy ensures sufficient cash reserves and committed funding lines to meet short and long-term liquidity requirements[168][172] - The Group's interest rate risk is monitored continuously, adjusting bank deposits and borrowings as necessary[176] - The Group's credit risk is primarily from trade receivables, with the five largest customers accounting for approximately 60.2% of total trade receivables as of December 31, 2024[174][175] Management and Leadership - The company is led by Chairman Tse Kam Pang, who holds approximately 74.86% of the issued share capital[40] - CEO Chong Tsz Ngai has over ten years of experience in corporate finance and was appointed as an executive director on October 17, 2022[41][47] - Zou Gebing, who served as chairman and CEO from 2016 to 2022, resigned on January 8, 2024[43][48] - The management team includes individuals with extensive backgrounds in international trade and corporate finance, enhancing strategic decision-making[42][47] Operational Challenges - The Group incurred a loss attributable to owners of the Company of approximately RMB 87,656,000 for the year ended 31 December 2024[134] - As of 31 December 2024, the Group had net current liabilities of approximately RMB 186,275,000 and net liabilities of approximately RMB 234,724,000[134] - The auditors were unable to obtain sufficient appropriate audit evidence regarding the balances with Zou Entities as at 31 December 2024 and 2023[139] - The management acknowledges the qualified opinion issued by the auditors due to the uncooperative attitude of the Zou Entities[145] - The company is exploring various solutions to recover amounts due from ZOU Entities, facing substantial difficulties due to the financial condition of ZOU Entities and suspected debt evasion[153] Employee and Operational Metrics - As of December 31, 2024, the Group employed 220 employees, a decrease from 338 employees as of December 31, 2023[161][163] - The total annual salary and related costs for 2024 were approximately RMB 37.8 million, down from RMB 53.8 million in 2023[161][163]