Financial Performance - Revenue for the year ended December 31, 2024, was RMB 44,013,000, a decrease of 22.6% compared to RMB 56,931,000 in 2023[11] - Profit before tax for 2024 was RMB 16,510,000, down 37.0% from RMB 26,185,000 in 2023[11] - Net profit margin for 2024 was 22.4%, a decline from 30.9% in 2023[15] - Proposed final dividend per share for 2024 is HK$0.55, reduced from HK$1 in 2023[11] - Earnings per share for 2024 decreased to RMB 0.010 from RMB 0.018 in 2023[17] - Total comprehensive income for the year decreased by 44.3% from RMB 17.6 million in 2023 to RMB 9.8 million in 2024, with a net profit margin dropping from 30.9% to 22.4%[85] - Basic earnings per share for 2024 was RMB 0.010, compared to RMB 0.018 for 2023[86] - Cash and cash equivalents decreased by RMB 63.7 million to RMB 171.3 million as of December 31, 2024, primarily due to investment cash outflow for purchasing funeral land[87] Assets and Liabilities - Total assets as of December 31, 2024, increased to RMB 334,621,000 from RMB 329,607,000 in 2023[13] - Total liabilities as of December 31, 2024, rose to RMB 106,102,000, compared to RMB 101,813,000 in 2023[13] - Current ratio for 2024 was 10.7, down from 13.5 in 2023[15] - The gearing ratio as of December 31, 2024, was 31.7%, compared to 30.9% in 2023, indicating a healthy liquidity position[109] - Cash and cash equivalents decreased by RMB 63.7 million from RMB 235.0 million in 2023 to RMB 171.3 million in 2024, primarily due to cash outflows for the cemetery joint venture project[94] Revenue Breakdown - The Group's operating revenue for the year ended December 31, 2024, was RMB 44.0 million, with a profit attributable to shareholders of RMB 9.8 million[19][20] - Burial services accounted for RMB 31.7 million, representing 72.1% of total revenue, a decrease from 79.4% in the previous year[28][33] - Revenue from funeral services was RMB 6.4 million, slightly up from RMB 6.3 million in 2023[30][34] - Revenue from cemetery maintenance services increased to RMB 5.9 million from RMB 5.5 million in 2023[31][35] - Sales of burial plots accounted for RMB 25.0 million or 56.8% of total revenue in 2024, down from 66.0% in 2023[68] Business Operations and Strategy - The Group continues to engage in the sale of burial plots and related services, indicating a focus on maintaining its core business operations[18] - The Group is exploring the "Internet + Funeral" model, offering online services such as "cloud tomb-sweeping" and "tomb-sweepings service on behalf of customers"[21][24] - Future plans include promoting intelligent construction and increasing the use of technology to improve service efficiency[26] - The Group aims to strengthen its market position in Langfang and expand its business in the Jing-Jin-Ji megalopolis through strategic partnerships and selective acquisitions[39] - The Group plans to provide integrated funeral services alongside burial services, creating a one-stop-shop experience for customers[49] - The Group is focusing on the burial services market in the Jing-Jin-Ji megalopolis, particularly in Beijing, leveraging its strategic location in Langfang[54] Corporate Governance - The board consists of seven directors, including one non-executive director, three executive directors, and three independent non-executive directors[135] - The company has adopted a board diversity policy, with a male to female ratio in the workforce of approximately 53:20 as of December 31, 2024[145] - The board is responsible for overseeing management, strategic directions, and financial performance, holding regular meetings to discuss business operations[138] - The company has complied with the Corporate Governance Code during the year ended December 31, 2024[134] - The Company has established a code of conduct applicable to employees and Directors, which is monitored by the Board[199] Committees and Meetings - The Company has established three Board committees: Audit Committee, Nomination Committee, and Remuneration Committee, to oversee specific aspects of the Company's affairs[179] - The Audit Committee conducted 3 meetings in 2024 to review interim and annual financial statements and assess the effectiveness of the Company's risk management and internal control systems[181] - The Remuneration Committee met once in 2024 to evaluate the performance of executive directors and review remuneration policies and packages[187] - The Nomination Committee held 1 meeting in 2024 to review the Board's structure, size, and composition, concluding that the Board members possess the necessary expertise and independence[190] Employee and Director Development - The Company emphasizes the importance of continuous professional development for Directors to maintain informed contributions to the Board[174] - All Directors participated in continuous professional development to ensure understanding of the Group's business and operations, with updates on corporate governance and regulatory requirements studied during the year ended December 31, 2024[171] - The Company has appointed three Independent Non-executive Directors (INEDs), representing more than one-third of the Board[153] Future Outlook - The company believes the period from 2025 to 2027 will be crucial for its development and is well-prepared to capitalize on opportunities with its available cash resources[65] - The Group is optimistic about the continuous development and expansion of its operations in the Langfang burial services market[29] - The Group aims to enhance its brand strength and reputation through the joint venture cemetery project, which is expected to generate significant revenue opportunities[53]

Financial Performance - In 2024, the Group's total revenue increased by approximately 9.6% to approximately HK$67.4 million, up from approximately HK$61.5 million in 2023[24]. - Revenue from sales of manufactured products accounted for approximately 89% of overall revenue in 2024, compared to approximately 87.5% in 2023[24]. - The overall gross profit margin improved to approximately 9.2% in 2024, up from approximately 6.1% in 2023, with gross profit increasing by approximately HK$2.4 million to approximately HK$6.2 million[24]. - The Group recorded a profit attributable to owners of approximately HK$2.9 million in 2024, an increase of approximately HK$20.2 million from a loss of approximately HK$17.3 million in 2023[32]. - The current ratio improved to 1.25 in 2024 from 0.86 in 2023, while the gearing ratio was 3.58 in 2024 compared to (1.10) in 2023[37]. Cost Management - Staff costs decreased by approximately HK$1.4 million from approximately HK$5.0 million in 2023 to approximately HK$3.6 million in 2024, primarily due to tightened control and downsizing[28]. - Total operation-related expenses decreased by approximately HK$1.0 million from approximately HK$7.5 million in 2023 to approximately HK$6.5 million in 2024[30]. - Finance costs decreased from approximately HK$2.0 million in 2023 to approximately HK$1.3 million in 2024[31]. Strategic Decisions - In Q4 2024, the Group disposed of loss-making associated companies to improve its financial structure and reduce losses[19]. - The Group divested from underperforming subsidiaries, including the sale of loss-making associates, to improve financial structure and reduce losses[22]. - The Group plans to maintain a prudent approach and make timely strategic adjustments in response to the uncertain global economic outlook following the US presidential election[76]. - The Group aims to improve financial performance and broaden revenue sources while controlling operational costs and focusing on appropriate product mix and regions[77]. Market Environment - The international environment in 2024 was complex, with geopolitical conflicts impacting energy, commodities, and food supplies, driving inflation higher[20]. - Trade sanctions between China and the United States escalated, affecting capital flows and global demand[20]. - The macroeconomic environment remains challenging, with geopolitical tensions and inflation impacting global trade and capital flows[23]. Capital Management - The company issued convertible bonds totaling HK$6,500,000 with a 4% annual interest rate, convertible into 20,312,500 shares at a conversion price of HK$0.32 per share, representing a premium of approximately 18.5% over the market price[44][45]. - The gross proceeds from the issuance of the 2024 convertible bonds were HK$6,800,000, with net proceeds intended for general working capital purposes[53][54]. - The actual use of net proceeds included approximately HK$4 million for staff costs (58.8% of total), HK$1 million for legal and professional fees (14.7%), HK$1 million for auditor's remuneration (14.7%), and HK$800,000 for rental expenses (11.8%)[59]. Corporate Governance - The Group has adopted and complied with the principles and code provisions in the Corporate Governance Code during the year ended December 31, 2024[192]. - The Board is responsible for setting the corporate goals and formulating the Group's strategy, including monitoring implementation[197]. - The Group's governance practices are designed to enhance public accountability and corporate governance, benefiting sustainable growth[192]. - The performance of the Management is monitored by the Board to ensure effective leadership[197]. Employee Relations - The Group maintains good relationships with employees, customers, and suppliers, emphasizing a caring environment and team spirit[93]. - As of December 31, 2024, the Group had a total of 17 employees, a decrease from 25 employees in 2023[117]. - The emolument policy for employees is based on merit, qualifications, and competence, with Directors' emoluments determined by the Remuneration Committee considering the Company's operating results and individual performance[115]. Shareholder Information - The Directors do not recommend the payment of any dividend for the year ended December 31, 2024[99]. - The Company's reserve available for distribution as of December 31, 2024, was nil[109]. - As of December 31, 2024, Viva Gain Investments Limited and Mr. Ma Xingzhong each hold 20,312,500 ordinary shares, representing 13.30% of the company's issued share capital[130]. Risk Management - The Group's financial condition and results of operations are subject to various risks, including business, operational, and financial management risks[84]. - The Group has not implemented any foreign currency hedging policy but will consider it if significant foreign exchange exposure arises[64].

Financial Performance - The group reported revenue of HKD 1,857,000 for the six months ended February 28, 2025, a decrease of 26.5% compared to HKD 2,528,000 for the same period in 2024[11]. - Other income decreased significantly to HKD 57,000 from HKD 605,000, marking a decline of 90.6% year-over-year[11]. - The group incurred a loss before tax of HKD 3,648,000, compared to a loss of HKD 2,454,000 in the previous year, representing an increase in loss of 48.6%[11]. - The basic and diluted loss per share was HKD 0.05, compared to HKD 0.04 for the same period last year[11]. - Total comprehensive loss for the period was HKD 3,763,000, up from HKD 2,326,000 in the previous year, indicating a 61.9% increase in comprehensive loss[13]. - The group reported a net loss attributable to equity holders of the parent of HKD 3,530,000, compared to HKD 2,407,000 in the prior year, reflecting a 46.6% increase in net loss[13]. - The group experienced a foreign exchange loss of HKD 100,000 from overseas operations, compared to a gain of HKD 128,000 in the previous year[13]. - The net cash used in operating activities for the six months ended February 28, 2025, was HKD (17,765,000), compared to HKD (8,929,000) in the previous year[21]. - The group reported a pre-tax loss of HKD 3,530,000 for the six months ended February 28, 2025, compared to a loss of HKD 2,407,000 for the same period in 2024[48]. - The group reported a loss of approximately HKD 3.6 million for the period, an increase from a loss of approximately HKD 2.5 million in the same period last year[75]. Revenue Breakdown - Restaurant operations revenue for the six months ended February 28, 2025, was HKD 1,664,000, a decrease of 32.5% from HKD 2,467,000 for the same period in 2024[34]. - Food supply chain services revenue increased to HKD 193,000 from HKD 61,000, representing a growth of 216.4% year-over-year[34]. - Total revenue for the group decreased to HKD 1,857,000, down 26.5% from HKD 2,528,000 in the previous year[34]. - Other income for the six months ended February 28, 2025, was HKD 57,000, a significant decline from HKD 605,000 in the same period of 2024[39]. Assets and Liabilities - Total liabilities as of February 28, 2025, amounted to HKD 24,592,000, with current liabilities netting at HKD 4,365,000[25]. - Non-current assets decreased from HKD 1,887,000 to HKD 1,382,000, reflecting a decline of approximately 26.8%[17]. - Current assets decreased from HKD 6,377,000 to HKD 5,548,000, a reduction of about 13%[17]. - The company’s cash and bank balances decreased from HKD 626,000 to HKD 532,000, a decline of approximately 15%[17]. - The company’s total equity as of February 28, 2025, was HKD (24,592,000), compared to HKD (23,760,000) as of August 31, 2024[17]. - The group recorded a net current liability of approximately HKD 4.4 million as of February 28, 2025, compared to HKD 24.5 million as of August 31, 2024[77]. - The total borrowings of the group amounted to approximately HKD 20.6 million as of February 28, 2025, compared to none as of August 31, 2024[77]. - The company’s total non-current liabilities increased significantly from HKD 1,189,000 to HKD 21,609,000, indicating a substantial rise in financial obligations[17]. Cost Management - Employee costs decreased to HKD 2,872,000 from HKD 4,084,000, a reduction of 29.6% year-over-year[11]. - Employee costs decreased from approximately HKD 4.1 million to about HKD 2.9 million, a reduction of approximately 29.3% due to the cessation of self-operated restaurants[69]. - Rental and related expenses decreased from approximately HKD 1.9 million to about HKD 25,000, a decrease of approximately 98.7% due to the closure of self-operated restaurants[70]. - Interest on lease liabilities rose to HKD 137,000 from HKD 29,000, indicating a significant increase in financial costs[42]. - The cost of goods sold increased from approximately HKD 0.2 million to about HKD 0.4 million, representing a 100% increase year-on-year, primarily due to new restaurants in Hong Kong[66]. Strategic Initiatives - The company plans to diversify its business to generate more cash and has signed a one-year extension agreement with former directors to discuss debt-to-equity swaps[28]. - The company aims to expand profitable restaurant operations by increasing distribution channels and eliminating underperforming restaurants[28]. - The group plans to diversify its business by providing health soups and foods to explore new revenue sources[61]. - The group aims to enter the supermarket supply chain business, offering inventory management, refrigeration, and logistics services[61]. - The group has adjusted its strategic focus towards supply chain operations as a key area for future development[61]. Corporate Governance - The group did not declare or recommend any dividends for the period ended February 28, 2025[46]. - The group did not acquire any property, plant, and equipment during the period, maintaining a previous acquisition value of HKD 571,000[49]. - The company has no significant investments or acquisitions planned for the future as of the report date[84]. - The company has adopted a revised memorandum and articles of association to reflect a name change as of February 29, 2024[86]. - The company has no capital commitments related to leasehold improvements as of February 28, 2025[83]. - The company confirmed a change in revenue recognition for its food supply chain business, leading to a decrease in reported revenue for the fiscal year[102]. - The company did not repurchase any of its listed securities during the reporting period[114]. - No stock options were granted, cancelled, or exercised during the reporting period, with zero unexercised options as of February 28, 2025[115]. - The company has adopted the GEM Listing Rules as its code of conduct for securities trading by directors[119]. - The board confirms compliance with all applicable corporate governance codes during the reporting period[120]. - There were no competitive business interests held by directors or controlling shareholders during the reporting period[121]. - The Audit Committee was established on July 23, 2018, and consists of three independent non-executive directors, with Mr. Zhou as the chairman[124]. - The Audit Committee's main responsibilities include reviewing and supervising the group's financial reporting procedures and internal control systems[124]. - The unaudited condensed consolidated financial statements have been reviewed by the Audit Committee and deemed to comply with applicable accounting standards and GEM listing rules[124]. Shareholder Information - As of February 28, 2025, Mr. Li Junjian holds 6,816,000 shares, representing 10.00% of the company's issued shares[105]. - Mr. Ye Weihang, in conjunction with others, holds 3,049,900 shares, accounting for 4.47% of the company's issued shares[105]. - Ms. Huang Weiyan owns 528,000 shares, which is approximately 0.77% of the company's issued shares[105]. - Mr. Zhou Bo has a controlled interest in 8,800,000 shares, representing 12.91% of the company's issued shares[112]. - The beneficial ownership of Mr. Zhou Bo includes an additional 9,047,560 shares, totaling 13.27% of the company's issued shares[112]. - The company expresses gratitude to shareholders, business partners, and customers for their ongoing support[125]. - The board acknowledges the efforts and contributions of all directors, management, and staff during the reporting period[125]. - The executive directors as of the report date include Mr. Li (Chairman), Mr. Jiang, Mr. Ye, and Mr. Liang[127]. - The non-executive director is Mr. Su, while the independent non-executive directors are Mr. Zhou, Ms. Huang, and Ms. Xie[127].

Financial Performance - Revenue for the six months ended February 28, 2025, was HKD 1,857,000, a decrease of 26.5% compared to HKD 2,528,000 for the same period in 2024[7] - Other income decreased significantly to HKD 57,000 from HKD 605,000, representing a decline of 90.6%[7] - The company reported a loss before tax of HKD 3,648,000, which is an increase of 48.7% compared to a loss of HKD 2,454,000 in the previous year[7] - Basic and diluted loss per share was HKD 0.05, compared to HKD 0.04 for the same period last year[7] - The company has reported a total comprehensive loss of HKD 3,763,000 for the period, compared to HKD 2,326,000 in the previous year[9] - The company reported a loss attributable to equity holders of HKD 3,530,000 for the six months ended February 28, 2025, compared to a loss of HKD 2,407,000 for the same period in 2024, indicating an increase in losses by approximately 46.6%[21] - The group reported a pre-tax loss of HKD 3,530,000 for the six months ended February 28, 2025, compared to a loss of HKD 2,407,000 in the same period of 2024, indicating a worsening of approximately 46.6%[44] - The group recorded a loss of approximately HKD 3.6 million for the period, compared to a loss of about HKD 2.5 million in the same period last year[71] Assets and Liabilities - Total assets decreased to HKD 5,548,000 from HKD 6,377,000, reflecting a decline of 13.0%[11] - Current liabilities significantly decreased to HKD 9,913,000 from HKD 30,835,000, a reduction of 67.8%[11] - Non-current liabilities increased to HKD 21,609,000 from HKD 1,189,000, indicating a substantial rise[13] - The company's equity attributable to owners decreased to HKD (25,143,000) from HKD (24,444,000) year-on-year[13] - The total equity attributable to equity holders decreased to HKD (25,143,000) as of February 28, 2025, from HKD (24,444,000) as of September 1, 2024, showing a decline in equity[21] - The company’s total liabilities included other borrowings of HKD 20,579,000 and trade and other payables of HKD 9,183,000 as of February 28, 2025, indicating significant financial obligations[21] - As of February 28, 2025, the group had total borrowings of approximately HKD 20.6 million[73] Cash Flow - The net cash used in operating activities was HKD (17,765,000) for the six months ended February 28, 2025, compared to HKD (8,929,000) for the same period in 2024, reflecting a deterioration in cash flow from operations[17] - The company generated net cash from investing activities of HKD 14,665,000 for the six months ended February 28, 2025, compared to a net cash outflow of HKD (343,000) in the previous year, indicating a significant improvement in investment cash flow[17] - The company reported a decrease in cash and cash equivalents to HKD 532,000 as of February 28, 2025, down from HKD 1,122,000 at the end of the previous period[17] Revenue Breakdown - Restaurant operations revenue decreased to HKD 1,664,000 for the six months ended February 28, 2025, down from HKD 2,467,000 in the same period of 2024, representing a decline of approximately 32.5%[30] - Food supply chain services revenue increased to HKD 193,000 for the six months ended February 28, 2025, compared to HKD 61,000 in the same period of 2024, marking an increase of approximately 216.4%[30] - Total revenue for the group was HKD 1,857,000 for the six months ended February 28, 2025, down from HKD 2,528,000 in the same period of 2024, a decrease of about 26.5%[30] Shareholder and Equity Information - The average number of issued ordinary shares increased to 64,864,746 for the six months ended February 28, 2025, compared to 56,171,000 in the same period of 2024, an increase of approximately 15.5%[44] - The company will issue 7,046,200 shares at a payment price of HKD 0.315 per share to Mr. Zhou, totaling approximately HKD 2.2 million, to offset debts of approximately HKD 2,219,000[88] - The company will also issue 730,160 shares at the same payment price to Ms. Lin, totaling approximately HKD 0.2 million, to offset debts of approximately HKD 230,000[88] - The company aims to focus resources on developing more profitable projects following the termination of the acquisition agreement[94] - As of February 28, 2025, the company has a total of 68,160,000 shares issued[108] - Major shareholder Zhou Bo holds 12.91% of the company's shares, equating to 8,800,000 shares[108] Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the financial statements and confirmed compliance with applicable accounting standards[120] - The company has adopted the GEM Listing Rules and has confirmed compliance with all applicable corporate governance codes during the reporting period[116] - There were no arrangements made for directors or their associates to benefit from acquiring the company's shares or debentures during the reporting period[112] - The company expressed gratitude to shareholders, business partners, and customers for their continued support[121] - The company has not engaged in any competitive business activities that could conflict with its operations during the reporting period[117] - The company has no knowledge of any changes in director information that require disclosure since the last annual report[118] Strategic Focus and Future Plans - The company is focusing on expanding its market presence and developing new technologies to enhance its product offerings[10] - The company plans to diversify its business to generate more cash and is seeking investors to ensure its ongoing operations[24] - The company is implementing measures to tighten expenditure control and eliminate underperforming restaurants to improve profitability[24] - The group plans to diversify its business by providing health soups and foods to explore new revenue sources[57] - The group aims to focus on supply chain business as a strategic priority for future development[57]

Market Performance - In 2024, the global toy market showed signs of recovery, with the AI toy market size reaching US$18.1 billion[14]. - The U.S. toy sales stabilized in Q3 2024 after a period of decline, recovering faster than the European market[14]. - The overall economic landscape remains challenging, with weak consumer spending impacting growth in various markets[14]. Company Strategy - The company implemented a strategy focused on cost control, low margins, and steady sales to navigate a complex economic environment[14]. - The group intensified efforts in market expansion, brand building, research and development, and innovation to enhance core competitiveness[19]. - The company is actively expanding into high-end sectors, artificial intelligence, and green-related products and technologies[14]. - The Group aims to enhance its market competitiveness by exploring opportunities in emerging countries along the Belt and Road Initiative and expanding into high-end, AI, and green-related products[40]. - The Group intends to provide a more diversified product portfolio and services by exploring cooperation opportunities in high-end, artificial intelligence, and green-related products and technologies[101]. Financial Performance - The Group's total revenue increased by approximately 66.5% from approximately RMB 131.4 million in FY2023 to approximately RMB 218.8 million in FY2024[23]. - Smart toy vehicles revenue rose by approximately 70.5% year-on-year, primarily due to the adjustment of sales strategies targeting emerging markets and export-oriented wholesalers in Hong Kong[29]. - The Group's gross profit increased from approximately RMB15.0 million for FY2023 to approximately RMB18.3 million for FY2024, representing an increase of approximately 22.0%[42]. - The Group's net loss decreased from approximately RMB98.3 million for FY2023 to approximately RMB61.1 million for FY2024, primarily due to increased sales revenue and decreased net impairment losses[43]. - Selling expenses decreased from approximately RMB1.6 million for FY2023 to approximately RMB7 thousand for FY2024, mainly due to freight and market expenses being handled by Hong Kong wholesalers[44]. - Administrative expenses decreased by approximately 4.3% from approximately RMB35.1 million in FY2023 to approximately RMB33.6 million in FY2024, mainly due to a further decrease in employee expenditure[49]. - Net impairment losses on trade and other receivables decreased from approximately RMB40.7 million for FY2023 to approximately RMB31.4 million for FY2024, representing a decrease of approximately 23.0%[51]. - Taxation expense significantly decreased from approximately RMB6.9 million in FY2023 to approximately RMB0.3 million in FY2024, mainly due to notable changes in deferred taxation[52]. Operational Efficiency - The average inventory turnover period improved from approximately 55.5 days in FY2023 to approximately 40.0 days in FY2024[59]. - Trade receivables increased from approximately RMB247.4 million as of December 31, 2023, to approximately RMB301.3 million as of December 31, 2024, due to increased sales[60]. - The average turnover days for trade receivables decreased from approximately 332.0 days in fiscal year 2023 to approximately 296.0 days in fiscal year 2024[64]. - The Group's internal control system is designed to provide reasonable assurance against material misstatement or loss, with ongoing reviews by the Board to ensure effectiveness in protecting material assets and shareholders' interests[173]. Human Resources - The company plans to improve talent team building for product development and production, and enhance quality control standards[19]. - The Group had 32 full-time employees as of December 31, 2024, compared to 27 in 2023, with a significant decrease attributed to outsourcing part of the production process[95]. - The Group's remuneration packages include salaries, accidental insurance, and allowances, with bonuses being discretionary based on performance[96]. - The Group's contributions to the Mandatory Provident Fund Scheme in Hong Kong are 5% of employees' earnings, subject to a cap of HK$1,500[98]. Corporate Governance - The Board consists of six directors, including two executive directors, one non-executive director, and three independent non-executive directors[118]. - The Board has achieved gender diversity with three male and three female directors, resulting in a 50% gender diversity[121]. - The Company has implemented recruitment procedures to provide career development opportunities for suitable female candidates, with 46% of colleagues being female as of December 31, 2024[126]. - The Board held four meetings during FY2024 to discuss and approve the Company's operations and business development, including financial budgets and financial statements[131]. - The Company has adopted the Model Code for Securities Transactions by Directors, and all Directors confirmed compliance during FY2024[138]. Risk Management - The Group employs a three-tier risk management approach, with business units identifying risks, management overseeing risk controls, and external consultants reviewing the processes[175]. - An external independent consultant reviewed the Group's risk management and internal control systems during the year, confirming their general effectiveness[177]. - The Board has conducted a review of the effectiveness of the risk management and internal control system, considering them generally effective and adequate in all material respects[178]. Shareholder Communication - The Board emphasizes the importance of effective communication with shareholders, proposing separate resolutions for substantial issues at shareholder meetings[185]. - The Company has maintained an ongoing dialogue with shareholders through various channels, including general meetings and corporate communications[194]. - During FY2024, the Company reviewed its Shareholders communication policy and found it effectively implemented[199].

2024 Annual Report 年 報 Characteristics of GEM of the Stock Exchange of Hong Kong Limited (The "Stock Exchange") 香港聯合交易所有限公司（「聯交所」）GEM 的特色 GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given that ...

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching RMB 1.2 billion for the fiscal year 2024[4]. - The total revenue for the Group in 2024 was approximately RMB 1,313.61 million, representing a decrease of approximately 11.26% compared to RMB 1,491.15 million in 2023[24]. - Gross profit for 2024 was approximately RMB 315.25 million, a decrease of approximately 4.17% from the previous year, primarily due to a downturn in the steel market and intense competition in the liquefied industrial gas market[24]. - Profit attributable to owners of the Company in 2024 was approximately RMB 130.05 million, an increase of approximately 1.54% from RMB 128.08 million in 2023[24]. - The Group's revenue for the year ended December 31, 2024, decreased to approximately RMB1,313.61 million, representing an 11.91% decrease from approximately RMB1,491.15 million for the year ended December 31, 2023[42]. - Gross profit for the Reporting Period was approximately RMB315.25 million, a decrease of about 5.07% from RMB332.10 million in 2023, primarily due to lower selling prices of lean krypton xenon liquid oxygen[74]. Market and Business Development - User data showed a growth of 20% in active users, totaling 5 million by the end of 2024[4]. - New product launches contributed to a 25% increase in market share in the gas industry segment[4]. - The company is exploring strategic acquisitions to enhance its service offerings and market presence[4]. - The successful market launch of rare gas products (lean krypton xenon) has filled market gaps in the aerospace and high-end electronics sectors, enhancing the Group's competitiveness[26]. - The Group aims to diversify its customer base and supply chain to mitigate risks associated with the US-China trade policies and ongoing trade tensions[58]. - The industrial gas market in China is expected to continue growing, driven by national policies, foreign investment, and the development of high-tech industries[66]. Operational Enhancements - The company is investing RMB 200 million in R&D for new technologies in air separation units[4]. - Market expansion efforts have led to the establishment of two new facilities in Hebei, expected to increase production capacity by 30%[4]. - The Group operates two pipeline industrial gas production plants as of December 31, 2024, to enhance service delivery to its customers[48]. - The Group's TTG New District Plant has enhanced its production capacity with one set of 60,000Nm3/hr and two sets of 40,000Nm3/hr air separation units in smooth operation[25]. Financial Position and Assets - The Group's total assets as of 2024 were approximately RMB 2,443.15 million, while total liabilities were approximately RMB 799.25 million[37]. - The Group's total equity increased to approximately RMB 1,643.90 million in 2024, up from RMB 1,513.43 million in 2023[37]. - The current ratio improved to approximately 1.54 as of December 31, 2024, compared to approximately 1.28 in 2023[101]. Expenses and Costs - Selling and marketing expenses rose by approximately 22.75% to approximately RMB2.32 million from RMB1.89 million in 2023, mainly due to increased employee benefits expenses[86]. - Administrative expenses decreased by approximately 13.07% to approximately RMB47.28 million from RMB54.39 million in 2023, attributed to lower depreciation and reduced legal and professional fees[87]. - Net finance costs decreased by approximately 14.92% to approximately RMB18.48 million from RMB21.72 million in 2023, mainly due to a decrease in interest expenses[94]. Management and Governance - The Group's management team includes experienced executives with over 31 years in their respective industries, enhancing leadership stability[134][136]. - The company has a strong board with members holding qualifications from prestigious institutions, including the Hong Kong Institute of Certified Public Accountants and the University of Oxford[144][152]. - The board includes independent non-executive directors who provide oversight and independent advice, enhancing corporate governance[149]. - The management team collectively brings a wealth of experience from various sectors, contributing to the Company's strategic direction[175]. Strategic Outlook - The company provided a positive outlook, projecting a revenue growth of 10-12% for the next fiscal year[4]. - The Group plans to enhance its digital platform, aiming for a 50% increase in online service usage by 2025[4]. - The Group aims to enhance its market analysis and risk forecasting capabilities to address challenges posed by the US-China trade war and changes in trade policies[60]. Employee and Training Initiatives - The Group emphasizes employee training and development, investing in continuing education and training programs for management and staff[124]. - As of December 31, 2024, the Group employed 324 employees, with total staff costs of approximately RMB52.64 million for the year, a decrease from RMB55.37 million in 2023[128].

Financial Performance - The company's revenue for 2024 was approximately RMB 4.574 billion, a decrease of 71.1% compared to the previous year, while the loss attributable to shareholders was approximately RMB 8.312 billion[21]. - The company's total revenue for the year ending December 31, 2024, was approximately RMB 4.574 billion, a decrease of 71.1% compared to RMB 15.844 billion in 2023, primarily due to a decline in property delivery volume[45]. - Revenue from property development in 2024 was approximately RMB 1.593 billion, down 88.0% from RMB 13.246 billion in 2023, attributed to a decrease in the area of completed properties delivered during the year[46]. - Gross profit decreased by 69.7% to approximately RMB 749 million in 2024 from RMB 2.472 billion in 2023, with a slight increase in gross margin to 16.4% from 15.6% in 2023[51]. - The company reported a net loss of RMB 8,991,482,000 for the year ending December 31, 2024[158]. Sales and Contract Performance - In 2024, the company achieved a total contract sales amount of approximately RMB 1.44 billion, with a sales area of 167,508 square meters, where residential sales accounted for about 96.9%[21]. - Residential contract sales accounted for approximately RMB 1.395 billion, representing 96.9% of the total contract sales amount[28]. - The Chengdu and Kunming areas contributed RMB 469 million in contract sales, making up 32.6% of the total sales amount for 2024[35]. - In the Guangdong-Hong Kong-Macao Greater Bay Area, the company achieved contract sales of RMB 396 million, accounting for 27.5% of the total sales amount[34]. Cost Management and Operational Efficiency - The company successfully reduced sales and distribution expenses and administrative expenses by 27.4% compared to 2023, optimizing its cost structure[18]. - The company has implemented a series of cost control measures since 2021 to adapt to market changes, effectively reducing operational costs[18]. - The company aims to strengthen financial management and strictly control costs to ensure a stable financial condition[23]. - The company is implementing cost control measures to maintain financial stability during periods of economic uncertainty[145]. - The company has reduced sales and distribution expenses and administrative expenses by 27.4% in 2024 compared to 2023, while optimizing its personnel structure to lower operating costs[168]. Debt Management and Restructuring - The company continued to actively restructure its debts, with over 81.96% of creditors supporting the new debt restructuring agreement signed in 2024[19]. - The company is actively optimizing its debt structure and seeking financing support to drive project progress[27]. - The company is exploring options for debt restructuring and new financing sources to address significant uncertainties regarding its ability to continue as a going concern[159]. - The company has successfully negotiated financing solutions with several financial institutions to ensure sufficient operating funds for at least 12 months from December 31, 2024[162]. - The company has made revised repayment arrangements for its domestic debt, extending the maturity dates to between 2023 and 2028, which have been approved by bondholders[105]. Project Management and Delivery - The company has prioritized project delivery as a core operational task, ensuring smooth project progress and delivery in key regions such as the Guangdong-Hong Kong-Macao Greater Bay Area[16]. - The company plans to complete its delivery tasks over the next two years, providing confidence to investors and ensuring long-term stability[24]. - The company has 13 ongoing projects with a total construction area of 1,357,490 square meters as of December 31, 2024[41]. - The company has successfully entered multiple projects into the whitelist or obtained special funding for project payments in 2024, enhancing its liquidity position[166]. Employee and Management Structure - The company had approximately 18,596 employees as of December 31, 2024, down from 19,712 employees in 2023, with total employee costs for the year amounting to approximately RMB 885 million[63]. - The total number of senior management members with annual compensation between HKD 1,000,001 and HKD 2,000,000 is 6[90]. - The company has a total of 16 senior management members, with no members earning above HKD 2,000,000 annually[90]. - The board consists of eight directors, including two female directors[196]. Governance and Compliance - The board believes that the internal control and risk management systems are effective and adequate, with no significant issues identified that could impact shareholders during the year ending December 31, 2024[199]. - The company has established an insider information disclosure policy to keep directors, senior management, and employees informed of the latest regulatory updates[200]. - The board is responsible for enhancing the company's financial performance and formulating group strategies, ensuring long-term and stable returns for shareholders[174]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to enhance management effectiveness[184]. Market Conditions and Strategic Adjustments - The company is closely monitoring economic indicators and adjusting marketing strategies to target more resilient market segments due to weakened consumer confidence, which has led to a decline in sales volume and average selling prices in 2024[145]. - The company is diversifying its product offerings to include more affordable housing options that comply with government policies[147]. - Financial institutions have tightened lending conditions in 2024, resulting in increased borrowing costs and reduced funding availability for the company[147]. - The company is enhancing its supply chain management by establishing relationships with multiple suppliers to mitigate project delays[147]. Future Outlook and Strategic Initiatives - The company is focused on asset revitalization and debt risk resolution, actively negotiating debt solutions with suppliers[16]. - The company is exploring opportunities to establish and operate community leasing and sales services overseas[122]. - The company plans to raise up to approximately HKD 61.36 million through a rights issue, offering one new share for every four existing shares at a subscription price of HKD 0.165 per share[169]. - The company is focused on accelerating the pre-sale and sale of properties, particularly in core regions, to improve cash flow and meet financial obligations[167].

Financial Performance - For the six months ended February 28, 2025, the company reported revenue of RMB 918,236,000, an increase of RMB 46,266,000 or 5.3% compared to the same period in 2024[10]. - The cost of sales for the same period was RMB 439,676,000, reflecting an increase of RMB 97,559,000 or 28.5% year-over-year[10]. - Gross profit decreased to RMB 478,560,000, down RMB 51,293,000 or 9.7% from the previous year[10]. - Profit before tax was RMB 454,974,000, a decline of RMB 25,813,000 or 5.4% compared to the prior period[10]. - The net profit for the period was RMB 426,559,000, down RMB 25,929,000 or 5.7% year-over-year[10]. - Core net profit was RMB 434,081,000, a decrease of RMB 25,684,000 or 5.6% from the previous year[10]. - Adjusted EBITDA for the period was RMB 581,251,000, down RMB 35,180,000 or 5.7% compared to the same period in 2024[10]. - The total comprehensive income for the period was RMB 438,216,000, down from RMB 477,580,000 in 2024, a decrease of approximately 8.2%[64]. - The basic and diluted earnings per share for the period were RMB 0.2119, down from RMB 0.2249 in the previous year, a decrease of about 5.3%[62]. Revenue Composition - Tuition fees accounted for approximately 94.7% of total revenue, with total tuition fees rising by RMB 51.4 million or 6.3% to RMB 869.3 million[17]. - Other income and gains rose by RMB 32.4 million or 37.3% to RMB 119.6 million, mainly driven by an increase in management service income[24]. - The management service income increased to RMB 75,008,000 from RMB 51,315,000, marking a growth of 46.1%[94]. Student Enrollment - The number of full-time students reached approximately 77,000, including about 69,000 undergraduates, representing a year-on-year growth of 5.4%[18]. Cost and Expenses - Other expenses increased by RMB 14.4 million or 97.3% to RMB 29.2 million for the six months ended February 28, 2025, primarily due to increased employee costs[27]. - Sales costs increased by RMB 97.6 million or 28.5% to RMB 439.7 million, primarily due to investments in high-quality education and student training[22]. - Total employee compensation costs for the six months ended February 28, 2025, were RMB 251.7 million, compared to RMB 223.7 million for the six months ended February 29, 2024[41]. Dividends and Shareholder Information - The board declared an interim dividend of HKD 0.07 per share, representing approximately 30% of the profit attributable to the owners of the company[12]. - The interim dividend of HKD 0.07 per share will be paid for the six months ending February 28, 2025, consistent with the previous period[46]. - The company will suspend the register of shareholders from March 10 to March 13, 2026, to determine eligibility for the interim dividend[47]. - Major shareholders include Ye Nianqiao with 33.62% and Ye Xun with 14.89% of the shares[52]. Assets and Liabilities - As of February 28, 2025, total non-current assets amounted to RMB 6,286,878,000, an increase of 2.68% from RMB 6,122,732,000 as of August 31, 2024[66]. - Current assets totaled RMB 1,672,289,000, reflecting a growth of 12.16% compared to RMB 1,490,797,000 in the previous period[68]. - Total liabilities decreased to RMB 2,509,627,000 from RMB 2,490,764,000, resulting in a net asset value of RMB 5,449,540,000, up 6.38% from RMB 5,122,765,000[68]. - The company has a current liability net amount of RMB 281,888,000 as of February 28, 2025, which includes contract liabilities of RMB 826,309,000 to be settled through educational services[81]. Cash Flow and Financing - Operating cash flow for the six months was RMB 459,184,000, down 33.43% from RMB 690,969,000 in the previous year[73]. - The net cash flow from operating activities for the six months ended February 28, 2025, was RMB 459,184,000, a decrease of 33.5% compared to RMB 690,969,000 for the same period in 2024[75]. - The net cash flow used in investing activities was RMB 211,727,000, compared to a net cash inflow of RMB 35,552,000 in the previous year, indicating a significant shift in investment strategy[75]. - The net cash flow from financing activities was RMB (90,274,000), a substantial improvement from RMB (755,858,000) in the prior year, reflecting better management of financing[75]. - The company has increased bank and other borrowings to RMB 608,634,000, up from RMB 178,016,000, reflecting a strategic move to enhance liquidity[75]. Corporate Governance - The board has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and risk management[48]. - The audit committee reviewed the unaudited interim consolidated results and confirmed compliance with relevant accounting standards[48]. - No changes in director information have been reported since the last annual report[51]. Taxation - The total tax expense for the six months ended February 28, 2025, was RMB 28,415,000, compared to RMB 28,299,000 for the same period in 2024, reflecting an increase of 0.4%[119]. - The company benefits from a 15% corporate income tax rate for its subsidiary in Tibet, which is set to continue through 2024[116]. - The company has enjoyed tax exemptions for its educational services, with no corporate income tax expenses recognized during the reporting period[116]. - The company’s other non-school subsidiaries in mainland China are subject to a 25% corporate income tax rate on their taxable income[117]. Strategic Initiatives - The group plans to expand international education services and light-asset management for private higher education institutions, focusing on high-quality educational service delivery[19]. - The group aims to enhance its AI integration in vocational education, with plans to develop AI tools and a smart library by 2025[14]. - The group has established a partnership with Hunan Vocational School to manage its operations, marking a significant step in its asset-light expansion strategy[15]. - The company is undergoing internal restructuring to convert existing schools into for-profit institutions in compliance with the 2016 decision and related regulations[112].

Financial Performance - Total operating revenue for Q1 2025 reached CNY 16.55 billion, a 9.93% increase compared to CNY 15.05 billion in the same period last year[7] - Net profit attributable to shareholders was CNY 1.15 billion, reflecting a significant growth of 27.39% from CNY 905.75 million year-on-year[7] - Basic earnings per share increased to CNY 0.37, up 27.59% from CNY 0.29 in the previous year[7] - Operating income for Q1 2025 was ¥16.29 billion, up from ¥14.80 billion in Q1 2024, reflecting a growth of 10.1%[29] - Net profit for Q1 2025 was ¥1.23 billion, representing a 24.7% increase compared to ¥0.99 billion in Q1 2024[31] - The total comprehensive income for Q1 2025 was ¥1.23 billion, an increase from ¥0.97 billion in Q1 2024[32] Cash Flow - The net cash flow from operating activities was negative at CNY -3.29 billion, a decline of 365.42% compared to a positive cash flow of CNY 1.24 billion in the same period last year[7] - Cash flow from operating activities decreased by 365.42%, primarily due to an increase in cash payments for goods purchased by RMB 40.21 billion and a decrease in net customer deposits and interbank placements by RMB 29.12 billion[15] - Operating cash inflow for Q1 2025 was CNY 17.68 billion, compared to CNY 16.54 billion in Q1 2024, representing an increase of 6.9%[36] - Cash outflow from operating activities in Q1 2025 was CNY 20.97 billion, up from CNY 15.30 billion in Q1 2024, indicating a significant increase of 37.6%[38] - The company’s cash inflow from operating activities included CNY 1,430,304,213.06 from sales of goods and services in Q1 2025, a substantial rise from CNY 549,304,216.73 in Q1 2024, reflecting an increase of approximately 160.1%[54] Assets and Liabilities - The company's total assets at the end of the reporting period were CNY 148.83 billion, representing a 4.80% increase from CNY 142.01 billion at the end of the previous year[7] - Total liabilities amounted to CNY 104.39 billion, compared to CNY 98.87 billion, marking an increase of around 5.7%[27] - Long-term borrowings increased by 61.11%, with new loans from external banks amounting to CNY 1.36 billion[13] - Current assets totaled CNY 103.78 billion, up from CNY 93.78 billion, indicating a significant increase of about 10.7%[24] - The total current liabilities reached CNY 93.03 billion, up from CNY 88.91 billion, indicating an increase of approximately 4.8%[26] Investments and Expenses - Research and development expenses increased to ¥705.99 million in Q1 2025, up 15.2% from ¥612.62 million in Q1 2024[29] - The company reported a total operating cost of ¥15.24 billion in Q1 2025, which is a 10.5% increase from ¥13.79 billion in Q1 2024[29] - The company reported a significant increase in asset impairment losses of CNY 120,767,659.84 in Q1 2025 compared to CNY 11,629,731.15 in Q1 2024[49] Shareholder Information - As of the end of the reporting period, the total number of common shareholders was 103,003[16] - The largest shareholder, China Eastern Electric Group Co., Ltd., holds 1,739,215,126 shares, accounting for 55.79% of total shares[17] Production and Orders - In Q1 2025, the company produced 17,909,400 kW of power generation equipment, including 695,000 kW of hydropower units and 1,390,300 kW of steam turbine generators[21] - The company secured new orders worth RMB 35.881 billion in Q1 2025, with clean and efficient energy equipment accounting for 44.56% of the total[21]