Revenue Performance - For the fiscal year ending December 31, 2024, the company's revenue was approximately RMB 1,154.9 million, a decrease of about RMB 1,689.9 million or 59.4% compared to RMB 2,844.8 million for the previous fiscal year[6]. - The decline in revenue was primarily due to reduced earnings from the property development and investment segment, with no new property investments or acquisitions made during the year[9]. - The trade and logistics segment contributed approximately RMB 766.1 million (66.3% of total revenue) and the printing segment contributed approximately RMB 319.6 million (27.7% of total revenue) for the fiscal year[10]. - Revenue from the property development and investment segment was only RMB 25.2 million (2.2% of total revenue) compared to RMB 1,562.0 million (54.9% of total revenue) in the previous year[10]. - The group's revenue for the year was approximately RMB 1,154.9 million, a decrease of about RMB 1,689.9 million or 59.4% compared to the previous year's revenue of approximately RMB 2,844.8 million[15]. - The printing segment recorded revenue of approximately RMB 319.6 million, down from approximately RMB 376.5 million in the previous year[15]. - The trade and logistics segment generated revenue of approximately RMB 766.1 million, compared to approximately RMB 856.8 million last year[15]. - The property development and investment segment's revenue was approximately RMB 25.2 million, a significant drop from approximately RMB 1,562.0 million in the previous year[15]. Financial Losses and Stability - The group recorded a loss attributable to shareholders of approximately RMB 1,263.4 million for the year, compared to a loss of approximately RMB 2,679.4 million in the previous year[23]. - The company reported a net loss of approximately RMB 1,264,365,000 for the year ending December 31, 2024[155]. - The company is facing significant uncertainty regarding its ability to continue as a going concern, dependent on various measures to improve liquidity and financial condition[158]. - The company plans to implement cost-cutting measures and restructure debts to enhance its financial stability[158]. - The company's net loss attributable to shareholders rose from RMB 6,350,809 thousand in 2023 to RMB 7,621,857 thousand in 2024, an increase of about 20%[170]. - The company reported a net loss of RMB 1,264,365,000 for 2024, compared to a net loss of RMB 2,671,180,000 in 2023, indicating a 52.8% improvement in losses year-over-year[167]. Assets and Liabilities - As of December 31, 2024, the group's current assets were approximately RMB 2,035.2 million, down from approximately RMB 2,344.5 million in the previous year[25]. - Total liabilities as of December 31, 2024, included overdue principal and interest amounting to approximately RMB 7,566,644 thousand, indicating significant debt pressure[178]. - The company's total liabilities increased from RMB 11,798,177 thousand in 2023 to RMB 12,276,600 thousand in 2024, representing a growth of approximately 4.05%[169]. - Non-current assets decreased to RMB 2,799,355,000 in 2024 from RMB 3,293,439,000 in 2023, reflecting a decline of 15.0%[168]. - Current assets totaled RMB 1,928,255,000 in 2024, down from RMB 2,231,461,000 in 2023, representing a decrease of 13.6%[168]. - The company's cash and cash equivalents decreased to RMB 36,292,000 in 2024 from RMB 65,351,000 in 2023, a decline of 44.5%[168]. Corporate Governance - The board is committed to maintaining high standards of corporate governance and has applied the principles of the Corporate Governance Code as per the Hong Kong Stock Exchange, although it has not complied with a specific provision regarding the separation of roles between the chairman and the CEO[39]. - The board of directors consists of executive and independent non-executive members, with the current composition including Mr. Yan Ruijie as Chairman and CEO, and Ms. Chen Yun as an executive director[42]. - The group emphasizes the importance of independent opinions and encourages directors to express their views freely during meetings[57]. - The board's composition considers various factors including gender, age, cultural background, and professional experience to maintain a balanced and diverse team[58]. - The company has established a shareholder communication policy to ensure timely and balanced information dissemination[97]. Debt Restructuring and Financial Measures - The company is undergoing a debt restructuring plan, with 33 creditors voting on claims totaling HKD 738,564,787, achieving a 96.72% approval rate[183]. - The company plans to maximize cash flow by ceasing or selling several non-core loss-making operations[181]. - The company is negotiating with creditors to restructure debts related to property development projects, which have been suspended due to cash shortages[180]. - The group is currently involved in several unresolved legal proceedings initiated by creditors, contractors, customers, and suppliers in China, but the board believes these will not have a significant financial impact on the group[32]. Environmental and Social Responsibility - The group emphasizes the importance of environmental protection for its long-term development and is committed to continuously reviewing and improving its management practices to minimize environmental impact[33]. - The company made charitable donations amounting to RMB 227,000 during the year[113]. Audit and Compliance - The audit committee ensures compliance with financial reporting standards and maintains effective risk management and internal control systems[81]. - The external auditor, BDO Limited, charged RMB 1.6 million for audit services in the current year, down from RMB 1.8 million in 2023[90]. - The company is committed to maintaining compliance with legal and regulatory requirements, including the disclosure of inside information[96].

Stock Option Plan - The stock option plan has a total of 12,676,257 shares available for grant as of March 31, 2024, representing approximately 2.75% of the total issued shares (excluding treasury shares) [3] - The stock option plan is detailed in the "Board Report" section of the annual report [3] Company Information - The company confirms that the information provided in this announcement is accurate and complete, with no misleading or fraudulent elements [6] - The announcement is published in accordance with the GEM Listing Rules of the Hong Kong Stock Exchange [6] - The company is incorporated in the Cayman Islands with limited liability [2] Board of Directors - The board of directors includes five executive directors and three independent non-executive directors [5] Shareholder Communication - The announcement serves to provide information regarding the company to shareholders and potential investors [6] - The company emphasizes the importance of shareholders and potential investors exercising caution when trading shares [5] - The announcement will be available on the Hong Kong Stock Exchange website for at least seven days from the publication date [6] Annual Report Disclosure - The company has not disclosed any changes to other information in the annual report [4]

Financial Performance - In 2024, the company achieved a total revenue of RMB 32.16 billion, a 92.1% increase from RMB 16.75 billion in 2023[8] - The gross profit for 2024 was RMB 2.69 billion, a significant increase of 3,248.4% from RMB 80.47 million in 2023[8] - The company reported a net profit of RMB 80 million in Q4 2024, marking the first quarterly profit in its history, ahead of its target by one year[10] - The gross margin for 2024 improved to 8.4%, up 7.9 percentage points from 0.5% in 2023, with Q4 2024 achieving a record high gross margin of 13.3%[10] - The adjusted net loss for 2024, excluding share-based payments, was RMB 2.35 billion, a reduction of RMB 1.17 billion from RMB 3.52 billion in 2023[10] - Operating loss narrowed to RMB 3.17 billion in 2024 from RMB 4.38 billion in 2023, as gross profit growth outpaced expense increases[34] - The net cash generated from operating activities in 2024 was RMB 8.47 billion, an increase of RMB 7.39 billion from RMB 1.08 billion in 2023[11] - Free cash flow for 2024 was RMB 6.32 billion, a remarkable increase of 2,058.5% from a negative RMB 0.32 billion in 2023[41] - The net loss for 2024 was RMB 2.82 billion, down from RMB 4.22 billion in 2023, with adjusted net loss (non-IFRS) at RMB 2.35 billion compared to RMB 3.52 billion in 2023[38] Vehicle Deliveries and Sales - The total vehicle deliveries for 2024 reached 293,724 units, representing a 103.8% growth compared to 144,155 units in 2023, maintaining a top-three position among new car manufacturers[12] - C-series vehicles accounted for 76.6% of total sales in 2024, with 225,071 units delivered, reflecting a 112.9% increase from the previous year[12] - In 2024, the company delivered 75,469 units of the C10 and 43,528 units of the C16, with average monthly sales of nearly 10,000 and over 8,000 units respectively in Q4 2024[15] - The company achieved a cumulative sales volume of 87,552 units from January to March 2025, a 162.1% increase compared to the same period in 2024[26] Research and Development - Research and development expenses rose to RMB 2.90 billion in 2024, a 51.0% increase from RMB 1.92 billion in 2023, reflecting increased investment in R&D[33] - The company established a smart technology research institute with over 500 personnel to enhance AI capabilities and aims to achieve city NOA by the end of 2025[18] - The LEAP 3.0 technology architecture was introduced in 2024, leading to a monthly average sales of over 30,000 units for the C series in Q4 2024, with all models ranking in the top five of their respective segments[17] Expansion and Market Presence - The company plans to launch the B series, including the compact SUV B10, mid-size sedan B01, and sporty hatchback B05, aiming for a sales target of 500,000 units in 2025[16] - By the end of 2024, the company had established 695 sales stores and 427 service stores, covering 264 cities, an increase of 82 cities from 2023[20] - The company exported 13,726 units overseas by the end of 2024 and established over 400 sales and service points globally, with plans to reach over 550 by 2025[24] - The company launched its first global strategic model, the C10, in Europe in September 2024, accelerating its international market presence[59] Corporate Governance and Compliance - The company has complied with all applicable laws and regulations during the reporting period, with no significant legal or regulatory issues reported[74] - The supervisory board believes that the company's 2024 financial report objectively reflects its financial status and operating results, complying with relevant accounting standards and regulations[171] - The supervisory board found that related party transactions during the reporting period were priced objectively and fairly, with no harm to the company's or shareholders' interests[172] - The company is focused on maintaining fair and reasonable transaction conditions in its related party dealings[172] Shareholder Information - Stellantis holds approximately 21.26% of the company's issued share capital, making it a major shareholder[105] - The company has a stock option plan allowing executives to acquire 2,000,000 shares, subject to vesting conditions[114] - The total issued domestic shares amount to 220,552,174, while the total issued H shares are 1,116,413,915[115] - The company has not recommended any final dividend for the year ended December 31, 2024, considering the long-term interests of shareholders[61] Employee Engagement and Compensation - As of December 31, 2024, the company has 15,551 full-time employees, primarily located in Zhejiang Province, China[112] - The company offers competitive compensation and comprehensive training programs for employees, including safety and quality awareness training[112] - The company has established a vibrant work environment to encourage employee initiative and engagement[112] Financial Instruments and Risks - The company has not engaged in any foreign exchange hedging instruments as of December 31, 2024, and does not foresee significant direct foreign exchange risks from its operations[55] - The company has not utilized any interest rate swap contracts or other financial instruments to hedge its interest rate risks during the reporting period[56] Future Plans and Investments - Approximately 75% (RMB 2,148.4 million) of the funds raised will be used for the research and development of new electric vehicle models and upgrading existing models[153] - The company aims for global expansion, particularly entering the European market, leveraging Stellantis' extensive distribution network[157] - 25% of the net proceeds will enhance production capacity and operational efficiency, also with a five-year timeline[159]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 3,207.7 million, representing a year-on-year increase of 3.4% compared to RMB 3,102.9 million in the previous fiscal year[13]. - The gross profit for the fiscal year 2024 was approximately RMB 1,163.1 million, up from RMB 1,102.9 million in 2023, with a gross margin of 36.3%, an improvement from 35.5% in the prior year[15]. - The net profit attributable to shareholders for the fiscal year 2024 was RMB 563.5 million, a decrease of 7.2% from RMB 607.4 million in 2023[18]. - Total assets as of December 31, 2024, were RMB 4,350.3 million, a slight decrease from RMB 4,432.3 million in 2023[8]. - Total liabilities decreased to RMB 868.2 million in 2024 from RMB 957.1 million in 2023, indicating improved financial stability[8]. - The overall sales volume for the company decreased by 7.4% in the 2024 fiscal year, from approximately 393.4 million units in 2023 to 364.2 million units[57]. - The company's total revenue increased to approximately RMB 3,207.7 million in the 2024 fiscal year, a 3.4% growth from RMB 3,102.9 million in 2023[57]. - The gross profit for the company reached approximately RMB 1,163.1 million in the 2024 fiscal year, up 5.4% from RMB 1,103.0 million in the previous year, with a gross margin improvement from 35.5% to 36.3%[57]. - The total order amount for the next five years is estimated to be approximately RMB 10.1 billion, reflecting a conservative forecast[62]. - The cost of sales increased by approximately RMB 44.6 million or 2.2% to RMB 2,044.5 million in fiscal year 2024, while revenue grew by 3.4%[64]. Market Trends - The global automotive market reached a total revenue of USD 3.8 trillion in 2024, with a 12% year-on-year growth, driven significantly by electric vehicles and connected car technologies[10]. - Electric vehicles accounted for 25% of total new car sales by the end of 2024, up from 17% the previous year, highlighting a significant market shift[9]. - The global automotive market is expected to see limited growth by 2025, with challenges in Western Europe and potential expansion in the Chinese market supported by government incentives[25]. - Despite challenges, the electric vehicle (EV) sector is progressing towards profitability, with strong sales growth anticipated globally[26]. - The overall economic outlook for 2025 remains positive, with low recession risks and improved affordability for consumers due to better credit availability and lower auto loan rates[26]. - The hybrid electric vehicle sector is expected to grow significantly at a rate of 20%-25% between 2024 and 2025[52]. - The automotive industry is gradually recovering from supply chain disruptions and economic uncertainties, with new car sales showing substantial growth[52]. - Continuous inventory replenishment is driving growth in vehicle sales as supply chains stabilize[52]. - The semiconductor supply shortage has hindered the recovery of global vehicle sales[52]. - Electric vehicles continue to experience rapid growth, indicating a shift in consumer preferences[52]. - In 2024, new car sales in the US are projected to reach approximately 16.0 million units, representing a year-over-year growth of over 2% compared to 2023, marking the highest sales since the COVID-19 pandemic[53]. - In China, the production of light vehicles is expected to reach 31.3 million units, with sales of 31.4 million units in 2024, reflecting year-over-year increases of 3.7% and 4.5%, respectively[53]. - Electric vehicles (EVs) are anticipated to account for over 40% of new car sales in China in 2024, supported by government subsidies to stimulate consumer demand[54]. - Global electric vehicle sales are projected to reach 17.4 million units in 2024, showing a year-over-year increase of 48%[56]. Corporate Governance - The board of directors is responsible for the overall management of the company, including strategy development and financial goals[92]. - The company has complied with the corporate governance code, ensuring high standards of accountability and transparency[89]. - The board consists of six executive directors and three independent non-executive directors, with no significant relationships among them[95]. - The company encourages employee participation in training and seminars to enhance their capabilities within the organization[83]. - The company has established mechanisms to ensure independent opinions are provided to the board, which were reviewed for effectiveness in the fiscal year 2024[99]. - The current term for independent non-executive directors is three years, starting from June 6, 2023[100]. - The board held a total of four board meetings, one remuneration committee meeting, one nomination committee meeting, and three audit committee meetings during the 2024 fiscal year[105]. - All directors attended 100% of the board meetings, with each executive director participating in all four meetings[107]. - The board ensures that at least one-third of its members are independent non-executive directors, maintaining a balance for effective oversight[101]. - The company encourages continuous professional development for all directors, providing training opportunities to enhance their skills and knowledge[103]. - Independent non-executive directors are not compensated based on equity or performance-related pay, ensuring their objectivity in decision-making[101]. - The board plans to continue holding at least four meetings annually and aims to maintain regular communication with independent non-executive directors[105]. - The company allows board members to seek independent professional advice at the company's expense to fulfill their responsibilities[105]. - Any potential conflicts of interest involving major shareholders or directors will be discussed in board meetings rather than through written resolutions[106]. - Directors are required to retire and stand for re-election at least once every three years during the annual general meeting[102]. - The board of directors is led by Chairman Ma Xiaoming and CEO Zhang Yumin, effective from February 21, 2023[109]. - The audit committee held three meetings during the 2024 fiscal year to review the audited annual results for the fiscal year 2023 and the unaudited interim results for the six months ending June 30, 2024[113][116]. - The remuneration committee conducted one meeting in the 2024 fiscal year to review the existing remuneration of all directors and senior management[118]. - The nomination committee is responsible for reviewing the board's structure, size, and composition annually, and making recommendations for potential changes[121]. - The audit committee has the authority to obtain professional advice and sufficient resources to fulfill its responsibilities[113]. - The remuneration committee evaluates the performance of executive directors and approves the terms of their service contracts[117]. - The company has established a culture of open communication and constructive relationships among directors to enhance governance[109]. - The board ensures that all directors receive timely and accurate information for effective decision-making[109]. - The company provides sufficient resources to the board committees, allowing them to seek independent professional advice when necessary[111]. - The nomination committee assesses the independence of independent non-executive directors[121]. Employee and Operational Insights - The company employed 5,212 full-time employees and operated in 13 cities across seven countries, reflecting its global presence[12]. - As of December 31, 2024, the group had 5,212 employees, a slight decrease from 5,227 employees in 2023[81]. - Employee compensation and costs for the fiscal year 2024 amounted to approximately RMB 724.9 million, compared to RMB 711.1 million in the fiscal year 2023, reflecting a year-over-year increase of about 1.7%[81]. - The company's issued share capital as of December 31, 2024, was approximately RMB 87.5 million, unchanged from December 31, 2023[84]. - The company has established multiple channels for shareholder communication, ensuring timely and equal access to information[155]. - The company has purchased liability insurance for its directors and senior management to provide appropriate protection[179]. - Total remuneration paid to directors for the fiscal year 2024 was approximately RMB 15,983,000, compared to RMB 14,483,000 for fiscal year 2023, representing an increase of about 10.35%[192]. - Total remuneration for the five highest-paid individuals in the group for fiscal year 2024 was approximately RMB 17,368,000, up from RMB 13,652,000 in fiscal year 2023, indicating a growth of approximately 27.5%[192]. - The company has established a risk management and internal control system that is effective and sufficient, with no significant defects identified during the annual review[132]. - The company has not established an internal audit department but is considering the cost-effectiveness of appointing external independent professionals for internal audit services[133]. Strategic Initiatives - The company aims to maintain its leading position in the automotive decorative parts sector while expanding market share and strengthening relationships with core customers[12]. - The company is focused on sustainable growth amidst geopolitical tensions and evolving market dynamics, ensuring adaptability in its global growth strategy[12]. - A new overseas production facility in Malaysia is nearing completion, with trial operations expected to begin by mid-2025 and mass production planned for the end of 2025[24]. - The company has diversified its global operations, enhancing its market position and customer service foundation, particularly in response to global and regional challenges[24]. - The company has diversified its production bases, with existing operations in Mexico and recent expansions in Malaysia, enhancing its adaptability to geopolitical risks[62]. - The company has no specific future plans for significant investments or capital assets as of the report date[170]. - The company has complied with all relevant environmental laws and regulations during the fiscal year 2024, with no significant environmental claims or penalties[165]. Shareholder Relations - The company is committed to maintaining effective communication with shareholders and ensuring transparency in its operations[151]. - The company aims to strengthen investor relations and maintain transparency regarding its operational strategies, financial performance, and development prospects[153]. - The proposed final dividend for the fiscal year 2024 is HKD 0.3 per share, subject to approval at the 2025 Annual General Meeting[160]. - As of December 31, 2024, the company's distributable reserves amount to approximately RMB 971.4 million, with about RMB 280.8 million proposed as the final dividend for the fiscal year 2024[174]. - The company plans to distribute no less than 30% of the distributable profits as dividends for each fiscal year, subject to board approval and various factors including operating performance and financial condition[134].

Financial Performance - For the year ended December 31, 2024, the company's revenue was approximately RMB 23.32 million, a significant decrease from RMB 4.44 million in 2023[9] - The loss attributable to owners of the company for 2024 was RMB 42.99 million, compared to a loss of RMB 46.23 million in 2023[9] - Total assets as of December 31, 2024, were RMB 569.34 million, down from RMB 651.73 million in 2023[9] - Total liabilities decreased to RMB 466.85 million in 2024 from RMB 503.66 million in 2023[9] - The net asset value attributable to owners of the parent was RMB 140.46 million in 2024, compared to RMB 176.93 million in 2023[9] - The Group's revenue for the year amounted to approximately RMB 23.3 million, a significant increase from RMB 4.4 million in 2023, primarily from the trading of electronic products[31] - The loss attributable to owners of the Company was approximately RMB 43.0 million, a slight improvement from RMB 46.2 million in 2023, mainly due to low gross profit from trading activities[31] - The gross profit margin for the trading business was approximately 0.1% for the year[25] - The Group's bank balances and cash were approximately RMB 15.8 million as of December 31, 2024, a decrease from RMB 17.2 million in 2023[32] Project Development - The Second Maoming Project has a total site area of approximately 29,274.16 square meters, with a planned gross saleable area of 84,000 square meters[16] - The company has no real estate project for sale during the year due to unfavorable market conditions, resulting in a significant revenue decrease[12] - The total area of residential and commercial properties recognized as sales in 2023 was approximately 747 square meters[13] - The company is focusing on the development of the Second Maoming Project, which includes 1,000 carpark spaces and a mix of residential and commercial areas[16] - As of December 31, 2024, approximately 63% of the construction for the Second Maoming Project has been completed, with pre-sales for residential properties scheduled for the second half of 2024[19] Capital Structure and Financing - The Group's total secured bank borrowings and other borrowings amounted to approximately RMB 9.4 million as of December 31, 2024, down from RMB 30.0 million in 2023[33] - The gearing ratio was approximately 9% as of December 31, 2024, compared to 20% in 2023, indicating improved financial stability[33] - The Placing of new shares on February 15, 2024, raised gross proceeds of approximately HK$7.12 million, enhancing the Company's capital structure[41] - The total gross proceeds from the placing amounted to approximately HK$7.12 million, with net proceeds of about HK$6.88 million after deducting commissions and other expenses[44] - The company plans to use the net proceeds from the placing for repayment of outstanding liabilities and general working capital, including staff costs and administrative expenses[46][50] - A rights issue was announced on April 8, 2024, offering two rights shares for every one share held at a subscription price of HK$0.15, which was completed on July 22, 2024[48][49] - The total gross proceeds from the rights issue and the specific mandate placing were approximately HK$1.6 million, with net proceeds of about HK$0.56 million after expenses[54][59] Employment and Remuneration - The group employed 35 full-time employees as of December 31, 2024, with total remuneration for the year being approximately RMB8.4 million, down from RMB13.2 million in 2023[66] - The group employed 35 full-time employees in Hong Kong and China, down from 53 in 2023, with total compensation amounting to approximately RMB 8.4 million, a decrease from RMB 13.2 million in 2023[71] Corporate Governance - The Company complied with all relevant code provisions set out in the Corporate Governance Code during the year[122] - The Company adopted the Model Code for Securities Transactions by Directors, confirming compliance by all Directors during the year[123] - The Company is committed to maintaining good corporate governance practices and procedures[121] - The Board consists of seven Directors, including three executive Directors and four independent non-executive Directors, enhancing corporate governance practices[127] - The Board held 12 meetings during the year, ensuring Directors received relevant information for informed decision-making[138] - The Company adopts a practice of holding Board meetings at least four times a year, with additional ad-hoc meetings as necessary[135] - Directors have independent access to senior management and can seek independent professional advice if needed[134] Board Changes and Appointments - Mr. Liu Jianhui was appointed as the executive Director and CEO effective April 1, 2025, bringing extensive experience in financial institutions[84][91] - Mr. Zhang Xiaojun appointed as Executive Director on October 30, 2023, with a focus on optimizing cash flow and establishing investment funds[98] - Mr. Yau Sze Yeung has over 20 years of experience in the financial industry, including audit and corporate finance, and serves as the chairman of the Audit Committee[105] - Mr. Lee Chun Tung appointed as an independent non-executive Director and has extensive experience in internal control and regulatory compliance[111] - Mr. Su Zhi Jie appointed as independent non-executive Director on September 30, 2024, with over 10 years of experience as a qualified internal auditor[113] - Ms. Aika Ouji appointed as independent non-executive Director on December 31, 2024, with extensive experience in international trade and real estate management[114] - Mr. Liu Jian Hui appointed as Chief Executive Officer on April 1, 2025, indicating a leadership transition within the Company[128] Audit and Risk Management - The Audit Committee held 5 meetings during the year to review the audited consolidated financial statements for the years ended December 31, 2022, and 2023[180] - The Committee reviewed the unaudited consolidated interim financial statements for the six months ended June 30, 2023, and June 30, 2024[181] - The Audit Committee evaluated the effectiveness of the internal audit functions and the risk management and internal control systems of the Group[183][184] - The external auditor's fees were reviewed and the remuneration and terms of engagement were approved based on guidelines from the Financial Reporting Council[189] Subsequent Events and Contingencies - The company failed to publish the 2024 Annual Results Announcement by the March 31, 2025 deadline due to additional time required for the auditor to complete its work, leading to a suspension of trading from April 1, 2025[85][86] - There are no material contingent liabilities as of December 31, 2024[83][88] - No significant subsequent events occurred that materially affect the group's financial condition or operation following the reporting period[87][90]

(Incorporated in the Cayman Islands and continued in Bermuda with limited liability) （於開曼群島註冊成立並於百慕達存續之有限公司） 年 報 ANNUAL REPORT 2024 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED ("STOCK EXCHANGE") 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 m ...

Financial Performance - The company reported a significant increase in revenue, achieving a total of $500 million, representing a 20% year-over-year growth[1]. - In 2024, the company's total revenue was RMB 23,147,916,000, a decrease of 6.8% compared to the previous year[21]. - The company's revenue decreased from approximately RMB 24,845,816,000 in 2023 to approximately RMB 23,147,916,000 in 2024, representing a decline of about RMB 1,697,900,000 or 7%[58]. - The largest revenue drop was in the new energy sector, which saw a decrease of approximately RMB 2,001,678,000, primarily due to reduced delivery volumes in the commodity and steel supply chain[58]. - The health and education business generated revenue of approximately RMB 487,458,000 in 2024, compared to RMB 151,444,000 in 2023, indicating a significant increase[49]. - The investment and financial services segment recorded a loss of approximately RMB 532,640,000 in 2024, an increase from RMB 217,498,000 in 2023, primarily due to increased credit risk[40]. - The company recorded a significant post-tax loss of approximately RMB 7,325,350,000 in 2024, compared to RMB 455,449,000 in 2023, primarily due to substantial impairment losses related to trade receivables in the renewable energy segment[76]. User Engagement and Market Expansion - User data showed a growth in active users, reaching 2 million, which is a 15% increase compared to the previous quarter[2]. - The company provided a positive outlook for the next quarter, projecting revenue growth of 25% and an increase in user engagement metrics[3]. - Market expansion plans include entering three new international markets by the end of the year, targeting a potential revenue increase of $30 million[6]. - A new marketing strategy has been implemented, aiming to increase brand awareness and customer acquisition by 40% over the next six months[8]. Product Development and Investment - New product launches are expected to contribute an additional $50 million in revenue over the next fiscal year[4]. - The company is investing in new technology development, allocating $10 million towards research and development initiatives[5]. - The company plans to focus on green energy equipment manufacturing and traditional Chinese medicine services, aiming to leverage its resources and expertise in these areas[27]. - The company continues to seek new investment opportunities in green energy and health services, adhering to a responsible and sustainable development philosophy[28]. Corporate Governance and Management - The company is committed to maintaining high standards of corporate governance and transparency in its operations[19]. - The board of directors emphasized the importance of sustainability initiatives, committing to reduce carbon emissions by 30% over the next five years[10]. - The company has appointed several independent non-executive directors with extensive industry experience and qualifications[12][13][14]. - The management team includes professionals with diverse backgrounds in finance, law, and project management[15][16][19]. - The company emphasizes strong governance through its various committees, including audit and risk management[13][14]. Financial Position and Assets - As of December 31, 2024, total assets amounted to RMB 45,048,057,000, down 17.4% year-on-year[21]. - The group's total debt as of December 31, 2024, was RMB 11,761,835,000, representing a decrease of approximately RMB 2,718,379,000 or 19% from December 31, 2023[79]. - The asset-liability ratio as of December 31, 2024, was approximately 26%, a slight decrease from 27% as of December 31, 2023[80]. - The group's current assets totaled approximately RMB 24,748,906,000, while current liabilities were about RMB 22,092,483,000, resulting in a current ratio of approximately 1.1[80]. Employee and Board Composition - The total employee cost for the group in the fiscal year 2024 was approximately RMB 2,236,534,000, compared to RMB 2,177,895,000 in the fiscal year 2023[111]. - The group had 8,807 employees as of December 31, 2024, a decrease from 8,881 employees as of December 31, 2023[111]. - The board consists of seven members, including four executive directors and three independent non-executive directors[116]. - The company has a board diversity policy in place since September 1, 2013, updated on January 1, 2019, emphasizing the importance of diversity in enhancing company performance[138]. Risk Management and Compliance - The company is facing challenges in obtaining sufficient audit evidence regarding certain transactions and balances, which may impact the financial statements[102]. - The company has established a framework for addressing conflicts of interest among major shareholders and directors during board meetings[144]. - The company has complied with insider information handling and disclosure procedures throughout the fiscal year 2024[163]. - The internal audit function is performed by the internal control compliance department, which independently evaluates the adequacy and effectiveness of the risk management and internal control systems[164]. Shareholder Communication and Dividends - The board decided not to declare a dividend for the fiscal year 2024[110]. - The company reported a total distributable reserve of RMB 13,834,423 thousand for the year ended December 31, 2024, down from RMB 16,913,004 thousand in 2023, primarily due to accumulated losses increasing from RMB (1,048,290) thousand to RMB (4,126,871) thousand[185]. - Shareholders can request a special general meeting if they hold at least 10% of the paid-up capital, ensuring their rights are protected[173].

Company Overview - The company is listed on the Hong Kong Stock Exchange under the ticker 9688 and on NASDAQ as ZLAB[1]. Financial Performance - The financial summary indicates significant growth in revenue, with a year-over-year increase of 25%[3]. - The company projects a revenue guidance of $200 million for the next fiscal year, representing a 20% growth[3]. - The top five customers accounted for approximately 32.4% and 35.0% of the total product revenue in 2024 and 2023, respectively[94]. - The company has incurred losses since its inception and expects to continue doing so for several quarters unless it generates sufficient revenue from approved commercialized products[119]. - The company has received a total of $466.5 million from its Hong Kong subsidiary for operations in mainland China from 2014 to 2024[114]. User Engagement - User data shows an increase in active users by 15% compared to the previous year, reaching a total of 1.5 million users[3]. Product Development and Pipeline - New product development includes a pipeline of three innovative therapies expected to enter clinical trials in Q2 2024[3]. - The company is focused on expanding and strengthening its pipeline through internal drug discovery efforts and business development activities[18]. - The company has a diverse pipeline of potential first-in-class and best-in-class products, with several assets in late-stage development and others in clinical and preclinical stages[36]. - The company aims to add at least one new IND application each year to its pipeline[38]. - The company is evaluating additional potential indications for its commercialized products[20]. Market Expansion - The company plans to expand its market presence in Europe, targeting a 30% increase in market share by 2025[3]. - The company has established a strong commercialization infrastructure to support the sales of its products across major medical centers in Greater China[19]. Regulatory Compliance and Risks - Risk factors include potential regulatory changes in China that could impact operations and market access[11]. - The company emphasizes the importance of maintaining compliance with international laws to mitigate legal risks[11]. - The company operates under complex regulations for drug development and approval in China, requiring significant resources and compliance efforts[74]. - The company must comply with various regulations regarding the procurement, storage, sale, and transportation of drugs in mainland China[79]. Strategic Partnerships and Collaborations - The company has strategic partnerships with leading global biopharmaceutical companies to enhance its product pipeline[14]. - The company has established various licensing and collaboration agreements with third parties to develop and commercialize its products and candidates, involving milestone payments and royalties based on annual sales[56]. Production and Quality Control - The company has two production facilities in Suzhou, China, supporting commercialization and clinical production for several products and candidates, including a drug named Zele[96]. - The company has implemented a strict quality control system in compliance with national regulations, monitoring operations throughout the production process from raw material inspection to product delivery[102]. Financial Strategy and Investment - The company’s investment strategy aims to minimize risk by matching the maturity of the investment portfolio with expected operational cash needs[113]. - The company may seek to raise additional capital through equity sales, debt financing, or strategic partnerships, which could dilute shareholder equity[168]. Challenges and Competition - The biopharmaceutical industry is highly competitive, with many companies vying for approval of products targeting the same therapeutic areas, which may have more financial and R&D resources than the company[103]. - The company faces significant competition from major pharmaceutical, biotech, and medical device companies, which may adversely affect its financial condition and ability to commercialize products[189]. Clinical Trials and Development - The clinical development process is lengthy and costly, with inherent uncertainties regarding the effectiveness and safety of candidate products[193]. - The company may face delays or inability to obtain regulatory approvals for candidate products, limiting the realization of their full potential[178]. Risk Management - The company conducts annual enterprise risk assessments to identify top risks and develop risk management strategies based on these assessments[110]. - The risk coordination committee provides a forum for discussing, identifying, monitoring, and managing risks across the organization[111]. Insurance and Liability - The company has purchased necessary insurance policies to cover various operational risks, including liability insurance for clinical trials and product liability insurance[108]. Economic and Political Environment - The company's operations are significantly influenced by the economic, political, and social conditions in mainland China, which differ from those in the U.S.[134]. - The company may face challenges in receiving foreign investment approvals from Chinese regulatory bodies, which could delay or prevent transactions[120].

Financial Performance - Revenue for Q1 2025 was RMB 37,994,650, a decrease of 38.31% compared to RMB 61,594,149 in Q1 2024[6] - Net profit attributable to shareholders was a loss of RMB 6,246,209, representing a decline of 1,625.63% from a loss of RMB 361,968 in the same period last year[6] - Basic and diluted earnings per share were both RMB (0.5268), a decrease of 1,625.63% from RMB (0.0305) in the previous year[6] - The company reported a net loss attributable to shareholders of RMB 6.25 billion[20] - The operating loss for the period was RMB 884.1 million, compared to an operating profit of RMB 4.658 billion in the previous year[35] - The total comprehensive loss for the period was RMB 8.016 billion, compared to a comprehensive income of RMB 280.37 million in the same period last year[37] Cash Flow and Assets - Cash flow from operating activities was a net outflow of RMB 5,792,569, an improvement of 38.52% compared to RMB 9,421,419 in Q1 2024[6] - As of the end of the reporting period, the company held cash and cash equivalents of RMB 75.50 billion, with total interest-bearing liabilities of RMB 365.87 billion, resulting in a debt-to-asset ratio of 73.5%[21] - Cash and cash equivalents decreased to RMB 71.122 billion from RMB 84.009 billion at the beginning of the year[40] Assets and Equity - Total assets decreased by 3.28% to RMB 1,244,039,386 from RMB 1,286,259,860 as of December 31, 2024[7] - Equity attributable to shareholders decreased by 2.93% to RMB 196,728,879 from RMB 202,666,488[7] - Other current assets decreased by 90.44% to RMB 16,897 from RMB 176,748, primarily due to the disposal of trading financial assets[9] Revenue Breakdown - Revenue from real estate development business contributed RMB 22.80 billion, down 51.1% year-on-year, while operating service business revenue increased by 12.1% to RMB 12.27 billion[20] - The group achieved a contracted sales area of 2.54 million square meters and a contracted sales amount of 34.92 billion yuan, representing year-on-year declines of 35.1% and 39.8% respectively[22] - The company achieved a total revenue of RMB 37.99 billion in the reporting period, a year-on-year decrease of 38.3%[20] Operational Highlights - The company delivered 10,400 housing units in the first quarter, achieving a sales amount of RMB 34.92 billion with a collection rate exceeding 100%[17] - The group completed a total of 44 projects, delivering 10,400 units, with 41% of projects allowing immediate delivery and a 96% online signing delivery rate[22] - The Shanghai Siji Yinxiu project had a sales rate of 84%, while the Hangzhou Yun Yao Zhi Cheng project achieved a 100% sales rate upon launch[23] Cost and Financing - Financing costs increased by 64.97% to RMB (2,081,743) due to a decrease in capitalized interest rates[9] - The company’s financing costs increased to RMB 2.082 billion from RMB 1.262 billion year-on-year[35] - The company actively implemented a comprehensive plan to promote reform and development, securing new financing and refinancing of RMB 13.9 billion in the first quarter[17] Strategic Initiatives - The company plans to maintain a cautious approach towards future investments and market expansion, emphasizing risk awareness among investors[8] - The company launched an AI drawing model applied in 455 projects, enhancing design efficiency and project analysis[19] - The company is developing a low-carbon community project in Shanghai, expected to reduce carbon emissions by 43.2% compared to national standards[18] Business Segments Performance - Property management services saw a 24.9% year-on-year increase in contract revenue to 780 million yuan, with new acquisitions contributing 60 million yuan[25] - The rental housing business generated 884 million yuan in revenue, a 6% year-on-year increase, with an occupancy rate of 93.9%[26] - The commercial development and operation business achieved revenue of 1.937 billion yuan, with an overall leasing rate of 92.1%[28] - The logistics and warehousing business achieved revenue of RMB 1 billion in Q1, a year-on-year increase of 3.3%[30] - High-standard warehouse revenue was RMB 500 million, a year-on-year decrease of 6.6%, while cold chain revenue was RMB 500 million, a year-on-year increase of 15.6%[30] Market Trends - The average premium rate for residential land transactions was 15.3%, an increase of 9.3 percentage points compared to the same period last year[15] - The group’s commercial traffic increased by 6.9% year-on-year, with sales rising by 5.8%[28] - The underlying asset of the CICC REIT maintained a leasing rate of 98.1% and a rent collection rate of 99.8%[29]

Nickel Production and Projects - The company has established a complete nickel production process, including both pyrometallurgical and hydrometallurgical methods, with a total designed capacity of 18,000 metal tons of nickel iron at its Jiangsu factory [8]. - The Obi project in Indonesia has a total designed capacity of 120,000 metal tons of nickel-cobalt compounds (including 14,250 metal tons of cobalt) and 280,000 metal tons of nickel iron, contributing significantly to the company's production capabilities [8]. - The company has invested in two nickel production projects in Indonesia, enhancing its production capacity and market presence [8]. - The company has a total designed capacity of 400,000 tons of nickel metal in its smelting projects, with 120,000 tons from HPAL and 280,000 tons from RKEF [28]. - The HPAL project has successfully achieved production targets, with all lines operating at full capacity throughout the year [33]. - The RKEF project has a total designed capacity of 280,000 tons of nickel iron, with HJF contributing 95,000 tons and KPS expected to complete all production lines by 2026 [35]. - The company has successfully implemented the HPAL project, achieving design capacity within two months of production startup, setting industry records for efficiency [41]. - The third-generation HPAL process used in the project is among the most competitive technologies for processing low-grade nickel ore, significantly improving production efficiency while reducing energy consumption and costs [42]. Financial Performance - The company achieved a revenue of RMB 29,233.0 million in 2024, representing a year-on-year growth of 38.8% [16]. - Net profit attributable to shareholders reached RMB 1,773.2 million, an increase of 68.7% compared to the previous year [16]. - Non-current assets totaled RMB 25,357.7 million, up from RMB 20,400.9 million in 2023, indicating a growth of 24.5% [15]. - Total assets increased to RMB 37,957.0 million, a rise of 23.6% from RMB 30,679.7 million in 2023 [15]. - The total equity attributable to shareholders rose to RMB 10,758.9 million, reflecting an increase of 17.2% from RMB 9,185.5 million in 2023 [15]. - The company achieved a total revenue of RMB 29,233.0 million in 2024, representing a 38.8% increase year-over-year [29]. - Gross profit grew by 58.3% from RMB 3,382.0 million in 2023 to RMB 5,352.5 million in 2024, with gross margin rising from 16.1% to 18.3% [60]. - Profit from associates surged from RMB 233.2 million in 2023 to RMB 404.0 million in 2024, largely due to the HJF project's full production capacity [66]. - The company's profit before tax increased significantly from RMB 1,761.5 million for the year ended December 31, 2023, to RMB 3,817.0 million for the year ended December 31, 2024 [67]. - Annual profit surged from RMB 1,721.5 million for the year ended December 31, 2023, to RMB 3,208.8 million for the year ended December 31, 2024, with a net profit margin increase from 8.2% to 11.0% [69]. Market and Industry Trends - The company anticipates continued growth in demand for nickel products driven by the global transition to green energy and the development of new energy vehicles [20]. - The demand for nickel in the new energy and high-end manufacturing sectors is expected to grow, driven by the acceleration of the global green economy transition [25]. - In 2024, the Chinese new energy vehicle market saw significant growth, with production and sales reaching 12.888 million and 12.866 million units, respectively, marking year-on-year increases of 34.4% and 35.5% [26]. - The stainless steel market demand continued to grow, with China's crude stainless steel production reaching 39.4411 million tons, an increase of 7.54% year-on-year [27]. - Nickel metal prices are influenced by global economic recovery uncertainties and high interest rates, with significant volatility expected in 2024 due to supply shortages and geopolitical factors [36]. Strategic Initiatives and Goals - The company is focused on expanding its nickel industry value chain, integrating upstream resource procurement, midstream smelting production, and downstream application scenarios [4]. - The company aims to leverage Chinese technology to integrate global resources, positioning itself as a leader in the nickel industry [4]. - The company is committed to becoming a leading service provider in the global nickel industry chain, focusing on steady progress and transformation [20]. - The company is actively participating in community construction and environmental protection projects in the Obi project area, demonstrating its commitment to social responsibility [22]. - The company is committed to green low-carbon production and aims to integrate advanced Chinese technology with global resources for sustainable development [28]. - The company is focusing on cost reduction and efficiency improvement through optimized business models and flexible sales and procurement strategies [22]. Governance and Compliance - The company has appointed multiple directors and managers across various subsidiaries, indicating a strong governance structure [87][88][89][90][91][92][93][94][95][96]. - The board of directors consists of 9 members, ensuring diverse expertise and governance [111]. - The company has adopted strict internal procedures to ensure compliance with ethical standards and regulations [107]. - The independent non-executive directors confirmed their independence annually as per listing rules [115]. - The company has established a robust internal control and risk management system to oversee its operations and financial performance [124]. - The audit committee, composed entirely of independent non-executive directors, reviews the financial reporting process and internal control systems annually [151]. Community and Environmental Responsibility - The company is actively involved in community initiatives, which may improve its public image and stakeholder relations [95]. - The company has a strong focus on green production and circular economy, recycling by-products to maximize resource utilization [39]. - The company is enhancing its R&D capabilities, focusing on comprehensive development of metal resources from laterite nickel ore and energy-saving technologies [51]. Future Outlook and Expansion Plans - Future outlook includes strategic expansions and potential acquisitions to enhance market presence, although specific targets were not mentioned [89]. - The company is exploring opportunities in emerging markets, which could provide new revenue streams [89]. - The company plans to continue expanding its market presence and enhancing customer relationships through improved trade processes and services [31].