Customer Growth and Market Position - The active customer base increased by 10.7% to 4.19 million in 2024, with a three-year compound annual growth rate (CAGR) of 9.2% from 2022 to 2024[11]. - The number of service visits reached 8.05 million in 2024, achieving a three-year CAGR of 7.5%, highlighting robust growth in after-sales services despite flat new car sales[11]. - In key cities like Chengdu, Dalian, Nanjing, and Shenzhen, the active customer count grew by 10.2% to 950,000, translating into significant operational growth[11]. - The company holds a leading position with approximately 14.1% of luxury car brand users in these 32 cities, which account for 62.7% of the national luxury car user base[10]. - The company aims to enhance its brand positioning by deepening its market presence in the 32 strategic cities, which are crucial for high-end market integration[10]. After-Sales and Service Revenue - The after-sales service revenue reached RMB 22 billion in 2024, marking a year-on-year growth of 9.6% and a three-year compound growth rate of 10.8%[16]. - The average number of service visits for core after-sales services increased to 8.05 million, reflecting a 7.8% year-on-year growth[17]. - The daily maintenance service visits in these four cities increased by 6.7%, warranty service visits grew by 16.1%, and accident repair visits rose by 18.1%[11]. - The renewal policy and used car retail volumes in these cities also saw year-on-year increases of 21.1% and 17.6%, respectively[11]. Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 168,124.2 million, a decrease of RMB 11,165.9 million or 6.2% compared to the previous year[43]. - New car sales revenue was RMB 125,325.6 million, down RMB 14,889.3 million or 10.6% year-on-year, primarily due to a decline in new car sales volume and average selling prices[46]. - The gross profit for the year was RMB 10,671.9 million, a decrease of RMB 3,092.4 million or 22.5% compared to the previous year[46]. - The company reported a net profit of RMB 3,070.9 million for the year, down from RMB 4,990.9 million in the previous year[41]. - The proportion of revenue from new car sales decreased to 74.5% in 2024 from 78.2% in 2023, while used car sales increased to 9.2% from 7.8%[44]. Inventory and Capital Management - Inventory increased from RMB 16,366.1 million as of December 31, 2023, to RMB 18,476.9 million as of December 31, 2024, primarily due to a slight increase in new car turnover days[64]. - Average inventory turnover days increased from 31.2 days in 2023 to 35.1 days in 2024, indicating adjustments to inventory levels based on market changes[65]. - Total capital expenditure for the year was RMB 1,356.7 million, slightly down from RMB 1,426.5 million in the previous year[63]. Employee and Workforce Management - The total number of employees decreased from 31,180 as of December 31, 2023, to 26,357 as of December 31, 2024[68]. - The employee turnover rate for the year was 27.63%, with a total of 10,065 employees leaving, an increase of 118 from the previous year[108]. - Female employees account for 35.70% of the total workforce, with 17.28% in management roles and 31.25% in senior management positions as of December 31, 2024[105]. - The company provided training to 94.66% of male employees and 97.24% of female employees, with an average training duration of 27 hours for males and 29 hours for females[114]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to enhancing ESG governance and has established an ESG committee to oversee its development strategies and activities[78]. - The company aims to improve employee working conditions and conduct regular satisfaction surveys[87]. - The group emphasizes employee health and safety, adhering to relevant laws and regulations, with zero work-related fatalities and zero days lost due to work injuries in 2024[117]. - The group has established a standardized waste management system, focusing on recycling and proper disposal of hazardous waste[128]. - The group has developed a "climate change policy" to mitigate operational impacts and integrate climate change into its risk management system[132]. Corporate Governance - The board consists of a balanced mix of executive and non-executive directors, ensuring strong independence for effective decision-making[161]. - The company has established an independent board evaluation mechanism to enhance efficiency and identify areas for improvement[165]. - The board has set a measurable target to appoint at least one female director by December 31, 2024, and has already appointed two female directors as of March 27, 2024[177]. - The company has adopted a disclosure policy for inside information and established a shareholder communication policy to fulfill corporate governance responsibilities[190]. - The audit committee held a total of 2 meetings during the year ended December 31, 2024, to review interim and annual financial performance and reports[172].

Financial Performance - In 2024, UJU Holding Limited achieved total revenue of approximately RMB 9.1533 billion, representing a growth of about 29.4% compared to approximately RMB 7.076 billion in 2023[11] - The net profit for the year increased by approximately 2.2% to around RMB 93 million, up from approximately RMB 91 million in the previous year[11] - The advertising business recorded a total billing of approximately RMB 12.9763 billion, with a growing proportion from direct advertisers, enhancing operational efficiency and financial stability[11] - Revenue for the year ending December 31, 2024, was RMB 9,153.3 million, representing a year-on-year increase of 29.4% from RMB 7,076.0 million in 2023[21] - The company's pre-tax profit decreased by 3.4% to RMB 113.3 million in 2024 from RMB 117.2 million in 2023[21] - The revenue from online marketing solutions increased by approximately 29.6% to RMB 9,082.5 million in 2024, accounting for 99.2% of total revenue[26] - The live e-commerce business generated revenue of RMB 68.1 million in 2024, up from RMB 61.9 million in 2023, continuing to serve as a second growth curve for the company[26] - The company achieved a profit attributable to owners of the company of RMB 93.9 million for the year ending December 31, 2024, a 3.7% increase from RMB 90.6 million in 2023[21] Strategic Initiatives - The company established a three-pronged strategy of "technology x content x data" to drive digital marketing transformation, significantly improving the automation rate of core business processes[12] - UJU Holding Limited upgraded its video base in Wuhan to a service delivery center and talent training base, leveraging local educational resources for high-quality talent[12] - The company developed differentiated content generation engines for various industries, reducing content production cycles by 57%[15] - UJU Holding Limited aims to build a customer demand forecasting model and a creative effect pre-evaluation system to optimize resource allocation[15] - UJU Holding Limited plans to deepen the synergy of "technology x industry x data" to drive customer value enhancement and promote innovation in the digital marketing sector[15] - The company successfully expanded its self-operated e-commerce model into the North American market, enhancing its operational solutions through partnerships with platforms like TikTok[18] - The company plans to decisively adjust its e-commerce operational solutions business and explore expansion into the B2B sector in the second half of 2024[18] Operational Efficiency - User acquisition and monitoring costs for the year ended December 31, 2024, were approximately RMB 8,712.3 million, representing 98.3% of total service and sales costs[33] - Gross profit for the year ended December 31, 2024, was approximately RMB 287.7 million, a slight increase of 0.6% from RMB 286.0 million for the year ended December 31, 2023, with a gross margin decrease from 4.0% to 3.1%[34] - Sales expenses increased by approximately 10.9% to RMB 33.9 million for the year ended December 31, 2024, primarily due to increased employee benefits[35] - General and administrative expenses rose by approximately 11.8% to RMB 82.8 million for the year ended December 31, 2024, driven by higher employee benefits and professional service fees[38] - Research and development expenses increased by approximately 9.4% to RMB 9.6 million for the year ended December 31, 2024, mainly due to higher employee benefits[39] - Net impairment losses on financial assets decreased by approximately 34.7% to RMB 30.0 million for the year ended December 31, 2024, due to effective credit risk management[40] - Other income decreased by approximately 39.7% to RMB 2.5 million for the year ended December 31, 2024, primarily due to reduced government subsidies[41] - Net financial costs decreased by approximately 72.6% to RMB 2.3 million for the year ended December 31, 2024, attributed to increased interest income from bank deposits[42] Corporate Governance - The company has appointed Mr. Li Nian as Co-CEO effective February 28, 2025, bringing 14 years of experience in the media advertising industry[66] - The board has committed to high standards of corporate governance, ensuring compliance with the Corporate Governance Code, with a focus on transparency and accountability[71] - The company has maintained compliance with the listing rules regarding the appointment of independent non-executive directors, with at least three independent directors on the board[77] - The board currently consists of a balanced mix of executive and independent non-executive directors, ensuring effective oversight and independent judgment in decision-making[76] - The company has implemented a formal service agreement for all directors, with a term of three years and eligibility for re-election[74] - The company has adopted a code of conduct for securities trading, ensuring all directors comply with the established standards[73] - The company will continue to review and monitor its corporate governance practices to meet increasing regulatory requirements and shareholder expectations[72] - The company has confirmed that all independent non-executive directors meet the independence criteria as per the listing rules[77] - The company has experienced changes in its board composition, with new independent directors appointed on October 8, 2024[76] - The company emphasizes the importance of separating the roles of Chairman and CEO, with Mr. Peng Liang serving as both since March 28, 2024, due to his extensive operational experience[71] Risk Management and Compliance - The company has established an effective risk management and internal control system, which is reviewed annually[117] - The internal control system aims to ensure operational effectiveness, financial statement reliability, and compliance with applicable laws and regulations[120] - The company has not established an internal audit department, as the board believes that management's close involvement in daily operations provides sufficient risk management and internal control[121] - The board is responsible for ensuring that financial statements are prepared in accordance with statutory requirements and applicable accounting standards[116] - The company has implemented measures to ensure the confidentiality of potential inside information and compliance with disclosure regulations[120] - The risk management system includes risk identification, assessment, and management strategies to mitigate operational risks[118] - The independent auditor's fees for the year ending December 31, 2024, total RMB 2,620,000, with RMB 2,450,000 for audit services and RMB 170,000 for non-audit services related to environmental, social, and governance reporting[124] Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes its commitment to ESG management, integrating it into daily operations and promoting green practices[145] - The board regularly reviews the progress of environmental and social goals, ensuring alignment with business objectives[144] - The company has established an ESG working committee for daily management and reporting to the board[143] - The company adheres to the ESG Reporting Guidelines, ensuring the accuracy and reliability of disclosed data[141] - Stakeholder engagement is prioritized, with various communication channels established to gather feedback and assess ESG performance[146] - The company has identified key ESG issues through stakeholder communication and macro policy trends, creating an importance assessment matrix[150] - The company implements energy-saving measures and emission control to promote low-carbon development and enhance employee environmental awareness[151] - The company has set specific environmental and social targets linked to its business operations[144] Employee Management and Development - Total number of employees is 826, with 699 under labor contracts and 127 interns[167] - Employee turnover rate is 16.90%, with male turnover at 17.76% and female turnover at 16.30%[167] - The company has not experienced any work-related fatalities from 2021 to 2024, with zero incidents reported[170] - The company provides comprehensive benefits, including social insurance and housing fund contributions for all employees[169] - The company has implemented a systematic training program covering management systems, company culture, and job-specific skills[173] - The company has a diverse recruitment strategy, ensuring fair treatment regardless of race, age, gender, or other factors[166] - The company has established a clear promotion pathway with two tracks: professional (P series) and management (M series)[171] - The company has a comprehensive overtime management system to protect employee rights[169] Product Quality and Customer Service - The company has established a comprehensive internal review mechanism to ensure product content compliance and safety[184] - The company has implemented a strict product quality management system to adhere to national regulations and protect intellectual property[181] - The company focuses on continuous product quality optimization and innovation in online short video marketing solutions[180] - An emergency response mechanism is in place to address sudden public relations issues and platform failures[185] - The company provides targeted training plans for management trainees to foster talent development and integration into company culture[177] - The company has established an online short video research center to study the structure, elements, and consumer profiles of popular online short videos, aiming to develop high-quality content that aligns with trends and user needs[187] - In 2024, the company received 35 customer complaints, achieving a 100% resolution and follow-up rate[194] - The company has a dedicated customer service team to actively listen and respond to customer feedback, ensuring service experience improvement[194] Technology and Innovation - The company utilizes AI tools to enhance advertising material effectiveness, including digital humans and voice cloning technologies, ensuring a high-quality and immersive experience[191] - The company emphasizes responsible AI application, ensuring inclusivity and security in data collection, processing, and storage[191] - The company has implemented a comprehensive internal management system for copyright material procurement, usage, and infringement penalties[194] - The company regularly analyzes user behavior data to optimize content structure and accurately target customized products, continuously launching popular short videos[192] - The company employs multiple technical measures to ensure compliance with advertising laws and ethical standards during the review of advertising materials[193] Supply Chain Management - The company prioritizes responsible procurement and ESG risk management in its supply chain, focusing on sustainable supply chain construction with suppliers[199] - The company has set targeted admission requirements for different categories of suppliers, emphasizing social responsibility and environmental contributions in supplier selection[199] - Regular on-site audits of suppliers are conducted to ensure service quality and effectiveness, with ongoing communication to monitor their operational performance[200] - The company collaborates long-term with high-quality, responsive suppliers while eliminating those that fail to meet demands over time[200]

Financial Performance - The company reported revenue of approximately HKD 386.7 million for the fiscal year ending December 31, 2024, representing a 0.71% increase from HKD 383.9 million in 2023[4]. - The gross profit decreased to HKD 141.7 million, down 14.56% from HKD 165.8 million in the previous year[4]. - The loss attributable to shareholders was approximately HKD 84.6 million, a significant decline from a profit of HKD 37.2 million in 2023, marking a 327.41% decrease[6]. - The basic loss per share was HKD 24.83, compared to a profit of HKD 39.06 per share in the previous year, reflecting a 163.57% decline[6]. - The total comprehensive loss for the year was HKD 97,454,000, compared to a comprehensive income of HKD 52,431,000 in 2023[136]. - The net loss for the year was HKD 72,825,000, compared to a profit of HKD 65,701,000 in 2023, indicating a significant turnaround in performance[136]. Revenue Breakdown - The toy and gift business generated revenue of approximately HKD 239.7 million, down 8.7% from HKD 262.4 million in 2023, primarily due to decreased revenue from North America[13]. - The herbal medicine business generated revenue of approximately HKD 95,300,000, down from HKD 121,500,000 in 2023[21]. - The liquor business recorded revenue of approximately HKD 51,600,000, with no revenue reported in 2023[22]. - The group’s total revenue from North America was approximately HKD 239,000,000, a decrease from HKD 262,000,000 in 2023, accounting for 61.8% of total revenue[23]. - The group’s revenue from China was approximately HKD 147,700,000, up from HKD 122,100,000 in 2023, representing 38.2% of total revenue[23]. Assets and Liabilities - The total assets increased by 3.42% to HKD 796.6 million from HKD 770.3 million in 2023[4]. - The total equity rose by 12.85% to HKD 383.6 million, up from HKD 340.0 million in the previous year[4]. - The group’s cash and bank balances were approximately HKD 135,900,000 as of December 31, 2024, compared to HKD 111,900,000 in 2023[27]. - The group’s debt was approximately HKD 139,400,000 as of December 31, 2024, down from HKD 141,800,000 in 2023[27]. - The group’s capital debt ratio improved to 68% from 89.1% in the previous year[27]. - The group had net current liabilities of approximately HKD 26,428,000 as of December 31, 2024[108]. Operational Efficiency - Administrative expenses decreased by approximately 3.9% to about HKD 83,000,000 from HKD 86,400,000 in the previous year[25]. - Financial costs increased by approximately 6.8% to HKD 28,900,000 from HKD 27,100,000 in the previous year[26]. - The operating cash flow for the year was a net outflow of HKD 3,374,000, a decrease from a net inflow of HKD 27,543,000 in 2023[143]. - The company experienced a loss before tax of HKD 65,844,000, contrasting with a profit of HKD 69,074,000 in the prior year[143]. Corporate Governance - The company is committed to achieving excellence in corporate governance and has complied with all applicable code provisions, except for a specific deviation noted[89]. - The board of directors consists of five executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2024[92]. - The board held seven meetings in 2024 to review financial and operational performance and make important decisions[94]. - The remuneration committee reviewed the remuneration policy and approved the compensation for directors and senior management during the year[98]. Investment and Diversification - The company has initiated a liquor trading business as part of its diversification strategy to ensure long-term development[10]. - The company is exploring other profitable investment opportunities to expand its existing business and diversify its revenue base[9]. - The company is involved in various business investments, including leisure and cultural sectors, indicating a diversified investment strategy[147]. Shareholder Information - The board does not recommend any final dividend for the year ended December 31, 2024[32]. - The company has not purchased, redeemed, or sold any of its listed securities during the year ended December 31, 2024[33]. - Sales to the top five customers accounted for approximately 64.42% of total revenue, with the largest customer contributing about 31.87%[58]. - Purchases from the top five suppliers represented approximately 57.66% of total procurement, with the largest supplier accounting for about 21.74%[58]. Compliance and Risk Management - The company has no significant contingent liabilities as of December 31, 2024, and December 31, 2023[30]. - There are no major capital commitments reported as of December 31, 2024, and December 31, 2023[31]. - The group has engaged MOSS Valuation & Advisory Limited as an independent consultant to review its internal control systems, focusing on financial, operational, compliance, and risk management functions[112]. - The group has adopted a risk management framework that includes identifying significant risks and assessing their impact on the business[115]. Audit and Financial Reporting - The independent auditor confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2024[117]. - The audit committee is responsible for overseeing the financial reporting process of the company[129]. - The auditor identified significant risks related to material misstatements due to fraud or error during the audit process[131]. - The consolidated financial statements are prepared on a going concern basis, contingent on the successful implementation of the board's plans[157].

Financial Performance - The company's operating revenue for the first quarter was RMB 4,079,288,887.46, a decrease of 28.76% compared to the same period last year[8]. - Net profit attributable to shareholders was RMB 106,128,157.99, down 86.03% year-on-year[8]. - Basic and diluted earnings per share were both RMB 0.05, representing an 84.38% decline from the previous year[8]. - Total revenue for Q1 2025 was RMB 4,079,288,887.46, a decrease of 28.8% compared to RMB 5,725,831,610.97 in Q1 2024[22]. - Operating profit for Q1 2025 was RMB 109,900,441.45, a significant decline of 87.2% from RMB 860,678,127.47 in Q1 2024[22]. - The company reported a net profit of RMB 105,723,590.50 for Q1 2025, compared to RMB 758,632,164.14 in Q1 2024, reflecting a decrease of 86.0%[22]. - Total comprehensive income for Q1 2025 was approximately ¥102.79 million, down 86.96% from ¥731.75 million in Q1 2024[23]. - Basic and diluted earnings per share for Q1 2025 were both ¥0.05, compared to ¥0.32 in Q1 2024, reflecting a decline of 84.38%[23]. - Sales revenue for Q1 2025 was approximately ¥2.19 billion, a decrease of 17.61% from ¥2.66 billion in Q1 2024[25]. Cash Flow and Liquidity - The net cash flow from operating activities decreased by 72.22% to RMB 166,977,577.54[8]. - Cash flow from operating activities for Q1 2025 was ¥166.98 million, a decrease of 72.14% from ¥600.98 million in Q1 2024[25]. - Cash flow from investing activities for Q1 2025 was negative at ¥654.34 million, an improvement from negative ¥1.32 billion in Q1 2024[25]. - Cash flow from financing activities for Q1 2025 generated a net inflow of ¥118.23 million, compared to a net outflow of ¥40.83 million in Q1 2024[26]. - Cash and cash equivalents as of March 31, 2025, were RMB 4,837,877,931.84, down from RMB 5,294,894,127.46 as of December 31, 2024[19]. - Total cash and cash equivalents at the end of Q1 2025 were approximately ¥4.15 billion, down from ¥4.72 billion at the end of Q1 2024[26]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 43,090,138,408.78, an increase of 0.40% from the end of the previous year[10]. - Total assets increased to RMB 43,090,138,408.78 as of March 31, 2025, compared to RMB 42,919,798,033.81 as of December 31, 2024[19]. - Total liabilities amounted to RMB 21,277,987,864.61 as of March 31, 2025, slightly up from RMB 21,135,637,157.78 as of December 31, 2024[20]. - The company’s total equity increased to RMB 21,812,150,544.17 as of March 31, 2025, compared to RMB 21,784,160,876.03 as of December 31, 2024[20]. Operational Insights - The company experienced a significant drop in sales prices of photovoltaic glass, which contributed to the decline in revenue[13]. - The company reported a 347.51% increase in prepaid expenses, primarily due to increased payments to suppliers[13]. - The company has not disclosed any new product developments or market expansion strategies in this report[6]. - Research and development expenses for Q1 2025 were RMB 134,857,776.99, down from RMB 160,219,492.71 in Q1 2024, a decrease of 15.7%[22]. - The company’s inventory decreased to RMB 1,465,451,152.54 as of March 31, 2025, from RMB 1,732,831,478.80 as of December 31, 2024, indicating a reduction of 15.4%[19]. Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 64,766[14].

Financial Performance - The company reported an increase in both operating income and net profit, indicating a successful year of financial performance despite challenging external conditions[12]. - Operating revenue for 2024 reached RMB 25,481,589 thousand, a 1.94% increase from RMB 24,997,370 thousand in 2023[43]. - Pre-tax profit increased by 3.29% to RMB 5,333,030 thousand in 2024, compared to RMB 5,163,077 thousand in 2023[43]. - Net profit rose by 3.44% to RMB 5,255,815 thousand in 2024, up from RMB 5,080,903 thousand in 2023[43]. - The net cash flow from operating activities increased by 14.27% to RMB 92,909,178 thousand in 2024, compared to RMB 81,308,605 thousand in 2023[43]. - The total equity stood at RMB 110.12 billion, a decrease of 3.74% from the previous year[113]. Asset and Liability Management - As of the reporting period, total assets reached CNY 1,843.842 billion, an increase of 6.41% year-on-year[15]. - Total liabilities amounted to CNY 1,733.717 billion, reflecting a year-on-year growth of 7.13%[15]. - The company aims to optimize its asset-liability management and improve capital management to support sustainable growth[12]. - The bank's liquidity ratio in RMB rose by 16.74 percentage points to 70.06 in 2024 from 53.32 in 2023[46]. - The capital adequacy ratio increased by 0.05 percentage points to 11.63 in 2024, compared to 11.58 in 2023[46]. Risk Management - The bank's focus on risk management has strengthened, with a proactive approach to credit risk assessment and control measures in place[149]. - The bank has implemented a unified credit management system, enhancing efficiency and risk control across 37 functional points[198]. - The bank's risk management culture emphasizes a proactive and agile approach to enhance risk management capabilities[197]. - The provision coverage ratio stands at 155.19%, with a loan provision rate of 2.73%, achieving stable asset quality and resilience against expected credit risks[197]. - The bank has established a dedicated team for monitoring and resolving risks associated with large group clients[197]. Customer and Market Engagement - The company is committed to deepening its customer relationships and product offerings through a differentiated operational approach[12]. - The total number of customers increased by 12.83% year-on-year, reaching 118,960 customers[157]. - The bank aims to enhance the quality of inclusive financial services by integrating digital technology into various business scenarios[168]. - The bank's strategy focuses on transforming into an "account bank," "wealth bank," and "ecosystem bank" to meet customer needs[170]. - The bank's retail loan balance stood at CNY 222.027 billion[174]. Digital Transformation and Innovation - The company plans to enhance its digital transformation and risk compliance measures as part of its ongoing operational strategy[12]. - The bank's technology investment reached CNY 1.337 billion during the reporting period, focusing on enhancing digital financial infrastructure and core systems[191]. - The new mobile banking version 7.0 was launched, focusing on three banking positions: account banking, wealth banking, and ecological banking[185]. - The bank's digital marketing and operational platform for retail services has been significantly advanced, enhancing customer interaction and service efficiency[191]. - The bank is exploring the construction of a smart remote banking system, enhancing online customer service experience through a dual-driven model of "channel collaboration + intelligent operation"[186]. Awards and Recognition - In 2024, the bank received multiple awards, including "Most Innovative Institution" and "Most Breakthrough Institution" from the Beijing Financial Assets Exchange[26]. - The bank was recognized as a "Top 20 in ESG Comprehensive Performance" with an AA rating in the banking sector[28]. - The bank's bond business received multiple awards, including "Annual Market Influence Institution" and "Market Innovation Business Institution" from the China Foreign Exchange Trading Center[177]. Strategic Goals and Future Outlook - The company is preparing to celebrate its 20th anniversary with a commitment to high-quality development and service to the real economy[12]. - The bank plans to continue implementing the spirit of the 20th National Congress of the Communist Party and focus on high-quality development goals in 2025[19]. - The bank aims to enhance its strategic positioning by focusing on ten key initiatives to improve operational efficiency and risk management[50]. - The bank's strategy includes optimizing the liability structure and expanding deposit products to ensure stable funding sources[55]. - The bank's credit policy for 2024-2025 emphasizes support for new industrialization and includes measures for risk preference transmission[199].

Financial Performance - The group's revenue decreased by 2.3% from RMB 1,566.7 million in 2023 to RMB 1,531.1 million in 2024[12]. - The group's gross profit increased by 2.2% from RMB 668.2 million in 2023 to RMB 683.2 million in 2024[12]. - The group's net profit increased by 19.4% from RMB 121.8 million in 2023 to RMB 145.4 million in 2024[12]. - Basic earnings per share rose by 8.3% from RMB 0.12 in 2023 to RMB 0.13 in 2024[12]. - The total assets amounted to RMB 1,458.1 million in 2024, a decrease from RMB 1,530.9 million in 2023[10]. - The total equity increased to RMB 1,115.6 million in 2024 from RMB 1,017.8 million in 2023[10]. - The total liabilities decreased significantly from RMB 513.1 million in 2023 to RMB 342.5 million in 2024[10]. - The revenue from the Alcon products sold through joint promotion and pipeline management services was RMB 290.6 million, a decrease of 3.5%, accounting for 19.0% of the group's total revenue[31]. - The revenue from pharmaceutical products increased by 2.0% to RMB 445.0 million, representing 29.1% of the group's total revenue, with a gross profit of RMB 297.5 million, up 3.4%[35]. - The revenue from medical devices was RMB 795.4 million, a decrease of 4.1%, accounting for 52.0% of the group's total revenue, with a gross profit of RMB 367.6 million, an increase of 2.4%[38]. - Annual profit rose by 19.4% from RMB 121.8 million in 2023 to RMB 145.4 million in 2024, with net profit margin increasing from 7.8% to 9.5%[65]. - Other income decreased by 14.6% from RMB 52.3 million in 2023 to RMB 44.7 million in 2024, primarily due to a reduction in government subsidies[59]. - Distribution and selling expenses decreased by 14.1% from RMB 422.6 million in 2023 to RMB 363.2 million in 2024, with the percentage of revenue dropping from 27.0% to 23.7%[60]. - Administrative expenses increased by 19.4% from RMB 112.1 million in 2023 to RMB 133.8 million in 2024, with the percentage of revenue rising from 7.2% to 8.7%[61]. - Cash and cash equivalents decreased from RMB 114.4 million at the end of 2023 to RMB 103.6 million at the end of 2024[66]. - Inventory decreased by 23.2% from RMB 417.9 million in 2023 to RMB 321.2 million in 2024, due to optimized inventory management[73]. - Trade and other receivables decreased by 6.7% from RMB 538.6 million in 2023 to RMB 502.3 million in 2024, with average turnover days improving from 100.9 days to 94.1 days[74]. - Total bank borrowings increased from RMB 60.0 million in 2023 to RMB 62.4 million in 2024, with a debt-to-asset ratio of 4.3%[71]. - Capital expenditures totaled RMB 55.2 million in 2024, up from RMB 44.6 million in 2023[76]. - The company's distributable reserves as of December 31, 2024, were approximately RMB 423.1 million, a decrease from RMB 464.4 million as of December 31, 2023[112]. Business Strategy and Market Positioning - The company plans to continue expanding its sales network and enhancing supply chain management to improve profitability[15]. - The company aims to optimize its product market positioning and strengthen marketing efforts for its promoted products[16]. - The company is focusing on integrating innovative medical devices and enhancing its marketing system to capitalize on structural growth opportunities in the healthcare sector[20]. - The company aims to transform from a pure "pharmaceutical distribution" model to a comprehensive enterprise integrating research, development, production, and sales, creating long-term value for shareholders[19]. - The company aims to enhance its market competitiveness through mergers and acquisitions as part of its long-term strategic development[54]. - The company plans to strengthen product development and marketing capabilities to expand market coverage in response to evolving industry trends[53]. - The company is committed to providing high-quality medical solutions by leveraging its global partner network and optimizing sales strategies to ensure efficient market access for quality products[29]. - The company has secured exclusive global distribution rights for the Earth Master series products and exclusive distribution rights for NIANCE skincare products in China, aiming to leverage green technology and skincare trends for market expansion[19]. - The ongoing regulatory tightening and structural upgrades in the pharmaceutical industry are expected to create stronger internal differentiation and competition, prompting the company to enhance operational efficiency and market positioning[20]. - The continuous deepening of pharmaceutical procurement policies is reshaping the market landscape, pushing companies towards refined service models and operational efficiency[27]. - The regulatory changes are accelerating the internationalization of China's pharmaceutical distribution industry, lowering market entry barriers for imported products and enhancing local companies' participation in global supply chains[27]. Product Development and Innovation - The company's medical device business has shown steady growth, benefiting from industry consolidation and channel flattening, with notable performance in products like Zenostar® systems and wound cleaning solutions[18]. - The acquisition of Q3 Medical has granted the company full ownership of its products in mainland China, with the Archimedes biodegradable biliary pancreatic stent entering the special review process, enhancing the product portfolio's competitiveness[18]. - The group plans to strengthen its patent matrix for the Earth Master series products, which focus on energy-saving and environmentally friendly cooking solutions, with the first product expected to be mass-produced in Q1 2025[30]. - The cardiovascular product, Reninping, achieved significant sales growth and market share expansion during the reporting period, supported by effective promotional strategies and clinical expert networks[37]. - The DRL®night orthokeratology lens has been approved by the National Medical Products Administration for use in mainland China, targeting myopia degrees of -1.00D to -4.00D and astigmatism up to 1.50D[40]. - The Archimedes biodegradable biliary pancreatic stent has entered the special review process for innovative medical devices, marking the first innovative product registered in mainland China since the acquisition of Q3 Medical[41]. - The group is committed to enhancing its product offerings and market strategies through continuous innovation and strategic partnerships[95][96]. Governance and Management - The company has appointed several independent non-executive directors with extensive experience in law, public safety, and the pharmaceutical industry, enhancing governance and oversight[90][91][92]. - The management team includes professionals with over 30 years of experience in investment, government relations, and sales, indicating a strong leadership foundation[93][94][95][96]. - The company has established a compliance program to ensure adherence to applicable laws and regulations, particularly those significantly impacting its operations[117]. - The company has established mechanisms to ensure independent opinions are obtained for significant matters, such as related party transactions, with annual reviews of the effectiveness of these mechanisms[171]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value and accountability[165]. - The board of directors is composed of three executive directors, one non-executive director, and three independent non-executive directors, complying with the listing rules regarding independent director representation[169]. - The audit committee consists of three members, including Mr. Zhang Changhai (independent non-executive director), Ms. Hu Mingfei (non-executive director), and Mr. Zhang Hong (independent non-executive director)[199]. - The audit committee reviewed the financial reporting system, compliance procedures, risk management, and internal control systems, ensuring adequate resources and training for accounting and financial reporting functions[200]. - The company has established appropriate arrangements for employees to confidentially raise concerns regarding financial reporting, risk management, and internal control systems[200]. Employee and Stakeholder Relations - The company has a total of 335 employees as of December 31, 2024, and conducts annual performance evaluations for salary reviews and promotions[82]. - The employee costs for the year ending December 31, 2024, are RMB 798 million, an increase from RMB 766 million for the year ending December 31, 2023, representing a growth of approximately 4.2%[82]. - The company has not encountered significant difficulties in recruitment or experienced major employee turnover during the reporting period[82]. - The company maintains good relationships with stakeholders, including employees, customers, and suppliers, which is crucial for achieving its short and long-term goals[118]. - The company is committed to promoting gender diversity within its workforce, with female employees making up approximately 49% of the total staff[192]. Risks and Challenges - The company faces various market risks, including interest rate fluctuations, foreign exchange risks, and credit risks, with no current foreign exchange hedging policy in place[79]. - The company faces various risks, including economic slowdown in China, changes in medical product policies, and operational risks related to product liability claims[115]. - The company has a significant reliance on key personnel, and failure to retain them may impact business and growth[115]. Corporate Social Responsibility - The company made charitable donations totaling RMB 709,200 to various organizations, including the Dongyang Charity Association and Zhejiang University Education Foundation, for the year ending December 31, 2024[153]. - The company is committed to environmental sustainability and compliance with environmental laws and regulations, with measures in place for resource efficiency and waste reduction[116].

Financial Performance - For the year ended December 31, 2024, the Group's revenue was RMB 33,416.9 million, with a loss of RMB 7,539.0 million, and a loss attributable to owners of the parent of RMB 6,829.8 million[13][16]. - The Group recorded contracted sales of RMB6,729.0 million, a 56.3% year-over-year decrease from RMB15,396.0 million in 2023[27]. - Revenue recognized from sales of properties decreased by 13.8% from RMB38,648.3 million in 2023 to RMB33,331.1 million in 2024[31]. - The Group's gross profit decreased by 9.9% from RMB2,178.7 million for Year 2023 to RMB1,963.8 million for Year 2024, while the gross profit margin increased by 0.3 percentage points to 5.9%[58]. - Other income and gains decreased by 62.8% from RMB82.2 million for Year 2023 to RMB30.6 million for Year 2024, primarily due to a decrease in interest income and government grants[60]. - The Group's loss for Year 2024 was RMB7,539.0 million, an improvement from a loss of RMB9,485.6 million for Year 2023[80]. - The Group's rental income for Year 2024 was RMB76.5 million, a 1.4% decrease from RMB77.5 million for Year 2023, attributed to poor overall market conditions[43]. Market Conditions - The real estate sector in China remained in a phase of deep adjustment, with key indicators such as development investment and sales area continuing to decline[17]. - The central government's policies aimed at stabilizing the real estate market have brought hope for the industry's recovery[17]. - The Group's operational stability was maintained despite significant impacts on liquidity and operations due to market conditions[18]. Operational Strategies - The Group implemented liquidity management and cost-saving measures, including seeking financing extensions and accelerating sales and cash recovery[19]. - The Group aims to enhance financial stability by strengthening financial risk management and optimizing asset structure[22]. - The Group plans to increase marketing efforts and improve sales quality to capitalize on the recovery of the economy and real estate market[22]. - The Group's strategy includes enhancing internal management systems and operational efficiency to improve business quality[22]. - The Group is actively collaborating with legal and financial advisors for the overall restructuring of offshore debt to achieve a sustainable capital structure[19]. Asset Management - As of December 31, 2024, the Group had completed properties held for sale amounting to RMB29,483.4 million, a 1.0% decrease from RMB29,801.2 million as of December 31, 2023, primarily due to a decrease in GFA for completed properties[40]. - The Group's properties under development amounted to RMB33,373.4 million as of December 31, 2024, representing a 48.2% decrease from RMB64,430.2 million as of December 31, 2023, mainly due to an increase in completed properties and a decrease in the number of projects developed[42]. - The Group's total borrowings as of December 31, 2024, were RMB58,853.78 million, a slight decrease from RMB59,508.34 million in 2023[90]. - The Group's cash flow management strategies include accelerating sales and cash collection to address upcoming debt maturities[96]. Employee Management - The average number of employees decreased to 927 in 2024 from 1,549 in 2023[132]. - The company has established systematic training programs for employees based on their positions and expertise[133]. - The company offers competitive remuneration packages, including basic salaries, discretionary bonuses, and performance-based payments[134]. Legal and Financial Challenges - The Group's management discussion indicates a focus on maintaining financial stability amid ongoing legal and financial challenges[114]. - The Group considers that no liabilities resulting from ongoing lawsuits and other proceedings will have a material adverse effect on its business, financial condition, or results of operations[105]. - The Group's overall financial condition remains stable despite the non-payment of certain debts, with no material adverse effects anticipated from current legal proceedings[105]. Project Development - The company is focusing on developing residential and commercial properties, with several projects in the pipeline across various cities in China[165]. - The company aims to enhance its market position through strategic land acquisitions and project developments in key urban areas[165]. - The company has a total land bank of 2,273,693 square meters in the Yangtze River Delta region, with a land cost of RMB 5,445,570,000[31]. - The company is actively pursuing new projects in Yichun, with the Yichun Jintou Zhenro Mansion having a site area of 55,227 square meters and a land cost of RMB 26,600,000[170]. Management Team - The management team has extensive experience in the real estate industry, with key executives holding over 16 years of experience[190]. - The company continues to focus on enhancing its management team with experienced professionals to drive growth and operational efficiency[196]. - Mr. LI has been with Zhenro Properties Holdings since April 2018, holding various key positions, including president since June 2022[196].

Financial Performance - Revenue for 2024 was RMB 995,347 thousand, a decrease of 20.0% compared to RMB 1,244,723 thousand in 2023[11] - Gross profit for 2024 was RMB 200,036 thousand, down 52.5% from RMB 420,717 thousand in 2023[11] - The company reported a loss before tax of RMB 44,846 thousand in 2024, compared to a profit of RMB 271,671 thousand in 2023, representing a decline of 116.5%[11] - The net loss for the year was RMB 43,703 thousand, a significant drop from a profit of RMB 263,935 thousand in 2023, marking a 116.6% decrease[11] - Revenue from integrated marketing business reached RMB 179.5 million for the fiscal year ending December 31, 2024[46] - Revenue from AR and VR marketing services dropped by 32.2%, from RMB 845.1 million in 2023 to RMB 573.1 million in 2024, influenced by lower demand and a concentration of advertising platforms[62] - Revenue from AR and VR content reached RMB 211.3 million, a decrease of 36.7% year-on-year, with project numbers dropping from 170 to 115[32] - Revenue from the e-commerce sector fell significantly from RMB 84.0 million in 2023 to RMB 27.4 million in 2024 due to a reduction in advertising spending by major clients[63] - The company's revenue decreased by 20.0% from RMB 1,244.7 million in the year ending December 31, 2023, to RMB 995.3 million in the year ending December 31, 2024, primarily due to a decline in AR and VR marketing services and content revenue[60] Assets and Liabilities - Non-current assets decreased to RMB 202,255 thousand in 2024 from RMB 228,621 thousand in 2023[12] - Current assets increased to RMB 1,568,254 thousand in 2024, up from RMB 1,492,653 thousand in 2023[12] - Trade receivables increased from RMB 561.5 million as of December 31, 2023, to RMB 641.9 million as of December 31, 2024, due to longer payment cycles from customers[97] - Prepayments rose from RMB 594.0 million as of December 31, 2023, to RMB 755.4 million as of December 31, 2024, primarily due to increased prepayments for advertising traffic related to AR and VR marketing services[98] - Trade and other payables increased from RMB 148.1 million as of December 31, 2023, to RMB 253.6 million as of December 31, 2024, driven by higher procurement amounts and extended payment terms from suppliers[99] - Contract liabilities increased from RMB 13.1 million as of December 31, 2023, to RMB 29.1 million as of December 31, 2024, with revenue of RMB 13.1 million recognized related to the beginning balance of contract liabilities[100] Market and Industry Trends - The company aims to leverage technological advantages and innovative capabilities to capture the growing demand for 3D content driven by the younger generation's acceptance of virtual and real experiences[15] - The launch of products like Apple Vision Pro and Meta Quest series signifies the beginning of the "spatial computing era," creating a golden opportunity for the 3D content industry[16] - The Chinese government's focus on accelerating the development of new productive forces is expected to drive explosive growth in AR and VR/MR technology applications[14] - The company is positioned to take advantage of the increasing demand for high-precision modeling and low-latency interaction in the next generation of internet applications[15] Client and Revenue Dynamics - Domestic revenue from AR and VR marketing services decreased to RMB 428.7 million, down 42.5% from RMB 745.6 million in the previous year[28] - Overseas revenue from AR and VR marketing services increased to RMB 144.4 million, a growth of 45.0% compared to RMB 99.6 million in the previous year[28] - The number of advertising clients in the domestic market fell to 16 from 24, while the average monthly promotions per advertising product decreased from 69 to 51[29] - The number of clients decreased by 57.3% from 75 to 32, and the number of projects decreased by 32.4% from 170 to 115[33] - The company’s largest customer contributed 9.06% of total revenue for the year ended December 31, 2024, compared to 6.88% in 2023[154] Research and Development - R&D expenses increased by 64.7% from RMB 51.2 million in 2023 to RMB 84.3 million in 2024, driven by outsourced development costs related to the Flying Sky Metaverse platform[87] - The company plans to enhance product competitiveness and user experience by integrating cutting-edge technologies and exploring new application scenarios[17] Employee and Management - The company reported employee compensation totaling RMB 54.43 million for the fiscal year ending December 31, 2024, which includes salaries, bonuses, and other benefits[120] - The company has 124 full-time employees as of December 31, 2024, all located in China[120] - The group has a strong management team with extensive experience in various sectors, including technology and finance[135] - The group aims to enhance its organizational and talent management strategies under the leadership of the newly appointed Chief Human Resources Officer[135] Strategic Initiatives - The company aims to build a metaverse ecosystem through business and technology collaborations, focusing on international market expansion[17] - The company showcased its metaverse solutions at international exhibitions, attracting cooperation intentions from multiple European enterprises[21] - The company is actively participating in the standardization of the metaverse industry, contributing to national-level standard documents[24] - The company plans to enhance global market penetration and strengthen the competitiveness of AR and VR content and services through technological upgrades and content quality improvements[56] Financial Management - The company maintains a prudent treasury policy to manage its financial resources, ensuring high liquidity for future growth opportunities[113] - As of December 31, 2024, the company has no significant foreign currency risk exposure due to its operations primarily in RMB[111] - The company has no significant disputes with employees, customers, or suppliers during the reporting period[156] Shareholder Information - The total number of shares available for issuance under the post-IPO share option plan is capped at 181,000,000 shares, representing 10% of the total shares issued as of the report date[165] - The number of share options available for grant under the post-IPO share option plan as of December 31, 2024, is 108,503,000 options[165] - Mr. Wang holds 769,856,301 shares, representing 42.53% of the company, through Brainstorming Cafe Limited[184] - Both Ms. Xu and Mr. Li each hold 1,800,000 shares, representing 0.10% of the company[184] Risks and Compliance - The group has identified several key risks, including uncertainties in the Chinese SaaS industry and potential failure to improve product features to meet changing customer demands[194] - The group is committed to complying with Chinese privacy and data protection laws, although uncertainties remain[194] - The group faces intense market competition, which may hinder its ability to compete successfully with existing and future competitors[194]

Financial Performance - For Q1 2025, the operating income was RMB 164.91 billion, representing a year-on-year increase of 2.41%[5] - The net profit after tax for the same period was RMB 58.64 billion, showing a decrease of 2.22% compared to the previous year[5] - In Q1 2025, the group achieved a net profit of RMB 58.644 billion, a year-on-year decrease of 2.22%[15] - Total operating income reached RMB 164.911 billion, an increase of RMB 3.873 billion or 2.41% year-on-year[15] - The basic and diluted earnings per share were RMB 0.18, down from RMB 0.32 in the same period last year[5] - The weighted average return on equity (annualized) was 9.09%, a decrease of 0.77 percentage points compared to the previous year[5] - Net interest income was RMB 107.727 billion, down RMB 4.985 billion or 4.42% year-on-year, with a net interest margin of 1.29%[15] - Non-interest income totaled RMB 57.184 billion, up RMB 8.858 billion or 18.33% year-on-year, accounting for 34.68% of total operating income[15] Assets and Liabilities - The total assets as of March 31, 2025, amounted to RMB 35.99 trillion, an increase of 2.64% from the end of 2024[5] - Total assets amounted to RMB 35,987.147 billion, an increase of RMB 925.848 billion or 2.64% from the end of the previous year[16] - Customer loans and advances reached RMB 32,260.874 billion, up RMB 1,014.680 billion or 4.70% year-on-year[16] - Total liabilities increased to RMB 33,019.414 billion, a rise of RMB 911.079 billion or 2.84% from the end of the previous year[17] - Total liabilities increased to RMB 33,019,414 million as of March 31, 2025, up from RMB 32,108,335 million as of December 31, 2024[25] Shareholder Information - As of March 31, 2025, the total number of ordinary shareholders was 581,247, including 419,116 A-share shareholders and 162,131 H-share shareholders[9] - The top ten ordinary shareholders held a combined 64.13% of the shares, with the largest shareholder being Central Huijin Investment Ltd.[10] - The total number of preferred shareholders was 104, all of whom were domestic investors[12] - The total equity attributable to shareholders was RMB 2.83 trillion, reflecting a slight increase of 0.36% from the end of the previous year[5] - Total equity attributable to shareholders was RMB 2,967.733 billion, an increase of RMB 14.769 billion or 0.50%[18] Cash Flow and Dividends - The net cash flow from operating activities was a net outflow of RMB 40.46 billion, a significant decline from a net inflow of RMB 3.24 billion in the same period last year[7] - The net cash flow from operating activities for Q1 2025 was a negative RMB 40,463 million, compared to a positive RMB 3,240 million in Q1 2024[27] - The company announced a cash dividend of RMB 1.208 per 10 shares, totaling RMB 35.562 billion, and a second phase of overseas preferred stock dividends amounting to approximately USD 10.15 million[20][21] - Cash dividends paid to ordinary shareholders in Q1 2025 amounted to 35,562 thousand, marking a new distribution compared to no dividends in Q1 2024[29] Investment Activities - Cash flow from investment activities for Q1 2025 was a net outflow of 370,671 thousand, compared to a net outflow of 148,016 thousand in Q1 2024, indicating a significant increase in investment expenditures[29] - Cash paid for the purchase of financial investments in Q1 2025 was 1,600,188 thousand, compared to 1,368,275 thousand in Q1 2024, reflecting increased investment activity[29] - Cash paid for the acquisition of fixed assets in Q1 2025 was 5,122 thousand, significantly higher than 2,526 thousand in Q1 2024, suggesting expansion in capital expenditures[29] Customer Deposits and Loans - The company reported a significant increase in customer deposits, with a net increase of RMB 1,412,785 million in Q1 2025 compared to RMB 1,208,403 million in Q1 2024[27] - Customer loans and advances net amount reached RMB 22,052,439 million as of March 31, 2025, an increase from RMB 21,055,282 million as of December 31, 2024[24] Other Financial Metrics - The non-performing loan ratio remained stable at 1.25%, with a provision coverage ratio of 197.97%, down 2.63 percentage points from the end of the previous year[18] - Other comprehensive income for Q1 2025 was a negative RMB 23,648 million, contrasting with a positive RMB 8,602 million in Q1 2024[23] - Interest income received in Q1 2025 was 205,639 thousand, down from 224,791 thousand in Q1 2024, indicating a decline in interest earnings[29] - Interest paid in Q1 2025 was 137,416 thousand, down from 150,442 thousand in Q1 2024, indicating improved interest expense management[29] - The cash balance at the end of Q1 2025 was 1,803,874 thousand, a decrease from 2,416,045 thousand at the end of Q1 2024, showing a reduction in liquidity[29] - The net decrease in cash and cash equivalents for Q1 2025 was 565,055 thousand, compared to a decrease of 100,680 thousand in Q1 2024, highlighting increased cash outflows[29]

Financial Performance - For the year ended December 31, 2024, total revenue from packaging products and components was approximately RMB 250,802,000, a decrease of about 25.5% from RMB 336,623,000 in 2023[9]. - For the fiscal year ending December 31, 2024, the company reported revenue of approximately RMB 252,949,000, a decrease of 25.8% compared to RMB 340,918,000 for the fiscal year ending December 31, 2023[22]. - The loss attributable to shareholders for the fiscal year ending December 31, 2024, was approximately RMB 105,586,000, an increase from RMB 68,295,000 for the fiscal year ending December 31, 2023[22]. - The group recorded a net loss of approximately RMB 108,075,000 for the year ending December 31, 2024[178]. - Total comprehensive loss for the year was RMB 121,774,000, up from RMB 72,065,000 in 2023, indicating a significant increase in losses[165]. - The company reported a significant impairment of property, plant, and equipment amounting to RMB 22,129,000 for the year[164]. - Basic and diluted loss per share was RMB (32.28) compared to RMB (30.92) in 2023, reflecting a worsening in per-share performance[164]. Cost and Expenses - The cost of sales for the year was approximately RMB 256,421,000, a reduction of about RMB 72,595,000 or 22.1% compared to RMB 329,016,000 in 2023[10]. - The gross loss margin increased to approximately 2.2% for the year ended December 31, 2024, compared to a gross profit margin of approximately 2.3% in 2023[11]. - The employee count decreased to 345 as of December 31, 2024, from 491 in 2023, with total employee benefit expenses around RMB 47,003,000, down from RMB 52,820,000 in 2023[31]. - The company incurred a depreciation expense of RMB 7,290,000 for property, plant, and equipment, up from RMB 5,440,000 in the previous year, indicating increased investment in fixed assets[171]. Liquidity and Financing - As of December 31, 2024, the company's total borrowings amounted to approximately RMB 485,570,000, an increase from RMB 451,721,000 as of December 31, 2023[24]. - The company reported a bank balance and cash of approximately RMB 39,922,000 as of December 31, 2024, compared to RMB 19,290,000 as of December 31, 2023[24]. - The company raised approximately HKD 15,780,000 through a rights issue, issuing up to 197,282,636 new shares at a subscription price of HKD 0.08 per share, with the rights issue completed on June 4, 2024[15]. - The group anticipates estimated proceeds of RMB 59,000,000 from the sale of investment properties in Singapore[182]. - The group is actively seeking additional financing options to improve liquidity[182]. Corporate Governance - The company has adopted corporate governance practices in line with the Hong Kong Stock Exchange's guidelines, ensuring compliance and transparency[38]. - The board of directors consists of experienced members, with at least one independent non-executive director possessing appropriate accounting expertise[40]. - The company has established a shareholder communication policy to ensure effective communication with shareholders since March 16, 2012[76]. - The company is committed to maintaining open and effective communication with shareholders, particularly through annual general meetings[71]. - The company has adopted a remuneration policy that includes a bonus sharing arrangement to incentivize and retain employees[120]. Market and Operational Challenges - The company is facing challenges due to inflationary pressures affecting operational costs and aims to improve efficiency and monitor expenditures closely[11]. - The company continues to seek new customers while striving to maintain optimal gross margins amid competitive pressures[11]. - The company has identified various risks affecting its financial condition and operational performance, including market risks related to currency exchange rates and property market performance in Hong Kong and Singapore[94][96]. - The company faces human resource risks related to attracting and retaining skilled personnel, which may lead to increased labor costs[97]. Asset Management - The group’s non-current assets decreased to RMB 102,202,000 from RMB 117,700,000, a decline of approximately 13%[166]. - The group recognized an impairment loss of approximately RMB 22,129,000 for cash-generating units, including property, plant, and equipment, and RMB 1,712,000 for right-of-use assets as of December 31, 2024[151]. - Accounts receivable (net of impairment) stood at RMB 62,889,000 as of December 31, 2024, representing about 23% of the total assets, with an accumulated impairment provision of RMB 3,080,000[149]. Future Outlook - The company plans to list its investment property for sale to improve liquidity, which may require compliance with listing rules and shareholder approval[14]. - The company will continue to focus on the development of new businesses, including gas filtration media and equipment, as well as rosewood furniture, while seeking opportunities for revenue diversification[21]. - The company anticipates that private property prices in Singapore will continue to rise in 2025, driven by limited supply and strong demand, with GDP growth expected to be at least 2% to 3%[19].