Business Growth and Strategy - The Group achieved breakthrough growth in its To B SaaS business, consolidating AI technology to create a one-stop intelligent sales solution covering customer mining, outreach, conversion, and management [16]. - The platform developed vertical solutions for six industries, including pan-finance and intellectual property rights, effectively lowering customer acquisition costs and enabling scalable growth [16]. - The To B SaaS business of Little Blue Book saw significant revenue growth compared to the previous year, focusing on an all-in-one intelligent sales solution [31][33]. - Vala's marketing strategy utilizes short video content and a co-creator model, allowing users to become brand promoters and enhancing sales efficiency [22]. - Vala's marketing strategy includes low-cost, lifestyle-related short video content to drive significant marketing traffic, enhancing brand promotion efficiency [35][37]. - The company has implemented a co-creation model, allowing users to become co-creators after purchasing a Vala vehicle, effectively reducing traditional distribution costs and enhancing sales efficiency [35][37]. - The integration of camping and vehicle businesses into the Valalife initiative aims to redefine vehicle lifestyles, transforming cars into multifunctional mobile spaces for various scenarios [34][36]. - The company aims to explore new collaboration opportunities in the credit facilitation business while ensuring compliance and utilizing mature risk control models [183]. - In the SaaS business, the company plans to enhance its intelligent customer acquisition system by investing in big data, artificial intelligence, and cloud computing [184]. - The Little Blue Book will analyze sales process data to align product development with industry demands and pain points [184]. - Valalife will expand its business model by focusing on Vala vehicles and enhancing lifestyle components applicable to various vehicle models [185]. - The company intends to drive the iterative upgrade of multi-functional mobile spaces through Valalife, empowering users to experience lifestyle changes [187]. Financial Performance - For the year ended December 31, 2024, the company's revenue was approximately RMB224.6 million, representing an increase of approximately 3.4% from approximately RMB217.2 million for the year ended December 31, 2023 [39]. - The company's operating loss for the year ended December 31, 2024, was approximately RMB61.1 million, compared to an operating profit of approximately RMB22.6 million for the year ended December 31, 2023 [39]. - The net loss increased from approximately RMB3.1 million for the year ended December 31, 2023, to approximately RMB69.0 million for the year ended December 31, 2024 [39]. - Revenue from the SaaS business increased by approximately 29.7% to approximately RMB75.0 million for the year ended December 31, 2024, from approximately RMB57.8 million for the year ended December 31, 2023 [51]. - Subscription income from Little Blue Book increased by 55.8% from approximately RMB23.3 million for the year ended December 31, 2023, to approximately RMB36.3 million for the year ended December 31, 2024 [61]. - Revenue from Valalife business decreased by approximately 51.8% from approximately RMB33.9 million for the year ended December 31, 2023, to approximately RMB16.4 million for the year ended December 31, 2024 [62]. - Revenue from children's entertainment business amounted to approximately RMB31.4 million for the year ended December 31, 2024 [65]. - Other revenue increased by approximately 25.4% from approximately RMB33.2 million for the year ended December 31, 2023, to approximately RMB41.6 million for the year ended December 31, 2024 [66]. - Total operating expenses increased by approximately 46.9% from approximately RMB194.6 million for the year ended December 31, 2023, to approximately RMB285.8 million for the year ended December 31, 2024 [67]. - Research and development expenses rose by approximately 124.9% from approximately RMB18.3 million for the year ended December 31, 2023, to approximately RMB41.2 million for the year ended December 31, 2024, primarily due to increased spending related to Vala [74]. - Sales and marketing expenses increased by approximately 88.1% from approximately RMB27.4 million for the year ended December 31, 2023, to approximately RMB51.5 million for the year ended December 31, 2024, driven by a 184.4% increase in marketing expenses related to Vala [75]. - The adjusted operating loss for the year was approximately RMB43.1 million, compared to an adjusted operating profit of approximately RMB23.1 million for the previous year [101]. - The net loss for the year was approximately RMB69.0 million, compared to a net loss of approximately RMB3.1 million for the previous year [103]. Credit Facilitation Business - The scale of the credit facilitation business decreased year-on-year due to regulatory adjustments, but the historical overdue asset recovery rate met expectations [17]. - The credit facilitation business experienced a decline due to stricter regulatory policies, leading to a controlled overall scale of the facilitation business [30][33]. - The total volume of credit facilitation business was approximately RMB1,109.3 million for the year ended December 31, 2024, a decrease of approximately 42.8% from approximately RMB1,938.7 million in the year ended December 31, 2023 [49]. - The Day-1 delinquency rate for credit facilitation assets in 2024 was lower than 4.5%, and the 30-day collection rate of overdue assets was approximately 78.0% [49]. - The net profit from the credit facilitation business declined by 39.7% from approximately RMB58.4 million for the year ended December 31, 2023, to approximately RMB35.2 million for the year ended December 31, 2024 [94]. - The Group's credit facilitation services business model allows for a service fee and guarantee fee charged as a percentage of the loan principal, enhancing the credit of Target Borrowers [105]. - The five largest borrowers in loans to customers accounted for less than 30% of the total loans, indicating a diversified borrower base [112]. - The expected credit loss of trade receivables is calculated based on the Group's historical settlement patterns and forward-looking information [117]. - The Group's financial guarantee for credit facilitation has interest rates ranging from 4.37% to 10.66% for tenors of 6 to 12 months [111]. - The average tenure of loans decreased to approximately 8.9 months in 2024 from approximately 9.1 months in 2023 [49]. - The average amount of loans remained approximately RMB7,500 in the year ended December 31, 2024, consistent with the previous year [49]. Regulatory and Compliance Issues - A qualified opinion was issued by the auditor on the Group's consolidated financial statements for the year ended December 31, 2024 [157]. - The Auditor expressed a Qualified Opinion on the Group's consolidated financial statements for the year ended 31 December 2024 due to uncertainties related to the Yang Arbitration Proceedings and insufficient supporting documents regarding the SK Group's operations [167]. - The Group has been unable to communicate with the SK Group since August 3, 2022, which has disrupted its business operations and led to the inability to access financial records [161]. - The Board decided to deconsolidate the SK Group from the Group's financial statements effective from August 3, 2022, based on the inability to control the operations and finances of the SK Group [162]. - The Audit Committee agreed with Management's position regarding the Deconsolidation and emphasized the need for continued efforts to resolve the Audit Issues [170]. - The Auditor was unable to obtain sufficient appropriate audit evidence to confirm the accuracy of income, expenses, assets, and liabilities for the years ended December 31, 2024, and 2023 [171]. - The Group's financial statements for the year ended December 31, 2024, may not accurately reflect the financial position due to the unresolved Audit Issues [168]. - The inability to obtain reports from the SK Group's management has hindered the Group's ability to direct future developments [165]. - The Auditor's Qualified Opinion highlights significant concerns regarding the financial reporting and operational control of the SK Group [171]. Shareholder and Employee Information - The Group expressed gratitude to shareholders for their support and acknowledged the dedication of its staff [25]. - As of December 31, 2024, the Group employed approximately 373 employees, with total staff costs of approximately RMB117.2 million, a decrease from RMB137.7 million in 2023 [151]. - The Board did not recommend a final dividend for the year ended December 31, 2024 [150]. Future Outlook and Plans - In 2025, the focus will be on enhancing operational efficiency and deepening synergies among business segments while controlling operational risks [24]. - The Group plans to launch more vehicle models to meet diverse user needs and drive revenue growth [24]. - The Group plans to sell approximately 1,358,954,030 shares of its subsidiary, China Netcom, representing about 29.00% of its total issued share capital, for a total consideration of HK$21,750,000 [156]. - The Company raised total gross proceeds of approximately HK$39.66 million during the year ended December 31, 2024, through a fund-raising exercise [129]. - The net proceeds from the 2024 Placing amounted to approximately HK$38.73 million, with approximately 45.0% allocated for strengthening the Group's existing credit facilitation and SaaS business [131].

Financial Performance - The Group's operating income increased by approximately 20.1% to approximately RMB744.9 million for the year ended December 31, 2024[12]. - Profit before tax rose by approximately 76.7% to approximately RMB107.9 million compared to the previous year[12]. - Profit attributable to shareholders increased by approximately 98.2% to approximately RMB84.6 million[12]. - Revenue for the year ended December 31, 2024, reached RMB 744,942,000, representing a 20.1% increase from RMB 620,134,000 in 2023[25]. - Total comprehensive income for the year was RMB 84,637,000, a significant increase of 98.2% from RMB 42,707,000 in 2023[25]. - Earnings per share attributable to ordinary equity holders rose to 0.63, up 96.9% from 0.32 in the previous year[25]. - Gross profit increased to approximately RMB218.2 million, a rise of approximately 54.9% compared to RMB140.8 million from the corresponding period last year, with a gross margin of approximately 29.3%[58]. - The value of new contracts for the year was approximately RMB1,549.6 million, with a backlog of approximately RMB2,962.1 million as of December 31, 2024[59]. Revenue Sources - Approximately 99% of the Group's revenue came from the sales of environmental protection equipment, amounting to approximately RMB737.1 million[13]. - Revenue from sales of environmental protection equipment accounted for approximately 99% of total revenue, with sales amounting to approximately RMB737.1 million[70]. - Revenue from sales of electrostatic precipitators increased by approximately RMB196.9 million, while revenue from bag filter precipitators increased by approximately RMB29.8 million; however, revenue from SO2 and NOx emission reduction devices decreased by approximately RMB64.0 million[73][74]. Market Trends and Opportunities - The environmental protection equipment market is projected to grow at an annual rate of over 10% in the Asia-Pacific region[39]. - The increasing demand for precipitators is expected due to stringent environmental protection inspections requiring upgrades of non-compliant equipment[18]. - The demand for super-large dust collectors is rising globally due to policy requirements and environmental pressures, particularly in high-pollution industries like steel, cement, and chemicals[54]. - The Belt and Road Initiative has significantly increased the demand for Chinese super-large dust collectors in markets across Asia, Africa, and the Middle East[55]. - By 2025, non-fossil energy consumption in China is expected to reach approximately 20%, with energy savings projected to be around 50 million tons of standard coal, reducing carbon dioxide emissions by approximately 130 million tons[46]. Research and Development - The Group plans to enhance its research and development capabilities and actively seek acquisition projects to expand its market presence[19]. - The Group's R&D center in Hangzhou employs over 10 professional engineers, focusing on environmental engineering and related fields[28]. - The Group plans to invest more resources in the research and development of energy-efficient environmental protection devices to meet market demands for green technologies[115]. - The Group aims to expand its range of environmental protection equipment, including dust collectors and flue gas desulfurization devices, to enhance market competitiveness[115]. Corporate Governance and Management - The company has been expanding its governance structure with a diverse board of directors, including independent non-executive directors[152]. - The company emphasizes the importance of corporate governance and oversight through its supervisory board[141]. - The management team has extensive experience in various sectors, including finance, technology, and operations, enhancing the company's strategic capabilities[145][150]. - The company has established service contracts with all directors, ensuring compliance with statutory requirements[169]. Environmental Commitment - The Group is committed to seizing market opportunities and contributing to environmental protection efforts[21]. - The Group's cost management efforts have improved product competitiveness, focusing on reducing energy consumption and environmental impact in line with international standards[62]. - The Group believes that the application prospects for super-large dust collectors will broaden as global demand for environmental protection technologies increases[118].

Financial Performance - The company achieved a revenue of RMB 18,675.4 million, representing a year-on-year growth of 9.6%, with non-COVID revenue increasing by 13.1%[10] - Gross profit increased by 12.1% year-on-year, while net profit rose by 10.5% to RMB 3,945.4 million[10] - The company's revenue for the fiscal year ended December 31, 2024, reached RMB 18,675.4 million, representing a year-on-year growth of 9.6%[19] - Gross profit increased by 12.1% year-on-year to RMB 7,650.8 million, with a gross margin of 41.0% for 2024[19] - Net profit for the year was RMB 3,945.4 million, reflecting a year-on-year increase of 10.5%[19] - The revenue from North America rose significantly to RMB 10,695.8 million, accounting for 57.3% of total revenue, compared to RMB 8,073.5 million or 47.4% in the previous year[60] - IND pre-service revenue grew by 30.7% to approximately RMB 7,062.2 million, representing 37.8% of total revenue for the year ended December 31, 2024[62] - Revenue from the top five customers decreased by 10.2% to approximately RMB 5,442.3 million, representing 29.1% of total revenue for the year ended December 31, 2024[63] - Revenue from the XDC segment increased significantly to RMB 3,944.0 million, representing 21.1% of total revenue, compared to RMB 1,906.1 million or 11.2% in the previous year[66] - Adjusted net profit for the year ended December 31, 2024, was RMB 5,396.9 million, up from RMB 4,950.4 million in 2023, reflecting a growth of 9.0%[109] - Adjusted net profit margin for 2024 was 28.9%, slightly down from 29.1% in 2023[109] - Basic adjusted earnings per share increased to RMB 1.17 in 2024 from RMB 1.13 in 2023, while diluted adjusted earnings per share rose to RMB 1.12 from RMB 1.06[109] Operational Highlights - The company added 151 integrated projects, bringing the total to 817, with late-stage clinical and non-COVID commercialization projects reaching 66 and 21, respectively[10] - The company successfully supported over 600 IND submissions during the reporting period, reducing the development time from DNA to IND for mAb projects to nine months[10] - The company completed 16 process performance qualification (PPQ) projects, achieving a PPQ success rate of over 98% for drug substance (DS) and drug product (DP) production[11] - The company has 194 ongoing ADC and other bioconjugate drug iCMC projects globally, enhancing its position in the ADC market[11] - The company has established partnerships with the top twenty global pharmaceutical companies and most large pharmaceutical companies in China, expanding its customer base[20] - The total value of uncompleted orders as of December 31, 2024, amounted to USD 18.5 billion, including USD 10.5 billion in service orders and USD 8.0 billion in potential milestone payment orders[19] - The company has successfully acquired 20 external projects during the reporting period, including 13 clinical late-stage and commercialization projects, laying a solid foundation for future revenue growth[17] Technology and Innovation - The company has advanced its proprietary WuXiBody™ platform, achieving over 50 collaborations in the development of bispecific antibodies[23] - The CRDMO platform has enabled the company to empower over 600 IND submissions, significantly reducing the development cycle from DNA to IND to just nine months[29] - The WuXia™ platform has delivered over 1,000 cell lines, supporting 150 integrated CMC projects annually, making it one of the largest platforms in the industry[30] - The WuXiUP™ platform has been applied in over 140 processes, achieving production capacities of 20 to 100 grams per liter and enabling over 10 IND approvals[32] - The WuXiUI™ platform has increased the yield of various recombinant proteins by 3 to 6 times while maintaining high product quality and significantly reducing production costs[33] - The company has developed a comprehensive technology for validating tumor-associated antigens (TAA), enabling clients to discover potential best-in-class antibody-drug conjugates (ADCs)[27] - The group has established integrated platforms targeting emerging therapeutic modalities, enhancing service offerings and driving continuous growth and innovation[40] Compliance and Quality - All three facilities in Ireland received GMP certification from the HPRA, successfully completing multiple 16,000-liter scale PPQ productions[11] - The company has completed over 1,500 GMP audits and approximately 200 EU quality authorizations since 2017, maintaining high compliance standards[11] - The company is committed to maintaining the highest compliance standards and efficient operations to contribute to the global healthcare industry[13] - The group received multiple awards for quality service and ESG practices, including the "CDMO Leadership Award" for seven consecutive years[54] Sustainability and ESG - The company has made significant progress in sustainability, receiving multiple recognitions and awards from renowned rating agencies, including inclusion in the Dow Jones Sustainability Index[14] - The group joined the Science Based Targets initiative (SBTi) and became a participant in the UN Global Compact, enhancing its ESG performance[45] Governance and Management - The company emphasizes the importance of corporate governance and strategic guidance from its board members, leveraging their diverse backgrounds in finance and biopharmaceuticals[120] - The management team is focused on expanding the company's capabilities in biopharmaceutical development and production, with a strong emphasis on innovation and technology[118] - The board's composition includes members with significant experience in investment and strategic management, which supports the company's growth objectives[121] - The company is committed to maintaining high standards of governance and oversight to ensure sustainable growth and shareholder value[123] Financial Management - The company has a comprehensive financial risk management policy outlined in the annual report, ensuring robust oversight of financial performance[140] - The company has established a robust risk management system to evaluate significant risks, including operational, financial, and regulatory risks, to ensure effective operations[157] - The company is diversifying its revenue and profit sources to reduce dependence on any single country or region, while closely monitoring external environmental changes[159] - The company faces interest rate risks related to fixed-rate bank borrowings and floating-rate deposits, and it is managing these risks through careful assessment and potential interest rate swap agreements[160] Employee and Talent Management - The total number of employees reached 12,575, including 4,383 researchers, with a key talent retention rate of approximately 95.8%[113] - The company has adopted various equity incentive plans to reward eligible participants for their contributions[114] - The company aims to attract and retain key talent through the Global Partner Share Award Plan, which was adopted on June 16, 2021[188] Shareholder Information - As of December 31, 2024, Dr. Li has a 14.44% equity stake in the company, holding 592,902,633 shares[168] - The total number of issued shares as of December 31, 2024, is 4,105,937,505 shares[169] - The total number of options available for issuance under the pre-IPO share option plan is 145,700,858 shares, which is approximately 3.55% of the total issued shares[177] - The total number of restricted shares granted during the reporting period amounted to 79,063,961 shares, with 19,806,418 shares vested and 18,155,376 shares unvested[185]

Financial Performance - The company's revenue for 2024 was approximately RMB 1,610.2 million, representing a growth of about 52.7% compared to the previous year[5]. - Profit attributable to the parent company was approximately RMB 102.5 million, an increase of approximately 225.4% year-on-year[5]. - Basic earnings per share were approximately RMB 6.39, reflecting a growth of about 229.4% compared to last year[5]. - Domestic market revenue reached RMB 1,520.03 million in 2024, up from RMB 987.07 million in 2023, with an average gross margin of 31.5%[15]. - The gross profit rose by about 55.2% to RMB 520,700 thousand in 2024, with the gross margin improving from 31.8% to 32.3%[33]. - The pre-tax profit surged by approximately 160% to RMB 122,200 thousand in 2024, primarily due to increased revenue[40]. - Revenue from self-developed power semiconductors in 2024 was approximately RMB 59.1 million, a decrease of about 27.0% compared to the previous year, but expected to rebound significantly in the second half of 2024 with a growth of approximately 30.0% year-on-year[11]. Revenue Breakdown - Revenue from conventional DC transmission and flexible transmission segments reached approximately RMB 647.9 million, marking a growth of about 156.7%[5]. - The revenue from the power distribution sector increased by 95% to RMB 812.02 million in 2024, driven by significant growth in conventional and flexible DC transmission[19]. - Revenue from flexible transmission technology surged by 371% to RMB 280.89 million in 2024, reflecting strong demand for new energy power transmission solutions[20]. - The electrification transportation sector saw a revenue decline of approximately 14% in 2024, with electric vehicle revenue dropping by 78%[22]. - The revenue for the industrial and other sectors reached RMB 658,567 thousand in 2024, a 22% increase from RMB 513,294 thousand in 2023[23]. - Revenue from the industrial control segment grew by approximately 14% to RMB 379,818 thousand in 2024, while the new energy generation and storage segment saw a 52% increase to RMB 273,558 thousand[24]. Market Development and Customer Base - The company is expanding its customer base by increasing market development efforts in the power semiconductor sector[9]. - In 2024, the number of signed customers increased significantly, with chip customers rising from 3 at the end of 2023 to 14, and module customers increasing from 18 to 46[11]. - The construction of high-voltage direct current projects is accelerating, with several key projects entering the initiation phase, providing broader market opportunities for the company[7]. Research and Development - The company has developed a new DC support capacitor that is the first in China to pass all IEC tests, successfully applied in a major project[8]. - The company launched several new products in 2024, including a 1200V SiC MOSFET chip with a resistivity as low as 13 milliohms, achieving international leading standards[10]. - The company aims to leverage high-quality domestic products to drive rapid business growth in the power semiconductor industry, which is transitioning to high-quality development[12]. - The company is committed to enhancing R&D team construction and product innovation to support comprehensive business development and achieve corporate growth objectives[13]. - The company is focused on continuous technological innovation and talent acquisition to drive energy technology upgrades[76]. Governance and Corporate Structure - The company has a strong governance structure with experienced independent directors overseeing key committees, enhancing strategic decision-making and compliance[67]. - The board of directors consists of three executive directors and four independent non-executive directors, with independent directors making up approximately 50% of the board during the fiscal year[79]. - The company emphasizes the importance of corporate governance and has adopted the corporate governance code as per the listing rules, ensuring compliance throughout the fiscal year ending December 31, 2024[75]. - The company has established a comprehensive and fair regulatory framework to manage employee behavior and enhance corporate culture[77]. - The board has established four committees to oversee various aspects of the group's affairs, enhancing governance and management communication[89]. Financial Management and Risks - The company faces market interest rate risks related to floating-rate bank borrowings, with actual interest rates and repayment terms disclosed in the financial statements[123]. - The company has established forward currency contracts with reputable banks to manage foreign exchange risks arising from procurement in non-functional currencies[124]. - The company has a credit risk management policy that involves trading only with recognized and reputable third parties, with ongoing monitoring of receivables[125]. - The company utilizes a revolving working capital plan to monitor liquidity risks, balancing funding continuity and flexibility[126]. - The company has established a whistleblowing policy to report any misconduct related to the group, and all directors and employees received anti-corruption training during the year[110]. Shareholder Information - The company reported a proposed final dividend of HKD 0.01 per share for the year ending December 31, 2024, compared to zero in 2023[128]. - The company has terminated its 2010 share option plan, which allowed for the issuance of options to eligible participants, with a maximum of 136,604,000 shares potentially issuable under the plan[135]. - The 2020 share option plan allows for the issuance of up to 163,083,100 shares, equivalent to 10% of the total issued shares as of the approval date[139]. - The total number of unexercised stock options as of December 31, 2024, is projected to be 93,383,100 if the proposed grant is approved[148]. Employee and Workforce Management - The company employed a total of 977 staff, with a gender ratio of approximately 6:4 (male to female), indicating a commitment to gender diversity in the workforce[114]. - The group has maintained good relationships with employees, customers, and suppliers, ensuring fair treatment and regular reviews of compensation and benefits[190]. - The company has complied with relevant laws and regulations in the Cayman Islands, China, and Hong Kong as of December 31, 2024[192]. Audit and Compliance - The audit committee held 3 meetings during the year, reviewing internal control procedures and the annual performance, confirming compliance with accounting standards[91]. - The independent auditor's report confirms that the financial statements present a true and fair view of the group's financial performance and position[196]. - The financial statements were prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance[196].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of HKD 1,656,773,000, a slight increase of 1.0% compared to HKD 1,637,181,000 in 2023[17] - The gross profit for 2024 was HKD 619,687,000, reflecting a 4.3% increase from HKD 591,007,000 in the previous year[17] - The company's net profit attributable to equity shareholders was HKD 167,604,000, down 3.9% from HKD 174,313,000 in 2023[17] - The basic and diluted earnings per share for 2024 were both HKD 0.08, compared to HKD 0.083 in 2023[17] - The company declared a dividend of HKD 0.024 per share for 2024, down from HKD 0.025 in the previous year[17] - In 2024, the company achieved revenue of approximately HKD 1,656.8 million and a profit attributable to equity shareholders of approximately HKD 167.6 million[26] - The board proposed a dividend of HKD 0.024 per share, totaling approximately HKD 50.3 million, with a payout ratio of 30.03%[26] - The gross profit margin for 2024 was approximately 37.4%, an increase of about 1.3 percentage points compared to the previous year[33] - The company's net profit attributable to equity shareholders was approximately HKD 167.6 million, a decrease of about 3.8% year-on-year[43] - The total employee cost for the company was approximately HKD 290.6 million for the fiscal year 2024, a decrease from HKD 297 million in the previous fiscal year, attributed to ongoing optimization of the personnel structure[71] Assets and Liabilities - As of December 31, 2024, total assets reached HKD 4,833,116,000, an increase of 7.2% from HKD 4,508,683,000 in 2023[17] - The company’s total liabilities to total assets ratio was 39.2% as of December 31, 2024, compared to 36.2% in the previous year[47] - The company’s cash and bank balances as of December 31, 2024, were approximately HKD 761.2 million, an increase from HKD 697.1 million in the previous year[45] - The current ratio as of December 31, 2024, was approximately 2.1, up from 1.9 in the previous year[47] Market Presence and Expansion - The company operates in 55 cities across China and has expanded its international presence to 32 cities in 20 countries and regions[9] - The company maintained its leading market share in the domestic vehicle-mounted passenger information system (PIS) business for the ninth consecutive year, expanding its overseas presence to four new countries[24] - The company is focusing on integrating new technologies such as artificial intelligence and cloud computing into its rail transit services[22] - The company plans to continue its strategic focus on innovation and international expansion, aiming to become a leading smart rail transit system service provider in China[27] - The company has been recognized for its commitment to ESG principles, achieving a four-and-a-half-star rating in the Beijing State-owned Listed Companies ESG Pioneer Index[25] Research and Development - Research and development expenses for 2024 were approximately HKD 159.6 million, a decrease of about 6.6% due to improved efficiency[40] - The group obtained 29 new patents and 77 software copyrights during the year, bringing the total to 149 patents and 645 software copyrights[64] - The group is focusing on the integration of artificial intelligence, big data, and cloud computing in smart rail transit products, with expectations for market expansion in the coming years[65] Contracts and Projects - The company secured a contract for the Beijing Metro Line 22 PIS project worth approximately RMB 58.16 million, which will integrate an AI analysis system into the conventional PIS system[51] - The company successfully entered international markets, winning contracts in Chile for the Meripia PIS project worth approximately RMB 16.71 million and in India for projects worth approximately RMB 23.50 million[52] - The company completed the delivery of the passenger service system and intelligent analysis system for the world's fastest high-speed train CR450, enhancing train monitoring and passenger service levels[53] - The company signed a major communication system integration project for the Beijing Metro Line 22, valued at RMB 480 million, marking the largest single project contract in this segment[55] Governance and Management - The board consists of at least three independent non-executive directors, representing one-third of the board, with at least one having appropriate professional qualifications or expertise in accounting or related financial management[177] - The board has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and ESG Committee, each with specific written terms of reference[188] - The board confirmed the effective implementation of its independence mechanism during the annual review for the fiscal year 2024[184] - The company has established a corporate governance framework and complied with the corporate governance code during fiscal year 2024[171] - The company has arranged appropriate directors and officers liability insurance for its directors and senior management[167] Shareholder Information - The total issued shares as of December 31, 2024, amounted to 2,097,146,727[82] - The market capitalization as of December 31, 2024, was HKD 566.23 million, with a closing price of HKD 0.270[82] - The dividend yield based on the market price was 8.9%[82] - The company has established a stable and scientific return mechanism for shareholders, considering strategic planning and cash flow[81] Related Party Transactions - The company has confirmed compliance with the relevant pricing policies for the ongoing related party transactions[158] - Independent non-executive directors have verified that the ongoing related party transactions are conducted in the normal course of business and are fair and reasonable[159] - The company entered into a lease agreement for a property in Beijing, with a total rental payment of approximately RMB 10.3 million (around HKD 11.2 million) for a 39-month term[139] Social Responsibility - For the fiscal year 2024, the group made donations amounting to approximately HKD 42.1 thousand, a decrease from HKD 425.8 thousand in fiscal year 2023[164] - The company has a strong focus on environmental, social, and governance (ESG) management, with dedicated committees in place[94]

Financial Performance - For the fiscal year ending December 31, 2024, the group recorded total revenue of approximately RMB 38,583,000, a decrease of about 15.6% compared to RMB 45,740,000 in 2023[7]. - Interest income from the lending business was approximately RMB 28,140,000, accounting for about 72.9% of total revenue, while revenue from electronic components processing and trading was approximately RMB 10,443,000, representing 27.1% of total revenue[6]. - The net loss attributable to the company’s owners was approximately RMB 8,363,000, a decrease of about RMB 1,015,000 or 10.8% compared to RMB 9,378,000 in 2023[8]. - The fair value gains on financial assets decreased from approximately RMB 7,813,000 to RMB 3,980,000, contributing to the overall decline in other income[7]. - The expected credit loss provision for receivables increased to approximately RMB 114,862,000 in 2024, up from RMB 86,077,000 in 2023, primarily due to adverse impacts on borrowers' financial conditions from economic recession[12]. Expenses and Financial Ratios - The group’s general and administrative expenses decreased by approximately RMB 9,845,000 or 49.5% to RMB 10,038,000, primarily due to reduced advertising costs and depreciation of property and equipment[8]. - The group’s financial expenses increased by approximately RMB 43,000 or 0.8% to RMB 5,119,000, mainly due to interest expenses on unsecured bonds[8]. - The current ratio decreased to 3.1 times in 2024 from 7.8 times in 2023, with current assets amounting to approximately RMB 195,957,000 in 2024 compared to RMB 211,587,000 in 2023[14]. - The debt-to-asset ratio improved slightly to 21.7% in 2024 from 22.7% in 2023, indicating a stable financial structure[14]. Loan Portfolio and Credit Management - The lending portfolio net amount was approximately RMB 301,388,000, a decrease from RMB 322,868,000 in 2023, with loans issued to 74 borrowers, including 65 individuals and 9 enterprises[10]. - The group’s trade receivables, loans receivable, and other receivables amounted to approximately RMB 308,608,000, down from RMB 339,800,000 in 2023[9]. - The group confirmed impairment losses on trade receivables, loans receivable, and other receivables of approximately RMB 22,542,000, down from RMB 26,416,000 in 2023[9]. - The group’s five largest borrowers accounted for approximately RMB 53,345,000, or 17.7% of total loans receivable[10]. - The group has established credit policies and procedures to manage lending risks, including a three-stage loan application process[164]. Corporate Governance - The board of directors is responsible for formulating strategic policies and overseeing the company's affairs to enhance shareholder value[37]. - The board holds regular meetings, typically four times a year, to review financial and business performance and approve overall strategies and policies[38]. - The board of directors consists of five members, including two executive directors and three independent non-executive directors[41]. - The company has adopted a nomination policy to ensure that appointed directors possess relevant business, financial, and management skills[52]. - The company has established appropriate insurance arrangements for legal actions against directors[46]. Employee and Operational Management - As of December 31, 2024, the group employed 10 staff members, a decrease from 12 in 2023, with a gender ratio of 50% male and 50% female[27]. - Employee costs, including director remuneration, amounted to RMB 1,571,000 for the year, compared to RMB 1,545,000 in 2023, reflecting a slight increase of approximately 1.7%[27]. - The company emphasizes a discrimination-free work environment, considering only business needs and individual qualifications in hiring[130]. - The company has implemented a strict policy against workplace harassment and bullying[141]. - 100% of employees received training, with an average training duration of 17.5 hours per employee[139]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report outlines the group's performance in environmental, social, and governance aspects for the year ending December 31, 2024[106]. - The group identified key ESG issues such as employment, labor standards, health and safety, customer privacy protection, and anti-corruption as significant during the reporting period[110]. - The company aims to maintain or reduce energy and water consumption levels by 2025 compared to the 2024 baseline[119]. - The company has implemented a "paperless" initiative to reduce paper consumption and promote recycling[117]. - The company actively engages in waste management by recycling and donating electronic products to extend their lifespan[116]. Risk Management - The group has a risk management system in place to monitor and mitigate risks associated with its business operations[166]. - The group is exposed to foreign exchange rate risks due to assets and liabilities denominated in currencies other than its functional currency[169]. - The group faces intense competition in the electronic components sector, which may adversely affect revenue and profit margins[165]. - The group monitors the collectability of loans continuously, taking action in case of overdue payments, including legal actions if necessary[164]. - The company continuously monitors cash flow to manage liquidity risk and maintain sufficient cash and credit lines[172]. Shareholder Relations and Dividends - The board of directors has full discretion over dividend payments, which will depend on various factors including the group's financial performance and capital requirements[96][97]. - The company did not recommend the payment of a final dividend for the year[180]. - The company emphasizes effective communication with shareholders, encouraging participation in all shareholder meetings[94]. - The attendance rate for the 2024 annual general meeting was 100% for some directors, while others had varying attendance[95]. - The company has a structured dividend policy established in March 2019, which outlines the procedures for declaring and recommending dividends[96].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 10,160,000, a significant decrease from RMB 67,621,000 in 2023[17]. - Online interactive entertainment service revenue dropped to RMB 5,641,000 from RMB 66,394,000, indicating a decline in this segment[17]. - Gross profit for 2024 was RMB 8,103,000, down from RMB 58,848,000 in 2023, resulting in a gross profit margin of 79.8% compared to 87.0%[17]. - The company reported a net profit of RMB 19,916,000 in 2024, a turnaround from a net loss of RMB 135,052,000 in 2023, achieving a net profit margin of 196.0%[17]. - Adjusted net profit for 2024 was RMB 20,215,000, compared to an adjusted net loss of RMB 132,844,000 in 2023, with an adjusted net profit margin of 199.0%[17]. - For the year ended December 31, 2024, the Group recorded total revenue of RMB10.2 million, a decrease of 85.0% from RMB67.6 million in the same period of 2023[22]. - Revenue from online interactive entertainment services decreased by 91.5% to RMB5.6 million for the Reporting Period, compared to RMB66.4 million for the same period in 2023[22]. - The profit attributable to owners of the Company was RMB20.0 million, with an adjusted net profit of RMB20.2 million and adjusted EBITDA of RMB25.8 million[23]. - The Group's gross profit margin for the reporting period was 79.8%, down from 87.0% in the previous year[52]. - The Group's profit attributable to owners of the Company was RMB20.0 million, a significant recovery from a loss of RMB134.7 million in the same period of 2023[70][74]. - The adjusted net profit for the Group was RMB20.2 million, compared to a loss of RMB132.8 million in the previous year[82]. - The Group's adjusted EBITDA improved to RMB25.8 million from a loss of RMB120.6 million in the previous year[79]. Market Expansion and Strategy - The company has expanded into overseas markets, including Indonesia and the Middle East, which are becoming key growth engines for its live social video business[7]. - The company launched a series of live streaming mobile applications to capture the growing demand for mobile entertainment[7]. - Future outlook includes continued focus on overseas market expansion and enhancing product offerings in live streaming services[7]. - The company aims to leverage its strong domestic performance to drive growth in international markets[7]. - The Group is focusing on expanding its overseas live streaming business by integrating successful domestic business models with advanced technologies[24]. - The localized live streaming platform "KiWi Live" has gained popularity in Indonesia, contributing to the Group's market expansion efforts[28]. - The Group launched its self-developed social interaction platform "iMee Live" at the end of 2024, targeting Gen Z users in Southeast Asia[29]. - A joint investment in "Sila Chat" has resulted in significant revenue growth in 2024, with expectations for strong synergies in 2025[30]. Financial Position and Assets - Total assets increased to RMB 2,619,747,000 in 2024 from RMB 2,560,083,000 in 2023, while total liabilities rose to RMB 385,250,000 from RMB 307,099,000[17]. - Financial assets at fair value through profit or loss (FVTPL) increased by 12.6% to RMB1,757.2 million compared to RMB1,560.4 million as of December 31, 2023[86]. - The Group's cash and cash equivalents amounted to RMB467.0 million as of December 31, 2024, up from RMB364.1 million in the previous year[83][84]. - The fair value of financial assets measured at fair value through profit or loss increased by 12.6% to RMB1,757.2 million as of December 31, 2024, compared to RMB1,560.4 million as of December 31, 2023[87]. - Other financial instruments saw a significant increase in fair value from RMB825.9 million at the end of 2023 to RMB982.8 million at the end of 2024, representing a year-on-year increase of 19.0%[88]. - The fair value gain of other financial instruments rose from RMB24.7 million in 2023 to RMB58.4 million in 2024, reflecting the positive impact of the accommodative interest rate environment and strong market performance[91]. - Fund investments decreased by 10.6% to RMB479.6 million as of December 31, 2024, with a recognized fair value loss of RMB24.6 million during the reporting period[97]. - Private investments increased significantly, with the fair value rising from RMB98.7 million in 2023 to RMB163.2 million in 2024, marking a 65.3% increase[88]. - The fair value of listed equity securities increased by 36.8% to RMB60.7 million as of December 31, 2024, compared to RMB44.4 million as of December 31, 2023[105]. - Investments in wealth management products rose by 44.3% to RMB52.1 million as of December 31, 2024, from RMB36.1 million as of December 31, 2023[106]. Cost Management and Expenses - Selling and marketing expenses decreased by 76.1% year-on-year to RMB8.3 million, primarily due to lower domestic marketing expenses[53]. - Administrative expenses decreased by 24.3% year-on-year to RMB58.1 million, attributed to a reduction in employee-related expenses and operational costs[54]. - Research and development expenses decreased by 49.3% year-on-year to RMB8.9 million due to strategic restructuring of the R&D team[55]. - Staff costs decreased to RMB 43.4 million for the reporting period, down from RMB 68.4 million for the year ended December 31, 2023[127]. - Share-based compensation expenses for the reporting period were RMB 0.3 million, compared to nil for the year ended December 31, 2023[135]. Regulatory Compliance and Governance - The Group strictly complies with PRC laws and regulations, requiring all users to agree to terms of service upon account registration[179]. - The Company has developed a robust content monitoring system to filter inappropriate content on its platforms[179]. - The Group is monitoring compliance with local laws and regulations for its overseas live streaming platforms[180]. - The Interim Provisions on the Administration of Internet Culture require entities to obtain a Network Cultural Business Permit for providing online cultural products and services for profit[187]. - The online cultural business (except online music) is categorized as "prohibited" for foreign investment according to the current effective Guidance Catalogue[190]. - Foreign enterprises are prohibited from investing in the Internet publications business, including online games, as per the New Internet Publication Regulations[194]. - The Ministry of Culture (MOC) requires entities engaging in online performance activities to obtain a Network Cultural Business Permit, effective from January 1, 2017[191]. - The Virtual Currency Notice mandates that online game operators issuing virtual currency must apply for approval from the MOC and prohibits trading of such virtual currency[197]. - The storage period for online game players' purchase records must not be shorter than 180 days from the last service received, as per the Online Game Measures[200]. - The MOC and the Ministry of Commerce jointly issued regulations to strengthen the administration of online game virtual currency, effective June 3, 2010[200]. - Foreign investment in audio/visual program provision via the information network is prohibited according to the Several Opinions on Canvassing Foreign Investment into the Cultural Sector[195]. - The New Internet Publication Regulations require online game operators to obtain an Internet Publishing Services License to offer games directly to the public in China[192]. - The MOC has implemented measures to rectify operations to comply with the Online Performance Measures[191]. - The People's Bank of China is tasked with regulating virtual currency to prevent its impact on the real currency system[199]. Management and Leadership - Mr. Mak Shih On has extensive experience in financial management and operations, having served as CFO and COO of the group, contributing to strategic planning and execution[147]. - Ms. Cao Fei has been the Vice President of Finance at Weibo Corporation since September 2017, bringing significant corporate finance expertise[149]. - Mr. Tse Ming Lun Alan has nearly 23 years of experience in accounting and finance, previously working with KPMG and Techtronic Industries, focusing on financial analysis and M&A support[151]. - Mr. Wang Mingchun, appointed as an independent non-executive director in March 2023, has a background in media crisis management and government relations from his tenure at IDG Capital[155]. - Mr. Zhao Weiwen has over 28 years of experience in the Internet industry, previously managing key client departments at China Telecom, focusing on Internet network infrastructure[162].

Financial Performance - In the fiscal year 2024, Guming Holdings Limited reported revenue of RMB 8.79 billion, representing a year-on-year growth of 14.5%[8] - The net profit for 2024 increased by 36.2% to RMB 1.49 billion, up from RMB 1.10 billion in 2023[8] - The gross profit margin for 2024 was 30.6%, slightly down from 31.3% in 2023[13] - The adjusted profit margin (non-IFRS measure) for 2024 was 17.5%, down from 19.0% in 2023[13] - Revenue increased by 14.5% from RMB 7.6757 billion for the year ended December 31, 2023, to RMB 8.7914 billion for the year ended December 31, 2024[44] - The company's merchandise sales revenue rose by 13.6% from RMB 5.7783 billion in 2023 to RMB 6.5627 billion in 2024, driven by the expansion of the store network and increased demand[44] - Equipment sales revenue increased by 26.8% from RMB 366.4 million in 2023 to RMB 464.8 million in 2024, primarily due to increased sales of coffee machines[44] - Net profit grew by 36.2% from RMB 1.0964 billion for the year ending December 31, 2023, to RMB 1.4932 billion for the year ending December 31, 2024[55] - Adjusted profit increased by 5.7% from RMB 1.459 billion for the year ending December 31, 2023, to RMB 1.542 billion for the year ending December 31, 2024, with a decrease in adjusted profit margin from 19.0% to 17.5%[59] - Adjusted EBITDA rose from RMB 1.894 billion for the year ending December 31, 2023, to RMB 1.932 billion for the year ending December 31, 2024[61] Store Network Expansion - The company expanded its store network to a total of 9,914 locations, with a net increase of 913 stores, reflecting a growth rate of 10.1%[8] - As of December 31, 2024, the company's store network expanded to 9,914 stores, a 10.1% increase from 9,001 stores as of December 31, 2023[18] - The number of stores in second-tier and below cities accounted for 80% of the total store count as of December 31, 2024, up from 79% in 2023[22] - The company experienced a net increase of 254 franchisees, ending 2024 with 4,868 franchisees compared to 4,614 in 2023[26] - The company closed 674 stores in 2024, a significant increase from 265 closures in 2023, due to market slowdown and intensified competition[23] - The company aims to continue expanding its store network and enhancing operational efficiency in the upcoming years[11] - The company plans to continue expanding its store network in 17 provinces and is exploring opportunities in overseas markets[36] - The company has adopted a unique regional encryption strategy for store expansion, focusing resources on building a dense network of stores in targeted provinces[82] Operational Efficiency and Costs - The company aims to enhance operational efficiency and business performance in existing stores while slowing down the opening of new stores[23] - The average single-store GMV decreased to RMB 2,360.7 thousand in 2024 from RMB 2,466.4 thousand in 2023[24] - The company's sales cost increased by 15.8% from RMB 5.2723 billion for the year ending December 31, 2023, to RMB 6.1039 billion for the year ending December 31, 2024[46] - Selling and distribution expenses surged by 42.4% from RMB 336.6 million for the year ending December 31, 2023, to RMB 479.4 million for the year ending December 31, 2024[49] - Administrative expenses rose by 10.1% from RMB 282.8 million for the year ending December 31, 2023, to RMB 311.4 million for the year ending December 31, 2024[50] - R&D expenses increased by 17.0% from RMB 198.7 million for the year ending December 31, 2023, to RMB 232.6 million for the year ending December 31, 2024[51] Assets and Liabilities - The total assets of the company as of December 31, 2024, amounted to RMB 6.87 billion, an increase from RMB 5.15 billion in 2023[15] - The total liabilities increased to RMB 4.76 billion in 2024 from RMB 4.54 billion in 2023[15] - The equity total reached RMB 2.11 billion, a significant improvement from RMB 615.5 million in 2023[15] - Inventory rose by 11.7% from RMB 881.1 million as of December 31, 2023, to RMB 984.2 million as of December 31, 2024, aligning with revenue growth[65] - Trade payables increased from RMB 601.3 million to RMB 697.9 million, attributed to higher procurement amounts, with turnover days rising from 34 to 39 days[69] - The capital debt ratio improved to 23.0% as of December 31, 2024, down from 26.8% as of December 31, 2023[73] Market and Competition - The company is facing significant competition in the ready-to-drink tea market, which may impact market share and profitability if not effectively managed[84] - The overall industry slowdown and intensified competition have led to a deceleration in new store openings and a decline in operational metrics for some stores[83] - The company anticipates stable growth in China's economy and consumer spending, with the ready-to-drink tea market expected to continue expanding in the medium to long term[84] Franchisee Management - The company provides competitive pricing for quality raw materials and covers most warehousing and logistics costs to optimize franchisee profitability[95] - Franchisee management is crucial, as the success and quality of stores largely depend on franchisees' ability to operate according to company standards[96] - The company has established a franchisee committee, the first in the fresh tea beverage industry, to foster close relationships and provide feedback from franchisees[95] - The company actively monitors franchisee operations, including service quality and compliance with quality control and food safety standards, to maintain brand reputation[94] - The company has held an annual national franchisee conference for 11 consecutive years to promote transparent communication and collaboration[95] Product Development and Quality Control - Guming launched over 100 new products in 2024, enhancing its product competitiveness[9] - The introduction of fresh fruit-based tea drinks aims to align with consumer trends towards fresh ingredients, alongside low-sugar options for health-conscious consumers[86] - The company plans to expand its ready-to-drink coffee category to capture more cross-selling opportunities and diversify consumer demand[87] - Strict quality control systems are implemented to mitigate product safety and quality risks across all operational stages, from sourcing to delivery[90] - The effectiveness of the quality control system is critical and depends on various factors, including compliance by franchisees and suppliers[88] Employee Management - As of December 31, 2024, the company employed 2,726 full-time employees, an increase from 2,437 employees as of December 31, 2023[160] - Employee benefit expenses, including salaries and pension contributions, are approximately RMB 700.1 million for the year ending December 31, 2024[160] - The company provides competitive salaries and benefits to attract and retain suitable personnel, with performance bonuses as part of the incentive mechanism[161] - The company encourages career development opportunities for employees, offering training and professional development programs[161] Shareholder Information - The total issued shares of the company as of the last practicable date is 2,378,185,860 shares[166] - Major shareholders collectively hold 1,730,697,672 shares, representing approximately 72.77% of the total issued shares of 2,378,185,860[173] - The company has established a post-IPO share plan approved by shareholders on January 27, 2025, aimed at aligning the interests of selected participants with the company's and shareholders' overall interests[161] Risk Management - The group faced significant risks and uncertainties in the business environment, actively conducting risk assessments to mitigate potential impacts on financial performance[116] - The company has no significant contingent liabilities as of December 31, 2024[75]

Financial Performance - Revenue for 2024 increased by 3.9% to RMB 28.68 billion compared to RMB 27.60 billion in 2023[14] - Gross profit rose by 6.0% to RMB 14.16 billion, with a gross margin of 49.4%, improving by 1 percentage point from the previous year[14] - Profit attributable to equity holders was RMB 3.01 billion, resulting in a net profit margin of 10.5%[14] - Operating cash inflow reached RMB 5.27 billion, up from RMB 4.69 billion in 2023, indicating healthy cash flow management[14] - The overall operating profit for 2024 was RMB 3.68 billion, slightly up from RMB 3.56 billion in 2023[8] - The return on equity for equity holders was 11.9%, down from 13.1% in the previous year, indicating a need for strategic adjustments[8] - The net profit attributable to equity holders was RMB 3,012,918 thousand, down 5.5% from RMB 3,186,910 thousand in the previous year[24] - Basic earnings per share decreased to RMB 116.98, a decline of 5.1% from RMB 123.21 in 2023[24] - The income tax expense for the year ended December 31, 2024, was RMB 1,096,691,000, with an effective tax rate of 26.7%, compared to 25.1% in 2023[41] Asset and Liability Management - Total non-current assets decreased to RMB 15.18 billion from RMB 20.55 billion in 2023, while current assets increased to RMB 20.53 billion from RMB 13.65 billion[8] - The debt-to-equity ratio improved to 36.8% from 40.2% in the previous year, reflecting better financial stability[8] - The accumulated inventory provision as of December 31, 2024, was RMB 166,817,000, an increase from RMB 134,727,000 in 2023, indicating a rise in inventory value[43] - The accumulated expected credit loss provision as of December 31, 2024, was RMB 45,678,000, relatively stable compared to RMB 45,738,000 in 2023, with trade receivables provision increasing to RMB 41,658,000 from RMB 38,215,000[44] Revenue Streams and Sales Performance - E-commerce revenue grew by 10.3% due to deep channel development and cost control optimization, while distributor revenue increased by 2.6%[27] - Revenue from footwear reached RMB 14,300,341,000, accounting for 49.9% of total revenue, while apparel revenue decreased by 2.9% to RMB 12,050,245,000[28] - Direct sales accounted for 24.0% of total revenue, down from 25.0% in 2023, while e-commerce sales increased to 29.0% from 27.3%[29] - The overall sales cost for the year was RMB 14,519,540,000, with a gross margin of 49.4%, up from 48.4% in 2023, reflecting improved discount strategies in retail stores[32] Innovation and Product Development - The company focused on enhancing technology research and innovation to improve operational efficiency and consumer experience[13] - The company launched six innovative technologies and three new products, including the "绝影3" running shoes and "龙雀" racing shoes, enhancing its competitive edge in the sports market[17] - The introduction of the new midsole technology "超䨻" showcases the company's dual innovation capabilities in materials and processes, significantly improving product performance[67] - The company has established a strong lineup of six proprietary innovative technologies, enhancing its competitive edge in professional sports technology[66] Marketing and Brand Strategy - The company plans to strengthen its "single brand, multiple categories, and multi-channels" strategy to enhance brand competitiveness and expand into international markets[18] - The company aims to strengthen its brand value through diversified global marketing activities, focusing on six core categories while expanding into emerging sports and niche categories[70] - The company has implemented a new retail business model, enhancing digital and omnichannel capabilities to efficiently convert private traffic and steadily improve sales performance[92] Corporate Governance and Management - The board of directors is committed to high standards of corporate governance, ensuring compliance with legal and regulatory requirements[101] - The board consists of seven members, including three executive directors and four independent non-executive directors, ensuring a balanced composition with diverse expertise[109] - The company has adopted a board diversity policy, considering various factors such as gender, age, and professional experience to achieve sustainable development[110] - The company has established a comprehensive risk management and internal control system based on the COSO framework, aimed at enhancing operational efficiency and compliance[148] Environmental, Social, and Governance (ESG) Initiatives - The company achieved a MSCI ESG rating upgrade to BBB in 2024, reflecting steady progress in ESG initiatives[184] - The company is committed to green and low-carbon operations, aligning with the national "30-60" carbon peak and carbon neutrality strategy[184] - The group aims for sustainable development by integrating responsible practices across the entire value chain, including product design, procurement, production, marketing, and waste management[186] - The company has established an ESG management committee led by the executive director and co-CEO to oversee long-term ESG strategies and goals[180] Employee and Community Engagement - The company emphasizes equal employment and career development opportunities for all qualified employees[111] - The group emphasizes employee welfare by optimizing compensation structures and enhancing workplace safety and health programs[189] - The company actively participates in charitable activities to improve overall social welfare and promote sports culture[192] - The group will provide full social insurance and supplementary medical insurance benefits to employees as part of its commitment to SDG1 (No Poverty)[194]

Financial Performance - Revenue for 2024 reached RMB 1,551,043 thousand, representing a 32.7% increase from RMB 1,168,451 thousand in 2023[13] - Gross profit for the year was RMB 426,189 thousand, up 12.1% from RMB 380,173 thousand in the previous year[13] - The net cash generated from operating activities was RMB 419,945 thousand, a significant increase of 98.4% compared to RMB 211,709 thousand in 2023[13] - The adjusted net loss (non-IFRS measure) improved to RMB 53,717 thousand, a reduction of 33.0% from RMB 80,151 thousand in the prior year[13] - The adjusted EBITDA (non-IFRS measure) increased by 56.1% to RMB 7,129 thousand from RMB 4,567 thousand in 2023[13] - The company reported a net loss of RMB 68.7 million for 2024, a significant improvement from a loss of RMB 469.6 million in 2023[17] - Adjusted net loss (non-IFRS measure) for 2024 was RMB 53.7 million, down from RMB 80.2 million in 2023, reflecting a 33.1% improvement[19] - Revenue for 2024 reached RMB 1.6 billion, representing a 32.7% increase compared to the previous year[23] - The gross profit for 2024 was RMB 426.2 million, showing a year-on-year growth of 12.1%[23] - Adjusted EBITDA (non-IFRS measure) for 2024 was RMB 7.1 million, up 56.1% from RMB 4.6 million in 2023[23] - Total GMV for 2024 was RMB 188.0 billion, a decrease of 3.8% from RMB 195.5 billion in 2023[35] - Gross profit margin for 2024 was 27.5%, down from 32.5% in 2023[37] - Revenue for continuing operations increased by 32.7% to RMB 1,551.0 million in 2024 from RMB 1,168.5 million in 2023[38] - Revenue from transaction support services decreased by 15.1% to RMB 432.1 million in 2024 from RMB 509.0 million in 2023[43] - Revenue from technology subscription services decreased by 16.9% from RMB 34.0 million in 2023 to RMB 28.3 million in 2024, primarily due to a reduction in events and conferences held with business partners[44] - Total revenue cost rose by 42.7% from RMB 788.3 million in 2023 to RMB 1,124.9 million in 2024, consistent with revenue growth[51] - Gross profit increased by 12.1% from RMB 380.2 million in 2023 to RMB 426.2 million in 2024, while overall gross margin decreased from 32.5% to 27.5%[53] Operational Highlights - The company aims to expand its platform services to include more industrial goods beyond steel, enhancing user stickiness[10] - The logistics platform "Fat Cat Logistics" has become the largest third-party steel terminal logistics service provider in China[10] - The company issued nearly RMB 200 billion in value-added tax invoices in 2024, indicating strong transaction volume[10] - The company’s steel trading platform registered over 15,000 suppliers and 183,000 customers, covering over 630,000 SKUs[23] - The total transaction volume for the steel trading business reached RMB 187.6 billion in 2024[23] - The trading platform's profitability significantly improved, with transaction service revenue increasing by 11.4% and the average commission per ton rising from RMB 5.1 to RMB 5.6, leading to a 28.8% growth in gross profit for SME trading solutions[25] - International business revenue surged from RMB 221.1 million in 2023 to RMB 593.3 million in 2024, marking a 168.4% year-on-year increase, with international transaction volume growing by 174.5%[26] - The non-steel sector's transaction business generated a GMV of RMB 408.4 million, a 192.7% increase compared to 2023, with 371 suppliers and 1,728 customers engaged[29] - The logistics business gross profit increased from RMB 26.2 million to RMB 34.8 million, representing a year-on-year growth of 32.8%[25] Technology and Innovation - The company is leveraging AI technology to improve supplier information processing and transaction efficiency[9] - AI technology has been fully integrated into operations, with the AI trading assistant processing over 10 million messages daily and achieving a 95% accuracy rate in transaction matching[32] - The company’s AI capabilities have improved internal efficiency, generating over 140,000 business documents and processing more than 4.4 million transactions[33] - The company has established a digital trading platform that significantly enhances transaction efficiency and reduces human involvement through its logistics fulfillment network and technology management tools[131] Strategic Initiatives - Following its successful listing in Hong Kong in March, the company is focused on increasing market recognition and understanding[11] - The company aims to strategically consolidate and expand its operations in 2024, marking a key year for growth[22] - The company plans to continue optimizing its logistics business structure, focusing on lower-cost but higher-margin short-distance transportation services[56] - The company aims to optimize supply chain management and enhance market competitiveness by leveraging digital management and high-value product layouts[27] Financial Position and Liabilities - Total assets decreased by 14.6% to RMB 10,048.6 million in 2024 from RMB 11,764.7 million in 2023[14] - Total liabilities decreased from RMB 10,676.4 million as of December 31, 2023, to RMB 9,181.8 million as of December 31, 2024, mainly due to reduced transaction volume and lower average steel prices[83] - Cash and cash equivalents decreased from RMB 1,053.2 million to RMB 746.9 million between December 31, 2023, and December 31, 2024[92] - The company reported a net loss attributable to owners of RMB 6,506.4 million as of December 31, 2024, compared to RMB 6,438.1 million as of December 31, 2023[86] - The company’s debt-to-asset ratio was 164.7%, up from 154.7% in 2023, primarily due to the impact of convertible preferred shares[102] Compliance and Governance - The company has complied with relevant laws and regulations that significantly impact its operations during the reporting period[122] - The company is committed to fulfilling social responsibilities and promoting sustainable growth, as detailed in the environmental, social, and governance report[121] - The independent auditor confirmed that the ongoing related party transactions are conducted under normal commercial terms and are fair and reasonable[160] - The company has complied with the disclosure requirements under the relevant listing rules regarding related party transactions[162] Shareholder Structure and Risks - The company operates under a dual-class share structure, where Class A shareholders have one vote per share and Class B shareholders have ten votes per share[165] - The company’s B-class shareholders hold significant influence, which may not always align with the best interests of independent shareholders[123] - The largest customer accounted for 13.9% of total revenue, while the top five customers contributed 28.5% of total revenue for the year ending December 31, 2024[169] - The largest supplier represented 10.9% of total procurement, with the top five suppliers making up 33.2% of total procurement for the same period[169] - The company faces significant liquidity risks due to past operating cash outflows, which may limit operational flexibility and adversely affect financial condition and expansion capabilities[118] - The company is exposed to risks related to fluctuations in supply and demand for steel products in both domestic and overseas markets, which could negatively affect business and financial performance[117] - The company’s financial condition and operating performance may be adversely affected by customer concentration risks[120] Employee and Community Engagement - The company employed 1,120 full-time employees as of December 31, 2024, and maintained good working relationships without any significant labor disputes during the reporting period[107] - The company made charitable donations amounting to RMB 210,000 during the reporting period[179] - The total remuneration paid to directors during the reporting period was approximately RMB 6.4 million, including salaries, bonuses, and other benefits[191] Miscellaneous - The company did not declare any annual dividends for the year ending December 31, 2024[182] - There were no bonds issued by the group during the reporting period[180] - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[199]