Company History and Heritage - Beijing Tong Ren Tang has a history of 356 years, founded in 1669, and has been the sole provider of Chinese medicine to the royal family for 188 years[8] - The company has a history of supplying imperial medications for 188 years, gaining trust and recognition for its products[32] - The company has a 356-year history, emphasizing its commitment to preserving health and serving society through traditional medicine[38] Financial Performance - In 2024, the financial highlights section indicates a significant increase in revenue, with a year-over-year growth of 15%[11] - In 2024, the company's revenue reached HK$1,611,644,000, an increase of 5.7% compared to HK$1,524,945,000 in 2023[58] - The Group achieved revenues of HK$1,611.6 million in 2024, representing a year-on-year increase of 5.7% from HK$1,524.9 million in 2023[77] - The net profit for the Group was HK$529.2 million, a decrease of 10.4% compared to HK$590.6 million in 2023[77] - Profit for the year decreased to HK$529,167,000, a decline of 10.4% from HK$590,587,000 in 2023[58] - Profit attributable to owners of the company was HK$500,278,000, down from HK$540,393,000 in the previous year[58] - Earnings per share for 2024 was HK$0.60, compared to HK$0.65 in 2023[58] - The net profit margin for 2024 was 32.8%, a decrease from 38.7% in 2023[58] - The return on equity for 2024 was 12.5%, down from 14.7% in 2023[58] Market Expansion and Strategy - The company plans to expand its retail market layout, aiming for a 25% increase in the number of retail outlets by the end of 2025[12] - The company is exploring potential mergers and acquisitions to enhance its market presence and product offerings[11] - The company has a strategy to expand overseas markets, collaborating with time-honored TCM brands[24] - The company aims to strengthen its e-commerce channel layout and development to promote the internationalization of TCM[26] - The company plans to expand its online and offline retail network to popularize the TCM concept of disease prevention[24] - The company is focused on introducing new varieties of TCM to meet diverse customer needs[25] - The company aims to enhance its product range to cater to different customer demands[25] - The company is committed to optimizing its retail market layout to improve operational efficiency[43] Product Development and Innovation - New product development initiatives are underway, with an investment of approximately $5 million allocated for research and development in traditional Chinese medicine[11] - New product launches include Tong Ren Tang Angong Niu Huang Wan and Lingzhi Vitality Capsules, focusing on enhancing classic proprietary Chinese medicine[25] - The Group introduced several new products, including the Youth Prime Collection and Age-Defying Collection, expanding its product matrix significantly[104] - The Group is focused on developing new products to meet the growing market demand for health regulation and disease prevention[119] - The Group's focus on technological innovation led to the approval of Danggui Buxue Keli, enriching its variety of resources[104] Quality Control and Standards - The company emphasizes a strict quality control standard known as "Two No Compromises," ensuring no compromise on cost and labor in the processing of herbal medicines[21] - The company emphasizes a strict standard in the selection and use of medicinal materials, ensuring no compromise on quality[35] - Tong Ren Tang aims to maintain its commitment to quality and innovation, ensuring that its products meet the highest standards in the industry[21] Digital Engagement and E-commerce - The management discussion highlights a 30% increase in user data engagement through digital platforms, indicating a shift towards e-commerce[11] - The company aims to promote the international development of TCM and introduce new varieties to meet diverse customer needs[43] Investor Relations and Communication - The Group actively engaged in investor relations activities, including telephone conferences and investor meetings, to keep stakeholders informed about business operations[196] - The Group emphasized the importance of transparency and timely information disclosure to strengthen investor trust and understanding of its strategies[180] - Feedback from investors and analysts was collected and communicated to management to inform business strategy[180] - The Group's commitment to fair disclosure ensures that all investors receive equal access to material information[181] Challenges and Future Outlook - The Group is focusing on "Adjustment and Recovery, Cost Reduction and Efficiency Improvement" as operational keywords for 2025[71] - The mainland market's economic growth is under pressure, necessitating further exploration of long-term growth potential[96] - The company plans to strengthen its execution and internal management to navigate macroeconomic challenges and ensure steady operations[61] Cultural Promotion and Public Engagement - The first "Tong Ren Tang Day" was successfully launched, featuring health lectures, free consultations, and acupuncture skills training, promoting public welfare and brand culture[122] - The "9th Show Love and Care to Stroke Prevention" series included the "Beijing Tong Ren Tang Traditional Chinese Medicine Culture Carnival" and health seminars aimed at enhancing public health awareness[127] - The company participated in the "21st World Congress of Chinese Medicine" at UNESCO headquarters in Paris, promoting TCM culture globally in October 2024[43]

Business Overview - The Group is a leader in the distribution of automation equipment in China, capitalizing on opportunities from the "Made in China 2025" initiative and 5G market development[7]. - The property investment and development segment is engaged in multiple projects across Hong Kong and major cities in China, including commercial complexes and upscale residences, with a focus on increasing land reserves in the Greater Bay Area[8]. - The Group holds licenses for financial services, including securities and futures trading, asset management, and money lending in Hong Kong and China[9]. - The Group aims to maximize shareholder returns while contributing to societal well-being, adhering to a philosophy of sustainable development[10]. - The company plans to seek local and overseas partners to enhance overall development in response to a challenging business environment[10]. - The Group's strategic focus includes enhancing its automation and financial services capabilities to align with industry trends[6]. Financial Performance - The company recorded a revenue of approximately HK$1,142.9 million for the year ended 31 December 2024, representing an increase of approximately 54.4% from HK$740.3 million in 2023[44]. - Gross profit for the year was HK$362.8 million, up from HK$138.6 million in the previous year, resulting in a gross profit margin of 32% compared to 19% in 2023[28][44]. - The company reported a loss attributable to owners of approximately HK$227.2 million for 2024, a significant decline from a profit of HK$102.5 million in 2023[28][45]. - Total assets decreased to HK$9,929.8 million in 2024 from HK$11,643.1 million in 2023[28]. - Net assets also declined to HK$5,590.3 million in 2024, down from HK$7,099.3 million in 2023[28]. - The operating loss margin for the year was (28%), compared to an operating profit margin of 16% in 2023[28]. - The interest coverage ratio improved to 5.5 in 2024, compared to (3.2) in the previous year[28]. Sector Performance - The automation business and property investment segments contributed significantly to revenue growth, with an increase of approximately HK$191.4 million in property investment and development sales[44]. - In 2024, the automation business experienced significant revenue growth, driven by a 6.4% year-on-year increase in global smartphone shipments, reaching 1.24 billion units[49]. - The revenue from the property investment and development segment was approximately HK$546.1 million, accounting for approximately 47.8% of the Group's total revenue[72]. - The operating loss of the property investment and development segment was approximately HK$425.6 million, an increase from the previous year's loss of approximately HK$249.5 million, primarily due to a write-down of inventory properties and fair value losses on investment properties[73]. Market Conditions - The Hang Seng Index rose nearly 18% in 2024, indicating a recovery in Hong Kong's financial market, which may benefit the company's operations[48]. - The real estate development investment in China dropped by 10.6% year-on-year in 2024, marking the largest decline in history, with new construction area decreasing by 23%[56]. - The land market faced challenges, with residential land sales in 300 cities falling by more than 30% year-on-year, reflecting ongoing pressures in the real estate sector[56]. - The overall economic conditions in 2024 remained weak, impacting the operating conditions of some tenants in the Park due to the ongoing downturn in the property sector[77]. Strategic Initiatives - The Group aims to enhance its business planning and operating performance in 2025 to promote long-term growth amidst a challenging business environment[63]. - The Group is committed to implementing an "artificial intelligence + manufacturing" strategy to meet the growing demand for AI applications in intelligent manufacturing[71]. - The Group's strategy for property investment and development in 2024 focuses on strategic contraction and targeted expansion, including asset liquidation to support automation business[60]. - The Group plans to invest in technology to enhance trading experiences and diversify its financial products and services to meet evolving client needs[96]. Financial Services - The financial services segment generated approximately HK$54.1 million in revenue for the year ended 31 December 2024, a year-on-year increase of approximately 41.6% from HK$38.2 million in 2023, accounting for approximately 4.7% of the Group's total revenue[90]. - The operating profit for the financial services segment amounted to approximately HK$27.3 million, a significant improvement from an operating loss of approximately HK$70.5 million in 2023[90]. - The asset management division manages approximately HK$192 million in total assets under management (AUM) and focuses on global equities, futures, and options in the coming year[101]. - The Group's ongoing efforts to build a diversified and sustainable financing platform will enhance Hong Kong's competitiveness as a global financial center[64]. Challenges and Risks - The probability of recovery of outstanding debts is low due to cash flow issues faced by debtors in the Financial Services Segment, influenced by the downturn of the Chinese economy[133]. - Key assumptions for impairment assessment included a 100% probability of default and a loss given default of over 90%[133]. - The Group is considering legal actions against debtors due to their failure to make timely loan settlements[138]. Future Outlook - The Group plans to shift its focus from quantitative to qualitative growth in 2025, seeking innovation while maintaining stability[142]. - The company aims to achieve a 100% occupancy rate for its investment properties in Hong Kong by attracting high-quality tenants and retaining existing ones[156]. - The company will focus on transforming from a distribution-based enterprise to a technology manufacturing enterprise by enhancing R&D capabilities[150].

股份代號: 1691 （於開曼群島註冊成立的有限公司 目錄 | 82 | 獨立核數師報告 | | --- | --- | | 87 | 綜合損益表 | | 89 | 綜合全面收益表 | | 90 | 綜合財務狀況表 | | 92 | 綜合權益變動表 | | 95 | 綜合現金流量表 | | 98 | 財務報表附註 | | 232 | 釋義 | 公司資料 2 財務資料概要 4 董事長致辭 5 管理層討論與分析 8 董事及高級管理層履歷 33 董事會報告 38 企業管治報告 67 2 J S 環 球生活有限公司 公司資料 董事會 獨立非執行董事 Yuan DING 楊現祥 孫哲 Maximilian Walter CONZE （於2024年5月22日獲委任） 審核委員會 Yuan DING （主席） 楊現祥 孫哲 提名委員會 王旭寧 （主席） Yuan DING 楊現祥 Maximilian Walter CONZE （於2024年5月22日獲委任） 韓潤 （於2025年3月27日獲委任） 薪酬委員會 楊現祥 （主席） 韓潤 孫哲 執行董事 王旭寧 （董事長兼首席執行官） 韓潤 （首席財務官） 黃淑玲 非執行董事 ...

Financial Performance - In 2024, the company's liquefied petroleum gas (LPG) sales volume reached approximately 313,000 tons, representing a year-on-year increase of 24.8%[8] - The sales revenue from LPG was approximately 1.45 billion yuan, reflecting a year-on-year growth of 26.0%[8] - The company's liquefied petroleum gas (LPG) sales revenue for the year ending December 31, 2024, is approximately RMB 1,445.7 million, an increase of about RMB 298.6 million compared to RMB 1,147.1 million in 2023[18] - The revenue from compressed natural gas (CNG) sales for the year ending December 31, 2024, is approximately RMB 159.2 million, a decrease of about RMB 84.8 million from RMB 244.0 million in 2023[19] - The liquefied natural gas (LNG) sales revenue for the year ending December 31, 2024, is approximately RMB 15.1 million, an increase of about RMB 10.8 million compared to RMB 4.3 million in 2023[21] - Total revenue for the company for the year ending December 31, 2024, is approximately RMB 1,634.1 million, an increase of about RMB 228.0 million from RMB 1,406.1 million in 2023[22] - The sales volume of compressed natural gas (CNG) was 28.4 million cubic meters, generating revenue of RMB 111.4 million, which accounted for 6.8% of total revenue in 2024, down from 53.1 million cubic meters and RMB 214.3 million (15.2%) in 2023[29] - The company’s gross profit for the fiscal year was approximately RMB 53.2 million, a decrease of about RMB 31.4 million from RMB 84.6 million in 2023, attributed to a decline in sales volume of higher-margin CNG[36] - The company’s total sales cost increased to approximately RMB 1,580.9 million in 2024, up by about RMB 259.4 million from RMB 1,321.5 million in 2023, mainly due to increased procurement volumes of LPG and LNG[36] - Other income for the fiscal year was approximately RMB 18.4 million, a decrease of about RMB 5.4 million from RMB 23.8 million in 2023, primarily due to a reduction in interest income[37] - The company recorded a net loss of approximately RMB 17.8 million for the fiscal year, a decrease of about RMB 24.5 million compared to a net profit of RMB 6.7 million in 2023[46] - As of December 31, 2024, the company’s total assets were approximately RMB 1,139.6 million, an increase of about RMB 183.7 million from RMB 955.9 million in 2023[48] Business Strategy and Development - The company's overall strategy focused on "seeking progress while maintaining stability," emphasizing high-quality development and transformation[8] - The company aims to strengthen its LPG and natural gas businesses while exploring new business developments in 2025[9] - The company plans to implement a digital management platform to enhance internal and external risk control[9] - The company aims to enhance natural gas utilization and expand its business areas in response to structural adjustments in transportation energy policies[15] - The company is committed to providing high-quality gas sources and exploring customer value in the natural gas sector[15] - The company plans to continue enhancing its logistics and supply capabilities while expanding procurement and sales channels to drive new growth points and business diversification[31] - The company aims to optimize its natural gas supply chain and enhance safety management in response to industry regulations and to improve operational efficiency[32] Market Trends and Consumption - The domestic GDP grew by 5% compared to the previous year, indicating a recovering economic environment[7] - The LPG supply in China is expected to increase by over 7% year-on-year in 2024, driven by new refining capacity and increased imports[14] - The apparent consumption of LPG in China is projected to increase by over 6% year-on-year in 2024, with chemical usage dominating over 60% of consumption[14] - In 2024, the company's natural gas production is projected to reach approximately 246.37 billion cubic meters, representing a year-on-year increase of 6.2%[15] - The apparent consumption of natural gas in China for 2024 is expected to be around 426.05 billion cubic meters, reflecting a year-on-year growth of 8%[15] Environmental, Social, and Governance (ESG) - The company is committed to enhancing its ESG performance to reduce environmental risks and improve governance standards[9] - The company is committed to environmental sustainability and aims to become an environmentally friendly enterprise, with detailed policies and performance disclosed in the annual report[94] - The group’s environmental, social, and governance policies and performance details are disclosed in the annual report[94] - The group emphasizes long-term operations while balancing the interests of stakeholders, including customers, suppliers, and employees[91] - The group has enhanced cooperation with suppliers and provided quality products and services to customers to ensure sustainable development[91] Risk Management - The company has implemented multiple policies and procedures to ensure effective risk management across operations, including daily operational management and financial reporting[67] - Major risks identified include reliance on key suppliers for liquefied petroleum gas and liquefied natural gas, which could significantly impact business if supply is unstable[69] - The company's gross margin and profit growth may fluctuate due to sensitivity to external factors affecting the purchase and sale prices of gas products[69] - Increased competition from alternative fuels, particularly electric vehicles, may reduce demand for the company's gas refueling services[69] - The company conducts at least one annual assessment of its risk management framework's effectiveness, with regular management meetings held by the audit committee and board[67] Corporate Governance - The board of directors resolved not to declare a final dividend for the year ended December 31, 2024, consistent with 2023[53] - The company has maintained a prudent financial management strategy, ensuring a sound liquidity position as of December 31, 2024[58] - The company has established a governance framework based on the corporate governance code, enhancing oversight of business conduct[155] - The board of directors includes 7 members, with 3 independent non-executive directors, ensuring compliance with listing rules[169] - The independent non-executive directors have been reappointed for a three-year term starting from December 1, 2024[172] - The board has established an independence assessment mechanism, with satisfactory results reported for the year ending December 31, 2024[170] - The company organized internal training sessions for all directors covering duties, corporate governance, and regulatory updates during the year ending December 31, 2024[177] - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with clear written terms of reference[180] Employee and Shareholder Information - The group employed a total of 429 employees as of December 31, 2024, compared to 427 in 2023[105] - The total compensation cost for the group for the year ended December 31, 2024, was approximately RMB 300 million[105] - The overall employee gender ratio was 47.1% female and 52.9% male, indicating a commitment to gender diversity across all levels[193] - The company aims to maintain a diverse board composition, considering skills, experience, and gender diversity in its appointments[189] - As of December 31, 2024, Mr. Ji holds 162,000,000 shares, representing 75% of the company's equity[132] - The beneficial owner, Yang Ling, holds 162,000,000 shares, which is 75% of the total shares[137] - The company has not entered into any significant contracts with its controlling shareholders or their subsidiaries during the fiscal year ending December 31, 2024[126] Share Option Plan - The stock option plan was conditionally adopted on November 22, 2018[141] - The stock option plan aims to reward selected participants for their contributions to the group[142] - Participants can accept stock options within 21 days from the offer date[143] - The stock options can be exercised at any time within a period determined by the board, not exceeding ten years from the offer date[143] - The plan allows for a wide range of eligible participants, including employees, directors, suppliers, and customers[142] - The company has a maximum limit of 21,600,000 shares available for subscription under the share option plan, which represents 10% of the issued shares as of the listing date[146] - As of December 31, 2024, there are no unexercised share options or warrants outstanding, indicating no current liabilities related to share options[146]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of approximately RMB 26.9 million, a decrease of about 43.22% compared to the same period in 2023[12]. - The company recorded a net loss of approximately RMB 1.34 million for the fiscal year ending December 31, 2024[12]. - The company recorded a consolidated revenue of approximately RMB 27.0 million for the year ending December 31, 2024, a decrease of about RMB 20.5 million or 43.2% compared to the previous year[22]. - Domestic market sales fell from approximately RMB 38.7 million for the year ending December 31, 2023, to about RMB 16.4 million for the year ending December 31, 2024, representing a decline of approximately 57.5%[22]. - The revenue from fiberglass grating products decreased by approximately RMB 4.1 million or 28.3% to about RMB 18.2 million for the year ending December 31, 2024, compared to RMB 22.3 million in the previous year[23]. - The revenue from epoxy wedge products decreased from approximately RMB 25.3 million in 2023 to about RMB 4.2 million in 2024, a decline of approximately RMB 21.1 million[24]. - The group recorded a net loss of approximately RMB 1.3 million for the year ending December 31, 2024, an improvement from a net loss of approximately RMB 8.9 million for the year ended December 31, 2023[31]. Business Strategy and Development - The management plans to strengthen upstream and downstream channel construction to consolidate competitive advantages in core categories and expand market share[13]. - The company aims to increase investment in research and development and enhance brand building to maintain overall competitiveness in cost, technology, and quality[13]. - The company will actively adjust its business structure to increase the proportion of high-resource profitability businesses and clients in the real economy[13]. - The company intends to expand its layout in emerging business areas such as new energy, foundry sand, and oil fracturing sand[13]. - The company will strengthen cooperation with leading new energy clients to explore upgraded business models[13]. Cost and Expenses - Distribution costs increased by approximately RMB 1.2 million or 56% from about RMB 2.0 million for the year ended December 31, 2023, to approximately RMB 3.2 million for the year ending December 31, 2024[30]. - Administrative expenses decreased by approximately RMB 16.5 million or 91% from about RMB 18.1 million for the year ended December 31, 2023, to approximately RMB 1.6 million for the year ending December 31, 2024, mainly due to the reversal of bad debt provisions[30]. Corporate Governance - The company has adhered to the corporate governance code as per GEM Listing Rules throughout the year ending December 31, 2024[59]. - The board of directors is responsible for formulating the overall strategy and setting management goals, with monthly financial and operational data provided to assess performance[60]. - The company has established a corporate governance policy to review and monitor compliance with legal and regulatory requirements[61]. - The board consists of seven members, with four executive directors and three independent non-executive directors[62]. - The board has established a diversity policy, with current composition being three male and four female directors[64]. - The board's independent non-executive directors have confirmed their independence in accordance with GEM Listing Rules[63]. Environmental, Social, and Governance (ESG) - The company reported a total greenhouse gas emissions of 1,247 tons in 2024, a decrease of 50.5% from 2,517 tons in 2023[115]. - Nitrogen oxides emissions increased significantly to 110,613 grams in 2024 from 11,624 grams in 2023, representing an increase of 850.5%[115]. - The company aims to maintain or reduce total greenhouse gas emissions density, which was 46.2 tons per million RMB revenue in 2024, down from 52.9 tons in 2023[115]. - The company has implemented various measures to reduce emissions, including the installation of energy-efficient machinery and maximizing natural light in production facilities[116]. - The company recognizes the risks associated with climate change and is actively developing strategies to manage these risks[127]. Employee and Labor Relations - The total number of full-time employees in China is 64, with 47 males and 17 females[131]. - Employee turnover rates are 45% for males and 29% for females, with a staggering 100% turnover rate for employees aged 18 to 25[133]. - The company has maintained a commitment to employee training, with 18 employees (28%) receiving training during the year, totaling 324 hours[140]. - There were no reported violations of labor laws in the fiscal year ending December 31, 2024[135]. - The company has implemented measures to ensure occupational health and safety, with no work-related injuries reported in 2024[136]. Financial Reporting and Audit - The consolidated financial statements reflect a financial position of the group as of December 31, 2024, in accordance with Hong Kong Financial Reporting Standards[192]. - The audit identified trade receivables impairment as a key audit matter due to the significant balance and management's estimates involved[197]. - The audit was conducted in accordance with Hong Kong Auditing Standards, ensuring independence and ethical compliance[193]. - The company must ensure that the financial statements comply with the disclosure requirements of the Companies Ordinance[200].

Financial Performance - The company's revenue for 2024 was RMB 7,895.54 million, a decrease of 3.73% compared to RMB 8,202.67 million in 2023[16] - The net loss attributable to equity holders for 2024 was RMB 272.36 million, compared to a profit of RMB 273.25 million in 2023[16] - The gross profit for 2024 was RMB 1,564.28 million, down from RMB 1,646.43 million in 2023, reflecting a gross margin of approximately 19.8%[16] - The company reported a significant increase in administrative expenses, which rose to RMB 827.49 million in 2024 from RMB 989.52 million in 2023[16] - For the year ended December 31, 2024, the company's total revenue was RMB 7,895.5 million, with a gross profit of RMB 1,564.3 million, resulting in an annual loss of RMB 223.0 million[37] - The gross profit from property management services was RMB 1,120.8 million, up 5.2% from RMB 1,065.4 million in 2023, maintaining a gross margin of 20.1%[39] - The gross margin for property management services was stable at 20.1%, while community value-added services saw a decline in gross margin to 23.5% from 26.1%[66] - The annual loss reached RMB 223.0 million, compared to a profit of 316.7 million in 2023, with the attributable loss to equity holders amounting to RMB 272.4 million, down from a profit of RMB 273.2 million in 2023[79] Market Strategy and Growth - The company plans to focus on enhancing service quality and expanding into the stock market and non-residential sectors to drive growth[18] - The company aims to provide 6 million affordable housing units over the next five years, as part of a broader government initiative[18] - The company expanded its market presence with a new annual contract value of RMB 1,482.7 million, representing a year-on-year increase of 28.2%, and a new contracted construction area of 43.1 million square meters, up 3.4% year-on-year[21] - The company is committed to long-term development and aims to reshape its strategies in response to market changes[19] - In 2025, the company plans to adjust its operational structure for better resource allocation, actively explore new third-party bidding markets, and innovate service models to enhance revenue generation[26] - The company aims to maintain its business scale in the residential sector while improving customer retention and expanding value-added services to contribute stable profits[27] - The company is shifting its strategic focus from acquisitions to third-party bidding and market expansion due to the slowdown in the real estate sector[58] Operational Efficiency and Cost Management - The company is committed to cost control by optimizing personnel allocation and implementing lean cost management practices to ensure effective cost oversight[30] - The company will enhance service quality in the residential sector through comprehensive updates in image, standards, and service, while also improving operational efficiency in the non-residential sector with smart management systems[31] - The total sales and service costs decreased by 3.4% to RMB 6,331.3 million, attributed to reduced revenue scale and ongoing organizational optimization[65] - Administrative expenses amounted to RMB 827.5 million, a 16.4% decrease from RMB 989.5 million in 2023, representing 10.5% of total revenue, down 1.6 percentage points from 12.1% in 2023, due to effective cost control measures[69] Employee and Workforce Management - Employee headcount decreased by 25.0% to 35,633 from 47,531 in 2023, with total employee costs down by 12.9% to RMB 3,408.3 million[63] - The company is focused on management training and professional empowerment to build a strong core employee team and enhance overall operational capabilities[32] Community and Social Responsibility - The company received an upgrade in its ESG rating from MSCI from BB to BBB and was recognized as one of the top 10 leading companies in ESG sustainable development in China[34] - The group emphasizes the importance of environmental protection and sustainable development in its operations[93] - The company has established a code of conduct emphasizing integrity and professional ethics, covering six key dimensions including conflicts of interest and information accuracy[187] Governance and Compliance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange rules throughout the fiscal year ending December 31, 2024[145] - The board consists of three executive directors and three independent non-executive directors, with independent directors accounting for more than one-third of the total board members[151] - The independent non-executive directors have confirmed their independence in accordance with the listing rules, ensuring unbiased oversight of the executive management[151] - The company has established a risk management and internal control system to identify, assess, manage, and report all significant risks, including environmental, social, and governance risks[180] Shareholder Engagement and Communication - The company has adopted a shareholder communication policy to ensure timely access to comprehensive and understandable information for all shareholders[191] - The company encourages shareholder participation in annual general meetings to enhance accountability and keep them informed of strategic goals[193] - Shareholders holding at least 10% of voting rights can request a special general meeting, which must be held within two months of the request[198]

Business Strategy and Development - Weigao Group has achieved steady development by adhering to three strategies: "platform-based", "internationalised", and "digitalised" [10] - The company is focused on achieving ecosystem synergy and in-depth expansion in its operations [19] - The company is actively seeking investment and M&A opportunities to anchor cutting-edge technologies and expand product lines and business segments [30] - The company aims to strengthen the development of an overseas platform and intensify efforts in expanding overseas markets while building a strong overseas talent team [30] - The company is committed to a dual-engine strategy, achieving steady growth through innovative R&D and differentiated expansion strategies tailored to various regions [116] Product Development and Innovation - The company has launched the LONG-series anesthesia machines and expanded product lines with the introduction of sports medicine and thrombus removal series [19] - The automatic safe drug delivery system has begun mass production, contributing to diversified growth [19] - The company obtained a total of 127 new patents and 150 new product registration certificates for the year, indicating significant progress in innovation [27] - The company plans to increase investment in new technologies, products, and businesses to build multiple new business segments such as perioperative period, urology, and endocrinology [30] - Continuous product innovation and a clear mid-to-long-term product planning are being pursued to lay a solid foundation for future development [118] Market Trends and Challenges - The aging population and increased health awareness are driving structural changes in market demand for medical devices [12] - Price competition remains prevalent in the industry, emphasizing the importance of core technology and brand advantages for competitiveness [17] - The normalization of centralized procurement is putting downward pressure on product prices, prompting companies to innovate and improve efficiency [11] - Certain macroeconomic factors, such as persistently high US dollar interest rates, are exerting pressure on the company's performance by increasing finance costs [119] - The prolonged accounts receivable period from some domestic medical institutions has raised operating costs and lowered asset turnover efficiency [119] Financial Performance - For the year ended December 31, 2024, the total revenue was RMB 13,087,071,000, representing a decrease of 1.1% compared to RMB 13,229,453,000 in 2023 [34] - The profit attributable to owners of the company for 2024 was RMB 2,066,668,000, a slight increase from RMB 2,001,906,000 in 2023, reflecting a growth of 3.2% [34] - The gross profit margin for the year was 50.3%, which is comparable to the 50.2% margin from the previous year [54] - The revenue from the sale of medical device products decreased by 6.4% to RMB 6,296,502,000 in 2024 from RMB 6,727,859,000 in 2023 [50] - The revenue from the sale of pharma packaging products increased by 12.6% to RMB 2,278,608,000 in 2024 from RMB 2,023,809,000 in 2023 [50] Operational Efficiency and Management - The application of digital tools has significantly enhanced operational efficiency and management standards [23] - The integration of sales channels strengthened market penetration, enhancing sales contribution per customer and driving revenue growth [72] - The company is optimizing its production and supply chain management to reduce costs and improve operational efficiency [123] - The Group's cash and bank balance as of 31 December 2024 amounted to approximately RMB7,780,310,000 [88] - The net cash flow from operating activities for the year was approximately RMB2,789,971,000, indicating a strong cash flow position [88] Human Resources and Leadership - The Group employed a total of 12,719 employees as of 31 December 2024, an increase from 12,519 in 2023 [78] - The total cost of salaries, welfare, and social benefits for the Group was approximately RMB2,431,338,000, up from RMB2,209,253,000 in 2023 [80] - The company has a strong leadership team with extensive experience in the medical device and pharmaceutical packaging sectors, enhancing its operational capabilities [132] - The leadership team includes professionals with advanced degrees in business administration and finance, contributing to the company's strategic direction [134] - The company is focused on expanding its market presence and enhancing its product offerings through experienced management and strategic initiatives [137] Corporate Governance and Compliance - The Supervisory Committee expressed satisfaction with the Company's achievements and cost-effectiveness in 2024, showing confidence in its future prospects [164] - The Company has not found any breaches of authority or interests by its Directors or senior management, ensuring governance integrity [162] - The Supervisory Committee has actively monitored the management's significant policies and decisions to ensure compliance with legal requirements and shareholder interests [160] - The financial statements for the year ended December 31, 2024, have been audited and are presented to shareholders [166] - The board includes independent directors with significant experience in finance and corporate governance, ensuring robust oversight [139] Social Responsibility and Community Engagement - Charitable donations made by the Group during the year amounted to RMB3,900,000, significantly up from RMB939,000 in 2023 [188] - The Group's performance is evaluated based on environmental and social-related key performance indicators in the ESG Report [173] - The Group plans to invest RMB770,000,000 to acquire a 38.5% interest in the Songyuan Healthcare Industry Fund, with RMB308,000,000 already contributed [98] - The Group invested approximately RMB612,810,000 in the purchase of properties and production facilities to enhance the overall construction of the industrial zone for medical consumables [98] - The Group's final dividend for the year ended December 31, 2024, is proposed at RMB0.1235 per share, totaling approximately RMB564,473,000, an increase from RMB431,011,000 in 2023 [174]

Financial Performance - The company's revenue from SMT and semiconductor equipment manufacturing increased by approximately 11.98% year-on-year, reaching HKD 229,776,000[9]. - The gross profit for the SMT and semiconductor equipment segment was approximately HKD 95,215,000, higher than the previous year, driven by increased market demand and successful product development[12]. - The energy business generated revenue of approximately HKD 17,264,000, an increase of about HKD 10,654,000 year-on-year, although it requires long-term stable operations to achieve break-even[9]. - The group's total revenue for the year ended December 31, 2024, was approximately HKD 247,040,000, an increase of about HKD 35,245,000 or 16.64% compared to the same period in 2023[25]. - Revenue from SMT and semiconductor equipment and related businesses was approximately HKD 229,776,000, representing a year-on-year increase of about HKD 24,591,000 or 11.98%[26]. - The company reported a net loss attributable to shareholders of approximately HKD 34,417,000 for the year, a decrease of HKD 28,092,000 compared to the previous year[47]. - The company reported a loss before tax of HKD (61,064,000) for 2024, an improvement from a loss of HKD (70,750,000) in 2023, indicating a reduction in losses by about 13.5%[117]. - The net loss for the year was HKD (68,062,000) in 2024, compared to a net loss of HKD (106,812,000) in 2023, showing an improvement of approximately 36.3%[117]. Market Trends and Opportunities - The global SMT equipment market is projected to grow to $15.16 billion within five years, driven by the demand for high-performance SMT equipment in consumer electronics and emerging technologies[16]. - The shipment volume of global wearable devices is expected to approach 800 million units this year, indicating sustained demand for high-performance SMT equipment[17]. - In the automotive sector, SMT is crucial for the electrification and intelligence of vehicles, with SMT solder joints needing to withstand over 100,000 vibration and temperature cycles[18]. - By 2024, China is expected to add 42.46 GW of new energy storage capacity, surpassing pumped storage for the first time, indicating strong growth in the domestic energy storage industry[20]. - The company anticipates that the new energy storage industry will experience rapid development opportunities due to supportive policies and increasing installed capacity[22]. Corporate Strategy and Development - The company aims to continue its focus on technological research and development, process optimization, and market expansion to drive sustainable development[11]. - The company launched a new e-commerce platform, "Nitto Technology Mall," marking a significant step in digital transformation[12]. - The company is actively optimizing the operation of the He Rong power station, focusing on enhancing the reliability of the SVG system and improving battery management systems[14]. - The company expects to achieve a diversified profit model through simultaneous participation in spot trading and frequency regulation services, which will drive performance growth[15]. - The company aims to enhance operational resilience by optimizing product services and business structure while navigating market challenges and uncertainties[23]. Corporate Governance and Compliance - The company has adopted all provisions of the corporate governance code as per the listing rules[67]. - The board has established an appropriate liquidity risk management framework to meet the group's short-term, medium-term, and long-term financing and liquidity management requirements[61]. - The board has conducted ten meetings during the year to review and approve financial statements and operational performance[72]. - The company has established a reporting policy to allow employees and stakeholders to anonymously report any concerns regarding misconduct[103]. - The company’s governance report indicates that it has reviewed its shareholder communication policy, confirming effective communication with shareholders[114]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to developing environmentally friendly products and minimizing operational impacts on the environment[169]. - The company has established an ESG task force to oversee and manage ESG-related matters effectively[171]. - The company emphasizes the importance of health and safety in the workplace, categorizing it as a high priority in its ESG assessment[182]. - The company adheres strictly to various environmental protection laws in China, including the Environmental Protection Law and the Air Pollution Prevention and Control Law[185]. - The company has implemented measures to mitigate the impact of extreme weather events on production operations, including monitoring weather alerts and ensuring employee safety[194]. Employee and Stakeholder Relations - The company emphasizes a "people-oriented" management philosophy, ensuring fair treatment in hiring, promotion, and employee welfare[196]. - The company has implemented a mandatory provident fund scheme for employees in Hong Kong and a local government-managed retirement plan for employees in mainland China[154]. - The company has maintained effective communication and good relationships with key stakeholders, including employees, customers, and suppliers[161]. - The gender ratio among employees in 2024 was approximately 13:3, reflecting the company's commitment to gender equality[86]. - As of December 2024, the total number of employees at the factory is 303, with a gender distribution of 81% male and 19% female[198][199].

Financial Performance - In 2024, the company achieved a revenue of RMB 53.531 million, representing a year-on-year growth of 30.7%[9] - The gross profit for 2024 was RMB 38.410 million, compared to RMB 31.052 million in 2023[8] - The company reported a net loss of RMB 111.277 million for 2024, slightly higher than the loss of RMB 105.746 million in 2023[8] - Revenue increased from RMB 41.0 million for the year ended December 31, 2023, to RMB 53.5 million for the year ended December 31, 2024, representing a growth of RMB 12.5 million or 30.7%[39] - Overall gross profit increased from RMB 31.1 million for the year ended December 31, 2023, to RMB 38.4 million for the year ended December 31, 2024, while gross profit margin decreased from 75.8% to 71.8%[41] - Other income and gains rose from RMB 15.0 million for the year ended December 31, 2023, to RMB 20.7 million for the year ended December 31, 2024, primarily due to increased government subsidies[42] Assets and Liabilities - As of December 31, 2024, the total current assets were RMB 98.159 million, down from RMB 149.915 million in 2023[8] - The total non-current assets decreased to RMB 51.088 million in 2024 from RMB 62.906 million in 2023[8] - Total debt increased from RMB 11.0 million as of December 31, 2023, to RMB 13.3 million as of December 31, 2024[56] - Current ratio decreased from 4.9 to 1.6, and quick ratio decreased from 4.1 to 1.1 from December 31, 2023, to December 31, 2024[57] - Net cash used in operating activities was RMB 82.9 million for the year ended December 31, 2024, primarily due to significant R&D and administrative expenses[53] Product Development and Commercialization - The company received NMPA approval for multiple products, including the cardiac cryoablation system and the cryoadhesion treatment system in January 2024[10] - A significant milestone was achieved with the commercialization of the cardiac cryoablation system and cryoadhesion treatment system in September 2024[10] - The product portfolio includes 14 cryo-treatment products and 9 non-cryo treatment products, with 10 already commercialized as of the report date[13] - The company aims to accelerate product commercialization and improve profitability to create greater value for shareholders[11] - The company is focused on expanding its product pipeline in the vascular intervention and respiratory intervention sectors[15] Research and Development - The company has established a product development team of 70 internal R&D staff and 24 clinical operation staff, focusing on understanding clinical needs and developing new products[36] - The company is actively pursuing innovation in medical technology, with a focus on international product introduction[94] - The company has a strong focus on research and development, with a CTO overseeing R&D activities since 2019[92] - The company is committed to developing new technologies and applications in the medical field, leveraging the expertise of its board members[78] Management and Governance - The management team includes experienced professionals with over 21 years in the medical industry and over 10 years in auditing[68][70] - The company has a structured governance framework with representatives from various departments, ensuring comprehensive oversight[89] - The board consists of three executive directors, two non-executive directors, and four independent non-executive directors, ensuring a balance of power[109] - The company has implemented a comprehensive risk management policy to identify, assess, and monitor key risks related to its strategic objectives[147] Corporate Culture and Employee Relations - The company emphasizes the importance of corporate culture for long-term business development and sustainable growth[101] - The company has a focus on employee training and development, providing regular feedback and internal and external training on various aspects[64] - The company is committed to compliance with Chinese labor laws, including individual employment contracts and contributions to social insurance funds[64] - The employee gender ratio is approximately 42% male to 58% female as of December 31, 2024[144] Compliance and Risk Management - The company has implemented strict internal controls to comply with regulations regarding sensitive data handling and anti-corruption measures[151] - The company conducts regular training for management and employees on compliance with applicable laws and regulations, including anti-corruption policies[152] - The company has adopted a whistleblowing policy to encourage employees and stakeholders to report suspicious activities confidentially[154] - The audit committee oversees the implementation of necessary measures to ensure compliance with relevant laws and regulations governing business operations[155] Environmental, Social, and Governance (ESG) - The report is the third Environmental, Social, and Governance (ESG) report issued by the company, adhering to principles of objectivity, transparency, and comprehensiveness[176] - The company identified 6 highly important ESG issues, 10 moderately important issues, and 2 generally important issues during the reporting period[197] - The company emphasizes the importance of sustainable development in its operations[198] - The company has committed to optimizing its corporate governance structure and ESG management system for sustainable development[186]

Financial Performance - The group's revenue for the year ended December 31, 2024, was RMB 56,471,731.84, an increase of 32.37% compared to RMB 42,661,494.19 in 2023[9]. - The profit attributable to the owners of the company was approximately RMB -2,688,988.48, improving from a loss of approximately RMB -6,989,010.94 in 2023[9]. - For the fiscal year ending December 31, 2024, the group recorded a revenue of approximately RMB 56,471,731.84, an increase of RMB 13,810,237.65 or 32.37% compared to the previous year[15]. - The group reported a loss of RMB 2,688,988.48 for the fiscal year ending December 31, 2024, a significant improvement from a loss of RMB 6,989,010.94 in the previous year[15]. - The gross profit from main operations increased by RMB 7,957,472.06 to RMB 19,375,357.05, representing a growth of 69.69%, with the gross profit margin rising from 27.78% to 34.76%[18]. Dividend Policy - The board of directors does not recommend the distribution of a final dividend, consistent with the previous year[9]. - The company does not recommend the payment of any dividends for the fiscal year ending December 31, 2024[14]. Revenue Sources - The main revenue source came from commercial solutions and application software, accounting for 60.63% of total revenue, which is RMB 34,239,827.06, with a year-on-year increase of RMB 12,602,246.15 or 58.24%[17]. Assets and Liabilities - Current assets amounted to approximately RMB 40,388,563.32, with cash and bank balances of about RMB 22,113,514.78[20]. - The group had no non-current liabilities and current liabilities were approximately RMB 36,877,553.02, primarily consisting of other payables and accrued expenses[20]. - The operating cash ratio was 1.10, down from 1.22 in the previous year, while the debt-to-asset ratio was approximately 69.76%, up from 52.36%[21]. Employee Information - The group employed 83 full-time employees as of December 31, 2024, an increase from 81 in 2023, including 13 management, finance, and administrative personnel[30]. - Employee compensation for the year ended December 31, 2024, amounted to approximately RMB 19,682,880.92, a decrease from RMB 21,202,876.55 in 2023[30]. Corporate Governance - The company is committed to prudent management and corporate governance principles, believing that this commitment will enhance shareholder value in the long term[57]. - The board consists of eight directors, including five executive directors and three independent non-executive directors, ensuring independent decision-making for shareholder interests[61]. - The board held four meetings in the year ending December 31, 2024, with a 100% attendance rate from key members[63]. - The company has established a code of conduct for directors and supervisors regarding securities trading, adhering to GEM listing rules[60]. Risk Management and Internal Control - The company has established a comprehensive policy for risk management and internal control to safeguard assets and ensure the reliability of financial information[107]. - The board is responsible for evaluating the nature and extent of risks accepted in achieving strategic objectives[107]. Environmental, Social, and Governance (ESG) - The board is responsible for overseeing the company's environmental, social, and governance (ESG) strategy, direction, and policies[112]. - The company emphasizes sustainable development to create long-term value for stakeholders, including shareholders, customers, and employees[110]. - The company is committed to ensuring compliance with relevant ESG laws and regulations[113]. Sustainability Goals - The company aims to reduce emission density by 1% by 2027 compared to 2024 levels[127]. - The company plans to decrease waste density by 1% by 2027 compared to 2024 levels[127]. - The company targets a 1% reduction in electricity and gasoline density by 2027 compared to 2024 levels[127]. - The company aims to lower water consumption density by 1% by 2027 compared to 2024 levels[127]. Employee Welfare and Rights - Employee welfare is a key focus, ensuring all employees receive legal protections and equal opportunities in the workplace[141]. - The company has a zero-tolerance policy against child labor and forced labor, ensuring compliance with international standards and local regulations[151]. Customer Relations - The company commits to providing high-quality products and services, effectively handling customer complaints, and continuously improving service levels[157]. - Customer data will only be used for business purposes and will be handled with care to ensure compliance with privacy regulations[158]. Supplier Management - The company emphasizes strict supplier selection criteria based on product quality, environmental protection, and compliance with legal standards[184]. - The group has established effective relationships with suppliers to meet customer needs, ensuring a transparent and fair procurement process[196].