Financial Performance - The company reported a significant increase in revenue, reaching $500 million, representing a 25% year-over-year growth[5]. - The Group recorded revenue of HK$2,774.7 million for the year ended 31 December 2024, an increase of 2.4% compared to 2023[40]. - For the year ended December 31, 2024, the Group recorded revenue of HK$2,644.8 million from the manufacture and sales of suspension products, an increase from HK$2,509.0 million in 2023, primarily due to an increase in orders from the plants in Poland and the Czech Republic[56][61]. - The Group reported a loss of HK$128.0 million for the Current Year, maintaining a stable financial position with HK$134.1 million in cash and cash equivalents and no bank loans as of 31 December 2024[41]. - The loss attributable to owners of the Company was approximately HK$128.0 million, compared to HK$55.3 million in 2023[84][87]. - The net income tax expense for the year ended 31 December 2024 was HK$10.2 million, a decrease from a net income tax credit of HK$32.2 million in 2023[78][82]. - The Group's operating activities generated a net cash inflow of HK$99.6 million for the year ended 31 December 2024, compared to HK$70.7 million in 2023[86][88]. - The Group maintained cash and cash equivalents of HK$134.1 million as of 31 December 2024, slightly down from HK$136.0 million as of 31 December 2023[86][88]. - The Group did not have any bank borrowings as of 31 December 2024 and 2023, resulting in a gearing ratio of 0%[90][91]. Market and Strategic Initiatives - The company provided guidance for the next fiscal year, projecting revenue growth of 20% to $600 million[5]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2025[5]. - A strategic acquisition of a local competitor was completed, valued at $100 million, aimed at enhancing product offerings[5]. - The Group aims to strengthen cooperation with European automobile manufacturers to maintain and increase sales revenue, while also managing supply-chain risks and cost control[45][47]. - The Group is cautiously optimistic about future development and aims to create more value for shareholders[46][48]. Research and Development - Research and development expenses increased by 30%, totaling $30 million, to support innovation in new technologies[5]. - Research and development expenses rose by 42.6% to HK$392.9 million in 2024, compared to HK$275.5 million in 2023, due to increased activities for new automobile braking products[65][69]. - The company emphasizes continuous investment in research and development to maintain its leadership position in the automotive parts industry[117]. Corporate Governance - The Company is committed to maintaining high corporate governance standards to safeguard shareholder interests and enhance accountability and transparency[122][127]. - The Board consists of six Directors, including three Executive Directors and three Independent Non-executive Directors, ensuring a balanced composition for effective decision-making[126][130]. - The Company has complied with the Corporate Governance Code during the financial year ended December 31, 2024, ensuring adherence to best practices[125][129]. - The Company adopted a Board Diversity Policy on January 27, 2014, which was reviewed during the year to ensure its continued effectiveness[161]. - The Company must appoint at least one female Director by December 31, 2024, in compliance with new Listing Rules effective January 1, 2022[164]. - The Company has received confirmations of independence from all Independent Non-executive Directors, ensuring their independence as per Rule 3.13 of the Listing Rules[184]. Employee and Workforce Management - As of December 31, 2024, the Group had approximately 2,200 employees, with total employee costs amounting to HK$572.2 million, an increase from HK$520.8 million in 2023, reflecting a year-over-year growth of approximately 9.9%[120][121]. - The remuneration packages for employees are reviewed annually based on market conditions and individual performance, ensuring competitive compensation[120][121]. - The Group has defined benefit pension plans covering substantially all qualified employees in Poland, France, and Germany, alongside a mandatory provident fund scheme for employees in Hong Kong[120][121]. Sustainability and Environmental Goals - The company aims to reduce carbon emissions by 25% by 2026 as part of its sustainability strategy[5]. - Despite pricing pressure from customers, the company aims to maintain a reasonable gross profit margin and sustainable business development[118]. Board Meetings and Director Responsibilities - The Board meets regularly, holding at least four meetings a year, with provisions for additional meetings as required[140][141]. - The Board held five physical meetings during the financial year ended December 31, 2024, to review and approve the interim and final results of the Group[149]. - The Company aims to provide sufficient information to the Board to enable informed decision-making regarding financial and other matters[154]. - Procedures are in place for Directors to seek independent professional advice at the Company's expense when necessary[157]. Economic and Geopolitical Factors - The geopolitical situation, including the ongoing Russian-Ukrainian war and tariff threats, creates considerable uncertainty for the global political and economic landscape[111]. - The International Monetary Fund forecasts a GDP growth of 1.0% for the eurozone in 2025, indicating stable economic development in Europe[112]. - The European automotive industry is expected to rebound as demand continues to rise in the post-pandemic stage[42].

Financial Performance - The Group recorded a revenue of approximately HK$75.7 million for the year ended 31 December 2024, a decrease of 16.5% compared to HK$90.2 million for the year ended 31 December 2023[12]. - The loss before tax for the year was approximately HK$83.2 million, an improvement from a loss of approximately HK$133.8 million for the year ended 31 December 2023[12]. - The net loss after income tax for the year was approximately HK$83.2 million, compared to a net loss of approximately HK$133.9 million in the previous year[13]. - Basic loss per share attributable to owners of the Company for the year was approximately HK$0.49 cent, improved from a loss of approximately HK$0.80 cent in the previous year[13]. - The Group recorded a net other comprehensive gain of approximately HK$1.6 million for the year, compared to a loss of HK$221.7 million the previous year[97]. - The Group's loss for the year was HK$83,163,000, compared to a loss of HK$133,851,000 in the previous year, showing an improvement of 37.8%[141]. Revenue Sources - Revenue from Debt Capital Market (DCM) services was approximately HK$5.5 million, down from HK$39.5 million in the previous year, reflecting a significant decline due to a challenging operating environment[12]. - Commission income from securities dealing was approximately HK$5.5 million, slightly up from HK$5.3 million in the previous year, while interest income from securities margin increased significantly to approximately HK$25.1 million from HK$9.2 million[23]. - Interest income from money lending business was approximately HK$30.1 million, while interest income from securities margin was approximately HK$25.1 million[96]. Economic Outlook - The Hong Kong economy is expected to maintain growth momentum, with GDP growth for the year at 2.5%, following a contraction of 3.2% in 2023[14]. - Hong Kong's economy is expected to face slower growth due to challenges from China's economic slowdown and high interest rates[90]. Asset Management - As of December 31, 2024, assets under management reached approximately US$210.2 million, down from US$234.3 million as of December 31, 2023[33]. - The Group's net asset value as of December 31, 2024, was approximately HK$733.1 million, down from HK$776.7 million as of December 31, 2023[97]. - The total assets of the Group as of December 31, 2024, were HK$1,027,697,000, a slight decrease from HK$1,040,024,000 in 2023[143]. - Total liabilities increased to HK$294,570,000 in 2024 from HK$263,340,000 in 2023, reflecting a rise of 11.67%[143]. - The net assets of the Group decreased to HK$733,127,000 in 2024 from HK$776,684,000 in 2023, indicating a decline of 5.58%[143]. Loan Portfolio - The Group has 11 outstanding loans to individual customers totaling approximately HK$406,911,400, with interest rates ranging from 5% to 7%[43]. - There are 6 outstanding loans to corporate customers totaling approximately HK$144,700,000, with an interest rate of 7%[43]. - The total gross loan receivable amounted to approximately HK$521.0 million, an increase from HK$438.6 million as of December 31, 2023[88]. - The Group's five largest loan receivables accounted for approximately HK$330.9 million or 63.5% of total loan receivables, down from 75.7% in the previous year[88]. - Interest income from the money lending business during the year was approximately HK$30.1 million[88]. - The Group recognized expected credit loss allowances (ECLs) on loan receivables amounting to approximately HK$20.6 million, a significant increase from HK$0.1 million in the previous year[89]. Credit Policy and Risk Management - The Group will maintain a prudent credit policy and risk management approach to achieve a sustainable business environment[23]. - The company has established a Credit Committee to oversee credit policies and procedures[57]. - Credit assessments include verification of identity, financial situation, and repayment capabilities[59]. - For significant lending transactions (5% or more of total assets), a detailed credit review is conducted[60]. - The company considers factors such as borrower credibility and loan amount when determining loan terms[66]. - All existing customers are either business contacts or referrals from executive Directors to minimize default risks[67]. Strategic Initiatives - The Group aims to diversify investment portfolios in response to market opportunities, focusing on fixed income instruments and offshore US dollar-denominated bonds issued by Chinese institutions[32]. - The Group plans to focus future investments on shares in leading global AI companies, indicating a strategic shift towards technology-related sectors[91]. - The Group will actively seek opportunities for business expansion despite the challenging external environment[91]. Acquisitions - The acquisition of Target Company 1 was agreed for a total consideration of HK$60 million, representing 100% of its issued share capital, and is expected to be completed by 31 March 2025[113][118]. - The acquisition of Target Company 2 was agreed for a total consideration of HK$60 million, representing 51% of its issued share capital, and is expected to be completed by 31 March 2025[119][121]. - The financial results of Target Company 1 will be consolidated with the Group for the year ending 31 December 2025 following its acquisition completion[119]. - The financial results of Target Company 2 will also be consolidated with the Group for the year ending 31 December 2025 following its acquisition completion[121]. Share Options and Capital Structure - The 2013 Share Option Scheme was terminated on June 8, 2023, with no further options to be granted under it[176]. - A new 2023 Share Option Scheme was adopted on June 8, 2023, to provide incentives to eligible participants[177]. - As of January 1, 2024, there were 157,595,046 options available for grant under the 2023 Share Option Scheme[178]. - The total number of shares that may be issued upon exercise of all share options under the scheme must not exceed 1,723,404,550 shares[179]. - As of December 31, 2024, the number of share options available for grant under the 2023 Share Option Scheme was nil[180]. - The total number of share options outstanding is 3,193,830,000, with 1,880,999,596 granted during the year[184]. - The weighted average exercise price of options granted in 2023 is HK$0.027, with a total of 1,182,990,000 options remaining unexercised[184]. - The total number of share options exercised during the year is 524,499,596, with 159,600,000 lapsing[184]. - The company has set performance targets for grantees of share options, which must be met for options to vest[185]. Corporate Governance - No directors or chief executives had any interests or short positions in the shares or underlying shares of the Company as of December 31, 2024, except as disclosed[191]. - There were no rights granted to directors or their family members to acquire shares or debentures of the Company during the year[193]. - The issued share capital of Golden Horse Hong Kong Investment Limited was wholly owned by Future World Holdings Limited, which is deemed to be interested in the shares[198].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 4,565,434, a decrease of 3.1% compared to RMB 4,712,107 in 2023[18] - Gross profit for 2024 was RMB 386,433, down from RMB 414,698 in 2023, reflecting a decline of 6.8%[18] - The company reported a loss for the year of RMB 361,832, compared to a loss of RMB 246,707 in 2023, indicating an increase in losses of 46.5%[18] - Total revenue decreased by approximately 3.1% from RMB 4,712.1 million in 2023 to RMB 4,565.4 million in 2024[89] - Revenue from the medication distribution business declined by approximately 58.4% to approximately RMB161.8 million, accounting for only about 3.5% of the Group's consolidated revenue during the reporting period[56] - Revenue from Health Insurance Services increased by approximately 18.9% from RMB162.2 million in 2023 to RMB193.0 million in 2024[90] - Revenue from enterprise health insurance segment surged by approximately 39.6% to RMB68.7 million in 2024, driven by a significant increase in insured customers[90] - Revenue from Physician Research Assistance business rose by approximately 9.9% from RMB361.8 million in 2023 to RMB397.6 million in 2024[92] - Revenue from Specialty Pharmacy Business decreased by approximately 5.1% from RMB4,188.1 million in 2023 to RMB3,974.9 million in 2024, due to strategic streamlining[93] Assets and Liabilities - Total assets as of December 31, 2024, were RMB 2,265,292, a decrease of 19.5% from RMB 2,815,040 in 2023[20] - Total liabilities decreased to RMB 1,063,706 in 2024 from RMB 1,183,889 in 2023, a reduction of 10.1%[20] - Equity attributable to owners of the company was RMB 1,225,359, down from RMB 1,618,859 in 2023, a decline of 24.3%[20] - As of December 31, 2024, the company recorded net current assets of approximately RMB943.5 million, with a gearing ratio of approximately 47.0%, up from 42.1% as of December 31, 2023[125][130] - The company had cash and selected financial assets of approximately RMB1,191.9 million as of December 31, 2024, indicating a strong liquidity position[126][130] Business Strategy and Development - The company aims to establish a leading commercial healthcare payment system in China, focusing on a "health insurance + healthcare management" model[21] - The company aims to strategically upgrade itself to become a leading commercial healthcare payment system and service platform, leveraging data and AI capabilities to achieve profitability through scaling[33] - The company is committed to building a healthcare service network and a medicine supply chain network to enhance healthcare service delivery capabilities[37] - The company aims to build a comprehensive ecosystem integrating commercial health insurance and healthcare management services, enhancing delivery capabilities[40] - The company is focused on creating a one-stop "healthcare insurance" service ecosystem through its "dual-drivers" model, combining health insurance and healthcare management[42] - The company aims to enhance its pharmaceutical supply chain network and management capabilities, focusing on core cities to improve service accessibility[72] Operational Efficiency and Cost Management - Cost of sales decreased by approximately 2.8% from RMB4,297.4 million in 2023 to RMB4,179.0 million in 2024, primarily due to reduced procurement costs[99] - Selling and marketing expenses decreased by approximately 4.8% from approximately RMB 292.3 million in 2023 to approximately RMB 278.4 million in 2024, mainly due to efficiency improvement initiatives[104] - Administrative expenses decreased by approximately 6.8% from approximately RMB 347.8 million in 2023 to approximately RMB 324.0 million in 2024, resulting from organizational optimization[108] - Research and development expenses decreased by approximately 51.4% from approximately RMB 45.9 million in 2023 to approximately RMB 22.3 million in 2024, due to optimization following prior investments[109] - Continuous digital transformation efforts will focus on improving operational efficiency and reducing costs through intelligent upgrades of business processes[74] Market Position and Client Engagement - As of December 31, 2024, the company provided professional services to 476 leading enterprises, covering over 1.1 million members, with a renewal rate of approximately 103.5%[26] - The company completed 914 SMO projects and had 807 ongoing projects as of December 31, 2024, achieving a 100% client retention rate with its top ten SMO clients[27] - The company operated 39 corporate infirmaries across the country, with over 120,000 employee visits, representing a more than threefold increase compared to 2023[55] - The premium renewal rate reached approximately 103.5% in 2024, indicating strong recognition of the company's service value and quality by enterprises[55] Future Plans and Innovations - The company plans to commence the restructuring of the Hui Min Insurance business in 2025, focusing on operational efficiency and profitability[38] - The company aims to utilize big data and AI technologies to build user health profiles for accurate risk assessment and personalized health management[71] - The company plans to develop more insurance products integrated with health management services, targeting chronic disease management and sub-healthy conditions to meet diverse customer needs[67] - The company is actively exploring AI applications in R&D, having accessed the DeepSeek R1 671B large model through Tencent Cloud, marking a significant step in AI integration within commercial health insurance and healthcare[64] Shareholder Returns and Investments - No dividends were paid or declared during the year ended December 31, 2024, as the company intends to retain funds for business development[198] - The Board did not recommend the payment of a final dividend for the year ended December 31, 2024[200] - The company has not yet adopted a dividend policy for future payments, which will depend on operational results and cash flow[199] - There were no significant investments or material acquisitions during the reporting period, indicating a focus on existing operations[133][144]

Financial Performance - For the first quarter of 2025, the operating income was RMB 185,990 million, a decrease of 4.76% compared to RMB 195,284 million in the same period of 2024[7] - The net profit for the first quarter of 2025 was RMB 83,742 million, down 3.64% from RMB 86,907 million in the first quarter of 2024[7] - The net profit attributable to shareholders was RMB 83,351 million, reflecting a decrease of 3.99% compared to RMB 86,817 million in the previous year[7] - Net profit for the first quarter of 2025 was RMB 83.742 billion, a decrease of 3.64% year-on-year, with a return on average assets of 0.80% and a weighted average return on equity of 10.42%[27] - For the three months ended March 31, 2025, the pre-tax profit was RMB 93,579 million, a decrease from RMB 102,307 million in the same period of 2024, representing a decline of about 8.3%[44] Cash Flow and Liquidity - The net cash flow from operating activities significantly increased to RMB 721,067 million, a rise of 244.46% from RMB 209,335 million in the same quarter of 2024[7] - Cash flow from investment activities for the three months ended March 31, 2025, was a net outflow of RMB 505,078 million, compared to a net outflow of RMB 135,041 million for the same period in 2024[48] - Cash flow from financing activities resulted in a net outflow of RMB 20,295 million for the three months ended March 31, 2025, compared to a net inflow of RMB 38,576 million in 2024[48] - The net increase in cash and cash equivalents for the three months ended March 31, 2025, was RMB 194,385 million, up from RMB 116,926 million in 2024[50] - Operating cash flow included interest received of RMB 213,417 million, down from RMB 240,081 million in the previous year[50] - Cash and cash equivalents at the beginning of the period were RMB 569,448 million, compared to RMB 925,463 million at the start of 2024[50] - Cash and cash equivalents at the end of the period stood at RMB 763,833 million, down from RMB 1,042,389 million in 2024[50] - The impact of exchange rate changes on cash and cash equivalents was a decrease of RMB 1,309 million, contrasting with an increase of RMB 4,056 million in 2024[50] Assets and Liabilities - Total assets as of March 31, 2025, reached RMB 42,794,715 million, representing a growth of 5.48% from RMB 40,571,149 million at the end of December 2024[7] - Total liabilities reached RMB 39.38 trillion, an increase of RMB 2.16 trillion, representing a growth of 5.79%, while total deposits absorbed were RMB 30.43 trillion, up RMB 1.72 trillion, a growth of 5.99%[24] - The bank's total liabilities amounted to RMB 39,383,387 million, up from RMB 37,227,184 million, indicating an increase of about 5.8%[39] - Shareholders' equity totaled RMB 3,411,328 million, compared to RMB 3,343,965 million, reflecting a growth of approximately 2.0%[41] Loans and Advances - The total amount of loans and advances issued was CNY 27.02 trillion, up CNY 1.18 trillion or 4.55% from the previous year-end[21] - The balance of loans to technology-related industries exceeded CNY 4 trillion, with strategic emerging industry loans growing by 17.14% year-on-year to CNY 3.34 trillion[15] - The balance of inclusive loans for small and micro enterprises reached CNY 36.3 trillion, an increase of CNY 221.98 billion compared to the end of the previous year[19] - The balance of agricultural loans reached CNY 3.56 trillion, an increase of CNY 231.06 billion compared to the end of the previous year[19] - The net increase in loans and advances was RMB 1,196,453 million for the three months ended March 31, 2025, compared to RMB 1,173,972 million in the same period of 2024, showing a slight increase[46] Shareholder Information - The number of ordinary shareholders as of March 31, 2025, was 308,181, with H-share shareholders numbering 36,896 and A-share shareholders totaling 271,285[9] - The largest shareholder, Central Huijin Investment Ltd., held 57.03% of H-shares and 0.11% of A-shares[9] - The total number of preferred shareholders was 24, all of whom were domestic, with the largest holding being 104,690,000 shares, representing 17.45%[11] Capital and Regulatory Compliance - The capital adequacy ratio was 19.15%, with a Tier 1 capital ratio of 14.67% and a core Tier 1 capital ratio of 13.98%, all meeting regulatory requirements[26] - The bank plans to issue A-shares to raise up to RMB 105 billion to supplement its core Tier 1 capital[28] - The bank issued RMB 40 billion in subordinated debt in March 2025 to enhance its capital structure[28] Non-Performing Loans - Non-performing loans amounted to RMB 358.136 billion, an increase of RMB 13.445 billion compared to the end of the previous year, with a non-performing loan ratio of 1.33%, down 0.01 percentage points[24] - The bank's non-performing loan ratio remained stable, reflecting effective risk management strategies in place[43] Digital and Technological Initiatives - The number of "Dual Star" users totaled 527 million, with monthly active users at 244 million, and financial transaction users increased by 6.56% year-on-year to 117 million[23] - The company’s digital economy core industry loans amounted to CNY 835.09 billion, reflecting an 11.14% increase year-on-year[23] - The company issued 20 tranches of technology innovation bonds, with an underwriting scale of CNY 6.202 billion, and the subscription volume for technology innovation bonds increased by 138.78% year-on-year[15] - The company’s pension fund asset management scale exceeded CNY 630 billion, with a 41% increase in new customer acquisition[19] Dividend Information - The bank's cash dividend for the year 2024 was RMB 0.403 per share, totaling approximately RMB 100.754 billion, with interim dividends of RMB 0.197 per share already distributed[27][28] Future Outlook - The bank plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and customer service[43]

Market Performance - In 2024, China's passenger car market retail sales reached 22.89 million units, a year-on-year increase of 5.5%[18] - New energy vehicle sales in 2024 totaled 10.9 million units, representing a year-on-year growth of 40.5% and a penetration rate exceeding 47.6%[18] - In 2024, the luxury car market sales reached 2.7 million units, a year-on-year decline of 7.8%[19] - BMW delivered 715,000 new cars in China, maintaining its sales champion position, but this represents a 13.4% decrease compared to the previous year[19] - In 2025, China's passenger car retail sales are expected to reach 23.4 million units, a year-on-year growth of 2%, with new energy vehicle sales projected to grow by 20% to 13.3 million units[20] Company Strategy and Expansion - The company aims to expand its overseas market for new energy vehicles by establishing a dealer network internationally[11] - The strategic focus includes building overseas distribution networks for leading Chinese automotive brands such as BYD and Tengshi[13] - The company emphasizes leveraging its expertise in luxury car retail to create synergies between Chinese manufacturing capabilities and global market opportunities[13] - The company is committed to actively adapting to the unprecedented opportunities brought by the global new energy vehicle revolution[14] - The company accelerated its overseas expansion strategy, establishing a service network across Southeast Asia and Europe, with 39 outlets in the Asia-Pacific region and 7 in Europe[23] Financial Performance - The company's total sales in 2024 were 40,247 units, a year-on-year increase of 4.6%, with BYD deliveries surging 146 times to 6,274 units[22] - The company's revenue for 2024 was RMB 15,617.4 million, a decrease of 5.8% from RMB 16,579.2 million in 2023[26] - The gross profit for 2024 was RMB 699.7 million, down 27.4% from RMB 964.0 million in 2023, resulting in a gross margin of 4.5%[28] - The sales and service cost for 2024 was RMB 14,917.7 million, a decrease of 4.5% compared to RMB 15,615.2 million in 2023[27] - The company recorded a net loss of RMB 285.7 million for the year, an increase of RMB 44.2 million compared to a loss of RMB 241.5 million in 2023[33] Debt and Cash Management - As of December 31, 2024, the company's cash and bank balances totaled RMB 1,108.0 million, compared to RMB 1,048.2 million in 2023[34] - The company's capital expenditure for 2024 was RMB 700.5 million, significantly higher than RMB 489.8 million in 2023, mainly for purchasing properties, plants, and equipment related to sales points[36] - Total bank loans and other borrowings as of December 31, 2024, were RMB 3,419.0 million, a 56.7% increase from RMB 2,181.5 million in 2023[39] - The company's debt-to-asset ratio increased to 57.1% as of December 31, 2024, compared to 47.7% in 2023, reflecting a 9.4% increase[40] Employee and Management Information - Employee expenses for 2024 totaled RMB 515.2 million, up 6.8% from RMB 446.2 million in 2023, with a total of 4,403 employees as of December 31, 2024[46] - The company has a strong management team with over 20 years of experience in the automotive industry, led by CFO Mr. Zhang Lei[64] - The company secretary, Ms. Huang Huier, has over 23 years of experience in corporate services and governance[65] - The company appointed Mr. Song Jiahua as an independent non-executive director and chairman of the remuneration committee, effective from June 3, 2024[66] Corporate Governance - The company ensures compliance with listing rules and maintains transparency in director appointments and resignations[66] - The board of directors has no significant relationships with other directors or major shareholders, ensuring independence[59][60][62] - The company is committed to enhancing corporate governance through experienced board members and management[65] - The board consists of a balanced composition, including at least three independent non-executive directors, fulfilling the listing rules requirements[160] Risk Management - The company has established a three-tier risk control structure to implement internal control and risk management policies[198] - The internal audit department plays a crucial role in monitoring the company's internal governance and conducts regular comprehensive audits of all branches and subsidiaries[196] - The company has not identified any significant control deficiencies or weaknesses for the year ending December 31, 2024[196] - The board of directors is responsible for overseeing the overall risk management related to business operations[198] Shareholder and Stock Information - The company has 42,191,000 unexercised stock options as of January 1, 2024, representing approximately 2.8% of the issued shares[47] - The company adopted a share incentive plan on February 28, 2019, allowing for the issuance of up to 60,000,000 shares, representing 3.94% of the total shares issued as of December 31, 2024[48] - The company reported no dividend for the year ending December 31, 2024, compared to a dividend of HKD 0.037 per share totaling HKD 56.4 million (approximately RMB 49.7 million) paid in 2023[71] - Major shareholder Eagle Seeker holds 708,364,660 shares, representing 46.50% of the total equity[122] Community and Social Responsibility - The group made donations amounting to RMB 1,600,000 for the year ending December 31, 2024, compared to RMB 19,216 in 2023[149]

Financial Performance - In 2024, the company achieved a revenue of RMB 6.603 billion, with clinical trial technical services contributing RMB 3.178 billion and related laboratory services generating RMB 3.425 billion[12]. - Total revenue for 2024 was RMB 6,603.1 million, a decrease of 10.6% compared to RMB 7,384.0 million in 2023[16]. - Gross profit for 2024 was RMB 2,242.0 million, down 21.3% from RMB 2,848.5 million in 2023[16]. - Net profit attributable to the company's owners for 2024 was RMB 405.1 million, representing an 80.0% decline from RMB 2,024.8 million in 2023[16]. - The company's gross margin decreased to 34.0% in 2024 from 38.6% in 2023, a drop of 4.6 percentage points[16]. - Cash and cash equivalents decreased significantly by 72.3% to RMB 2,048.5 million from RMB 7,399.9 million in 2023[16]. - The company's profit for the reporting period decreased by 79.2% to RMB 447.8 million from RMB 2,149.9 million in the same period last year[75]. - Profit attributable to the company's owners fell by 80.0% to RMB 405.1 million from RMB 2,024.8 million year-on-year[75]. - The net profit margin attributable to the company's owners, excluding non-recurring gains and losses, declined from 20.0% to 12.9%[79]. Market Position and Growth - The net new contract amount for the year reached RMB 8.423 billion, representing a year-on-year growth of 7.3%, while the total backlog of contracts stood at RMB 15.776 billion, up 12.0% year-on-year[12]. - The company maintained a 12.8% market share in China's clinical outsourcing services market, having provided services for over 60% of China's listed Class I new drugs since its establishment[11]. - The total number of clinical trials serviced in 2024 included 28 listed Class I new drugs and 6 innovative medical device projects, reflecting high client recognition of the company's comprehensive service capabilities[12]. - The number of new customers developed by the company increased by 22% year-on-year, enhancing its business cooperation with a diverse client base[25]. - The company continues to maintain a leading position in the Chinese clinical research outsourcing market despite competitive pressures[24]. Operational Developments - The North American clinical operations team expanded to over 120 personnel, covering 25 states and 65 cities, collaborating with over 700 clinical centers and 100 oncology centers[13]. - The company completed the acquisition of Medical Edge in Japan and reported strong performance in South Korea, enhancing its regional capabilities[13]. - The company established a Clinical Operations Strategy Committee to enhance clinical strategy capabilities and improve project bidding success rates[26]. - The company formed targeted business development teams in specific therapeutic areas, including Cell and Gene Therapy (CGT), Radiopharmaceuticals, Weight Loss, Ophthalmology, and Central Nervous System (CNS) diseases[26]. - The company expanded its overseas business, achieving rapid growth in new orders, revenue, and profits in its international clinical CRO business in 2024[27]. Innovation and Technology - 23% of clinical trials adopted a decentralized clinical trial (DCT) hybrid model, significantly improving participant engagement and project execution flexibility[13]. - The company launched multiple remote intelligent platforms, including the CTRM remote monitoring system and the Safety Portal for safety reporting, to enhance clinical research efficiency[13]. - The company has established a digital advancement center to drive the implementation of its digital and intelligent strategies, which is now taking shape[38]. - The AI-driven medical translation business has developed a full-chain AI translation product capability, improving efficiency and accuracy in medical document translation[39]. - The application of AI technology in clinical trials is expected to improve efficiency and reduce costs, leading to innovations in existing service models[132]. Regulatory Environment and Industry Trends - The clinical research outsourcing industry in China is expected to grow at an average annual rate of 12.6% from 2024 to 2028, reaching an estimated market size of approximately RMB 75 billion by 2028[19]. - In 2024, the National Medical Products Administration approved 48 Class I innovative drugs, an increase of 8 compared to 2023, marking a historical high[20]. - The Chinese government has introduced comprehensive support policies for innovative drug development, including a plan to complete clinical trial reviews within 30 working days[22]. - The competitive landscape in the clinical CRO industry is evolving, with smaller firms beginning to scale back, while demand for CRO services is recovering as the domestic biopharmaceutical industry stabilizes[132]. - The Chinese government is actively promoting high-quality development in the biopharmaceutical industry through various policies, including financial support and optimizing review processes for innovative drug development[134]. Financial Management and Investments - Cash used in investing activities increased by 208.9% to RMB 4,739.1 million from RMB 1,534.2 million year-on-year, primarily due to cash payments for acquisitions[83]. - The company plans to utilize funds for expanding clinical trial technology services, repaying bank loans, and general corporate purposes to enhance financial management flexibility[128]. - The company plans to continue selective acquisitions and investments for growth, but failure to identify suitable targets or successfully implement these transactions could adversely affect financial performance[148]. - The company has announced the acquisition of NAMSA's China business, expanding its team and overseas service reach[48]. Risks and Challenges - The company faces potential risks from natural disasters, pandemics, and other emergencies that could adversely affect its operations, financial condition, and performance[139]. - A decline in demand for biopharmaceutical research and development services could significantly impact the company's business, financial condition, and performance[140]. - Increased competition in the global pharmaceutical contract research market poses risks related to pricing, service quality, and client relationships, which could affect the company's revenue and profitability[142]. - The company acknowledges the risk of talent loss among directors and senior management, which could disrupt business operations and growth plans[150]. Corporate Governance and Management - The board consists of seven members, including four executive directors and three independent non-executive directors[159]. - The company is committed to maintaining high standards of corporate governance through its independent directors and various committees[168]. - The management team has a strong educational background, with degrees from prestigious institutions such as Oxford University and Zhejiang University, enhancing their strategic capabilities[164][167]. - The company has established mechanisms to ensure independent opinions and advice are available to the board[197]. - The company has complied with the corporate governance code during the reporting period[189].

Financial Performance - Revenue for the year ended December 31, 2024, was HK$1,605.4 million, a decrease of 3.5% from HK$1,663.1 million in 2023[12] - The OEM Business revenue decreased by 6.8% to HK$930.0 million, while the Fashion Retail Business revenue decreased by 4.3% to HK$579.0 million[12] - The Property Investment Business saw a significant increase in revenue, rising by 59.9% to HK$96.4 million[12] - The operating loss for 2024 was HK$434.6 million, compared to an operating loss of HK$276.1 million in 2023[12] - Fair value losses on investment properties amounted to HK$113.4 million, up from HK$16.0 million in the previous year[12] - Equity attributable to the Company's equity holders decreased to HK$1,559.8 million from HK$1,990.1 million, representing a decline of 21.6%[12] - The equity per share decreased from HK$0.95 in 2023 to HK$0.75 in 2024[12] - The gross profit for FY2024 was HK$290.4 million, down 8.5% from HK$317.4 million in FY2023[56] - The loss attributable to equity holders for FY2024 was HK$481.4 million, with a net asset value per share of HK$0.75 as of December 31, 2024[56] Revenue Breakdown - Revenue from the OEM business decreased by 6.8% to HK$930.0 million in FY2024, down from HK$998.1 million in FY2023[57] - Domestic retail sales in the PRC amounted to HK$579.0 million in FY2024, reflecting a year-on-year decrease of 4.3%[54] - The retail business revenue in FY2024 amounted to HK$579.0 million, a decrease of 4.3% from HK$604.7 million in FY2023[64] - The major brand Finity contributed HK$206.9 million to retail revenue in FY2024, down 9.6% from HK$228.9 million in FY2023[64] - Revenue from concessionary counters was HK$149.8 million in FY2024, accounting for 21.0% of total retail revenue, compared to HK$189.6 million in FY2023[69] - E-commerce sales increased to HK$303.7 million in FY2024 from HK$296.7 million in FY2023, while self-operated stores and franchisee sales were HK$15.7 million and HK$109.8 million, respectively[69] - Revenue from the property investment business rose to HK$96.4 million in FY2024, representing a significant increase of 59.9% from HK$60.3 million in FY2023[71] Market Challenges and Strategies - The company aims to optimize its brand matrix and improve product quality to strengthen its position in the domestic market[40] - The company is enhancing its product design and innovation capabilities to gain international recognition and compete effectively in the global market[41] - The company acknowledges challenges such as fierce market competition and rising costs but remains committed to achieving greater success in the future[42] - The domestic retail segment faced pressure due to weak overall consumption, impacting gross profit margins[54] - The Group plans to enhance its Cambodian production base and invest in cross-border e-commerce to tap into global markets in 2025[77] Financial Position and Capital Management - As of December 31, 2024, cash and cash equivalents decreased by 54.4% to HK$140.5 million from HK$308.3 million as of December 31, 2023[72] - The Group's bank borrowings increased to HK$599.5 million as of December 31, 2024, compared to HK$383.3 million as of December 31, 2023[72] - The debt to equity ratio as of December 31, 2024, was 38.1%, up from 19.1% as of December 31, 2023[72] - Approximately 28.1% of revenue was denominated in USD and 71.9% in RMB during FY2024[96] - As of December 31, 2024, approximately 16.9% of cash and bank balances were in USD, 80.6% in RMB, and 2.1% in HK$[97] - Approximately 77.3% of bank borrowings were denominated in RMB and 22.7% in HK$[97] - The Group plans to monitor foreign currency risk closely due to ongoing currency fluctuations between RMB and USD[98] - Capital commitments contracted but not incurred as of December 31, 2024, amounted to HK$26.0 million, mainly related to the construction of the China Ting International Fashion Base[87] Human Resources and Management - The Group employs 5,050 full-time employees as of December 31, 2024[90] - Employee costs for FY2024 were HK$392.1 million, an increase of 3.6% compared to HK$378.3 million in FY2023[90] - The Group's management team is committed to maintaining high standards in product quality control and production efficiency[124] - The Group's leadership is well-versed in both local and international markets, positioning it for future growth and expansion[119] Corporate Governance - The Board is committed to high standards of corporate governance, ensuring all business activities are properly regulated to safeguard shareholders' interests[137][141] - The Group has complied with the Corporate Governance Code during the year ended December 31, 2024[137][141] - The Board's key responsibilities include providing leadership and supervision to enhance shareholders' long-term value[138][142] - The Group has established risk management and internal control systems to ensure corporate value and culture alignment[140][142] - The Board consists of four executive Directors and four independent non-executive Directors, including three brothers[149] - The Board has implemented a mechanism to ensure independent views are available, with satisfactory results from the annual review conducted for the year ended 31 December 2024[159] - The Board adopted a diversity policy, with current composition showing 6 male and 1 female Director, and 7 Directors over the age of 60[168] - The Company has established good corporate governance practices, including the establishment of various Board Committees[196] Director and Committee Information - The Remuneration Committee consists of three members and is responsible for reviewing remuneration packages and ensuring the recruitment and retention of high-quality personnel[196] - One Remuneration Committee meeting was held in 2024 to review and recommend adjustments to directors' fees and executive remuneration packages for the year ending December 31, 2024[198] - The Company has adopted a code for the remuneration of executive Directors and senior management, which requires shareholder approval for directors' fees[197] - The independent non-executive Directors have confirmed their independence in accordance with Listing Rules[190] - The Company has arranged appropriate insurance to protect Directors against liabilities arising from company affairs[191]

Financial Performance - The group's consolidated revenue for the year ended December 31, 2024, was approximately HKD 40.84 million, a significant increase from HKD 16.73 million in 2023[14]. - Revenue from the online gaming segment contributed HKD 20.67 million, compared to zero in the previous year, with key titles including "Jinxiu Jianghu" generating HKD 14.53 million[18]. - The group reported a loss attributable to shareholders of approximately HKD 2.48 million, a reduction of about 36.9% from a loss of HKD 3.93 million in 2023[18]. - The group established a luxury car fleet for its car rental business, generating revenue of HKD 4.42 million in 2024, up from HKD 0.053 million in 2023[17]. - Total assets increased to approximately HKD 92.70 million as of December 31, 2024, compared to HKD 42.76 million in 2023[19]. - The group's net asset value rose to approximately HKD 74.75 million, up from HKD 24.58 million in 2023[19]. - The group’s cash and cash equivalents amounted to HKD 13.23 million as of December 31, 2024[20]. - The group’s current assets net value and current ratio were HKD 26.70 million and 2.6 times, respectively, compared to HKD 10.91 million and 1.6 times in 2023[20]. - The group’s total borrowings amounted to HKD 11.47 million as of December 31, 2024, down from HKD 16 million in 2023[25]. - The group did not recommend any dividend payment for the year ended December 31, 2024, consistent with the previous year[45]. Business Operations - In 2024, the company completed over 23 projects in the corporate finance advisory sector despite a challenging market environment[7]. - The number of new companies listed on the Hong Kong Stock Exchange's main board in 2024 was 71, a slight increase of approximately 1.4% from 70 in 2023[7]. - The company established two open-ended fund companies, with assets under management reaching HKD 20 million as of December 31, 2024[8]. - The company expanded its car rental business in the Greater Bay Area, operating a fleet of eight luxury vehicles, all successfully rented out[9]. - The company launched six online games, with five released in 2024, including titles like "Jinxiu Jianghu" and "Wulin Xianxia" targeting various international markets[10]. - The group plans to raise up to HKD 53.80 million through a rights issue, with net proceeds allocated for debt repayment, enhancing the car fleet, and expanding the online gaming business[25]. - The group plans to expand its market share in the car rental industry by actively sourcing suitable vehicles to enhance its fleet[35]. - The group aims to diversify its revenue sources by obtaining additional online gaming licenses and establishing an internal team for licensed game operations[35]. - The group will continue to monitor market trends and customer feedback to adjust its products accordingly, ensuring competitiveness in the Greater Bay Area[35]. - The group is focused on improving operational efficiency and effectiveness despite facing intense competition in its business operations[34]. Employee and Management - As of December 31, 2024, the group had 18 employees, with total employee costs amounting to HKD 9.74 million, a decrease from approximately HKD 10.24 million in 2023[27]. - Employee turnover rate increased to 21.7% in 2024 from 13.6% in 2023[133]. - Total number of employees as of December 31, 2024, is 18, with 17 in Hong Kong and 1 in Singapore[134]. - Average training hours per employee remained at 12 hours for male and female employees, with 100% participation in training programs[136]. - Employee benefits include vacation, medical plans, group insurance, and discretionary bonuses[133]. - The company emphasizes continuous professional development, providing on-the-job training and external training opportunities[135]. - The company has adopted a share option scheme to attract and retain qualified personnel, with a maximum share issuance limit of 10% of the total issued shares[55]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers all business segments, including financial services in Hong Kong and Singapore, car leasing, and newly launched online gaming business for the fiscal year ending December 31, 2024[86]. - The company emphasizes sustainable development as a core value and has taken significant measures to address ESG challenges and fulfill social responsibilities[90]. - The company aims to minimize environmental impact through responsible resource management and sustainable practices[94]. - The group has implemented a waste management strategy based on the "3R" principles (Reduce, Reuse, Recycle), including the installation of recycling bins in offices[125]. - The group aims to reduce energy consumption and environmental impact through various green operational measures, fostering a culture of sustainability and environmental responsibility[127]. - The group has identified climate change as a significant risk, particularly due to the increasing frequency of extreme weather events, and has implemented comprehensive work arrangements to ensure smooth operations during such events[129]. - The company has conducted a materiality assessment to identify key ESG issues that significantly impact its operations and stakeholders[101]. - Stakeholder engagement is crucial for understanding concerns related to ESG issues, which helps the company identify and assess related risks[97]. - The company focuses on service quality, business integrity, and employee rights as the four main concerns of its stakeholders[106]. Corporate Governance - The company has adhered to the corporate governance code as per GEM Listing Rules Appendix 15 for the fiscal year ending December 31, 2024, with the exception of deviation from code provision A.2.1[147]. - The board of directors held 16 meetings during the fiscal year, with all directors attending all meetings, demonstrating strong governance and oversight[150]. - The company has three independent non-executive directors who ensure compliance with regulatory standards and protect shareholder interests[151]. - The board has established three committees: Nomination Committee, Remuneration Committee, and Audit Committee, to enhance governance practices[152]. - The company is committed to board diversity, considering various factors such as skills, regional and educational background, and industry experience[154]. - All directors have received training on their responsibilities and relevant regulations to ensure compliance with good corporate governance practices[156]. - The company has a policy for re-election of directors, ensuring that all directors are subject to re-election at least every three years[153]. - The independent non-executive directors have confirmed their independence in accordance with GEM Listing Rules, ensuring effective oversight[151]. Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements of the company fairly reflect its financial position as of December 31, 2024[189]. - Key audit matters identified include the assessment of trade receivables impairment, which is significant due to the scale of outstanding balances and the risk of non-recovery[191]. - The auditor's procedures included verifying management's credit control processes and assessing the reasonableness of loss provisions based on historical default data and current economic conditions[194]. - The board of directors is responsible for preparing the financial statements in accordance with applicable accounting standards and ensuring internal controls to prevent material misstatements[197]. - The auditor evaluates the appropriateness of accounting policies adopted by the board and assesses the overall presentation and disclosures in the financial statements[200].

Financial Performance - Revenue for the year ended December 31, 2024, was RM 96,990,000, representing a 3.4% increase from RM 93,763,000 in 2023[3] - Gross profit increased by 6.2% to RM 24,332,000 compared to RM 22,907,000 in the previous year[3] - Loss before tax significantly increased to RM (18,541,000), a 1,165.6% rise from RM (1,465,000) in 2023[3] - Loss attributable to equity holders of the Company for the year was RM (21,430,000), up 404.4% from RM (4,249,000) in 2023[3] - Total assets surged by 200.8% to RM 311,662,000 from RM 103,620,000 in 2023[3] - Total equity attributable to equity holders of the Company increased by 257.6% to RM 290,485,000 compared to RM 81,222,000 in 2023[3] - The Group recorded a net loss attributable to equity holders of approximately RM21.4 million for the year ended December 31, 2024, compared to a net loss of RM4.2 million for the previous year, primarily due to a goodwill impairment loss of RM23.3 million[22] - The company's loss for the year amounted to approximately RM21.1 million in 2024, compared to a loss of RM3.4 million in 2023, primarily due to the goodwill impairment loss[81] Revenue Streams - Revenue from outsourced document management services decreased by approximately RM6.4 million or 8.6% from RM73.7 million in 2023 to RM67.3 million in 2024, accounting for 69.4% of total revenue[51] - Revenue from outsourced insurance risk analysis and marketing services increased to approximately RM17.3 million in 2024, representing 17.9% of total revenue, up from RM13.4 million or 14.3% in 2023[56] - Revenue from enterprise software solutions increased by approximately RM1.1 million or 20.2% from RM5.6 million in 2023 to RM6.7 million in 2024, representing 6.9% of total revenue[58] - Revenue from the distribution and sales of medical equipment and pharmaceutical products was approximately RM3.6 million in 2024, up from RM1.2 million in 2023, representing 3.7% of total revenue[60] - Revenue from internet hospital and brick-and-mortar clinical services amounted to approximately RM2.1 million in 2024, representing 2.1% of total revenue[64] Acquisitions and Expansion - The acquisition of 100% of Sun Join on January 26, 2024, enables the Company to offer one-stop insurance and healthcare services[16] - The acquisition of 100% of Shengji's issued shares on January 26, 2024, allows the Group to offer a one-stop insurance and healthcare service to an expanded customer base in China[19] - The company completed the acquisition of 100% of the issued shares of Sun Join for a total consideration of HK$474,251,497 on January 26, 2024, making Sun Join an indirect wholly-owned subsidiary[122] Cost Management and Profitability - Cost of sales increased by approximately RM1.8 million or 2.5% from RM70.9 million in 2023 to RM72.7 million in 2024[65] - Administrative expenses rose by approximately RM18.2 million or 72.7%, from RM25.0 million in 2023 to RM43.2 million in 2024, primarily due to a goodwill impairment loss of RM23.3 million[73] - The Group aims to minimize the impact of high costs due to a strong US Dollar and inflation by reducing costs and reinforcing innovation in the Streamline Suite[38] Financial Ratios and Position - The current ratio improved to 6.1 times from 5.3 times in the previous year, reflecting a 15.1% increase[3] - Gearing ratio decreased to 1.5% from 8.5%, indicating a reduction in financial leverage[3] - The Group's total loans and borrowings decreased to approximately RM4.3 million as of December 31, 2024, representing a reduction of approximately RM2.6 million or 37.8% compared to RM6.9 million as of December 31, 2023[105] - The Group's cash and bank balances increased to approximately RM59.7 million as of December 31, 2024, up from approximately RM42.7 million as of December 31, 2023[106] Strategic Focus and Development - The Group is focusing on continuous investment in proprietary enterprise IT software to enhance its competitive edge in Malaysia and Singapore[30] - The Group's strategy includes developing IT applications and services to maintain a competitive advantage in the market[20] - The Group aims to identify market opportunities and threats through constant monitoring of trends and customer needs, which is crucial for sustained competitiveness and growth[26] - The Group's strategy focuses on driving growth in core businesses by continuously developing proprietary enterprise software to maintain a competitive edge[35] Regulatory and Market Challenges - For the year ended December 31, 2024, Sun Join Group's financial performance did not meet the cash flow forecast primarily due to changes in PRC National Healthcare Security Administration's policies, which reduced the number of reimbursable medicines and led to a decline in drug sales[98] - Regulatory changes in 2024 restricted internet hospitals from prescribing injectable drugs and limited services to online consultations and certain oral medications, affecting revenue streams[98] - The company faced increased competition in the medical device sector, which, combined with rising raw material prices, diminished its competitive edge and revenue from medical equipment sales[100] Management and Governance - Mr. Ma Shengcong was appointed as Executive Director and CEO on May 1, 2023, bringing over 20 years of experience in the insurance industry[149] - The management team has a diverse background in various sectors, including finance, marketing, and technology, enhancing the company's strategic capabilities[149][151][157] - The board's composition includes experienced professionals from various industries, ensuring a well-rounded approach to governance and strategy[155][157] Use of Proceeds and Investments - The company plans to increase technological capability and develop into other market verticals, with 89.8% of net proceeds allocated for this purpose, amounting to HK$66.2 million[141] - A portion of the net proceeds, 76.7% or HK$56.5 million, is designated for acquiring and converting an existing building into a Data Centre and upgrading IT infrastructure[141] - The company will continue to observe business environments and trends to evaluate the use of net proceeds for the best interests of the company[143]

Drug Development Pipeline - The company has established a pipeline of 12 candidate drugs since its inception in 2017, including the core product TY-9591 and seven clinical-stage products[7]. - The company is developing multiple candidate drugs in preclinical or early clinical development stages to further enrich its product pipeline[8]. - TY-9591 is currently undergoing critical Phase II trials in China for EGFR-mutant lung cancer brain metastases and Phase III trials for EGFR L858R mutation in advanced or metastatic NSCLC[21]. - The company plans to initiate a Phase II clinical trial for TY-302 in combination with abiraterone for first-line treatment of prostate cancer in the first half of 2025[13]. - The company received IND approval for the Phase II and III clinical trials of TY-9591 in combination with pemetrexed and platinum-based chemotherapy for advanced or metastatic lung cancer[12]. - The company has a diverse pipeline targeting various cancers, including NSCLC, breast cancer, and prostate cancer, with multiple products in different stages of clinical trials[22]. - TY-2136b, an oral ROS1/NTRK inhibitor, has shown good safety in preclinical studies and has received orphan drug designation from the FDA for treating ROS1-positive and NTRK fusion-positive NSCLC[33]. - The company is also preparing for a Phase II trial of TY-9591 in combination with pemetrexed and platinum-based chemotherapy for advanced lung cancer[29]. Financial Performance - The total comprehensive loss for the year ended December 31, 2024, was RMB 387,928 thousand, slightly higher than RMB 383,171 thousand in 2023[11]. - Research and development costs for 2024 were RMB 235,446 thousand, a decrease from RMB 249,252 thousand in 2023[11]. - Revenue increased from RMB 0 in the year ending December 31, 2023, to RMB 107,000 in 2024, mainly driven by increased revenue from research and development services[41]. - Gross profit rose from RMB 0 to RMB 14,000, with a gross margin of 13.1% for the year ending December 31, 2024, attributed to the increase in research and development service revenue[43]. - Administrative expenses surged by 82.7% to RMB 108.3 million in 2024 from RMB 59.3 million in 2023, mainly due to increased listing expenses and operational costs[48]. - Financial costs decreased by 42.4% to RMB 12.8 million in 2024 from RMB 22.2 million in 2023, primarily due to reduced transaction costs related to equity redemption liabilities[49]. - Other income and gains for the year ending December 31, 2024, were RMB 30.5 million, an increase of RMB 5.1 million from RMB 25.4 million in 2023, mainly due to higher government subsidies and bank interest income[44]. Clinical Trial Updates - The key Phase II clinical trial for TY-9591, targeting EGFR mutation lung cancer brain metastasis, completed enrollment of 224 patients in November 2024, with a conditional NDA submission expected in Q2 2025[8]. - The registration Phase III clinical trial for TY-9591, focusing on EGFR L858R mutation lung cancer, completed enrollment of 528 patients in early February 2025, with an NDA submission anticipated in 2026[8]. - TY-302, a CDK4/6 inhibitor, achieved a disease control rate (DCR) of 71.4% in 14 breast cancer patients previously treated with two or more lines of therapy[30]. - The company plans to enter the registration phase for TY-302 in 2026, focusing on its use in breast cancer treatment[30]. - The company has completed five dose escalation studies for TY-2699a, a selective CDK7 inhibitor, and expects to complete the monotherapy escalation phase by the first half of 2025[35]. Market Position and Strategy - The company aims to enhance its market share and brand influence through strengthened marketing and commercialization capabilities[9]. - The company is actively expanding its commercialization team to explore market potential and enhance brand promotion through various academic and industry collaborations[40]. - The company intends to selectively acquire or invest in innovative technologies to strengthen its R&D capabilities and explore potential combination therapy partnerships for TY-9591[69]. - The company is committed to building sales and marketing capabilities through internal efforts and partnerships with external collaborators[69]. - The company aims to explore commercial cooperation opportunities with leading industry peers to accelerate the development of its candidate drugs in key international markets[69]. Governance and Management - The board consists of 11 members, including 4 independent non-executive directors, ensuring compliance with listing rules[176]. - The company has expanded its management team with independent non-executive directors appointed in January 2024, enhancing governance and oversight[86][87]. - The company has purchased liability insurance for directors and senior management to cover potential legal responsibilities[182]. - The board is responsible for strategic decisions, financial oversight, and risk management, ensuring effective governance[181]. - The company has established a committee to oversee the implementation of the employee incentive plan, which includes senior management and key personnel[130]. Risks and Challenges - The company faces significant risks related to the competition in drug development, which may adversely affect its ability to commercialize candidate drugs[106]. - Clinical drug development is a lengthy and costly process, and unexpected difficulties may arise during clinical trials and commercialization[106]. - The company may face significant liabilities related to product liability claims or litigation during drug discovery, development, and commercialization[108]. - The company may not be able to obtain or maintain sufficient patent and other intellectual property protection for its candidate drugs in selected global markets, which could allow third parties to develop and commercialize similar products[111]. - Regulatory approval processes from agencies like the FDA are time-consuming and inherently uncertain, and failure to obtain necessary approvals could severely damage the company's business[113]. Capital and Financing - Cash and bank balances as of December 31, 2024, amounted to RMB 460,463,000, representing a 146.5% increase from RMB 186,830,000 as of December 31, 2023[53]. - The company may require significant additional financing to fund its operations and expansion, and failure to secure such financing could hinder the development and commercialization of its candidate drugs[116]. - The maximum payable amount for technical service fees to Huayu Pharmaceutical under the TY-9591 continuing connected transaction agreement is RMB 4,690,000, with actual transaction amounts being RMB 3,236,000[123]. - The company has entered into a continuing connected transaction agreement with Huayu Pharmaceutical, which will remain effective until the end of 2025[121]. Corporate Social Responsibility - The company made charitable donations amounting to RMB 1.1 million during the reporting period[150]. - The company has not declared any dividends for the year 2024, resulting in no income tax obligations for shareholders[138]. - The company has complied with the relevant provisions of the listing rules regarding related party transactions[126].