Strategic Projects and Locations - China South City has established eight projects aligned with national strategies such as the "Greater Bay Area", "Belt and Road" initiative, and "Yangtze River Economic Belt" [12] - CSC Shenzhen, located in Longgang District, is the Group's first project and is strategically positioned within the Greater Bay Area [18] - CSC Shenzhen covers a site area of approximately 1.02 million sq.m. and a total planned GFA of 2.71 million sq.m.[25] - CSC Nanning has a total planned net land area of approximately 1.83 million sq.m. and a total planned GFA of approximately 4.88 million sq.m.[39] - The project in CSC Nanning is strategically located near major transportation hubs, enhancing accessibility for suppliers and merchants[45] - CSC Nanchang has established a 30,000 sq.m. influencer livestreaming base to provide comprehensive services including anchor training and operation management[50] - The total planned land area for CSC Nanchang is approximately 2.61 million sq.m. with a total planned GFA of approximately 6.87 million sq.m.[52] - CSC Xi'an has a total planned land area of approximately 10.00 million sq.m. and a total planned GFA of approximately 17.50 million sq.m.[64] - CSC Harbin has a total planned land area of approximately 10.00 million sq.m. and a total planned GFA of approximately 12.00 million sq.m.[75] - CSC Zhengzhou has a total planned net land area of approximately 7.00 million sq.m. and a total planned GFA of approximately 12.00 million sq.m.[89] - CSC Hefei has a total planned net land area of approximately 10.00 million sq.m. with a total planned GFA of approximately 12.00 million sq.m.[101] - CSC Chongqing has a total planned net land area of approximately 5.90 million sq.m. with a total GFA of approximately 13.10 million sq.m.[114] Financial Performance and Projections - Revenue for the fiscal year 2024 is projected to be HK$4,083,380,000, an increase from HK$3,508,926,000 in the previous fiscal year[134] - Profit attributable to owners of the parent for the fiscal year 2024 is expected to be HK$760,200,000, compared to HK$699,984,000 in the previous fiscal year[135] - For the financial year 2024, revenue increased by 16.4% to HK$4,083,380, compared to HK$3,508,926 in the previous year[137] - The loss for the year reached HK$8,975,904, a significant increase of 107.9% from HK$4,317,590 in the previous period[137] - The basic loss per share was HK(78.45) cents, compared to HK(37.73) cents in the previous period, indicating a worsening financial position[137] - The Group's liquidity has become increasingly strained due to external environmental changes and sales falling short of expectations[158] - Net loss attributable to owners of the parent was HK$8,975.8 million, significantly higher than the previous year's loss of HK$4,317.5 million, resulting in a basic loss per share of HK78.45 cents[185] - The total interest-bearing debts of the Group decreased to HK$30,220.4 million as of 31 December 2024, down from HK$31,752.3 million a year earlier, with a gearing ratio of 110.9%[184] - Cash and bank balances as of 31 December 2024 were HK$717.7 million, a decrease from HK$1,143.6 million as of 31 December 2023[184] Operational Strategies and Initiatives - The Group's operational strategy was adjusted to focus on cash collection and merchant recruitment, with an emphasis on stabilizing operations[141] - The Group successfully completed the majority of its guaranteed delivery tasks, despite facing challenges in sales clearance progress[145] - The Group's logistics division, Qianlong Logistics, engaged with potential clients like the Want Want Group to enhance logistics solutions[149] - The Group plans to focus on sustainable development strategies centered on "merchant recruitment and operations" while optimizing its business structure[153] - The Group aims to accelerate asset destocking and enhance efficiency to further reduce interest-bearing liabilities[153] - The operational management team enhanced online and offline services, driving foot traffic and consumer demand, resulting in improved merchant performance and profitability[165] - A strategic partnership was established with Huamei Lijia Group to implement a 450,000 square meter furniture and building materials brand pavilion in Nanchang[165] - The establishment of an online centralized procurement platform in Chongqing is expected to enhance operations and services through digital empowerment[165] Market and Economic Context - The local government is developing Longgang District as an innovation center, which will advance infrastructure such as logistics and healthcare [19] - The ongoing development of transportation infrastructure, including the planned Metro Line 6 in Nanning, is expected to boost visitor traffic and business opportunities[33] - The metro south line 4 across CSC Hefei has been opened for operation on May 1, 2024, enhancing connectivity[95] - In the financial year, China's GDP grew by 5% year-on-year, indicating a significant slowdown compared to the previous year[157] Revenue Streams and Performance Metrics - Revenue from the sale of properties increased by 18.7% to HK$2,995.1 million, driven by the delivery of more properties that had completed contract sales in previous periods[192] - Property leasing income was HK$543.1 million, reflecting a decrease of 10.9% compared to HK$456.9 million in FY2023 due to declining leasing demand[194] - Other recurring revenue rose by 3.0% to HK$545.2 million, with logistics and warehousing services revenue decreasing to HK$123.5 million, while outlet operations revenue increased to HK$326.8 million[195] - The Group's cost of sales increased by 22.9% to HK$3,317.5 million, primarily due to an increase in projects delivered[196] - Gross profit decreased by 5.3% to HK$765.9 million, with a gross profit margin of 18.8%, down from 23.0% in the previous year[197] Recognition and Awards - The Group has been recognized in the "Top 50 Chinese Outlets" awards, highlighting its market presence and operational success[151] - The Group has received multiple honors, including the "2024 Guangdong Property Industry Comprehensive Strength Enterprise" award[174] - First Asia Pacific Group achieved National First-Class Property Management Qualification and received multiple awards, including "2024 Guangdong Property Industry Comprehensive Strength Enterprise"[172]

Financial Performance - The company's total revenue for the year ended December 31, 2024, was approximately RMB 266.7 million, an increase of about 50.1% compared to RMB 177.7 million in 2023[7]. - The ODM product segment generated revenue of approximately RMB 230.8 million, while the brand product segment contributed about RMB 35.9 million[7]. - The company recorded a loss attributable to owners of approximately RMB 16.7 million, an improvement from a loss of RMB 45.3 million in 2023[7]. - Gross profit for the reporting period was approximately RMB 78.9 million, an increase of about RMB 37.2 million or approximately 89.2% compared to RMB 41.7 million in the same period last year, with gross margin rising from 23.5% to 29.6%[16]. - Other income and gains amounted to approximately RMB 20.8 million, an increase of about RMB 2.1 million or approximately 11.2% from RMB 18.7 million in the previous year[18]. - The group recorded a loss attributable to ordinary equity holders of approximately RMB 16.7 million, a reduction of 63.1% from a loss of RMB 45.3 million in the same period last year[25]. - The company's return on equity (ROE) for 2024 is projected to be 4.7%, an improvement from -14.5% in 2023[6]. Retail Network and Operations - The company's retail network included 105 self-operated retail stores and 11 franchise stores as of December 31, 2024, after opening 14 new stores and closing 22 loss-making stores during the year[8]. - The group aims to maintain a minimum of 100 directly operated stores and will close underperforming stores[15]. - The company operates a retail network of 105 stores across 13 provinces, municipalities, and autonomous regions in China as of December 31, 2024[104]. Employee and Workforce - The company employed 777 full-time staff as of December 31, 2024, an increase from 607 staff in 2023[12]. - The overall employee turnover rate for 2024 was 71%, with male turnover at 83% and female turnover at 61%[159]. - The turnover rate for employees aged 30 or below was 120%, while it was 52% for those aged 31-50 and 73% for those aged 51 and above[159]. - All employees received training during the reporting period, with 100% participation among male employees and 96% among female employees[167]. - The average training hours for male employees were 20 hours, while female employees received an average of 17 hours of training[167]. - As of December 31, 2024, the company employed a total of 777 full-time employees, with a gender distribution of 322 males and 455 females[159]. Research and Development - Research and development expenses for product design and development were approximately RMB 18.3 million, compared to RMB 17.1 million in 2023[10]. - The company has a strong focus on research and development in the intimate apparel industry, with key personnel having extensive experience in production and quality control[57]. Corporate Governance - The company has adopted the principles and code provisions of the Corporate Governance Code as per the Listing Rules to ensure proper regulation of business activities and decision-making processes[60]. - The board currently consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors[62]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[60]. - The company has established appropriate director liability insurance to cover responsibilities incurred by board members during company activities[72]. - The board is responsible for the overall development strategy and monitoring the operational and financial performance of the group[68]. Environmental, Social, and Governance (ESG) Initiatives - The group published its sixth Environmental, Social, and Governance (ESG) report, demonstrating commitment to corporate social responsibility and sustainable development[105]. - The report adheres to the Hong Kong Stock Exchange's ESG reporting guidelines, ensuring compliance with mandatory disclosure requirements[107]. - The group emphasizes the importance of stakeholder feedback and conducts internal assessments to identify significant sustainability issues[110]. - The company is actively researching the feasibility of sustainable development in equipment and technology while producing seamless and traditional intimate apparel[119]. - The company aims to increase the proportion of clothing production that meets green low-carbon requirements through the application of green fibers, energy-saving dyeing, and recycling of waste fibers[119]. Supply Chain Management - The group collaborated closely with 241 suppliers, with 238 from mainland China, 1 from Hong Kong, and 2 from other countries[149]. - A total of 17 major suppliers were evaluated during the reporting period to ensure quality of raw materials[152]. - The group has established a comprehensive supplier management system, including annual assessments based on procurement and material management standards[152]. - The group emphasizes sustainable supply chain management, prioritizing suppliers that comply with local environmental policies[151]. Health and Safety - The company maintains a zero fatality rate in workplace incidents over the past three years, with only 40 workdays lost due to injuries during the reporting period[165]. - The company has established an Environmental, Health, and Safety (EHS) team to continuously improve occupational health and safety systems[165]. - The company strictly adheres to labor laws and regulations, ensuring no instances of child or forced labor were reported during the reporting period[160]. Environmental Impact - Total non-hazardous waste decreased to 137.5 tons in 2024 from 140.3 tons in 2023, achieving a density of 0.52 tons per million RMB revenue[174]. - Total greenhouse gas emissions rose to 6,123.93 tons CO2 equivalent in 2024 from 4,161.94 tons in 2023, with a density of 22.96 tons CO2 equivalent per million RMB revenue[180]. - The company has implemented various waste reduction measures, including recycling initiatives and promoting digital communication to minimize paper usage[174]. - The company has achieved ISO 14001:2015 environmental management system certification, ensuring compliance with national standards[172].

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue reached RMB 1,820.1 million, representing a 12.7% increase from RMB 1,615.6 million in 2023[10]. - Gross profit for the same period was RMB 894.3 million, up 24.5% from RMB 718.3 million in 2023[10]. - The company reported a net profit of RMB 195.2 million for the fiscal year 2024, an increase of 12.9% compared to RMB 172.8 million in 2023[10]. - Revenue from home care products was RMB 1,633.8 million, an increase of 11.0% from the previous year[13]. - Revenue from pet stores and pet products surged to RMB 127.2 million, marking a 64.5% increase year-over-year[13]. - Online sales generated RMB 670.9 million, reflecting a 22.1% growth compared to the previous year[13]. - The company's total assets as of December 31, 2024, amounted to RMB 3,801.7 million, a slight decrease from RMB 3,836.1 million in 2023[11]. - The equity attributable to owners of the company increased to RMB 2,990.9 million in 2024, up from RMB 2,927.4 million in 2023[11]. - The company's revenue increased by 12.7% from RMB 1,615.6 million in 2023 to RMB 1,820.1 million in 2024, driven by successful market opportunities and rapid sales channel development[20]. - Profit before tax increased by 11.6% from RMB 217.3 million in 2023 to RMB 242.5 million in 2024[37]. - Net profit increased by 13.0% from RMB 172.8 million in 2023 to RMB 195.2 million in 2024, maintaining a net profit margin of 10.7%[39]. Revenue Breakdown - Home care products generated RMB 1,633.8 million in revenue, an increase of 11.0% from RMB 1,471.9 million in 2023, accounting for 89.8% of total revenue[21][22]. - Pet store and pet product revenue surged by 64.5% to RMB 127.2 million in 2024, up from RMB 77.3 million in 2023, representing 7.0% of total revenue[22]. - Online sales revenue rose by 22.1% to RMB 670.9 million, making up 36.9% of total revenue, while offline sales increased by 7.8% to RMB 1,149.2 million, accounting for 63.1%[23][24]. Gross Profit and Margins - Gross profit increased by 24.5% from RMB 718.3 million in 2023 to RMB 894.3 million in 2024, with an overall gross margin improvement from 44.5% to 49.1%[25]. - For the year ended December 31, 2024, the gross profit for home care products was RMB 804.3 million, with a gross margin increase from 45.0% in 2023 to 49.2% in 2024[29]. - The gross profit for pet stores and pet products was RMB 69.5 million, with a gross margin increase from 43.2% in 2023 to 54.7% in 2024[29]. - The gross profit for personal care products was RMB 22.5 million, with a gross margin increase from 40.3% in 2023 to 42.2% in 2024[29]. - Online channel gross profit reached RMB 374.6 million, with a gross margin increase from 47.8% in 2023 to 55.8% in 2024[31]. - Offline channel gross profit was RMB 519.7 million, with a gross margin increase from 42.7% in 2023 to 45.2% in 2024[31]. Strategic Plans and Investments - The company plans to continue focusing on product innovation and market expansion to meet consumer demands[6]. - The company plans to expand its high-end natural home care product line and enhance distribution coverage for home cleaning products in 2025[16]. - The company aims to accelerate mergers and acquisitions in personal care, cosmetics, and pet industries to identify quality projects with stable cash flow and clear profit models[19]. - Continuous investment in technology research and development is planned to maintain industry-leading capabilities and introduce differentiated products[16]. - The company is investing $30 million in R&D for new technologies aimed at enhancing product efficiency[5]. - Market expansion plans include entering three new international markets by Q4 2024[6]. Cost Management and Expenses - The management emphasized effective cost management measures to ensure stable growth in revenue and profits[12]. - Selling and distribution expenses increased by 26.8% from RMB 425.0 million in 2023 to RMB 538.8 million in 2024[33]. - Other income decreased by 6.9% from RMB 123.5 million in 2023 to RMB 115.0 million in 2024, accounting for 6.3% of total revenue[32]. Shareholder Returns and Dividends - The company is committed to a stable high dividend policy to maximize shareholder returns[19]. - The company reported a final dividend of RMB 0.0682 per share, equivalent to HKD 0.0739, for the fiscal year ending December 31, 2024, compared to RMB 0.0640 per share for the previous year[83]. - The total dividend for the year amounts to RMB 0.1220 per share, with a payout ratio of approximately 80.0%[83]. Governance and Compliance - The company has established a strong governance structure with independent directors providing oversight and strategic guidance[66]. - The company has established an ESG committee to oversee its environmental, social, and governance management[80]. - The company has complied with the environmental, social, and governance reporting guidelines as per the stock exchange requirements[165]. - The company is committed to high standards of corporate governance and has adopted the corporate governance code as its own[168]. - The board consists of three independent non-executive directors, accounting for one-third of the total board members[176]. Risk Management - The company identified key risks including reliance on brand reputation, intense industry competition, and changing consumer preferences[78]. Human Resources and Management - The company is committed to improving its human resources management to support its growth strategy[71]. - The management team emphasized the importance of sustainability initiatives, aiming for a 50% reduction in carbon footprint by 2025[10]. - The company encourages continuous professional development for directors to update their knowledge and skills[178]. Related Party Transactions - Independent non-executive directors confirm that the ongoing related party transactions are conducted on normal commercial terms and are in the overall interest of the company's shareholders[146]. - The company has entered into a new property service framework agreement with major shareholders, with annual transaction caps of approximately RMB 11.4 million, RMB 11.7 million, and RMB 12.1 million for the years ending December 31, 2024, 2025, and 2026, respectively[136].

Financial Performance - Total revenue for 2024 was RMB 660,119,000, a decrease of 12.3% compared to RMB 752,818,000 in 2023[11] - Gross profit for 2024 was RMB 218,708,000, down 15.2% from RMB 257,895,000 in 2023[11] - The pre-tax loss for 2024 improved significantly to RMB (203,263,000), a reduction of 81.6% from RMB (1,103,139,000) in 2023[11] - The net loss for 2024 was RMB (194,019,000), an 82.4% improvement compared to RMB (1,100,596,000) in 2023[11] - Adjusted net loss for 2024 was RMB (86,116,000), down 49.4% from RMB (170,325,000) in 2023[11] - The group achieved revenue of approximately RMB 660.1 million for the year ending December 31, 2024, a year-on-year decrease of 12%[15] - Gross profit was RMB 218.7 million, reflecting a year-on-year decline of 15%[15] - The company reported an adjusted net loss of RMB 86.1 million for the fiscal year ending December 31, 2024[192] - Total revenue for the fiscal year ending December 31, 2024, was RMB 660.1 million, a decrease of 12.3% compared to RMB 752.8 million in the previous year[192] - Gross profit for the same period was RMB 218.7 million, down 15.2% year-over-year, with a gross margin of 33.1%[200] Market Performance - The contribution from Hong Kong and overseas markets increased to 75% of total revenue, up from 62% in the previous year[14] - Revenue in Vietnam increased by 43% year-on-year, driven by successful entry into the container transport market[20] - Revenue in India grew by 8% year-on-year, supported by strong demand from SMEs and corporate clients[21] - The group reported a 42% year-on-year decline in revenue from mainland China, although 62% of orders were fulfilled by new energy vehicles[22] - Revenue from Hong Kong and overseas markets grew, accounting for 74.8% of total revenue, up from 62.0% in 2023[183] Operational Strategy - The company aims to achieve profitability by optimizing resource allocation in the Chinese market while maintaining operational stability[14] - Operational efficiency improvements led to a double-digit reduction in costs, allowing for reinvestment in technology and service enhancements[23] - The company is focusing on sustainability and innovation, integrating AI solutions into operations to address workforce shortages and improve efficiency[24] - Future plans include the integration of autonomous vehicles, aiming to transform logistics into a seamless, efficient, and sustainable operation[25] - The company plans to focus on accelerating growth in high-potential overseas markets and optimizing its service product mix for 2025[191] Customer and Service Insights - The enterprise business segment contributed 66% of total revenue, solidifying its position as the main growth driver for the group[16] - Value-added services revenue grew by 23%, particularly in Hong Kong and overseas markets, indicating strong customer satisfaction and innovation efforts[16] - Revenue from platform services decreased by 27.0% to RMB 158.3 million, primarily due to reduced user incentives in mainland China, while Hong Kong and overseas markets saw a 9.9% increase in revenue[185] - The company completed approximately 1.5 million deliveries in its enterprise services segment, with a total transaction amount of RMB 439.9 million, reflecting a 5.8% year-over-year decline[186] - Revenue from value-added services decreased by 10.1% to RMB 66.2 million, mainly due to a slowdown in automotive promotions in mainland China[188] Shareholder and Governance Information - Major shareholders include 58 Tongcheng with 237,238,377 shares (37.73%) and Mr. Yao with 242,720,287 shares (38.61%), both holding significant stakes in the company[76][78] - The company has adopted a competitive compensation policy to attract and retain qualified personnel, including performance cash bonuses[65] - The independent non-executive directors confirmed their independence according to the listing rules, and the company considers them independent during the reporting period[58] - The company has implemented a directors' indemnity clause to protect directors against losses incurred in legal proceedings[157] - The company is committed to maintaining high standards of corporate governance, as detailed in the corporate governance report[160] Contractual and Legal Arrangements - The new contract arrangement was established on December 23, 2024, replacing the old contract arrangement, primarily due to a change in shareholders and the inclusion of two new consolidated entities[125] - The exclusive management service and business cooperation agreement allows the group to provide comprehensive management consulting, intellectual property licensing, technical support, and business support services[131] - The new contract arrangements are deemed fair and reasonable, benefiting the overall interests of the company and its shareholders[151] - The company has received approval from the stock exchange to exempt strict compliance with announcement and independent shareholder approval requirements for transactions under the new contract arrangements[152] - The maximum annual cap for fees payable to the foreign-invested enterprise under the new contract arrangements has been set, ensuring financial oversight[152]

Financial Performance - In FY2024, the company recorded revenue of RMB 584.0 million, representing an increase of approximately 35.8% compared to FY2023[15]. - The Group's total revenue for FY2024 was RMB584.0 million, representing an increase of approximately 35.8% compared to FY2023[31]. - The new retail business generated revenue of approximately RMB 269.8 million, reflecting an increase of approximately 12.5% from FY2023[38]. - The Group recorded a revenue of RMB 584.0 million for FY2024, representing an increase of approximately 35.8% compared to RMB 430.2 million in FY2023[56]. - Revenue from the IP creation and operation business reached RMB 314.3 million, an increase of approximately 65.1% from RMB 190.4 million in FY2023[36]. - The new retail business revenue amounted to RMB269.8 million in FY2024, representing a 12.5% increase from RMB239.8 million in FY2023[64]. - The flagship product, MODONG coffee, generated sales revenue of RMB152.0 million in FY2024, up from RMB139.8 million in FY2023, with a sales volume of approximately 1.8 million boxes[64]. IP Creation and Operation - Revenue from IP creation and operation reached RMB 314.3 million, reflecting a year-on-year growth of approximately 65.1%[15]. - The two business segments contributed approximately 53.8% from IP creation and operation and 46.2% from new retail business to the Group's revenue in FY2024[31]. - The airing of two major TV programmes generated revenue of RMB 167.6 million during FY2024[36]. - The Group generated revenue of RMB314.3 million from its IP creation and operation business in FY2024, a 65.0% increase from RMB190.4 million in FY2023, contributing approximately 53.8% of total revenue[61]. Market Expansion and Product Development - The Group plans to launch a new product line "Modong Magic" focusing on functional coffee that combines coffee with various nutrients[29]. - The Group plans to establish a new production line in Taiwan to produce MODONG coffee and other products targeting overseas and Taiwan markets[48]. - The Group is planning offline events, including a fitness carnival and concerts, to increase interaction between celebrities and fans[49]. - The Group plans to launch various new products with emotional value, including plush toys and household items[50]. Cost and Profitability - The Group recorded a cost of revenue of RMB257.0 million in FY2024, an increase of approximately 67.0% from RMB153.9 million in FY2023[68]. - Gross profit for FY2024 was RMB327.0 million, an 18.4% increase from RMB276.3 million in FY2023, with a gross profit margin decreasing to 56.0% from 64.2%[69]. - The Group recorded a profit of RMB50.2 million in FY2024, with a net profit margin of 8.6%, down from 9.6% in FY2023[74]. Management and Governance - The Group's leadership team includes professionals with extensive backgrounds in finance, legal, and cultural project management, enhancing its strategic capabilities[108][119]. - The Group is actively expanding its board with experienced independent directors to enhance governance and strategic oversight[126]. - The Group's board includes independent directors who provide critical oversight and strategic advice, ensuring robust governance[119]. - The company aims to expand its market presence and enhance its operational strategies through experienced management[113][116]. Employee and Operational Insights - Employee benefit expenses for FY2024 amounted to RMB 106.2 million, an increase from RMB 70.5 million in FY2023[180]. - As of December 31, 2024, the Group had 412 employees, up from 353 employees a year earlier[179]. - The Group emphasizes the importance of employees as valuable assets and invests in recruitment and training programs to enhance career development[164][170]. Financial Position and Liquidity - As of December 31, 2024, the Group had cash and cash equivalents of RMB296.5 million, significantly up from RMB145.8 million as of December 31, 2023[76]. - The current ratio of the Group was 3.7 times as of December 31, 2024, compared to 3.6 times in the previous year, indicating strong liquidity[81]. - The Group's outstanding bank borrowings decreased to RMB 5.0 million as of December 31, 2024, from RMB 10.0 million a year earlier, secured by certain properties[84]. Compliance and Environmental Policies - The Group has not faced any fines or penalties for non-compliance with environmental regulations during FY2024[160][166]. - The Group has complied with relevant laws and regulations in the PRC that significantly impact its business operations for FY2024[162][168]. - The Group's environmental policies aim to minimize its carbon footprint and promote sustainability[160][166].

Financial Performance - The group's revenue for the year ended December 31, 2024, was approximately HKD 216.2 million, down from HKD 305 million in 2023, representing a decrease of about 29.1%[5] - The group recorded a pre-tax loss of approximately HKD 231.7 million for the year, compared to a loss of HKD 168.9 million in 2023[5] - For the fiscal year ending December 31, 2024, the group's revenue was approximately HKD 216.2 million, a decrease from HKD 305 million in 2023, primarily due to a significant decline in property sales[17] - The group recorded a pre-tax loss of approximately HKD 231.7 million for 2024, compared to a loss of HKD 168.9 million in 2023, attributed to impairments in properties under development and other receivables[17] - The group recorded a net loss of approximately HKD 232,075,000 for the year ending December 31, 2024[34] - The group's total equity as of December 31, 2024, was a deficit of HKD 18,100,000, compared to an equity of HKD 87,900,000 as of December 31, 2023[26] - The group reported a net loss margin of 107.36% for the year ending December 31, 2024, compared to 67.02% in the previous year[51] - The return on equity for the group was -664.75% in 2024, significantly worse than -172.06% in 2023[51] - The current ratio decreased to 0.76 in 2024 from 1.20 in 2023, indicating a decline in liquidity[51] - The group has financial obligations due within the next twelve months amounting to approximately HKD 1,755,322,000, including bank loans of HKD 225,804,000 and other borrowings of HKD 64,217,000[83] Property Development - The property development segment generated revenue of approximately HKD 214.2 million, down from HKD 296.9 million in 2023, indicating a decline of about 27.8%[5] - The property development segment generated revenue of approximately HKD 214.2 million in 2024, down from HKD 296.9 million in 2023, with a loss of HKD 65.7 million compared to a loss of HKD 200,000 in the previous year[18] - The group has four ongoing development projects located in Zhuhai, Chengdu, Doumen, and Taishan[6][9] - The group has four ongoing development projects, including the German City project in Zhuhai, which has achieved sales of 59.10% of its available area as of December 31, 2024[18] - The group is focused on accelerating the pre-sale progress of its properties[10] - The group aims to accelerate the pre-sale progress of its properties to improve cash flow[20] - The group plans to accelerate the pre-sale of properties and expedite the delivery of completed properties to improve cash flow[34] - The group anticipates a more favorable real estate policy environment in 2025, which may boost property sales[35] Assets and Liabilities - The group had non-current assets totaling approximately HKD 1,741.2 million as of December 31, 2024, compared to HKD 1,820.3 million in 2023[10] - Current assets amounted to approximately HKD 1,337.2 million as of December 31, 2024, down from HKD 1,568.2 million in 2023[10] - Current liabilities were approximately HKD 1,755.3 million as of December 31, 2024, compared to HKD 1,303 million in 2023, reflecting an increase of about 35%[10] - The group's total liabilities increased, with current liabilities at approximately HKD 1.76 billion in 2024, up from HKD 1.30 billion in 2023[24] - As of December 31, 2024, the total interest-bearing borrowings of the group amounted to HKD 1,804,100,000, an increase from HKD 1,763,500,000 as of December 31, 2023[26] - The group had contingent liabilities of HKD 280,600,000 as of December 31, 2024, down from HKD 301,100,000 as of December 31, 2023[30] - The group has outstanding property development costs and land acquisition commitments of HKD 273,600,000 as of December 31, 2024, compared to HKD 221,000,000 as of December 31, 2023[29] Human Resources - The group employed a total of 90 staff as of December 31, 2024, down from 98 staff as of December 31, 2023[33] - The overall employee turnover rate for the year was 13%, with a new hire rate also at 13%[198] - The company employed a total of 90 staff members, with a gender ratio of approximately 1:1[197] - 92% of employees hold a university degree or higher, indicating a highly educated workforce[197] - The group has implemented a comprehensive human resources training and development plan to equip employees with necessary skills for current and future challenges[61] Corporate Governance - The company has three independent non-executive directors, all of whom are members of the audit committee[78] - The board of directors has no significant interests in any major transactions or contracts related to the group's business[76] - The company has established mechanisms to ensure a strong independent element within the board to maintain shareholder interests and enhance performance[108] - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors for the fiscal year 2024[99] - The board meets regularly to discuss overall strategy, operational and financial performance, and to review and approve annual and interim results[107] - The company has appropriate directors' and officers' liability insurance in place for legal proceedings against directors[111] - The independent non-executive directors are required to rotate at least once every three years, ensuring fresh perspectives on the board[103] - The company is committed to conducting annual assessments of the independence of its independent non-executive directors[110] - The board held a total of four meetings during the fiscal year ending December 31, 2024[112] - The audit committee conducted three meetings in the fiscal year 2024, exceeding the minimum requirement of two meetings[120] Environmental, Social, and Governance (ESG) - The group has maintained air pollutants and greenhouse gas emissions within the statutory limits set by the Environmental Protection Agency during the year[54] - The group operates a hotel in Guangdong, China, ensuring strict compliance with environmental performance management rules and regulations[54] - The group emphasizes energy-saving and optimal resource utilization in its operations[54] - The group has a climate change policy aimed at managing risks associated with extreme weather events throughout the year[54] - The company has implemented various measures to mitigate climate change risks, including a climate change policy[173] - The company is committed to integrating green building concepts throughout the project lifecycle to minimize ecological impact[184] - The company has identified five major sustainability issues: emissions and waste, energy efficiency, anti-corruption, product quality and safety, and employee engagement[172] - The company has implemented strict waste classification management to minimize environmental impact[192] - No significant legal or regulatory issues related to emissions or waste management were reported for 2024[185] Shareholder Communication - The company has adopted a shareholder communication policy to ensure timely and clear information dissemination to shareholders and potential investors[150] - The company emphasizes effective communication with shareholders, particularly through annual general meetings[161] - The company is open to shareholder feedback to improve its reporting and performance[167] - The company has a responsibility to disclose any resolutions and statements to shareholders in accordance with its articles of association[157] Future Outlook - The group is assessing plans and measures to improve its liquidity and financial performance[11] - The group aims to introduce new business opportunities to maximize shareholder value[35] - The company is expanding its reporting scope to include high-quality tourism assets in the Guangdong-Hong Kong-Macao Greater Bay Area[166] - The board is committed to integrating sustainable development into all business aspects and actively promoting low-carbon transformation[168] - The board regularly reviews the company's ESG performance to ensure responsible corporate practices and long-term value creation for stakeholders[168]

Financial Performance - The group's consolidated revenue for the fiscal year ending December 31, 2024, was approximately HKD 552.64 million, a decrease of 25% compared to HKD 740.01 million in 2023[34]. - The pre-tax profit for the fiscal year 2024 was approximately HKD 79.88 million, down 34% from HKD 121.50 million in 2023[34]. - The leasing business revenue decreased by 29% year-on-year, contributing approximately 78% to the total revenue in 2024, compared to 82% in 2023[35]. - The company achieved a categorized revenue of approximately HKD 430.40 million from leasing, HKD 89.57 million from property development and investment, and HKD 32.67 million from offshore tourism and hotel services in 2024[34]. - The consolidated gross profit and net interest income for 2024 were approximately HKD 204.95 million, with a consolidated profit before tax of about HKD 79.88 million, a decrease of approximately HKD 41.63 million[36]. - The leasing segment's revenue decreased by 29% year-on-year, with total revenue of HKD 430.40 million in 2024 compared to HKD 604.02 million in 2023[38]. - Interest income from the leasing segment was approximately HKD 321.01 million in 2024, a decrease of 28% from HKD 446.46 million in 2023[40]. - The average balance of leasing receivables decreased by 21% from HKD 9.01 billion in 2023 to HKD 7.10 billion in 2024[40]. - The total sales cost for the leasing segment was approximately HKD 283.02 million in 2024, a decrease of about HKD 79.91 million or 22%[43]. - The company plans to pay a final dividend of HKD 0.20 per share for the fiscal year 2024, subject to shareholder approval[36]. - The proposed final dividend for the year is HKD 0.20 per share, compared to HKD 0.34 per share in 2023, with a total expected payout of approximately HKD 11.93 million[162]. Business Strategy and Development - The company is focusing on the leasing business, which is expected to drive high-quality development and enhance industry influence[4]. - The company aims to explore innovative product combinations and service models to achieve its vision of becoming a leading financing leasing company[5]. - The company is focusing on sectors such as new energy, new infrastructure, and smart logistics, actively seeking collaboration opportunities in green energy industries[30]. - The company plans to strengthen its core leasing business while gradually exiting other business areas, ensuring compliance and risk management[32]. - The company aims to enhance its operational efficiency and competitiveness through the integration of artificial intelligence in its business processes[30]. - The company plans to enhance its financing structure by issuing asset-backed securities and diversifying funding sources[72]. - The company aims to focus on strategic emerging industries such as integrated circuits, biomedicine, and new energy for future growth[72]. - The company plans to continue expanding its leasing business into new industries to acquire new projects and clients, while managing credit risks associated with its leasing asset portfolio[172]. Sustainability and Innovation - The company has initiated a 12MW/24MWh energy storage project, expected to generate over 10 million kWh annually, marking its entry into the sustainable energy sector[7]. - The company is committed to sustainable development and innovation through a full-cycle management model in its projects[7]. - The company participated in the development of China's first ESG standards for the leasing industry, demonstrating its commitment to sustainable development[31]. - The group has implemented environmental management policies aimed at reducing negative environmental impacts, including energy conservation and waste reduction, as part of its sustainable development strategy[181]. Corporate Governance - The company has complied with all corporate governance codes as per the stock exchange regulations[99]. - The board of directors consists of five members, including four males and one female, achieving gender diversity[112]. - The company is actively seeking suitable candidates for the position of managing director to comply with corporate governance code C.2.1[105]. - The board has established a nomination committee to ensure a formal and transparent process for the appointment and succession of directors[109]. - The company has adopted a board diversity policy, considering various factors such as gender, age, and professional experience in director appointments[111]. - The board structure is deemed reasonable and balanced, providing sufficient checks and balances to protect the interests of the company and its shareholders[104]. - The company has established written guidelines for relevant employees regarding securities trading to prevent insider trading[135]. - The board of directors is responsible for corporate governance functions, including the establishment and review of governance policies and compliance with legal regulations[137]. Risk Management - The company implemented strict risk management policies to monitor lease receivables throughout the business cycle, ensuring robust credit risk management[57][59]. - The risk management department is led by an executive director and is responsible for internal audit functions and ongoing reviews of the group's risk management and internal control systems[142]. - The board conducted a comprehensive review of the risk management and internal control systems, finding no significant changes in the nature and extent of major risks faced by the group compared to the previous year[144]. Employee and Stakeholder Engagement - The company has established a supplier evaluation system to assess suppliers based on various criteria, including financial status and contract performance[183]. - The group is committed to providing training programs to ensure employees are updated on relevant laws and regulations[186]. - The company has taken reasonable measures to restrict access to confidential information to a limited number of employees[146]. - The board has reviewed the participation and communication of shareholders during the year and is committed to enhancing communication with shareholders and investors[153]. Market Performance and Future Outlook - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth[98]. - User data showed an increase in active users, reaching 5 million, which is a 20% increase compared to the previous year[99]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[98]. - New product launches are expected to contribute an additional $200 million in revenue over the next year[99]. - Market expansion plans include entering three new international markets by the end of the fiscal year[99]. - The company is considering strategic acquisitions to enhance its market position, with a budget of $100 million earmarked for potential deals[98].

Company Performance and Financials - For the year ended December 31, 2024, the Group's revenue amounted to approximately HK$558.1 million, an increase from HK$345.8 million in 2023, primarily driven by a HK$196.4 million increase in revenue from the renewable energy business[34]. - The renewable energy business contributed approximately HK$528.9 million in revenue for 2024, up from HK$332.5 million in 2023, with a total of 4 contracts on hand as of December 31, 2024[28]. - The e-commerce business generated approximately HK$27.8 million in revenue for 2024, compared to HK$12.0 million in 2023, reflecting significant growth in this segment[32]. - The gross profit margin increased from approximately 6.0% in 2023 to approximately 7.2% in 2024, attributed to a higher contribution from the e-commerce business[35]. - Selling and administrative expenses rose by approximately HK$19.5 million to approximately HK$57.1 million in 2024, compared to HK$37.6 million in 2023, mainly due to increased marketing services fees[41]. - As of December 31, 2024, the current ratio was 1.2, down from 1.5 in 2023, indicating a decrease in liquidity[44]. - The gearing ratio improved to 23.8% in 2024 from 37.3% in 2023, reflecting a reduction in total debt relative to equity[44]. - The net debt to equity ratio was (15.1)% in 2024, compared to (6.8)% in 2023, indicating a stronger equity position[44]. - The Group had a total contract sum yet to be recognized amounting to approximately RMB440.8 million as of December 31, 2024, up from RMB224.4 million in 2023[28]. Strategic Focus and Market Position - In 2024, the company achieved significant milestones, including expanding its project portfolio and enhancing operational efficiency[15]. - The company is committed to advancing renewable energy technologies and providing reliable power grid solutions, aligning its growth strategy with China's national vision for a greener future[16]. - The company aims to enhance profitability through rigorous cost-cutting initiatives, including streamlining operations and adopting innovative technologies[21]. - The company recognizes the robust demand and substantial earning potential in the renewable energy sector, committing to enhance its competitiveness in the evolving market landscape[21]. - The company is dedicated to meeting the growing demand for renewable energy infrastructure while contributing to China's energy transition goals[15]. - The company plans to create value for all stakeholders, including clients, partners, and communities, by aligning its strategies with national energy transition goals[16]. - The company is focused on navigating opportunities and challenges in the upcoming year, driving progress toward a cleaner and brighter future[17]. Governance and Management - The Board's primary role is to protect and enhance long-term shareholder value while overseeing management, business strategies, and financial performance[175]. - The company has established written guidelines for employees regarding securities dealings, with no incidents of non-compliance noted for the year ended December 31, 2024[174]. - The Board has been operating without a Chairman and CEO since the passing of Ms. Du Yi on August 12, 2023, and the resignation of Dr. Ho Chun Kit Gregory on April 25, 2023[183]. - The Board has become a single-gender board, resulting in non-compliance with Rule 13.92 of the Listing Rules, but has since appointed Ms. Liu Zhen as an Independent Non-Executive Director on February 28, 2025, achieving re-compliance[185]. - The roles of Chairman and CEO should be separate, and the division of responsibilities is clearly established[189]. - The executive Directors are responsible for encouraging full and active contributions from all Directors to the Board's affairs[196]. - Independent non-executive Directors hold at least one annual meeting among themselves to discuss significant issues without influence from executive Directors[197]. - The executive Directors ensure effective communication with shareholders and convey their views to the Board[198]. - The Board promotes a culture of openness and debate, facilitating effective contributions from non-executive Directors[199]. - All Directors have the right to propose board meetings to discuss important issues, ensuring adequate time for review of Board Papers[199]. - The Board encourages non-executive Directors to express their viewpoints during meetings[199]. - The remuneration committee consults with executive Directors regarding remuneration proposals for other executive Directors[200]. Shareholding and Capital Structure - As of December 31, 2024, Mr. Ding Ji holds 40,000,000 shares, representing 4.31% of the company's total shareholding[141]. - CT Vision Investment holds 479,160,000 shares, accounting for 51.63% of the company's total shareholding[145]. - Condover Assets Limited has a beneficial interest in 53,236,000 shares, which is 5.74% of the company's total shareholding[145]. - Dr. Ho Chun Kit Gregory has a beneficial ownership of 448,000 shares in CT Vision Investment, representing 22.4%[143]. - Mr. Wu Rui holds 156,000 shares in CT Vision Investment, which is 7.8%[143]. - As of December 31, 2024, Mr. Lee holds 53,236,000 shares, representing 5.74% of the company[146]. - Mr. Guo holds 60,000,000 shares, representing 6.47% of the company[146]. - Ms. Lin beneficially owns 44.80% of the issued share capital of CT Vision Investment, which is deemed to hold shares in the company[146]. Risk Management and Compliance - The annual report includes a business review detailing principal risks and future developments[89]. - The financial statements for the year ended December 31, 2024, are included in the annual report[86]. - The Group does not have a foreign currency hedging policy but will monitor its foreign currency exposure closely[51]. - The Group does not recommend the payment of a final dividend for the year ended December 31, 2024[99]. - The Company did not recommend the payment of a final dividend for the year ending December 31, 2024[105]. - The Company is not aware of any tax relief available to shareholders due to their shareholding[102]. - There were no significant contracts for management and administration of the Company's business other than service contracts with directors[101]. - The Company has not entered into any management contracts with external parties for substantial parts of its business[107]. - The movements in property, plant, and equipment during the year ended December 31, 2024, are detailed in the consolidated financial statements[110]. - The company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2024[151]. - The company has maintained the prescribed public float under the Listing Rules since its Listing Date[157]. - The company complied with all code provisions set out in the Corporate Governance Code during the year ended December 31, 2024[172]. - There were no material subsequent events after December 31, 2024, up to the date of the annual report[166]. - The financial statements for the year ended December 31, 2024, were audited by ZHONGHUI ANDA CPA Limited[167]. - The company did not participate in any pension schemes other than the mandatory provident fund during the year ended December 31, 2024[164].

Financial Performance - The company achieved revenue of RMB 484.3 million for the year ended December 31, 2024, a decrease of 10.8% compared to RMB 542.9 million in 2023[15]. - The total comprehensive income for 2024 was RMB 16.8 million, recovering from a total comprehensive loss of RMB 358.6 million in 2023[15]. - The revenue from the four health teas in 2024 was RMB 256.6 million, down 11.3% from RMB 289.4 million in 2023, primarily due to strategic adjustments and a reduction in settlement prices[89]. - The revenue from weight loss products in 2024 was RMB 148.0 million, a decrease of 8.5% from RMB 161.8 million in 2023, attributed to a decline in market share of the orlistat product[89]. - The gross profit margin for 2024 increased to 67.3%, up 3.5 percentage points from 63.8% in 2023, due to optimization of less competitive products and a decrease in procurement costs for weight loss products[90]. - The sales cost for 2024 was RMB 158.5 million, a decrease of 19.4% from RMB 196.7 million in 2023[90]. - The other income for 2024 was RMB 11.8 million, slightly up from RMB 11.0 million in 2023, mainly from interest income and government subsidies[91]. - In 2024, the company's sales and marketing expenses amounted to RMB 199.4 million, a decrease of 37.8% from RMB 320.7 million in 2023, representing 41.2% of total revenue[92]. - Employee benefits expenses in 2024 decreased by RMB 81.9 million compared to 2023, primarily due to strategic adjustments in the operating model and a reduction in sales personnel[93]. - Advertising expenses in 2024 decreased by RMB 41.2 million from 2023, mainly due to reduced advertising spending[94]. - Administrative expenses for 2024 were RMB 89.5 million, down 41.5% from RMB 153.1 million in 2023, accounting for 18.5% of total revenue[97]. - Research and development costs in 2024 were RMB 29.4 million, a decrease of 15.8% from RMB 34.9 million in 2023, representing 6.1% of total revenue[101]. - The company recorded a total comprehensive income of RMB 16.8 million in 2024, a significant improvement from a comprehensive loss of RMB 358.6 million in 2023[105]. - The net cash inflow from operating activities for continuing operations in 2024 was RMB 10.5 million, compared to a cash outflow of RMB 33.0 million in 2023[107]. - The net cash outflow from financing activities in 2024 was RMB 103.8 million, primarily due to dividend distributions to shareholders[107]. - The company's other net income in 2024 was RMB 6.4 million, up from RMB 0.7 million in 2023, including investment income of RMB 2.7 million[102]. - The share of profit from investments accounted for using the equity method was RMB 5.1 million in 2024, compared to RMB 1.0 million in 2023[103]. - As of December 31, 2024, the company's financial assets measured at fair value through profit or loss amounted to RMB 794 million, a decrease from RMB 901 million as of December 31, 2023[108]. - The company holds approximately RMB 698 million in receivables measured at amortized cost through the fund, along with restricted cash and cash equivalents of about RMB 135 million[109]. - The group's cash and cash equivalents, including bank balances and deposits, totaled RMB 1,478 million as of December 31, 2024, down from RMB 2,885 million a year earlier[110]. - The company's capital expenditures for 2024 were RMB 50 million, a decrease from RMB 68 million in 2023[114]. - The total inventory as of December 31, 2024, was RMB 264.11 million, an increase from RMB 235.69 million in 2023, with inventory turnover days reduced to 58 days from 123 days[116]. - The company's debt-to-asset ratio as of December 31, 2024, was 15.2%, down from 21.4% a year prior[121]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures in 2024[118]. - The company has no significant contingent liabilities or guarantees as of December 31, 2024[122]. - The company has not approved any major investments or capital asset purchases as of the report date[120]. Operational Efficiency and Strategy - The company implemented a partnership mechanism in September 2023, which was fully rolled out in 2024 across e-commerce and OTC business segments, enhancing operational efficiency[16]. - The company expanded its offline sales network to nearly 300,000 non-prescription drug stores across 31 provinces, regions, and municipalities in China by the end of 2024[6]. - The company operates 63 online stores across 18 e-commerce platforms, actively embracing new retail formats such as O2O and B2C[6]. - The company aims to continue innovating and providing high-quality health products and services, positioning itself as a leader in the health industry[7]. - The company faced multiple challenges in 2024, including external environmental changes and insufficient domestic demand, but management responded proactively to achieve satisfactory operational results[15]. - The company will enhance its partner mechanism starting September 2024, focusing on profit-oriented incentives to improve long-term market development awareness among partners[17]. - By 2025, the company aims to optimize its product and business layout while continuing to invest in R&D to drive product innovation and enhance consumer experience[17]. - The company plans to strengthen strategic partnerships with top 100 national chains and diversify marketing activities to improve inventory turnover rates[17]. - The company will focus on profitability in its e-commerce operations, aiming to reduce operational and logistics costs while exploring new business models[17]. - The company will implement a performance management system and enhance employee training to improve operational efficiency and product supply assurance[18]. - The company is committed to adapting to market changes by modernizing the Bishi Yuan brand through social media and content marketing strategies[17]. - The company will actively explore new e-commerce models such as O2O, B2C, live streaming, and interest-based e-commerce to meet changing consumer purchasing scenarios[17]. - The company has streamlined its agency product structure, significantly improving operational quality and sales performance in key product categories[40]. - The company successfully upgraded and transformed its health products, expanding their market for liver protection, sleep aid, and immune enhancement[62]. - The company applied for 2 invention patents and received 3 invention patents and 1 utility model patent, enhancing the technological content of its products[62]. - The company implemented strict quality control measures, combining manual and equipment monitoring to ensure product quality parameters are met[67]. - The BI system underwent comprehensive optimization and performance upgrades to enhance data security and provide precise real-time analysis[67]. - The company aims to enhance its online and offline operations by leveraging member resources and deepening cooperation with offline businesses[78]. - The company is expanding its presence on new retail platforms like Douyin and Kuaishou, aiming to increase market share and improve advertising efficiency[81]. - The company is committed to optimizing its product and channel strategies to strengthen brand influence and market position, particularly through content marketing and collaboration with media platforms[82]. Innovation and R&D - The company holds 25 health food approvals and 117 patents, including 21 invention patents, demonstrating its commitment to innovation[6]. - The R&D department published two academic articles in core journals by July 2024 to support the registration of new weight loss products[65]. - In 2024, the company accelerated the development of new health food products in response to new industry regulations, enhancing its innovation capabilities[61]. - The company aims to focus on "weight management" and "gastrointestinal health" while expanding its product categories to include OTC drugs, health foods, and regular foods[76]. - The company plans to optimize product structure and innovate marketing models to achieve high-quality development by 2025[76]. - The company is committed to modern production management and continuous improvement of production processes to ensure high-quality products[66]. Market Trends and Consumer Behavior - The company forecasts that the consumer health product industry in China is expected to reach $62.401 billion by 2025, with a growth rate exceeding 6%[32]. - In China, 62% of consumers prioritize health in their daily lives, significantly higher than the US (41%) and the UK (29%)[34]. - 74% of Chinese consumers indicated they would increase health-related spending if overall consumption levels decline[34]. - The global health and wellness food market is projected to grow by $627.6 billion from 2025 to 2029, with a CAGR of 9.8%[34]. - The company ranks among the top sellers in health food and weight loss categories on Tmall and JD platforms[39]. - The e-commerce business achieved its best operational results since inception by optimizing product structure and marketing strategies[41]. - During the Double Eleven sales event, the Pinduoduo platform saw daily sales exceed 50,000 units for the main product, Fibrous Tea[45]. - The flagship store's monthly sales increased from over RMB 800,000 in September-October to over RMB 1 million in November-December[45]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes a systematic approach to ESG management, with a top-down strategy involving the board for decision-making and risk assessment[144]. - The ESG report is prepared in accordance with the Hong Kong Stock Exchange's guidelines, ensuring compliance and transparency in environmental, social, and governance matters[140]. - The board reviews and approves the ESG report annually to ensure it accurately reflects significant ESG issues and their impact on sustainable development[145]. - The company has established effective communication with stakeholders to understand their needs and concerns regarding ESG factors[145]. - The management team is committed to collecting relevant ESG data and reporting on performance regularly to ensure accountability[144]. - The company has a dedicated ESG leadership team, led by the CEO, to oversee the management and effectiveness of ESG strategies[144]. - The report includes quantifiable data to reflect the company's performance in environmental and social indicators, adhering to the principle of materiality[142]. - The company emphasizes the importance of stakeholder engagement for sustainable development, utilizing various communication channels to gather feedback and expectations[146]. - Key environmental, social, and governance (ESG) issues identified include air pollutant and greenhouse gas emissions management, supply chain management, and employee treatment[153]. - The company has implemented a "lean production" plan to optimize production processes, upgrade equipment, and improve energy efficiency, contributing to sustainable business development[157]. - No significant violations of environmental laws and regulations were reported during the reporting period, ensuring compliance with relevant legislation[158]. - The company actively promotes environmental awareness among employees and adheres to environmental laws and regulations[157]. - Key performance indicators related to emissions include measures to reduce industrial waste gas and improve overall air quality[160]. - The company's nitrogen oxide emissions decreased from 112.67 kg in 2023 to 108.09 kg in 2024, representing a reduction of approximately 4.6%[161]. - The total greenhouse gas emissions (Scope 1) reduced from 356.37 tons CO2 equivalent in 2023 to 331.69 tons CO2 equivalent in 2024, a decrease of about 6.9%[163]. - The total greenhouse gas emissions (Scope 2) decreased from 1,331.90 tons CO2 equivalent in 2023 to 1,224.83 tons CO2 equivalent in 2024, reflecting a reduction of approximately 8.0%[163]. - The total hazardous waste emissions dropped significantly from 10.35 tons in 2023 to 5.84 tons in 2024, a decrease of about 43.5%[169]. - The total electricity consumption decreased from 1,493,900 kWh in 2023 to 1,365,900 kWh in 2024, representing a reduction of approximately 8.6%[176]. - The total natural gas consumption reduced from 60,252 m³ in 2023 to 57,802 m³ in 2024, a decrease of about 4.1%[176]. - The total fuel consumption decreased from 38,118 liters in 2023 to 30,000 liters in 2024, reflecting a reduction of approximately 21.4%[176]. - The density of hazardous waste emissions per million RMB revenue improved from 0.02 tons in 2023 to 0.01 tons in 2024, indicating enhanced efficiency[169]. - The company implemented measures to reduce waste generation and promote recycling, including encouraging employees to minimize food waste and adopt paperless practices[170]. - The company aims to enhance resource efficiency and reduce ecological footprint through its "4R" strategy: Replace, Reuse, Reduce, and Recycle[172]. - Water consumption decreased from 15,068 tons in 2023 to 8,329 tons in 2024, a reduction of approximately 44.3%[179]. - Water consumption density improved from 27.75 tons per million revenue in 2023 to 17.20 tons per million revenue in 2024, a decrease of approximately 38.2%[179]. - Packaging materials consumed increased from 585 tons in 2023 to 710 tons in 2024, an increase of approximately 21.4%[180]. - Packaging material density improved from 1.08 tons per million revenue in 2023 to 1.47 tons per million revenue in 2024, an increase of approximately 36.1%[180]. - The company achieved its environmental targets, including a 3% reduction in air emissions density and greenhouse gas emissions density compared to 2021[182]. - The company has implemented policies to reduce environmental impact, including compliance with Chinese environmental laws and monitoring air pollutants[184]. - The company is committed to energy conservation, aiming for a 2% reduction in electricity and natural gas consumption density by 2024 compared to 2021[182]. - The company has established flexible work arrangements and preventive measures to mitigate climate-related operational risks[189]. - The company regularly monitors climate-related trends and regulations to manage potential legal and reputational risks[190]. - The company has set a three-year target plan for environmental impact reduction, with specific goals for waste and resource management[181]. Employee Management and Training - As of December 31, 2024, the company had 128 employees in mainland China and Hong Kong, down from 179 employees as of December 31, 2023[127]. - Employee costs, including director remuneration, amounted to RMB 56.9 million for the year ending December 31, 2024, a decrease from RMB 210.9 million in 2023[127]. - The company emphasizes the recruitment, motivation, and retention of suitable talent, investing significantly in continuous education and training programs for employees[127]. - The company appointed Mr. Feng Bing as an independent non-executive director starting October 2023, who has over 31 years of corporate management and consulting experience[133]. - Mr. Zhao Yihong serves as the CEO of the group, with a background detailed in the board introduction[134]. - The group has a strong management team with extensive experience in various sectors, including pharmaceuticals and media, enhancing operational efficiency[136][137]. - The company provides competitive compensation, including basic salary, performance pay, and bonuses, linked to employee performance[194]. - The company has a standard working time of 7.5 hours per day and offers various types of leave, including annual leave and maternity leave[193]. - There were no fatalities or work-related injuries reported in the past three years, maintaining a 0% fatality rate[199]. - The company emphasizes a balanced work-life environment and adheres to relevant labor laws and regulations[193]. - All employees receive an employee handbook detailing employment terms, compensation, and policies[196]. - The company has implemented a recruitment management system to ensure fair hiring practices[196]. - Regular internal safety training is conducted to enhance employee awareness of occupational safety[198]. - The company encourages employee participation in training programs to improve skills and career development[199]. - Percentage of trained employees: Male 69.62%, Female 30.38%[200]. - Percentage of trained employees by type: Senior Management 7.59%, Middle Management 12.66%, Junior Employees 79.75%[200]. - Average training hours per employee: Male 232 hours, Female 166 hours[200]. - Average training hours by employee type: Senior Management 300 hours, Middle Management 98 hours, Junior Employees 76 hours[200].

Economic Growth and Trends - The global economy is experiencing moderate growth and slow recovery, with increased risks and fluctuations impacting growth prospects [18]. - In Q2 2023, the real GDP of the USA grew by 2.8% on an annualized basis, while the eurozone maintained low growth, with economies like Germany and Sweden contracting [21]. - The high debt situation in many countries poses a threat to sustainable economic development, with about two-thirds of global debt originating from developed markets [25]. - The USA's federal government debt has expanded significantly, with national debt interest expenditure expected to exceed military expenditure for the first time this year [25]. - Emerging markets and developing economies are predicted to experience a slowdown in short-term growth but still possess future growth momentum [23]. - The International Monetary Fund (IMF) notes a slow recovery trend in the world economy, but the imbalance has worsened [18]. - The economic community anticipates stable growth in the world economy over the next three years, although the growth rate remains weak [24]. - Japan's real GDP grew in Q2 2023, but the government's full-year economic forecast faces risks due to differing monetary policies with the USA [22]. - The super election year may introduce uncertainties in economic policies across many countries, negatively affecting regional and global economic trends [25]. - The economic growth rate in developed economies, particularly in Europe, is lagging behind the U.S., with the Eurozone showing low growth trends [26]. Retail Industry Dynamics - The retail industry is expected to face pressures of slowing growth, high operating costs, and narrowing profit margins by 2025, leading to increased market consolidation [30]. - The added value of high-tech manufacturing industries has continued to drive industrial transformation and upgrading in China [29]. - The retail market in China is anticipated to consolidate into large operators to enhance marketing power and competitive strength [30]. - The Group aims to integrate resources and develop a retail chain business to enhance brand image and market competitiveness [34]. - Digital transformation has become a core strategy in the retail industry, especially in the post-pandemic era, with online retail experiencing rapid growth [66]. - Traditional retail is transitioning to a new model of "online and offline integration," reflecting changing consumer shopping habits [66]. - E-commerce platforms are innovating by providing personalized recommendations and precise services through big data analysis and artificial intelligence technology [66]. - The application of intelligent and automated technologies, such as smart shelves and unmanned retail stores, is changing the operating model of the retail industry [66]. - Retailers face challenges in balancing technology investment and profitability due to high costs and competition [69]. - The rise of social e-commerce and live streaming has significantly impacted consumer purchasing behavior, especially among Generation Z and Millennials [68]. - Retailers are increasingly pressured by logistics costs, labor costs, and rising rents, affecting profit margins [69]. - The transformation of shopping malls is creating more investment opportunities as businesses adapt to online sales trends [75]. Financial Performance and Management - The Group's revenue for the year ended December 31, 2024, was approximately RMB378.9 million, representing a 7.0% increase from RMB354.0 million in 2023 [106]. - Sales of goods increased by 4.4% to RMB175.6 million for the year ended December 31, 2024, compared to RMB168.2 million in the corresponding period of 2023 [107]. - Commission from concessionaire sales dropped by 29.0% to RMB10.3 million for the year ended December 31, 2024, from RMB14.5 million in 2023 [108]. - Rental income from sub-leasing of shopping malls increased by approximately RMB24.6 million, contributing to the overall revenue growth [106]. - The Group aims to enhance sales turnover and avoid unnecessary costs through operational management and innovation [100]. - The Group's strategy includes consolidating existing stores and upgrading brand names to improve the shopping experience [100]. - The percentage of sales of goods to total revenue was 46.3% for the year ended December 31, 2024, down from 47.5% in 2023 [107]. - The Group is confident in its future prospects, aiming to become one of the major operators in the retail industry in China [103]. - The macroeconomic conditions and rapid growth in information technology are expected to significantly impact the retail industry [103]. - The Group's financial costs from bank loans decreased to approximately RMB 6.4 million in 2024 from RMB 6.5 million in 2023 [134]. Corporate Governance and Management Team - The Group has a strong management team with extensive experience across various sectors, including retail, finance, and real estate [39][40][41][42][43][47][48][49]. - The Board consists of eight Directors, including three executive Directors, one Non-executive Director, and four Independent Non-executive Directors [181]. - Each executive Director has a service term of three years, while Non-executive and Independent Non-executive Directors serve for two years [182]. - The Board is responsible for formulating overall strategies, monitoring financial performance, and managing risk exposures [182]. - The Company has received confirmation letters from each Independent Non-executive Director regarding their independence [183]. - The Company has arranged appropriate insurance coverage for Directors and officers against legal actions [185]. - The Board regularly reviews corporate governance policies and compliance with legal and regulatory requirements [187]. - Independent views and inputs are ensured through mechanisms developed by the Board, which are reviewed annually [194]. - The Nomination Committee has reviewed the board composition and is satisfied with the independence of the Board [193]. - The Chairman promotes a culture of openness and constructive relations between Independent Non-executive Directors and other Directors [192]. Retail Expansion and New Initiatives - A new franchised supermarket is planned to open in Bantian District, covering an area of approximately 4,100 square meters with a 15-year lease [92]. - The Jiayanghui Shajing Shopping Mall opened in July 2023, with a total commercial area of over 50,000 square meters and nearly 100% occupancy at launch [94]. - The mall features over 140 brands, including more than 20 new brands, and includes the first Dolby Sound IMAX theater in Shajing [94]. - The Group aims to enhance customer loyalty by developing subscribed members and exploring wholesale membership options [93]. - The Group plans to differentiate Jiayanghui from competitors by expanding children's playgrounds and cross-industry resources [95]. - The Group is aware of the competitive landscape, with 25 new commercial retail entities expected to enter the Shenzhen market in 2024 [95]. - The Group will focus on marketing dynamics and publicity coverage to stabilize Jiayanghui's market position [95].