Financial Performance - For the fiscal year 2024, the company's revenue from continuing operations decreased by approximately 16.9% to about HKD 44.7 million, down from approximately HKD 53.8 million in fiscal year 2023[15]. - The gross profit for fiscal year 2024 was approximately HKD 15.8 million, an increase of about HKD 1.8 million from HKD 14.0 million in fiscal year 2023, resulting in a gross margin increase from 26.0% to 35.3%[16]. - The company's loss attributable to equity shareholders for the fiscal year 2024 was approximately HKD 1.9 million, a decrease of about 62.0% compared to HKD 5.0 million in fiscal year 2023[20]. - The total employee cost for the fiscal year 2024 was approximately HKD 17.0 million, up from HKD 16.1 million in fiscal year 2023[39]. - The company reported that sales to its top five customers accounted for 56.17% of total sales for the fiscal year 2024, with the largest customer contributing 20.68%[194]. - Purchases from the top five suppliers represented 73.26% of total procurement for the fiscal year 2024, with the largest supplier accounting for 43.56%[194]. Expenses and Cost Management - Sales and distribution expenses for fiscal year 2024 were approximately HKD 3.2 million, a slight decrease from HKD 3.3 million in fiscal year 2023[17]. - Administrative expenses for fiscal year 2024 were approximately HKD 15.1 million, down by about HKD 2.9 million from HKD 18.0 million in fiscal year 2023[18]. - The audit fees for the fiscal year 2024 amounted to HKD 530,000 for audit services provided by the accounting firm[71]. Market and Strategic Outlook - The company remains cautiously optimistic about its operations, anticipating potential benefits from the macroeconomic recovery despite a challenging global economic environment[9]. - The company plans to maintain a flexible and targeted sales and marketing strategy to provide diversified and customized products and services, aiming to strengthen its market position[10]. - The company will continue to seek potential investment opportunities in mainland China, Hong Kong, and overseas to enrich its business and create new revenue sources[10]. - The metal casting business revenue decreased by approximately 16.9% due to the impact of interest rate hikes and inflation, despite an increase in average selling prices[14]. - The company’s largest market remains Germany, with customers also from mainland China and the United States[14]. Governance and Compliance - The board of directors consists of two executive directors and three independent non-executive directors, with a total of nine meetings held in the fiscal year 2024[49]. - The audit committee held three meetings in the fiscal year 2024, with all members attending the meetings, ensuring oversight of financial reporting and internal controls[57]. - The remuneration committee also held three meetings in the fiscal year 2024, reviewing the compensation policies for all directors and senior management[60]. - The company has adopted anti-corruption and whistleblowing policies to promote integrity and ethical conduct within the organization[46]. - The board has established three committees: the audit committee, remuneration committee, and nomination committee, to oversee specific aspects of the company's affairs[55]. - The company has a clear distinction between the roles of the chairman and the CEO, ensuring effective leadership and management oversight[54]. - Independent non-executive directors constitute more than one-third of the board, ensuring compliance with GEM listing rules regarding independence[53]. - The company has arranged appropriate insurance coverage for directors and senior management against legal actions arising from corporate activities[47]. - The board is committed to corporate governance and has established a framework to ensure accountability and transparency in its operations[46]. - The board has adopted a diversity policy aiming for at least one-third of board members to be female, achieving this goal as of December 31, 2024, with three female directors[65]. Risk Management - The group faces various market risks, including currency, interest rate, credit, and liquidity risks, which may impact its business and profitability[29]. - The company maintains a prudent treasury policy to manage liquidity risks and ensure sufficient cash flow[31]. - The company has implemented a three-tier risk management approach to identify, assess, and manage significant risks, with the board reviewing the effectiveness of the internal control system annually[73]. - The board confirmed that there are no significant uncertainties affecting the company's ability to continue as a going concern[69]. Sustainability and ESG Initiatives - The company is committed to integrating sustainable development principles into its strategic planning and daily operations, focusing on environmental, social, and governance (ESG) performance[91]. - The group has committed to sustainable development and will launch multiple environmental protection and social welfare initiatives during the reporting period from January 1, 2024, to December 31, 2024[99]. - The board is responsible for integrating environmental, social, and governance (ESG) principles into business operations and has established a risk management system to ensure data accuracy and reliability[100]. - The group identified key ESG issues through stakeholder engagement and importance assessments, focusing on emissions, resource usage, and climate change as high-priority areas[104]. - The group maintains effective communication channels with stakeholders, including shareholders, employees, customers, suppliers, government, and the public, to gather feedback and enhance sustainable development strategies[102]. - The group adheres to the "comply or explain" disclosure requirements of the ESG reporting guidelines, ensuring transparency and accountability in its operations[92]. - The group emphasizes the importance of stakeholder opinions in shaping and implementing sustainable development strategies, enhancing its ESG performance[98]. - The group has established a consistent approach to reporting key performance indicators, allowing for meaningful comparisons with previous reports[93]. - The group recognizes the significance of environmental and social issues for long-term growth and is committed to creating sustainable value for stakeholders[99]. - The group has conducted an annual importance assessment to identify significant ESG topics relevant to its operations, ensuring alignment with stakeholder expectations[104]. - The group is focused on enhancing its environmental and social performance through strategic planning and resource allocation based on identified ESG issues[104]. - The company aims to reduce energy consumption, greenhouse gas emissions, and water resources by 5% by 2030 based on 2024 levels[105]. - Direct greenhouse gas emissions for 2024 are projected to be 3.63 tons of CO2 equivalent, with an employee density of 0.04 tons[106]. - Total greenhouse gas emissions for 2024 are expected to reach 3,766.36 tons of CO2 equivalent, with a density of 84.20 tons per million HKD revenue[106]. - The company consumed approximately 54.82 tons of packaging materials during the reporting period[111]. - The company has implemented waste management strategies to reduce both hazardous and non-hazardous waste by 5% by 2030 based on 2024 levels[110]. - Energy consumption for 2024 is projected to be 5.31 MWh, with a density of 0.01 MWh per ton of production[108]. - Water usage for 2024 is estimated at 11,472 cubic meters, with a density of 86.26 cubic meters per employee[108]. Employee and Community Engagement - The total number of employees as of December 31, 2024, is 95, with a gender distribution of 81.1% male and 18.9% female[118]. - Employee turnover rate for females is 38.9%, while for males it is 5.2%[119]. - The average training time per employee is 25 hours, with 100% of employees trained[127]. - The number of work-related injuries decreased from 11 in 2023 to 9 in 2024[124]. - There were no work-related fatalities reported in 2024, maintaining a record from 2023[124]. - The company actively supports community development through cash donations during the reporting period[136]. - The company encourages employees to participate in volunteer activities and contribute to community sustainability[135]. Compliance and Legal Matters - The company has zero tolerance for child labor and forced labor, with no violations reported during the reporting period[128]. - The company has established a comprehensive safety protocol to ensure a safe working environment[120]. - The company strictly adheres to local labor laws and has no reported violations in the 2024 fiscal year[115]. - There were no significant violations of data privacy laws reported during the period[132]. - The company has not faced any significant penalties related to labor laws or safety regulations[123]. Shareholder and Financial Reporting - The company aims to provide high levels of disclosure and financial transparency to shareholders and investors, with regular updates through interim and annual reports[79]. - The company has no predetermined dividend payout ratio, and the board considers various factors, including financial performance and cash requirements, when determining dividend payments[81]. - The company reported no dividends for the fiscal year 2024, consistent with the previous fiscal year 2023[156]. - The company has not repurchased any shares during the fiscal year 2024[161]. - There were no stock options granted under the stock option plan since its adoption until the date of this report[174]. - The company’s financial performance for the fiscal year 2024 is detailed in the consolidated income statement and other comprehensive income section of the annual report[155]. - The company’s capital structure changes are detailed in the consolidated financial statements[158]. - The company’s available reserves for distribution as of December 31, 2024, are outlined in the consolidated financial statements[157]. Auditor and Financial Oversight - The company's auditor for the fiscal year 2024 is SFAI (HK) CPA Limited, previously known as Yongtuo Fuson CPA Limited[200]. - The auditor has been in place since July 8, 2022, filling a temporary vacancy after the resignation of another firm[200]. - The annual general meeting will see the current auditor retire, but they are qualified and willing to be reappointed[200].

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 10,973.9 million, representing a year-over-year increase of 10.3%[10]. - Net profit for the same period was RMB 1,311.9 million, with a net profit margin of 12.0%, up from 10.4% in the previous year[10][15]. - Gross profit margin slightly decreased to 21.2% from 21.3% year-over-year[15]. - Total assets increased to RMB 11,024.7 million, compared to RMB 10,602.4 million in 2023[13]. - The company's equity attributable to shareholders rose to RMB 6,543.5 million, reflecting a significant increase of 20.4% year-over-year[17]. - Basic earnings per share for the year was RMB 2.06, up from RMB 1.62 in 2023, marking a 26.9% increase[10][17]. - EBITDA for 2024 was RMB 1.99 billion, an increase of 16.4% year-on-year, while net profit attributable to shareholders was RMB 1.31 billion, up 26.9% year-on-year, resulting in a basic earnings per share of RMB 2.06, a growth of 27.2%[28]. - The total revenue for 2024 reached RMB 10,974 million (+10.3%), with a gross profit of RMB 2,330 million (+9.8%) and a net profit attributable to the owners of the company of RMB 1,312 million (+26.9%)[41]. - Revenue from sales to distributors increased from approximately RMB 8,707.3 million in 2023 to approximately RMB 9,862.3 million in 2024, representing a growth of about 13.3%[100]. - Revenue from sales to automobile manufacturers rose from approximately RMB 1,020.3 million in 2023 to approximately RMB 1,107.7 million in 2024, an increase of 10.7%[100]. Market Expansion and Strategy - The company maintains a global operational strategy with manufacturing bases in China and Thailand, and sales centers in China, North America, and Europe[19][20]. - The company plans to establish a second overseas tire production base in Malaysia, with a total investment of approximately USD 380 million, aiming for an annual production capacity of 6 million semi-steel tires and 600,000 all-steel tires, expected to generate an annual output value of USD 270 million upon reaching full capacity[31]. - The company is launching an off-the-road (OTR) tire project in Shandong Province, with a total investment of approximately RMB 1.17 billion, targeting an annual production capacity of 840,000 high-performance engineering tires and 10,000 giant engineering tires, projected to achieve an annual output value of RMB 1 billion upon reaching design capacity[31]. - The company aims to enhance its global capacity layout and strengthen sales and R&D as core drivers, leveraging market insights to drive innovation and improve customer experience[30]. - The company expanded its international marketing channels, adding 7 new sovereign markets and developing 66 new customers, resulting in a 22% year-on-year increase in sales to existing customers[52]. - The company is actively pursuing mergers and acquisitions to strengthen its market position and drive growth[161]. Product Development and Innovation - The company has established two R&D centers in Qingdao and Rongcheng to enhance product development capabilities[20]. - The company offers a comprehensive range of products including all-steel radial tires, semi-steel radial tires, and bias tires, catering to various vehicle types[21]. - The company achieved significant technological breakthroughs in product development, with two projects awarded the second prize in the Shandong Province Rubber Industry Science and Technology Award, and six projects recognized as meeting international advanced or domestic leading standards[29]. - The company’s high-end brand PRINX launched a new truck tire product "Fuel-saving • Smart Travel" S01, which meets EU label grade A standards for rolling resistance, resulting in an 8.28% reduction in fuel consumption compared to conventional products[29]. - The company launched multiple new products, including the "Fuel-saving Smart Travel" series and the new ice and snow tires, enhancing market competitiveness[60]. - The company has developed new tire products, including a new generation of all-season and winter tires, enhancing its product lineup[71]. - The company launched several all-steel tire products, such as the S10/S15 and D20/D25 series, incorporating advanced technologies for high durability and low rolling resistance[83]. Operational Efficiency and Management - The company completed 139 Lean Six Sigma projects in 2024, with 3,775 rationalization suggestions implemented[44]. - The company is enhancing its supply chain through automation and digitalization, utilizing big data for precise market demand forecasting[45]. - The company achieved significant advancements in smart manufacturing and information technology, optimizing production efficiency and reducing inventory costs through projects like APS and MPS[78]. - The company received the CSUA Golden Dragon Award for its digital transformation project focused on cost analysis, marking a key step in its digitalization efforts[79]. - The company is focused on enhancing organizational management and corporate culture to improve operational efficiency and team cohesion[74]. - The group implemented a performance management system with a coverage rate of over 90% for 124 positions across five major sequences, enhancing employee capability evaluation[149]. Sustainability and Compliance - The company has joined the UN Global Compact in September 2024, emphasizing its commitment to sustainable development[89]. - The company invested RMB 12.5 million in 2024 for the upgrade of waste gas treatment facilities, further reducing VOC emissions[89]. - The introduction of a green supply chain system aims to promote sustainable practices among suppliers, focusing on environmental protection and social responsibility[46]. - The company is actively managing climate change risks, including developing emergency plans for natural disasters and ensuring stable supply of raw materials[139]. - The company is committed to complying with various legal and regulatory requirements that significantly impact its operations, including environmental protection and foreign investment laws[140]. Human Resources and Talent Development - As of December 31, 2024, the group had a total of 6,818 employees, an increase from 6,532 employees as of December 31, 2023[146]. - Employee benefits expenditure for the year ended December 31, 2024, was approximately RMB 746.7 million, compared to approximately RMB 725.5 million for the year ended December 31, 2023[146]. - The group launched a digital learning platform to facilitate knowledge sharing and improve employee training, adapting to the demands of the digital age[147]. - The group has a strong focus on talent development, with ongoing initiatives to strengthen the professional talent pool and ensure sustainable corporate growth[149]. - The company aims to attract and retain key management personnel through the share option plan, aligning their interests with the company's performance[184]. Leadership and Governance - Mr. Jiang Xizhou appointed as Executive President starting December 30, 2024, with extensive experience in tire production and management[158]. - Mr. Che Hongzhi, the founder, serves as the Chairman of the Board and has over 20 years of experience in the tire production industry[159]. - The management team includes professionals with diverse backgrounds in finance, law, and corporate governance, ensuring comprehensive oversight[164]. - The board is committed to providing strategic guidance and professional advice to navigate market challenges[159]. - The company emphasizes the importance of compliance and governance, with independent directors overseeing key committees[165].

Financial Performance - The company's operating revenue for the first quarter reached CNY 4,781,525,555.03, representing a year-on-year increase of 37.66% compared to CNY 3,473,393,457.30[7] - Net profit attributable to shareholders decreased by 2.88% to CNY 1,210,866,236.48 from CNY 1,246,836,155.30 in the same period last year[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 0.63% to CNY 1,194,521,061.85[7] - Basic and diluted earnings per share both decreased by 2.88% to CNY 0.2404[7] - The company reported an operating profit of approximately RMB 1,586,211 thousand for the period, a decrease of 4.02% year-on-year[28] - Net profit attributable to shareholders was approximately RMB 1,210,866 thousand, with earnings per share of RMB 0.2404, down 2.88% year-on-year[28] - Total comprehensive income for Q1 2025 was ¥1,080,176,529.13, down from ¥1,987,076,378.89 in Q1 2024, indicating a decrease of approximately 45.5%[39] Revenue Breakdown - The increase in operating revenue was primarily driven by increased investment in road and bridge projects, while excluding construction revenue, the operating revenue decreased by 0.72%[13] - The toll road business generated revenue of approximately RMB 2,326,727 thousand, with a year-on-year growth of about 2.25%[21] - The construction period revenue amounted to approximately RMB 1,797,290 thousand, reflecting a significant year-on-year increase of about 284.55%[22] - The revenue from the power sales decreased by approximately 17.23%, totaling RMB 171,711 thousand, primarily due to weather-related factors[22] - The real estate business reported operating revenue of approximately RMB 18,040 thousand, down about 76.02% year-on-year, as the company actively reduced its real estate operations[22] - The revenue from ancillary businesses was approximately RMB 420,638 thousand, showing a year-on-year increase of about 1.15%[21] - The company's revenue from other businesses increased by approximately 47.45%, totaling RMB 47,119 thousand, mainly due to increased income from hotel rooms and other sources[22] Cash Flow and Investments - The net cash flow from operating activities was CNY 1,713,194,681.50, up 4.48% from CNY 1,639,672,583.68[7] - Cash flow from operating activities for Q1 2025 was ¥1,713,194,681.50, an increase from ¥1,639,672,583.68 in Q1 2024, showing a growth of about 4.5%[42] - Cash inflow from investment activities in Q1 2025 was ¥2,537,947,833.25, down from ¥6,046,644,637.68 in Q1 2024, indicating a decrease of approximately 58.1%[42] - Cash outflow from investment activities totaled approximately $5.33 billion in Q1 2025, down from $8.28 billion in Q1 2024, reflecting a reduction in investment spending[43] - The company received approximately $212.47 million from minority shareholders in Q1 2025, reflecting ongoing investment interest from minority stakeholders[43] Assets and Liabilities - Total assets at the end of the reporting period were CNY 91,484,769,001.36, an increase of 1.78% from CNY 89,886,075,247.13 at the end of the previous year[9] - Total liabilities as of March 31, 2025, were CNY 40,518,979,419.41, slightly higher than CNY 40,152,087,126.76 reported on December 31, 2024, representing an increase of approximately 0.91%[35] - The total non-current liabilities rose to CNY 26,761,864,647.64, compared to CNY 23,965,580,035.62, reflecting an increase of approximately 11.83%[35] - The company's cash and cash equivalents decreased to CNY 727,739,684.05 from CNY 864,469,970.43, a decline of about 15.77%[33] - The company's inventory stood at CNY 1,974,050,589.08, slightly down from CNY 1,999,541,489.81, indicating a decrease of about 1.29%[33] Shareholder Information - The company had a total of 27,697 shareholders, with 27,332 A-share shareholders and 365 H-share shareholders[19] - Jiangsu Transportation Holding Co., Ltd. holds the largest share with 54.44% of the total shares[16] - The company’s stock structure includes significant foreign institutional investors such as BlackRock, Inc. and JPMorgan Chase & Co.[16] Future Outlook and Projects - The completion of the Ningyang Yangtze River Bridge in January 2025 is expected to enhance the company's market share and operational management capabilities in the region[29] - The company anticipates the completion of the northern connection project of the Ningyang Yangtze River Bridge by the end of 2025, with cumulative investment reaching RMB 4.217 billion[29] Operational Metrics - The average daily traffic for the company's toll bridges was 73,558 vehicles, a slight decrease of 0.56% year-on-year[23] - The daily average income from tolls was RMB 14,897.34 thousand, an increase of 9.58% year-on-year[23] - The Jiangsu Ninghu Expressway Company experienced a significant drop in traffic, with passenger vehicle traffic down 54.81% year-on-year[24] - The company noted that the number of days with waived tolls for small passenger vehicles during major holidays was 8 days, compared to 9 days in the same period last year[26] Accounting and Reporting Changes - The company has implemented new accounting standards starting in 2025, which may affect financial reporting and analysis going forward[44]

Financial Performance - Total operating revenue for 2024 reached ¥11,904,370,911.94, a 3.21% increase compared to ¥11,533,786,779.44 in 2023[16] - Net profit attributable to shareholders decreased by 7.52% to ¥922,023,211.45 from ¥997,022,699.99 in the previous year[16] - The net cash flow from operating activities increased by 15.13% to ¥1,216,115,552.21 compared to ¥1,056,261,600.78 in 2023[16] - Basic earnings per share for 2024 was ¥0.8206, down 7.52% from ¥0.8873 in 2023[18] - Total assets grew by 6.33% to ¥14,691,335,709.97 from ¥13,817,261,971.79 in 2023[16] - The company reported a quarterly net profit of ¥599,396,148.31 in Q1 2024, with a significant drop to -¥178,879,297.75 in Q4 2024[20] - Non-recurring gains and losses totaled ¥55,146,131.09 in 2024, compared to ¥71,137,510.83 in 2023[22] - The weighted average return on equity decreased to 13.22% in 2024 from 15.76% in 2023, a decline of 2.54 percentage points[18] - The total liabilities increased to ¥6,913,064,048.45 in 2024 from ¥6,597,932,308.41 in 2023[29] - The company's net assets attributable to shareholders rose by 8.43% to ¥7,255,707,334.12 in 2024 from ¥6,691,690,666.55 in 2023[16] Dividend and Profit Distribution - The company plans to distribute a cash dividend of RMB 2.995 per 10 shares, totaling RMB 336.53 million, based on a total share capital of 1,123,645,275 shares as of December 31, 2024[4] - The cumulative cash dividend over the last three accounting years amounts to RMB 94,903 million, with a cash dividend ratio of 109.50% based on the average net profit during the same period[164] - The company maintains a profit distribution policy that ensures at least 25% of the distributable profits are distributed in cash annually, subject to business needs and major investment plans[189] Audit and Compliance - The company has received a standard unqualified audit report from the accounting firm Xin Yong Zhong He[5] - The company has maintained the accuracy and completeness of its annual report, with no significant omissions or misleading statements[5] - The company is committed to ensuring the authenticity of its financial reports, as stated by its responsible personnel[5] - The company strictly adheres to domestic and international regulatory requirements for information disclosure, ensuring that disclosures are truthful, accurate, complete, and timely[114] - The company's board of directors has reviewed compliance with governance codes and has executed its governance responsibilities during the fiscal year[191] Risk Management - The company emphasizes the importance of risk analysis in its management discussion and analysis section of the annual report[4] - The company has established a clear management structure for risk management and internal control, aimed at achieving business objectives and protecting assets[187] - The board of directors has confirmed the effectiveness of the risk management and internal control systems, ensuring compliance with relevant laws and regulations[187] Market and Product Development - The company sold 743,000 large and medium-sized tractors in 2024, an increase of 2.73% year-on-year, maintaining its leading position in the industry[35] - The company exported 7,100 tractors in 2024, reflecting a year-on-year growth of 8.23% despite challenges from geopolitical factors and trade policy changes[36] - The company completed the development of new products for 30-50 horsepower hillside tractors, marking the first batch market application of such tractors in China[34] - The company is focusing on technological innovation and has made substantial progress in developing high-end agricultural machinery, including 320-horsepower tractors[34] - The company is actively expanding its overseas market presence, leveraging international engineering resources to enhance its product offerings[36] Research and Development - The company focuses on self-research for product development, with strategic planning and market demand projects managed by its R&D center and subsidiaries[47] - Research and development expenses increased by 11.93% to CNY 516,377,794.17 from CNY 461,344,381.32 year-on-year, reflecting increased investment in R&D projects[56] - Total R&D expenses amounted to RMB 516,377,794.17, representing 4.34% of operating revenue, with no capitalized R&D expenditures[79] Governance and Management - The company maintains a robust governance structure, ensuring independence in assets, personnel, finance, and operations, with no factors affecting its independence[117] - The company has a strong governance structure with experienced executives, including Chairman Zhao Weilin and General Manager Wei Tao, who have extensive backgrounds in international trade and management[123] - The board of directors consists of 9 members, with independent directors making up over one-third of the board, ensuring a diverse and balanced governance structure[171] - The company has a structured process for determining the remuneration of its directors and supervisors, requiring approval from the shareholders' meeting[131] - The company has appointed several independent directors with extensive experience in finance and management, enhancing corporate governance[124][125][126] Environmental and Social Responsibility - The company invested ¥61.82 million in environmental protection during the reporting period[197] - The company achieved compliance in pollutant emissions, with particulate matter emissions averaging 5.66 mg/m³ against a standard of 120 mg/m³[197] - The company and its subsidiary implemented the "three simultaneous" system for environmental protection facilities, with four new environmental facilities added in 2024[199] - The company received the ESG Golden Bull Award and was recognized as one of the top 50 central enterprises in ESG, highlighting its commitment to environmental, social, and governance practices[116] Employee and Training Initiatives - The company invested RMB 9.6 million in training programs in 2024, covering 1,097 training sessions with 45,083 participants, achieving a 100% training coverage rate[158] - The employee composition includes 4,027 production staff, 615 sales personnel, and 1,158 technical staff, reflecting a diverse workforce[155] - The company has 1,364 female employees, representing 19.71% of the total workforce, indicating a commitment to employee diversity[156] Shareholder Engagement - The company emphasizes the importance of maintaining clear communication with investors, particularly small and medium shareholders, to protect their rights[115] - The company plans to enhance communication with investors regarding its operational performance and investment strategies[145] - The company participated in multiple investor communication activities, including performance briefings and investor surveys, to address market concerns and convey company value[115]

Financial Performance - Total operating revenue for Q1 2025 reached RMB 22,245,441 thousand, an increase of 8.06% compared to RMB 20,586,986 thousand in the same period last year[8] - Net profit attributable to shareholders of the listed company was RMB 292,299 thousand, a significant increase of 145.69% from RMB 32,009 thousand year-on-year[8] - Basic earnings per share rose to RMB 0.0188, reflecting a 147.37% increase from RMB 0.0021 in the previous year[8] - Operating profit for Q1 2025 was 926,999 thousand RMB, up from 888,946 thousand RMB in Q1 2024, reflecting a growth of 4.9%[20] - The company reported a total comprehensive income of 716,343 thousand RMB for Q1 2025, up from 495,996 thousand RMB in Q1 2024, representing a growth of 44.4%[20] - The company reported a net profit excluding non-recurring items of RMB 205,498 thousand, compared to a loss of RMB 119,582 thousand in the same period last year[8] Assets and Liabilities - Total assets as of March 31, 2025, were RMB 300,474,116 thousand, a decrease of 0.67% from RMB 302,504,988 thousand at the end of the previous year[8] - The total assets of the company amounted to 300,474,116 thousand RMB, slightly down from 302,504,988 thousand RMB in the previous period[17] - Total liabilities decreased to 222,382,244 thousand RMB from 225,124,669 thousand RMB, indicating a reduction of approximately 1.64%[17] - Non-current assets totaled 99,305,215 thousand RMB, a slight increase from 98,716,207 thousand RMB in the previous period[17] - The company’s total equity rose to 78,091,872 thousand RMB from 77,380,319 thousand RMB, indicating a growth of 0.92%[17] Cash Flow - Cash flow from operating activities showed a net outflow of RMB 3,870,138 thousand, an improvement from RMB 6,932,238 thousand in the same period last year[8] - In Q1 2025, cash inflow from operating activities totaled CNY 30,759,197 thousand, an increase from CNY 28,965,234 thousand in Q1 2024, representing a growth of approximately 6.2%[24] - Cash outflow from operating activities in Q1 2025 was CNY 34,629,335 thousand, slightly down from CNY 35,902,918 thousand in Q1 2024, indicating a decrease of about 3.5%[24] - The net cash flow from operating activities for Q1 2025 was -CNY 3,870,138 thousand, an improvement compared to -CNY 6,937,684 thousand in Q1 2024[24] - Cash inflow from investment activities in Q1 2025 was CNY 2,912,244 thousand, down from CNY 3,770,615 thousand in Q1 2024, a decline of approximately 22.7%[25] - Cash outflow from investment activities in Q1 2025 was CNY 5,836,439 thousand, significantly higher than CNY 2,941,247 thousand in Q1 2024, representing an increase of about 98.5%[25] - The net cash flow from investment activities for Q1 2025 was -CNY 2,924,195 thousand, contrasting with a positive net cash flow of CNY 829,368 thousand in Q1 2024[25] - Cash inflow from financing activities in Q1 2025 was CNY 5,583,169 thousand, a decrease from CNY 6,258,630 thousand in Q1 2024, reflecting a decline of approximately 10.8%[25] - The net cash flow from financing activities for Q1 2025 was CNY 435,182 thousand, down from CNY 1,426,398 thousand in Q1 2024, indicating a decrease of about 69.5%[25] - The ending cash and cash equivalents balance for Q1 2025 was CNY 29,832,052 thousand, down from CNY 33,705,655 thousand in Q1 2024, a reduction of approximately 11.5%[25] - The company reported a cash flow impact from exchange rate changes of CNY 14,684 thousand in Q1 2025, compared to -CNY 3,239 thousand in Q1 2024, showing a positive shift[25] Research and Development - Research and development expenses for Q1 2025 were 1,035,816 thousand RMB, compared to 1,014,255 thousand RMB in Q1 2024, showing a slight increase of 2.1%[19] Acquisitions - The company completed the acquisition of 100% equity in Shanghai Ningsheng Industrial Co., Ltd., which required retrospective adjustments to the financial data for Q1 2024[10] Non-recurring Items - Non-recurring gains and losses totaled RMB 86,801 thousand, with significant contributions from government subsidies and asset disposals[12]

Financial Performance - Revenue for 2024 reached RMB 5,538.8 million, a 57.2% increase from RMB 3,524.1 million in 2023[6] - Gross profit for 2024 was RMB 4,546.9 million, reflecting a 54.3% growth compared to RMB 2,947.1 million in 2023[6] - Net profit attributable to shareholders for 2024 was RMB 2,062.3 million, up 42.1% from RMB 1,451.8 million in 2023[6] - The company achieved a total revenue of RMB 55.39 billion, representing a year-on-year growth of 57.2%[11] - Adjusted net profit reached RMB 21.52 billion, with a year-on-year increase of 46.5%[11] - Total revenue for the year ended December 31, 2024, reached RMB 5,538.8 million, a 57.2% increase from RMB 3,524.1 million for the year ended December 31, 2023[31] - Direct sales revenue grew over 70% year-on-year in 2024, becoming a major driver of business growth[10] - Direct sales and distribution channels generated revenues of RMB 4,134.2 million and RMB 1,404.6 million, accounting for 74.6% and 25.4% of total revenue, respectively[26] - Professional skin care products accounted for 77.7% of total revenue in 2024, with RMB 4,302.3 million in sales, up from 75.1% and RMB 2,647.3 million in 2023[32] - Total sales cost for 2024 was RMB 991.9 million, a 71.9% increase from 2023, primarily due to increased sales volume and material costs[43] - Gross profit for 2024 was RMB 4,546.9 million, a 54.3% increase from 2023, with a gross margin of 82.1%, down from 83.6% in 2023[44] Research and Development - Research and development investment increased by 42% in 2024, with 74 new patents and applications filed[9] - Research and development expenditure amounted to RMB 106.5 million, a 42.1% increase year-on-year, accounting for 1.9% of total revenue[13] - The company has 188 ongoing research projects and holds 167 patents, with 74 new patents granted during the reporting period[13] - The company plans to increase R&D investment and prepare for the commercialization of three categories of medical devices by 2025[30] Market Expansion and Product Development - The company established a multi-brand development matrix, launching innovative products that gained consumer favor[10] - The company is actively expanding its international market presence, aiming to bring its products to global consumers[11] - The company is focusing on the development of innovative and competitive products to meet diverse consumer needs[11] - The "可復美" brand has developed a comprehensive product matrix, including a major medical device series and four skincare series, enhancing its market presence[16] - The company launched the new "Kefumei Focus Series" targeting skin conditions such as dullness and acute fatigue, with the "Kefumei Focus Cream" achieving top rankings in sales during the 2024 Double Eleven shopping festival[19] - The company expanded its product offerings with the "Kefumei Order Series" and "Kefumei Ton Ton Series," addressing various consumer needs and enhancing brand reach[20] Sales and Distribution Channels - Online channel GMV growth during the 2024 618 promotion exceeded 60% for Kefu Mei and 100% for Keli Jin, and during the 2024 Double Eleven promotion, growth exceeded 80% and 150%, respectively[25] - Direct sales through DTC online stores generated revenue of RMB 3,587.2 million, a 66.5% increase from 2023, accounting for 64.8% of total revenue in 2024[34] - Revenue from online direct sales on e-commerce platforms reached RMB 377.1 million, up 112.5% year-over-year, representing 6.8% of total revenue in 2024[35] - Offline direct sales revenue was RMB 169.9 million, a 92.0% increase from 2023, making up 3.0% of total revenue in 2024[36] - Sales to distributors amounted to RMB 1,404.6 million, reflecting a 27.3% increase year-over-year, contributing 25.4% to total revenue in 2024[37] Corporate Governance and Management - The company has adopted the corporate governance code as per the Listing Rules Appendix C1 and has complied with all applicable code provisions during the reporting period, except for deviation from code provision C.2.1[150] - The board of directors consists of 4 executive directors and 3 independent non-executive directors, ensuring compliance with the requirement of having at least one independent non-executive director with appropriate professional qualifications or accounting expertise[151] - The company has established four board committees, including the audit committee, nomination committee, remuneration committee, and corporate governance committee[165] - The company has implemented a training program for directors and senior management regarding compliance with Chinese laws and regulations, with a specific training session held in July 2024[188] - The company has established an ESG governance committee to regularly report on ESG-related matters to the board[66] Employee and Shareholder Engagement - The company employed 1,758 full-time staff, with 37.0% in production, 10.6% in R&D, 32.2% in sales and marketing, and 20.2% in general and administrative roles[105] - The company emphasizes effective communication with shareholders through financial reports, annual general meetings, and timely disclosures on its website[196] - The company encourages shareholder participation in meetings and ensures proper notice is given at least 21 days before annual meetings[197] - The company provides communications in both English and Chinese to facilitate shareholder understanding[198] - The company has a dedicated website (www.xajuzi.com) for regular updates and communication with shareholders and investors[199] Social Responsibility and Community Engagement - The company engaged in social responsibility initiatives, donating products valued at over RMB 14 million during various charitable activities[28] - The "Kefumei" brand introduced a bottle recycling program and engaged in various community outreach activities to promote scientific skincare[23] Risk Management - The company faces various operational risks, including changes in the regulatory environment in China, the ability to provide quality products, and competition from other market participants[185] - The company has implemented a risk management and internal control system to address identified risks, which includes policies and procedures deemed suitable for its operations[185] - Financial risks faced by the company include foreign exchange risk, credit risk, and liquidity risk, with the main financial instruments being cash and cash equivalents[187] - The company conducts annual risk factor identification and assessment, reviewing the effectiveness of risk assessment and control measures[186] Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.6021 per share and a special dividend of RMB 0.5921 per share[6] - The company's undistributed profits available for distribution to shareholders amounted to RMB 4,057 million as of the reporting period end[75]

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching RMB 1.2 billion in the last quarter[9]. - Revenue for the fiscal year ending December 31, 2024, increased by 17.1% to RMB 2,060.8 million from RMB 1,759.6 million in 2023[17]. - Profit for the fiscal year ending December 31, 2024, rose by 31.0% to RMB 428.3 million compared to RMB 327.0 million in 2023[17]. - Gross profit rose by 20.8% from RMB 658.1 million in 2023 to RMB 795.1 million in 2024, with gross margin improving from 37.4% to 38.6%[25]. - The company reported a net profit margin of 12%, reflecting improved operational efficiency compared to the previous year[9]. - Other income increased by 19.9% from RMB 48.2 million in 2023 to RMB 57.8 million in 2024, primarily due to increased government subsidies[26]. - Selling and distribution expenses grew by 25.9% from RMB 103.2 million in 2023 to RMB 129.8 million in 2024, driven by higher employee compensation and business development costs[27]. - Administrative expenses increased by 10.8% from RMB 175.0 million in 2023 to RMB 193.9 million in 2024, mainly due to a rise in R&D expenses[28]. - The company's distributable reserves as of December 31, 2024, are approximately RMB 1,159.0 million, an increase from RMB 968.3 million as of December 31, 2023[101]. User Growth and Market Expansion - User data showed a growth in active users by 25%, totaling 5 million users as of the end of the quarter[9]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2025[9]. - Marketing efforts will be intensified to expand the customer base in China, including participation in industry exhibitions and collaborations with optical service providers[20]. - The company aims to enhance its online marketing strategies through platforms like Douyin and WeChat mini-programs[20]. Future Outlook and Strategic Initiatives - The company provided a future outlook, projecting a revenue growth of 20% for the next fiscal year[9]. - New product launches included two innovative optical devices, expected to contribute an additional RMB 300 million in revenue[9]. - A strategic acquisition of a local competitor was announced, valued at RMB 500 million, aimed at enhancing market capabilities[9]. - The company plans to implement a new marketing strategy, aiming to increase brand awareness by 40% in the next year[9]. Research and Development - Research and development investment increased by 30%, totaling RMB 150 million, focusing on advanced optical technologies[9]. - The company is focusing on strengthening its R&D capabilities, including the establishment of a national-level R&D center for XR technology[18]. - Collaboration with leading global technology and consumer electronics companies will continue to advance existing R&D projects and explore new opportunities in AR and AI eyewear[21]. Corporate Governance and Board Structure - The company emphasizes the importance of independent opinions and judgments provided by its independent non-executive directors[66][67][69]. - The board of directors includes members with diverse backgrounds in finance, law, and medical fields, enhancing the company's strategic decision-making capabilities[66][70]. - The company is committed to maintaining high standards of corporate governance through the expertise of its board members[66][70]. - The re-election and appointment of directors reflect the company's ongoing efforts to strengthen its leadership team and governance structure[63][64][66][67][69][70]. Financial Position and Assets - Total assets increased to RMB 2,388.8 million by the end of 2024, up from RMB 1,984.3 million in 2023[13]. - Total assets increased by 20.4% from RMB 1,984.3 million in 2023 to RMB 2,388.8 million in 2024, while total liabilities rose by 36.3% from RMB 589.4 million to RMB 803.2 million[34]. - Cash and cash equivalents increased by 51.0% from RMB 330.5 million in 2023 to RMB 499.1 million in 2024, attributed to increased bank borrowings and higher cash generated from operations[35]. Employee and Compensation Matters - Employee benefit expenses, including salaries and other benefits, amounted to approximately RMB 430.8 million for the year ending December 31, 2024, compared to RMB 387.5 million for the previous year[50]. - The company has established a compensation committee to formulate and review the compensation policies for directors and senior management[123]. - The remuneration policy for directors and senior management includes basic salary, discretionary bonuses, and share rewards[193]. Environmental, Social, and Governance (ESG) Initiatives - The board emphasizes compliance with applicable Chinese laws and regulations, with no significant violations reported as of December 31, 2024[94]. - The company has established an Environmental, Social, and Governance (ESG) committee to oversee compliance with environmental laws and regulations[93]. - The ESG Committee's responsibilities include evaluating the company's performance and its environmental impact, as well as reviewing the draft of the annual ESG report[190]. Risk Management and Internal Controls - The company has implemented appropriate insurance arrangements for its directors and senior management to minimize risks associated with legal proceedings[168]. - The company has established a comprehensive internal control system that effectively mitigates risks and complies with legal requirements[147]. - The company will keep monitoring the effectiveness of its risk management and internal control systems[141]. Shareholder Matters - The proposed final dividend for the year ending December 31, 2024, is RMB 0.16 per share, a decrease from RMB 0.20 per share for the year ending December 31, 2023[46]. - The company has no predetermined dividend payout ratio, and future dividends will depend on operational performance, financial condition, and cash availability[90]. - The company has adopted a shareholder communication policy to ensure transparent and accurate communication with shareholders, which was reviewed and deemed effective during the reporting period[199].

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue increased by 8.9% to approximately $282.1 million, up from about $259.0 million in 2023[16] - Gross profit rose by 60.5% to $64.4 million, with the gross margin improving from 15.5% in the previous year to 22.8%[11] - Net profit attributable to shareholders surged by 231.6% to $70.3 million, resulting in a net profit margin of 26.5%[11] - Adjusted net profit rose to $74.8 million from $23.8 million, reflecting a significant increase of 213.4%[18] - Total assets increased by 21.7% year-on-year to approximately $598.9 million (2023: $492.1 million), while total borrowings rose by 24.5% to approximately $268.8 million (2023: $215.9 million)[41] - The company recorded other income of approximately $42.9 million, significantly up from about $5.6 million in the previous year, mainly due to gains from the sale of properties and equipment[62] - The company’s profit attributable to shareholders increased from approximately $21.2 million for the year ended December 31, 2023, to about $70.3 million for the current year, representing a growth of 231.6%[65] - The company achieved a profit margin of approximately 33.2% in the shipping services segment, up from 8.4% in 2023, with pre-tax profit increasing by 292.1% to $68.1 million (2023: $17.4 million)[47] Fleet Expansion and Management - The company expanded its fleet capacity by adding 268,574 dwt through the acquisition of 2 new ships, leasing 1, and investing in 5 vessels during the year[9] - A total of 28 new shipbuilding orders were signed, including 13 bulk carriers and chemical tankers, enhancing fleet diversity and reducing market volatility risks[9] - The company plans to launch 5 new bulk carriers, 3 new chemical tankers, and 2 crew transport vessels by 2025, adding a total capacity of 662,651 dwt[21] - The fleet's total capacity decreased by 14.6% year-on-year to 1.23 million dwt, down from 1.41 million dwt in 2023[25] - The number of managed vessels increased by 25% year-on-year, achieving a renewal rate of over 95% in management contracts, reflecting high customer satisfaction[10] - The company plans to expand its fleet, with 20 vessels under construction and an additional 18 vessels ordered through joint ventures, totaling 38 vessels expected to be delivered between 2025 and 2027[52] Market Strategy and Operations - The company plans to establish new offices in Houston, USA, and Dubai, UAE, to strengthen regional market penetration[12] - The company aims to enhance cost control through centralized procurement and resource integration, further improving operational efficiency[12] - The outlook for 2025 indicates a focus on fleet expansion and optimization to mitigate market risks amid global economic uncertainties[11] - The company aims to enhance its market share by leveraging its position as the largest third-party ship management service provider in China, with plans to open offices in Houston and Dubai by 2025[54] - The company has established subsidiaries in key markets including China, Singapore, Japan, Greece, and Germany to enhance service coverage[29] Environmental and Social Governance (ESG) - The company is committed to achieving carbon neutrality and will replace older vessels with new, lower-emission ships as part of its environmental strategy[24] - The company aims to reduce carbon intensity by 40% by 2030 and achieve a 70% reduction by 2050, in line with international regulations[34] - The company received the "Best Energy Saving and Carbon Reduction Action Award" and "Best ESG Practice Case Award" at the 2024 Hong Kong International Financial Forum[35] - The company’s ESG rating improved to A grade following the release of its 2023 ESG report, reflecting enhanced ESG performance[36] - The company has established an Environmental, Social, and Governance (ESG) policy to ensure sustainable business operations and compliance with environmental laws and regulations[109] Corporate Governance - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[192] - The board consists of 7 members, including 4 executive directors and 3 independent non-executive directors, ensuring a balance of skills and experience[198] - The independent non-executive directors have confirmed their independence according to the listing rules[143] - The company has adopted the principles and code provisions of the Corporate Governance Code as the basis for its governance practices[192] - The board has established mechanisms to ensure independent views and opinions are available, encouraging active participation from independent non-executive directors[197] Financial Commitments and Investments - The company has a capital commitment of approximately $333.7 million as of December 31, 2024, related to 17 vessels under construction, with expected delivery dates spread across 2025 to 2027[75] - The company provided financial assistance to Golden Pegasus Shipping Company Limited totaling approximately $77.3 million, exceeding 8% of the asset ratio[144] - The company entered into a sale agreement for the acquisition of six subsidiaries, with guarantees totaling approximately $237 million and shareholder loans up to $5.6 million[146] - The total amount of advances provided to various subsidiaries is $243,417,000, with $6,417,000 in loans and $237,000,000 in financing guarantees[149] Employee and Talent Management - The company has a competitive compensation package and offers various benefits, including paid annual leave and maternity allowances, to attract and retain talent[115] - The total employee compensation expenses, including directors' remuneration, amounted to approximately $20.7 million for the year[131] - The total remuneration for directors, including basic salary, housing allowance, and discretionary bonuses, was approximately $1.98 million[137] - The group has 320 employees as of December 31, 2024, emphasizing the importance of maintaining good relationships with staff[131] Risks and Challenges - The group faces risks related to fluctuating charter rates and fuel prices, which could adversely affect profitability and cash flow[107] - The group has experienced significant competition in the shipping industry, which may impact customer retention and acquisition[107] - The company is focused on understanding and managing overall business risks effectively[194] Shareholder Information - The major shareholders include Tricor Equity Trustee Limited with 318,750,000 shares (63.75%) and Shining Friends Limited with 247,500,000 shares (49.50%)[160] - The company’s directors hold significant stakes, with Mr. Guo holding 288,750,000 shares (57.75%) and Mr. Chen holding 75,000,000 shares (15.00%) as of December 31, 2024[153] - The company has not granted, exercised, or allowed any options to expire under the share option plan as of the report date[171] Future Plans and Developments - The company plans to utilize the net proceeds of HKD 333.8 million, with 57% allocated for fleet expansion and optimization, including 20 to 25 charter agreements[178] - Digital technology and advanced information technology will be implemented in operations, with an investment of HKD 10 million[178] - The company's annual general meeting is scheduled for June 26, 2025[188]

Financial Performance - The group's unaudited revenue from continuing operations for the three months ended March 31, 2025, was HKD 4,617.39 million, a decrease of 0.7% compared to HKD 4,648.65 million in 2024[4] - The unaudited profit before tax from continuing operations increased by 2.0% to HKD 2,035.59 million, up from HKD 1,996.17 million in 2024[4] - The unaudited profit attributable to owners of the company from continuing operations was HKD 1,321.65 million, reflecting a slight increase from HKD 1,296.62 million in 2024[4] - The equity attributable to owners of the company decreased by 2.0% to HKD 40,812.24 million from HKD 41,658.02 million[4] - The net loss from fair value adjustments of investment properties was HKD 10 million, compared to a loss of HKD 21 million in 2024[6] Water Supply and Treatment - The total water supply for the East Shenzhen Water Supply Project was 549 million tons, a decrease of 8.8% from 602 million tons in 2024, generating revenue of HKD 1,734 million, down 1.5%[9] - The profit before tax for the East Shenzhen Water Supply Project increased by 2.1% to HKD 1,203 million compared to HKD 1,178 million in 2024[9] - The total water supply capacity of the group's subsidiaries and joint ventures reached 8,886,800 tons per day as of March 31, 2025, an increase from 8,786,800 tons per day in 2024[12] - The total wastewater treatment capacity of the group was 2,103,900 tons per day as of March 31, 2025, compared to 2,054,400 tons per day in 2024[12] - The total water supply capacity of ongoing projects is projected to reach 1,187,000 tons per day by March 31, 2025[13] Property Investment - Property investment income from Guangdong Tianhe City increased by 3.0% to HKD 429,018,000, compared to HKD 416,509,000 in 2024[14] - The pre-tax profit from property investment activities rose by 8.8% to HKD 270,631,000, up from HKD 248,632,000 in 2024[14] - The total income from the group's property investment business was primarily driven by rental income, reflecting improvements in average rental levels and occupancy rates[14] Department Stores and Hotel Management - The average occupancy rate of the group's department stores decreased to 94.3% from 97.1% in 2024, with total revenue dropping by 17.6% to HKD 107,934,000[17] - The revenue from department stores for the three months ended March 31, 2025, decreased by 17.6% to HKD 95,840,000 compared to HKD 107,934,000 in 2024[18] - The average room rate for the Yuehai Sheraton Hotel was HKD 1,168, down from HKD 1,248 in 2024, while the average occupancy rate was 94.8%, slightly down from 95.4% in 2024[19] - The hotel management business revenue increased by 6.0% to HKD 172,668,000, but the pre-tax profit decreased by 19.4% to HKD 30,021,000 compared to HKD 37,266,000 in 2024[20] Energy and Construction - Electricity sales volume from the Yuehai Energy project increased by 21.9% to 773 million kWh, but revenue decreased by 7.1% to HKD 362,952,000 due to lower electricity prices and currency exchange rate impacts[21] - The sales volume from Guangdong Yuedian Jinghai Power Company decreased by 36.5% to 2 billion kWh, leading to a 40.0% revenue drop to HKD 930,127,000, with a pre-tax loss of HKD 25,644,000[22] - The average daily toll traffic on the Xingliu Expressway decreased by 9.1% to 27,039 vehicles, resulting in a toll revenue decrease of 7.8% to HKD 154,318,000[23] - Cumulative construction costs for the Yinping project reached approximately RMB 2.08 billion (about HKD 2.25 billion), with a pre-tax profit decrease of 1.0% to HKD 33,572,000[25] - The construction services revenue for the period was HKD 94,889,000, significantly higher than HKD 68,903,000 in 2024[13] Market Conditions and Strategic Focus - The geopolitical tensions and trade protectionism have intensified since 2025, impacting global economic recovery[28] - China's export growth has slowed, but domestic macro policies are becoming more proactive, leading to a recovery in domestic demand[28] - The company aims to focus on core business stability and risk management while creating long-term value for stakeholders[28] - The company will extend its water resources segment into high value-added areas and promote business structure transformation[28] - The company is actively looking for investment and acquisition opportunities related to the Guangdong-Hong Kong-Macao Greater Bay Area development plan[28] Audit and Financial Reporting - The unaudited financial data for the three months ending March 31, 2025, has been reviewed by the company's audit committee[29] - Shareholders and potential investors are advised that the information provided is unaudited and should not be considered as an indicator of financial performance[30]

Financial Performance - Revenue for the year ended December 31, 2024, amounted to RMB 275.1 million, representing an increase of 6.3% from RMB 258.8 million recorded in 2023[6] - Gross profit for the year ended December 31, 2024, amounted to RMB 73.1 million, representing a decrease of 1.4% from RMB 74.1 million recorded in 2023[6] - Loss attributable to ordinary equity holders for the year ended December 31, 2024, amounted to RMB 516.6 million, a decrease of 1.5% from RMB 524.3 million recorded in 2023[6] - The gross profit margin decreased from approximately 28.6% in 2023 to approximately 26.6% in 2024 due to adjustments in product structure[26] - Loss before income tax decreased by 1.5% from RMB 524.3 million in 2023 to RMB 516.6 million in 2024[97] - Loss per share attributable to ordinary equity holders decreased from RMB0.91 in 2023 to RMB0.89 in 2024[105] - Loss before interest, taxes, depreciation, and amortization (LBITDA) decreased by 5.0% from RMB301.4 million in 2023 to RMB286.4 million in 2024[77] Assets and Liabilities - The total assets as of December 31, 2024, were RMB 1,050.4 million, a decrease from RMB 1,113.2 million in 2023[11] - Total liabilities as of December 31, 2024, were RMB 3,901.9 million, an increase from RMB 3,446.7 million in 2023[11] - The gearing ratio increased from 328.1% in 2023 to 393.5% in 2024, indicating a rise in financial leverage[79] - Total borrowings increased from RMB2,808.5 million as of December 31, 2023, to RMB3,311.3 million as of December 31, 2024[124] - Cash and cash equivalents decreased from RMB10.1 million as of December 31, 2023, to RMB6.3 million as of December 31, 2024[130] Revenue Breakdown - Cooking wine products generated sales revenue of approximately RMB187.0 million, accounting for approximately 68.0% of total revenue[26] - Soy sauce products generated sales revenue of approximately RMB30.3 million, accounting for approximately 11.0% of total revenue[26] - Online sales revenue reached approximately RMB23.0 million in 2024, an increase of approximately 83.0% from approximately RMB12.6 million in the corresponding period in 2023[20] - Revenue from cooking wine products rose by 8.9% from RMB171.7 million in 2023 to RMB187.0 million in 2024, due to product development and enhanced market penetration[82] - Revenue from soy sauce products increased by 15.2% from RMB26.3 million in 2023 to RMB30.3 million in 2024, focusing on zero-additive and cost-effective products[83] - Revenue from rice vinegar and other products decreased by 4.9% from RMB60.8 million in 2023 to RMB57.8 million in 2024, as underperforming products were phased out[84] Marketing and Brand Strategy - The market share of "Lao Heng He Cooking Wine" in offline sales was 19.1% in 2024, ranking first in the industry for the eighth consecutive year[14] - The company engaged a professional marketing team to enhance brand strategy and product development across multiple channels[17] - The Group's marketing strategy includes optimizing product structure and enhancing promotional efforts to improve market competitiveness[19] - The Group participated in major expos, enhancing brand awareness and reaching more global consumers[20] - The company is committed to enhancing brand exposure through digital marketing methods, including social media and content marketing[163] - The company aims to increase the market share of the "Lao Heng He" brand in China through collaboration with strong online platforms and offline distributors[163] Product Development and Innovation - The company plans to maintain a diversified product structure strategy, focusing on innovation in areas such as bacterial strain research and smart brewing to enhance product quality and consumer trust[155] - The company plans to develop distinctive new condiments, including low-sodium, low-fat, low-sugar, and organic products, to align with the healthy eating trend[163] - The Group plans to further develop the condiment industry chain, aiming to become a diversified condiment manufacturer with cooking wine as the leading product[27] - The company is focusing on the development of a diversified seasoning product structure, aiming to establish itself as a leading manufacturer of cooking wine and other seasoning products[29] Corporate Governance - The Company has complied with the Governance Code provisions, except for a deviation noted in the "D. Chairman and Chief Executive" section[180] - The Board is committed to maintaining high standards of corporate governance to enhance accountability and transparency[181] - The Board has established clear rules and policies for delegating powers to facilitate efficient operations, supported by three committees: Audit, Remuneration, and Nomination[189] - The Board is responsible for overall management, including strategic development, business plans, and financial objectives[187] Employee and Operational Insights - The total remuneration paid to employees for the year ended December 31, 2024, amounted to approximately RMB 49.5 million, an increase from RMB 45.3 million in 2023[169] - The employee benefit plan contribution for 2024 was RMB 7.3 million, up from RMB 5.6 million in 2023[169] - As of December 31, 2024, the company employed approximately 509 full-time employees, a decrease from 528 in 2023[169] Future Outlook - Looking ahead to 2025, the Chinese government aims to boost consumption and expand domestic demand, with a focus on increasing the income of middle- and low-income groups[149] - The condiment industry is expected to face challenges such as weak consumer demand and intensified competition, but will also encounter new opportunities for market differentiation[149] - The company aims to achieve a market growth target of approximately 5% by 2025, focusing on enhancing consumer confidence and tapping into the domestic market[161] - The group aims to achieve business goals by stabilizing customers, expanding channels, increasing revenue, and reducing costs, while focusing on innovation[158]