Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of approximately HKD 132,580,000, an increase of about 456% compared to last year's revenue of approximately HKD 23,840,000[13]. - The profit attributable to the company's owners for the fiscal year was approximately HKD 17,110,000, a turnaround from a loss of approximately HKD 4,040,000 in the previous year[13]. - The increase in revenue was primarily driven by a rise in the area of property sales delivered during the year[13]. - The company experienced an increase in revenue and foreign exchange gains due to the conversion of financial liabilities, alongside a reduction in administrative and operational expenses[13]. - The increase in profit was partially offset by an increase in the fair value loss of investment properties[13]. - Total revenue for the year ended December 31, 2024, was HKD 132,584,000, a significant increase from HKD 23,843,000 in 2023, representing a growth of approximately 455%[144]. - Gross profit for 2024 was HKD 40,217,000, compared to HKD 9,385,000 in 2023, indicating a gross margin improvement[144]. - The company reported a profit before tax of HKD 21,928,000 for 2024, recovering from a loss of HKD 3,935,000 in the previous year[144]. - Net profit for the year was HKD 17,105,000, a turnaround from a loss of HKD 4,041,000 in 2023, reflecting a positive performance shift[144]. Assets and Liabilities - Total current assets amount to approximately HKD 801,870,000, while total current liabilities are approximately HKD 1,132,330,000 as of December 31, 2024[31]. - The company's debt-to-equity ratio is approximately 2.5% as of December 31, 2024, compared to 3.0% as of December 31, 2023[31]. - The company has unrecognized capital commitments totaling approximately HKD 398,810,000 as of December 31, 2024, down from HKD 465,950,000 as of December 31, 2023[32]. - The company has contingent liabilities of approximately RMB 155,630,000 (equivalent to approximately HKD 164,990,000) as of December 31, 2024[35]. - The company has a net current liability position of HKD 330,459,000 as of December 31, 2024, compared to HKD 325,691,000 in 2023[145]. - Total assets decreased to HKD 1,283,992,000 in 2024 from HKD 1,328,839,000 in 2023, a decline of approximately 3.4%[145]. - Current liabilities decreased to HKD 1,132,326,000 in 2024 from HKD 1,215,939,000 in 2023, a reduction of about 6.9%[145]. - The company's equity attributable to owners decreased to HKD 803,761,000 in 2024 from HKD 841,957,000 in 2023, a decline of approximately 4.5%[146]. Corporate Governance - The board of directors is committed to maintaining high levels of corporate governance to enhance transparency in disclosing important information[40]. - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance for the fiscal year ending December 31, 2024[41]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, aiming for a balanced and diverse structure[43]. - The audit committee held four meetings to discuss annual audit arrangements and review the group's financial performance and accounting principles adopted[53]. - The audit committee is responsible for monitoring the effectiveness of internal controls and risk management systems to ensure management fulfills its duties[52]. - The company has implemented a set of internal policies and guidelines for managing investment targets, effective from May 1, 2025[68]. - The board has established three committees: audit committee, remuneration committee, and nomination committee, to ensure effective governance[46]. - The company has adopted the corporate governance code as per the listing rules and has fully complied with it for the year ending December 31, 2024[111]. Employee and Operational Information - The company has increased its employee count to 81 as of December 31, 2024, from 62 as of December 31, 2023, with related employee costs amounting to approximately HKD 18,520,000[38]. - The company will continue to focus on mid-to-high-end commercial and tourism property development and investment, seeking quality and cost-effective investment opportunities[15]. - The company has not engaged in any significant investments or acquisitions during the fiscal year ending December 31, 2024[34]. - The company has not taken any arrangements to acquire its own shares or bonds as of December 31, 2024[103]. Legal and Compliance Matters - The company has appealed a court ruling requiring it to pay approximately RMB 16,700,000 (approximately HKD 18,100,000) to a contractor[25]. - The group has initiated civil litigation against the associate company to obtain updated financial information as required under the cooperation agreement, with the first hearing scheduled for May 2025[73]. - The audit committee is aware of the basis for the qualified audit opinion and acknowledges the lack of control over the associate company’s management and operations[74]. - The company will keep shareholders and investors informed about the latest developments regarding the audit issues[75]. Shareholder Information - The company has a total of 3,975,233,406 shares issued as of December 31, 2024[98]. - Mr. Huang Shizai holds 1,848,162,476 shares, representing 46.49% of the company's issued share capital[98]. - Ms. Huang Wenxi holds a total of 635,801,409 shares, which is 16.00% of the company's issued share capital[98]. - Mr. Li Zhizhen has a total of 49,448,730 shares, accounting for 1.24% of the company's issued share capital[98]. - The board does not recommend the distribution of any dividends for the fiscal year ending December 31, 2024[86]. Accounting and Financial Reporting - The group has adopted new accounting standards that do not have a significant impact on the consolidated financial statements[161]. - The revisions to HKAS 1 clarify the classification of liabilities as current or non-current, enhancing consistency in application[160]. - The group applies equity accounting for investments in associates, recognizing share of profits and losses in the consolidated income statement[174]. - The company measures goodwill initially at cost, which includes the total consideration transferred, the amount of non-controlling interest recognized, and the fair value of any previously held equity interests in the acquiree[176]. - The company conducts annual impairment tests for goodwill as of December 31[176]. - The company recognizes gains or losses from changes in the fair value of investment properties in the profit or loss for the period in which they occur[187].

Financial Performance - For the fiscal year ending December 31, 2024, the company recorded revenue of approximately HKD 160 million, a decrease of about 19.4% compared to HKD 198.6 million in 2023[9]. - The loss for the fiscal year was approximately HKD 88 million, a significant reduction of about 67.7% from HKD 272.6 million in 2023[9]. - The decrease in loss was primarily due to a reduction in fair value losses on financial assets and a decrease in impairment of property, plant, and equipment[9]. - The QR code business generated revenue of approximately HKD 60.4 million, down about 14.7% from HKD 70.8 million in 2023, with a segment loss of approximately HKD 9.5 million[18]. - The packaging products business recorded revenue of approximately HKD 75.8 million for the year ended December 31, 2024, a decrease of about 29.1% compared to HKD 106.9 million in 2023, with a segment loss of approximately HKD 7.4 million[19]. - The Rhyne algae product business generated revenue of approximately HKD 16.1 million, a decrease from HKD 20.3 million in 2023, with a segment loss of approximately HKD 13 million, significantly reduced from HKD 106.1 million in the previous year[22]. - As of December 31, 2024, the company held outstanding unsecured borrowings of approximately HKD 297.4 million and secured bank borrowings of approximately HKD 68.7 million, with an asset-liability ratio of about 113%, up from 94% in 2023[25]. - The total employee cost for the year, including director remuneration, was approximately HKD 69,000,000, a decrease from HKD 70,400,000 in 2023[79]. Business Strategy and Development - The company plans to expand its product offerings, including low glycemic index foods and new applications for its products, such as plant-based fish and shrimp[12]. - The company has entered over 2,000 retail and food service locations in the Chinese market, establishing a solid foundation for business growth in 2024[12]. - The company aims to enhance product and process research and development to improve production efficiency and reduce energy consumption[10]. - The company is focusing on developing two product lines and enhancing market exposure through various sales channels and marketing activities[10]. - The company anticipates launching various new products using green and white strains of its algae by 2025 to meet diverse customer needs[13]. - The company has a strategic focus on expanding its QR code business and enhancing its technological capabilities through research and development investments[38]. Investments and Financial Management - The financial investment business reported a fair value gain of approximately HKD 4.6 million, compared to a fair value loss of approximately HKD 0.9 million in the previous year, while the fair value loss for non-trading financial assets was approximately HKD 38.1 million, down from HKD 99.5 million in 2023[20]. - As of December 31, 2024, the group held significant investments valued at approximately HKD 51.2 million in listed investments and HKD 95.9 million in unlisted investments[43]. - The fair value of the group's significant investments accounted for 5% or more of total assets, with specific investments including HKD 37,168,000 in Haotian International Construction Investment Group[43]. - The company has a strong network in capital markets in Hong Kong and China, enhancing its investment and acquisition capabilities[49]. - The company has been involved in various sectors, including mining, logistics, education, and internet industries, showcasing its diverse investment portfolio[49]. Corporate Governance - The independent auditor, Deloitte Touche Tohmatsu, has audited the financial statements and is eligible for reappointment[94]. - The board of directors will consider various factors, including financial performance and economic conditions, before recommending any dividend payments[68]. - The board has established three committees: audit committee, remuneration committee, and nomination committee, to assist in governance[108]. - The company emphasizes the importance of corporate governance for sustainable growth and stakeholder value creation[99]. - The board has not established a corporate governance committee, with responsibilities shared among all board members[123]. Environmental, Social, and Governance (ESG) Initiatives - The company has implemented an environmental policy aimed at reducing its environmental impact and promoting employee health and safety[145]. - The group has implemented a "zero wastewater discharge" goal by achieving 100% reuse of production wastewater in its Shanxi algae business[168]. - The group plans to continue enhancing its ESG governance framework and align with national "dual carbon" strategies for sustainable development[168]. - The average customer satisfaction rate reached 97% with no product recalls due to safety and health reasons during the year[173]. - The company aims to reduce its carbon footprint by enhancing energy efficiency and reducing emissions through various measures[175]. Risk Management - The company is actively monitoring currency risks, particularly with revenues primarily denominated in USD and RMB, and expenses in HKD and RMB[32]. - The board acknowledges the importance of the internal control system for risk management and compliance with laws and regulations[141]. - The company has identified acute risks from extreme weather events, which could lead to revenue loss and increased operational costs[182]. - Chronic risks such as rising average temperatures may increase operational costs related to cooling systems and health protection measures[182]. - The company regularly assesses climate-related risks and develops targeted strategies to mitigate potential negative impacts on financial performance[186].

Digital Transformation and Innovation - The company achieved significant progress in its digital transformation strategy, focusing on AI, smart vehicles, and smart healthcare, with a strong emphasis on technological innovation and business transformation [6]. - The company launched innovative products such as "Voice of the Customer" and "Listening," leveraging AI for efficient data analysis and decision support, contributing to enhanced customer engagement [8]. - The company’s core productivity system, including AI innovation centers and multi-cloud management platforms, has become a crucial engine for driving digital transformation [6]. - The company has established the Futong Hengxian AI Innovation Center to boost its AI product development and technical service capabilities [44]. - The company emphasizes the importance of core technology in providing solutions to user pain points, aiming to enhance its market competitiveness [45]. Financial Performance - The group's revenue increased by approximately RMB 5,000,000 or 3.4% to about RMB 150,500,000 compared to the same period in 2023 [17]. - Gross profit decreased by approximately RMB 9,000,000 or 36.4% to about RMB 15,600,000, with the gross profit margin dropping from 16.9% to 10.4% due to intense competition in the Chinese IT market [18]. - Other income and net gains increased by approximately RMB 700,000 to about RMB 9,600,000, primarily due to an increase in interest income of about RMB 5,400,000 [19]. - Research and development expenses rose by approximately RMB 700,000 or 4.4% to about RMB 16,100,000, maintaining a stable level [22]. - Sales expenses decreased by approximately RMB 23,400,000 or 42.2% to about RMB 32,200,000 due to ongoing adjustments in business structure [24]. Corporate Governance - The company has appointed independent non-executive directors with extensive experience in finance and law, enhancing governance and oversight [48][49]. - The board of directors is responsible for the effective supervision of management and the strategic direction of the company, ensuring accountability and transparency [55]. - The company is committed to good corporate governance practices to enhance shareholder value and protect stakeholder rights [53]. - The board has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific responsibilities [55]. - The company has implemented appropriate insurance arrangements for potential legal claims against its directors and executives [57]. Risk Management - The company has implemented a comprehensive risk management system to continuously identify, assess, and manage significant risks related to its business operations [83]. - The audit committee is responsible for reviewing the effectiveness of the internal control system and reporting any significant risks to the board [83]. - The board confirmed that the existing risk management and internal control systems are adequate and effective, ensuring reasonable assurance against significant misstatements or losses [86]. - The group faces risks related to reliance on a small number of major suppliers, which could significantly impact revenue and profitability if any supplier fails to meet requirements [99]. - The company faces risks related to delayed payments from customers, which may lead to impairment losses and negatively impact financial condition, profitability, and cash flow [102]. Employee and Workforce Management - As of December 31, 2024, the total employee cost was approximately RMB 92.1 million, a decrease from RMB 99.6 million in 2023, with a total of 295 employees [38]. - The company has a total of 295 employees as of December 31, 2024, with approximately 70.2% male and 29.8% female employees [79]. - The board currently consists of one female director, representing 20% of the board, with a goal to achieve gender equality in the future [79]. - The company provides training for new directors covering business operations and statutory obligations [65]. - The company has established measurable targets to achieve its diversity policy, including specific ratios of non-executive directors and members with professional qualifications [78]. Environmental, Social, and Governance (ESG) Initiatives - The company has established a clear short-term and long-term sustainable development vision and goals to achieve continuous emission reduction [155]. - The company aims to achieve carbon neutrality in Hong Kong by 2050 and in China by 2060, focusing on reducing harmful and non-harmful waste density as well as energy, water, and paper consumption to support the transition to a circular economy [176]. - The company has implemented various measures to reduce resource consumption, waste, and emissions, including centralized processing of electronic waste and promoting a low-carbon lifestyle among employees [175]. - The group received the "AI Medical Pioneer Award" at the Healthcare Industry Ecosystem Conference for its continuous innovation in AI applications in healthcare [159]. - The company strictly adheres to environmental laws and regulations in China and Hong Kong, with no significant violations reported during the reporting period [177]. Future Outlook - The company reported a positive outlook for future growth, leveraging over 20 years of industry experience and global business technology collaborations [10]. - The company anticipates that the Chinese economy will gradually stabilize in 2025, with continued growth in the IT market, particularly in AI, cloud computing, big data, and IoT [43]. - The company plans to focus on emerging technologies such as cloud computing and AI, enhancing its digital business and cloud intelligence operations [43]. - The company will closely monitor any changes in government economic and regulatory policies that may impact its business operations [106]. - The company will continue to review and monitor its environmental, social, and corporate governance performance [156].

Financial Performance - In 2024, the company achieved revenue of approximately RMB 951.5 million, an increase of about 10.4% compared to 2023[21] - The profit for 2024 was approximately RMB 61.1 million, reflecting a growth of about 19.8% year-on-year[21] - The profit attributable to shareholders was approximately RMB 59.0 million, which is an increase of about 18.7% from the previous year[21] - The group's total revenue for the year ended December 31, 2024, was approximately RMB 951.5 million, an increase of about 10.4% compared to RMB 862.2 million for the year ended December 31, 2023[31] - Net profit for the year ended December 31, 2024, was approximately RMB 61.1 million, an increase of about 19.8% compared to RMB 51.0 million for the year ended December 31, 2023[32] - Gross profit for the year ended December 31, 2024, was approximately RMB 143.2 million, representing a 21.4% increase from RMB 118.0 million in the previous year, with a gross margin of 15.1%, up from 13.7%[31] - Other income increased by approximately 123.7% from about RMB 3.8 million for the year ended December 31, 2023, to about RMB 8.5 million for the year ended December 31, 2024, mainly due to increased government subsidies[54] - Administrative expenses and R&D costs rose approximately 23.1% from RMB 53.3 million for the year ended December 31, 2023, to about RMB 65.6 million for the year ended December 31, 2024[55] - Trade and other receivables impairment losses increased by 192.3% from approximately RMB 3.9 million for the year ended December 31, 2023, to approximately RMB 11.4 million for the year ending December 31, 2024, primarily due to the increase in trade receivables resulting from business scale expansion[56] - Financial costs decreased by approximately 73.3% from about RMB 1.5 million for the year ended December 31, 2023, to approximately RMB 0.4 million for the year ending December 31, 2024, mainly due to the appreciation of the HKD against RMB and foreign exchange gains offsetting financial costs[57] Market Position and Expansion - The company was recognized as a "National High-tech Enterprise" and a "National-level Technology-based SME" in 2024[20][16] - The company was listed on the Hong Kong Stock Exchange on July 3, 2024, marking its entry into the capital market as the first property service company in Northwest China[20][15] - The group is actively expanding its service offerings beyond residential property management to include administrative offices, commercial buildings, hospitals, schools, and industrial parks, enhancing its comprehensive business matrix[25] - The company aims to expand its market presence in Northwest China through joint ventures, acquisitions, and project expansions[48] - The company has established a significant market position in the urban services and property management industry in Shaanxi Province, with ongoing efforts to expand its footprint in Northwest China[35] Service Quality and Innovation - The company focused on enhancing service quality through a comprehensive property service quality system, emphasizing owner needs and satisfaction[22] - The company implemented smart property digital management to innovate service scenarios and restructure organizational management[23] - The company launched community cultural activities to foster a warm and harmonious community atmosphere[22] - The company aims to leverage technology to enhance operational efficiency and service innovation, ensuring a competitive edge in the market[27] - The company plans to enhance its standardized service system and optimize customer experience to improve bidding success rates and service area expansion[48] Employee and Talent Management - As of December 31, 2024, the company employed 7,833 full-time employees, with employee costs recognized at approximately RMB 527.5 million, an increase from RMB 490.1 million in the previous year[88] - The group is committed to optimizing its talent ecosystem through various training programs and initiatives to ensure a high-quality talent pool for sustainable growth[26] - The company will recruit professional talent and participate in targeted industry training to enhance the professional level of its development team[48] Governance and Compliance - The company confirmed compliance with relevant laws and regulations, with no significant misstatements or misleading information in financial reports[171] - The company has adhered to the corporate governance code since its listing date, ensuring transparency and accountability in operations[177] - The board of directors is composed of 3 executive directors, 2 non-executive directors, and 3 independent non-executive directors, maintaining a balanced composition for effective independent judgment[179] - The company has complied with regulations regarding the appointment of independent non-executive directors, ensuring at least one has appropriate professional qualifications[182] - The roles of the chairman and the CEO are separated, with Mr. Wu Suozheng serving as chairman and Mr. Sun Qi as general manager[184] - The company established an Audit Committee on May 23, 2024, to oversee financial reporting and internal control systems[190] - The supervisory board will focus on monitoring the company's financial status and major issues in 2025, enhancing risk awareness and corporate governance[175] Related Party Transactions - The company has entered into a catering service agreement with Jingfa Holdings, with a maximum annual fee of RMB 6.5 million and RMB 6.7 million for the years ending December 31, 2024, and 2025, respectively[119] - The total fee payable to the company for catering services is estimated at RMB 6.4 million, representing 0.7% of total revenue[122] - The company has signed a parking management service agreement with Jingfa Holdings, with maximum annual fees of RMB 5.1 million and RMB 5.3 million for the years ending December 31, 2024, and 2025, respectively[124] - The total fee payable for parking management services for the year ending December 31, 2024, is estimated at RMB 1.6 million, accounting for 0.2% of total sales costs[126] - The company has established a property management service agreement with Jingfa Holdings, with maximum annual fees of RMB 65.4 million and RMB 69.2 million for the years ending December 31, 2024, and 2025, respectively[128] - The total fees payable by the group to Jingfa Holdings for property management services for the year ending December 31, 2024, amount to RMB 52.0 million, representing 5.5% of the group's total revenue[131] - The independent non-executive directors have confirmed compliance with the relevant agreements governing the related party transactions, ensuring that all transactions were conducted on normal commercial terms[134] Financial Position - Cash and cash equivalents increased by approximately 65.1% from about RMB 258.5 million as of December 31, 2023, to approximately RMB 426.9 million as of December 31, 2024, mainly due to net proceeds from the global offering[68] - Current assets net value increased from approximately RMB 18.4 million as of December 31, 2023, to approximately RMB 148.5 million as of December 31, 2024, primarily due to increases in prepaid expenses and cash[69] - The company had no bank borrowings as of December 31, 2024, consistent with the previous year[71] - The total distributable reserves available to equity shareholders as of December 31, 2024, amount to RMB 115.4 million[153] Risks and Challenges - The company faces risks related to reliance on local government prospects and potential adverse developments in the business environment in Xi'an, where a significant portion of its operations are concentrated[97] - The company reported a credit risk primarily from cash, trade receivables, and other receivables, with a credit loss provision of RMB 11,004,000 as of December 31, 2023, compared to RMB 5,474,000 in the previous year[80] - The expected credit loss rate for non-trade receivables is calculated at 0.5%, indicating a low credit risk based on historical settlement records and forward-looking data[81] Corporate Events - There are no major events affecting the company from December 31, 2024, until the report date[85] - The company has not adopted any share incentive plans as of December 31, 2024[89] - The company did not issue any debt securities during the reporting period[150] - The board does not recommend the payment of a final dividend for the reporting period[152] - There were no significant events occurring after December 31, 2024, up to the report date[161] - The auditor for the financial statements for the year ended December 31, 2024, is KPMG, with no changes since the date of listing[162]

Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 1,056.0 million, a decrease of 17.3% compared to HKD 1,276.8 million in 2023[7]. - The company reported a loss attributable to shareholders of HKD 32.1 million, compared to a profit of HKD 88.1 million in the previous year[7]. - Basic and diluted loss per share was HKD 4.01, down from earnings of HKD 11.01 per share in 2023[7]. - The group's revenue for the year ended December 31, 2024, decreased by approximately 17.3% or about HKD 220.8 million to approximately HKD 1,056.0 million compared to the previous year[20]. - Core net profit for the year ended December 31, 2024, was approximately HKD 4.8 million, with a core net profit of approximately HKD 12.2 million for the second half of 2024, indicating a healthy financial status during the transition period[20]. - Revenue from franchised brands decreased by approximately 16.1% or about HKD 149.9 million to approximately HKD 778.2 million, accounting for about 73.7% of total revenue[24]. - Revenue from self-owned brands decreased by approximately 20.5% or about HKD 70.1 million to approximately HKD 271.3 million, representing 25.7% of total revenue[25]. - The group recorded a loss of approximately HKD 32.1 million for the year ending December 31, 2024, compared to a profit of approximately HKD 88.1 million for the year ending December 31, 2023, primarily due to a decrease in revenue attributed to a weak local dining industry[30]. - The group's cash and cash equivalents amounted to approximately HKD 144.8 million as of December 31, 2024, compared to approximately HKD 147.7 million in the previous year[31]. - The current ratio decreased to approximately 0.7 times as of December 31, 2024, down from approximately 1.1 times in the previous year, indicating a decline in liquidity[31]. Operational Developments - The company opened ten new stores and renovated one store within a month, setting a new record for store openings[12]. - The company launched new brands such as "挽肉と米" and "牛角J," which have been well-received, with the first store of "挽肉と米" being fully booked since its opening[11]. - The company has successfully transformed a previously unsuccessful restaurant concept into "和平飯店（京川滬）," which has seen strong business since its opening[12]. - The number of self-owned brand restaurants increased from 16 to 17, while franchised brand restaurants rose from 41 to 46, reflecting a strategic expansion in restaurant operations[23]. - The group has implemented strategic measures to expand revenue sources and reduce expenses, including negotiating lower rents and achieving more favorable terms with suppliers[15]. - A new customer relationship management system and mobile app were launched in 2024 to enhance customer service and engagement through data analysis[14]. - The management team aims to improve operational efficiency and marketing strategies to adapt to the changing market environment and enhance brand development[16]. Future Outlook - The company remains optimistic despite weak consumer spending and plans to enhance customer dining experiences through brand revitalization[13]. - The group anticipates challenges in the Hong Kong dining industry in 2025, but expects potential improvements in local consumption due to economic recovery and government initiatives[44]. - The management team plans to streamline internal processes and develop effective operational and promotional strategies to enhance operational efficiency and market responsiveness[44]. - The company has set a target to expand its market presence in Southeast Asia, aiming for a 30% increase in market share by 2025[48]. - New product launches are expected to contribute an additional $100 million in revenue over the next fiscal year[49]. - The company is investing $50 million in research and development for new technologies aimed at enhancing operational efficiency[50]. - A strategic acquisition is planned, which is projected to increase the company's annual revenue by 20%[51]. - The company has revised its earnings guidance for the next quarter, now expecting a range of $520 million to $540 million[46]. Sustainability and Corporate Governance - The company is focusing on sustainability initiatives, with a goal to reduce carbon emissions by 40% by 2030[48]. - The board has approved a new strategy to enhance supply chain management, which is expected to reduce costs by 15%[49]. - The company is committed to sustainable development and has implemented measures to control environmental and social impacts[60]. - The company has adopted a corporate governance code and has complied with most of its best practices, except for the separation of roles between the chairman and CEO[108]. - The board has formed three committees: the nomination committee, remuneration committee, and audit committee, with specific written terms of reference[134]. - The company has established a board diversity policy to enhance performance quality and support strategic goals, considering factors such as gender, age, cultural background, and professional experience[122]. - The company has a remuneration policy for directors that includes fixed salaries and variable components based on market competitiveness and company performance[120]. - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and transparency[157]. Employee and Stakeholder Engagement - The company faced challenges in employee recruitment and retention, which could impact operational performance[57]. - The company has established a mystery shopper program to evaluate restaurant cleanliness, service quality, and food quality[197]. - The group recognizes the importance of employee welfare, safety, and health as part of its sustainable development strategy[185]. - The company maintains a customer-oriented corporate culture and emphasizes the importance of good relationships with employees, suppliers, and customers to achieve its short-term and long-term goals[78]. - The company encourages reporting of any suspicious fraudulent activities or misconduct, ensuring confidentiality and protection for whistleblowers[131]. - The company has established a process for appointing new directors and re-electing retiring directors[140]. Risk Management - The board is responsible for overseeing the group's risk management related to sustainability, ensuring alignment with the group's sustainable development strategy[179]. - The company has adopted a three-tier risk management approach to identify, assess, mitigate, and respond to risks, ensuring effective operations[168]. - The audit committee reviews the effectiveness of the risk management and internal control systems at least annually, with the next review scheduled for the fiscal year ending December 31, 2024[166]. - The company has no internal audit function but has decided to have the board directly responsible for risk management and internal control[167]. - The company's financial performance is subject to risks including supply chain disruptions and fluctuations in ingredient costs[59].

Financial Performance - The company's revenue for the fiscal year ending December 31, 2024, decreased by approximately RM 18.9 million or 2.0% to about RM 913.0 million from RM 931.9 million in the previous year[16]. - The net profit for the fiscal year was approximately RM 28.1 million, an increase from RM 27.1 million in the previous year[17]. - Gross profit margin increased to approximately 12.4% from 11.8% in the previous year, attributed to competitive pricing strategies[21]. - Other income rose by approximately RM 0.15 million or 5.3% to about RM 3.0 million, mainly due to recognized rental income during the year[22]. - The decrease in revenue was primarily due to a reduction of approximately RM 15.3 million in distribution revenue from third-party brands, particularly in dairy, confectionery, and packaged foods[20]. - The group recorded a profit of approximately 28.1 million MYR for the reporting period, with a net profit margin increasing from 2.9% to 3.1%[27]. - The total assets increased to RM 391.9 million in 2024 from RM 349.1 million in 2023[15]. - Total equity rose to RM 248.3 million in 2024, up from RM 227.5 million in 2023[15]. Expenses and Costs - Sales and distribution expenses increased by approximately 0.05 million MYR or 0.1% to about 52.88 million MYR, primarily due to increases in packaging, maintenance of property and equipment, and promotional activities[23]. - Administrative and other operating expenses rose by approximately 5.7 million MYR or 28.3% to about 25.8 million MYR, mainly due to increased employee costs and depreciation of fixed assets[24]. - Financing costs decreased by approximately 1.0 million MYR or 43.5% to about 1.3 million MYR, attributed to a reduction in the usage of bank acceptance financing[25]. - Income tax expenses decreased by approximately 1.1 million MYR or 11.5% to about 8.5 million MYR, mainly due to a decline in non-deductible expenses and increased tax incentives[26]. Workforce and Employment - The group employed 909 full-time employees in Malaysia as of December 31, 2024, an increase from 840 employees as of December 31, 2023[36]. - The company has 169 self-operated logistics vehicles, enhancing service quality[19]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with applicable governance standards during the reporting period[61]. - The board consists of seven members, including three executive directors and four independent non-executive directors, ensuring a diverse governance structure[71]. - The company is committed to maintaining robust corporate governance and effective internal control systems to enhance shareholder value and accountability[61]. - The company has established mechanisms to ensure the board receives independent opinions and information on governance matters[69]. - The company has a policy for directors to disclose any other positions held, ensuring transparency in governance[83]. - The board regularly reviews its corporate governance policies and practices to ensure compliance with legal and regulatory requirements[83]. Risk Management - The company has established a risk management framework based on five elements: internal environment monitoring, risk management, control activities, information and communication, and monitoring and improvement[122]. - Identified risks are analyzed and assessed using established risk assessment criteria, helping prioritize risk management efforts[124]. - The company aims to minimize risks rather than eliminate them, with a structured approach to risk assessment and mitigation[121]. - The company has a risk management system in place, which is reviewed annually by the board and audit committee[141]. Shareholder Engagement - The company is committed to engaging with shareholders through the annual general meeting to gather feedback and address inquiries[111]. - Shareholders can submit inquiries to the board in writing at the company's main business location[113]. - The board declared a special dividend of HKD 0.0135 per share, totaling HKD 13,502,025, paid on August 26, 2024[118]. - No final dividend was recommended for the reporting period, consistent with the previous year[119]. Environmental, Social, and Governance (ESG) - The company’s environmental, social, and governance (ESG) report for the fiscal year 2024 is prioritized for preparation and disclosure[63]. - The company is committed to maintaining sustainable practices and closely monitors resource utilization to minimize environmental impact[149]. Strategic Plans - The company plans to actively expand its business by acquiring new warehouses, seeking new suppliers, and investing in product development[17]. - The company continues to implement strategies to enhance market penetration across different regions to reduce reliance on specific markets[141]. Legal and Compliance - The company has established multiple management systems and measures to ensure compliance with relevant laws and regulations, with no serious violations reported during the reporting period[149]. - The company has established a whistleblowing policy to encourage employees to report misconduct, with the CFO overseeing its implementation[129].

Financial Performance - The company's operating revenue for Q1 2025 was RMB 1,771,765,261.39, a decrease of 13.06% compared to RMB 2,037,983,716.92 in Q1 2024[10] - Net profit attributable to shareholders was RMB 478,007,244.10, reflecting a slight increase of 1.50% from RMB 470,958,969.66 in the same period last year[10] - Operating profit for Q1 2025 was RMB 621,113,486.27, compared to RMB 634,811,192.70 in Q1 2024, reflecting a decrease of 2.68%[36] - The company’s total comprehensive income for Q1 2025 was RMB 546,823,605.96, compared to RMB 474,681,285.95 in Q1 2024, reflecting an increase of 15.19%[37] - Net profit for Q1 2025 was RMB 514,281,845.56, slightly up from RMB 512,669,617.76 in Q1 2024, representing a growth of 0.31%[36] Cash Flow and Assets - The net cash flow from operating activities increased by 28.96%, reaching RMB 980,875,169.00 compared to RMB 760,626,644.48 in Q1 2024[10] - Cash and cash equivalents at the end of Q1 2025 totaled RMB 8,019,330,500.54, up from RMB 3,235,689,796.04 at the end of Q1 2024[40] - The company reported cash and cash equivalents of RMB 8,176,488,936.45 as of March 31, 2025, significantly up from RMB 2,908,582,010.43 at the end of 2024, marking an increase of about 181.5%[31] - As of March 31, 2025, total current assets increased to RMB 12,921,011,423.05 from RMB 7,643,838,856.74 as of December 31, 2024, representing a growth of approximately 69.8%[31] - The company’s total assets increased to RMB 73,150,343,598.02 in Q1 2025, compared to RMB 67,558,030,948.58 in Q1 2024, marking a growth of 8.67%[34] Shareholder Information - The number of shareholders totaled 17,576, with 17,336 being A-share shareholders and 240 being H-share shareholders[13] - The top shareholder, Xintong Industrial Development (Shenzhen) Co., Ltd., holds 28.79% of the shares, totaling 730,710,144 shares[14] - The company has committed to a share lock-up period of 18 months for certain shareholders following the recent A-share issuance[18] Issuance and Financing - The company completed the issuance of 357,085,801 A-shares, with significant subscriptions from related parties[18] - The company completed a private placement of A-shares, issuing 357,085,801 shares at a price of RMB 13.17 per share, raising a net amount of RMB 4,679,236,514.71[25] - The company issued RMB 10 billion in medium-term notes with a coupon rate of 1.7% and RMB 5 billion in another tranche, both with a 3-year term[26] - The company completed the issuance of RMB 23 billion in corporate bonds with a 5-year term and a coupon rate of 2.29%[26] Liabilities - As of March 31, 2025, total current liabilities decreased to RMB 11,890,985,416.04 from RMB 14,175,295,530.40 as of December 31, 2024, a reduction of approximately 16.5%[33] - The company’s long-term borrowings decreased to RMB 12,800,758,083.34 as of March 31, 2025, from RMB 13,912,273,334.21 at the end of 2024, a decline of approximately 8.0%[33] - The company’s total liabilities amounted to RMB 40,760,132,514.45 as of March 31, 2025, slightly up from RMB 40,356,460,239.19 at the end of 2024, reflecting a marginal increase of about 1.0%[33] Operational Highlights - The company plans to continue expanding its operations and enhancing its project contributions, particularly in waste treatment and transportation sectors[12] - The average daily mixed traffic volume for the Meiguan Expressway was 158 thousand vehicles, generating a toll revenue of RMB 411 thousand in Q1 2025[17] - The average daily mixed traffic volume for the Machine-Hu East Section was 308 thousand vehicles, with toll revenue of RMB 1,817 thousand in Q1 2025[17] - The average daily mixed traffic volume for the Jiangjiang Project was 205 thousand vehicles, resulting in toll revenue of RMB 2,010 thousand in Q1 2025[17] - The total organic waste processing volume across various projects reached 317.24 thousand tons, generating operational revenue of RMB 174,266.95 thousand in Q1 2025[22] - The total electricity generated from wind power projects was 178,690.70 MWh, with revenue of RMB 52,905.30 thousand in Q1 2025[23]

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue reached approximately RMB 726.3 million, an increase of about RMB 108.2 million or 17.5% compared to RMB 618.1 million for the previous year[9]. - The company's gross profit for the same period was approximately RMB 542.6 million, reflecting an increase of about RMB 133.7 million or 32.7% year-over-year[11]. - The company recorded a net profit of RMB 73.2 million for the fiscal year, a significant improvement from a net loss of RMB 119.4 million in the previous year[14]. - The company achieved a revenue of RMB 726.3 million for the year ended December 31, 2024, representing a year-on-year growth of 17.5%[21]. - Gross profit reached RMB 542.6 million, with a significant increase of 32.7% year-on-year, resulting in a gross margin of 74.7%, up by 8.5 percentage points[21]. - Net profit surged to RMB 73.2 million, marking a substantial increase of RMB 192.6 million year-on-year[21]. - Other income and gains amounted to approximately RMB 45.1 million for the year ending December 31, 2024, compared to RMB 27.7 million in 2023, primarily due to government subsidies[69]. - The company's financing costs increased by approximately RMB 18.6 million or 131.9% to RMB 32.7 million for the year ending December 31, 2024, due to interest expenses from loans and financing leases[74]. - The company recorded a profit of RMB 73.2 million for the year ending December 31, 2024, compared to a loss of RMB 119.4 million for the year ending December 31, 2023[76]. Research and Development - Research and development expenses for the year were approximately RMB 149.3 million, a decrease of about RMB 81.4 million compared to RMB 230.7 million in the previous year[13]. - The company has developed a comprehensive value chain covering R&D, production, and commercialization, ensuring long-term high-quality growth[20]. - The company is focused on innovative biopharmaceuticals, with several products in various stages of clinical development, including ADCs and T-cell therapies[20]. - The company has a robust R&D platform with teams in Yantai, Nanjing, and Boston, focusing on antibody discovery and drug development[45]. - The R&D team consists of 286 experienced employees, most with over seven years of experience in drug development and clinical research[46]. - The proprietary technology platforms include fully human antibody transgenic mice and bispecific T-cell engager technology, enhancing the company's competitive edge[45]. Product Development and Pipeline - The company has three commercialized products and is developing multiple innovative biopharmaceuticals with international intellectual property protection[6]. - The product pipeline includes three commercialized products, two candidates under review for biopharmaceutical licensing, and six candidates in clinical trials, focusing on oncology, metabolism, autoimmune, and ophthalmology[27]. - Two candidate drugs have entered the BLA stage in China, with BA5101 being the only submitted biosimilar of its kind globally[22]. - The company expects multiple new products to be approved for market entry in China and overseas between 2025 and 2027, including BA5101 and BA9101[17]. - BA1104 is currently in Phase III clinical trials in China, with a simplified clinical strategy approved by the FDA for BLA submission[17]. - BA1101 (Bevacizumab Injection) has been approved for six indications, including metastatic colorectal cancer and advanced non-small cell lung cancer, and is included in China's national medical insurance catalog[29]. - BA6101 (Densumab Injection) has been approved for the treatment of postmenopausal women with osteoporosis at high risk of fracture and is also included in China's national medical insurance catalog[29]. - BA1102 (Densumab Injection) is expected to be approved in China by May 2024 for treating unresectable giant cell tumors of bone, with ongoing efforts for its use in solid tumor bone metastases[29]. - BA5101 (Dulaglutide Injection) is the first biosimilar developed by a Chinese company approved for clinical trials in the US for type 2 diabetes management[30]. - BA9101 (Aflibercept Injection) is in collaboration with EOC Pharma for commercialization in China, with its application for drug approval accepted by the National Medical Products Administration in May 2024[31]. Market Expansion and Partnerships - The company is expanding its market presence in the United States, European Union, and Japan, in addition to its operations in China[6]. - The company is actively exploring international commercialization partnerships for products already launched or in clinical trials in China[25]. - The company is collaborating with various well-resourced business partners to enhance its market presence and accelerate the commercialization of its products[53]. - The company has established partnerships and joint ventures, such as with Peking University, to enhance its research and development capabilities in modern Chinese medicine[105]. Financial Position and Capital Management - The total assets of the company increased to RMB 2,851.3 million, while total liabilities rose to RMB 1,207.3 million, indicating a solid financial foundation for future growth[14]. - Cash and cash equivalents as of December 31, 2024, were RMB 198.9 million, a decrease of 1.49% from RMB 201.9 million as of December 31, 2023[77]. - The current ratio improved from approximately 1.09 as of December 31, 2023, to approximately 1.47 as of December 31, 2024, indicating better liquidity[77]. - As of December 31, 2024, the company's interest-bearing bank loans and other borrowings totaled approximately RMB 678.9 million, an increase of RMB 282.7 million from RMB 396.2 million as of December 31, 2023[78]. - The company's debt-to-equity ratio increased from 30.0% as of December 31, 2023, to 41.3% as of December 31, 2024, primarily due to the increase in bank loans and other borrowings during the reporting period[79]. - The company's capital expenditures for the year ended December 31, 2024, were RMB 45.8 million, down from RMB 104.3 million in 2023[81]. Corporate Governance - The company is committed to maintaining high standards of corporate governance, as evidenced by the qualifications and experience of its independent directors[107][108]. - The board consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors as of December 31, 2024[196]. - The company has established a remuneration committee to review the compensation policy and structure for directors and senior management[155]. - The independent directors are expected to contribute to the company's strategic direction and market expansion efforts[109]. - The board has established five committees: Audit Committee, Remuneration Committee, Nomination Committee, Strategic Committee, and Environmental, Social, and Governance Committee[196]. Risk Management - The company has faced various risks that could impact its financial condition and operational performance, including market, operational, investment, human resources, and financial risks[127][128][129][130][132]. - The management is responsible for monitoring and managing market risks to ensure timely and effective measures are taken[128]. - The company has established risk management procedures to minimize significant risks that could potentially impact its business objectives[132]. Employee and Social Responsibility - The company has maintained good relationships with employees, customers, and suppliers, ensuring fair evaluations and complaint handling mechanisms[135][136]. - The group has established a compensation policy aimed at incentivizing and retaining talented employees to achieve long-term corporate goals[155]. - The company is committed to environmental sustainability and has implemented various green office measures[133].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported stable growth in revenue, net profit, and cash flow, indicating a strong performance in the high-end pearlescent materials, artificial mica, and new energy materials sectors[7]. - In the fiscal year 2024, the company achieved revenue of approximately RMB 1,648.8 million, a year-on-year increase of about 55.0%[16]. - The net profit for fiscal year 2024 was approximately RMB 320.3 million, reflecting a year-on-year growth of about 50.2%[16]. - EBITDA for fiscal year 2024 was approximately RMB 612.9 million, an increase of about 65.9% compared to approximately RMB 369.6 million for the fiscal year 2023[17]. - Total revenue increased from approximately RMB 1,064.1 million in FY2023 to approximately RMB 1,648.8 million in FY2024, representing a year-on-year growth of about 55.0%[33]. - Revenue from the China operations accounted for approximately 80.8% of total revenue in FY2024, up from 90.3% in FY2023, with an increase from approximately RMB 960.9 million to approximately RMB 1,332.2 million, a growth of about 38.6%[33]. - Revenue from the Korea operations rose to approximately RMB 316.6 million in FY2024, representing 19.2% of total revenue, compared to approximately RMB 103.1 million and 9.7% in FY2023[33]. - Sales of pearlescent pigment products increased from approximately RMB 964.0 million in FY2023 to approximately RMB 1,528.3 million in FY2024, an increase of about RMB 564.3 million or approximately 58.5%[38]. - Sales of natural mica-based pearlescent pigments rose by approximately RMB 312.6 million, or about 78.2%, compared to FY2023[38]. - Sales of synthetic mica-based pearlescent pigments increased by approximately RMB 80.1 million, or about 18.3%, compared to FY2023[38]. - Sales of glass flake-based pearlescent pigments grew by approximately RMB 62.8 million, or about 79.1%, compared to FY2023[38]. - Sales of mica functional fillers increased from approximately RMB 83.8 million in FY2023 to approximately RMB 92.8 million in FY2024, a growth of about RMB 9.0 million or approximately 10.8%[39]. - The company reported a charitable donation of approximately RMB 0.1 million for the fiscal year 2024[116]. Strategic Initiatives - The company successfully launched the second phase of the seven-color pearlescent project with an annual production capacity of 30,000 tons and initiated the 100,000-ton artificial mica project in Tonglu, marking significant capacity expansion[8]. - The strategic acquisition of Merck Group's global surface solutions business is expected to enhance the company's technological and market resources, further driving international market penetration[8]. - The integration of the Korean pearlescent materials company CQV has led to significant synergies in market channels, product development, and supply chain management, improving operational performance[10]. - The company aims to implement a "Materials + Innovation + Full Scene" strategy, focusing on green manufacturing, advanced materials, and intelligent applications to achieve new heights in business growth[12]. - The company plans to continue expanding its market presence and product offerings, focusing on synthetic mica-based products and enhancing production capabilities through technological improvements[35]. - The company plans to allocate RMB 330.8 million from the net proceeds of its global offering for the acquisition of global surface solutions business, with the transaction value set at €665 million[51]. - The company will continue to evaluate the use of net proceeds to align with changing market conditions and ensure business growth[54]. - The company plans to enhance R&D investment and establish a global collaborative R&D mechanism in areas such as synthetic mica and new energy materials[62]. - The company aims to integrate global sales channels and optimize supply chain costs to improve product reach and efficiency[63]. - The company is focused on six key areas to enhance global sales scale and gross margin, including technology integration and brand influence[65]. - The company will deepen the integration of global surface solutions business, enhancing product competitiveness through collaboration and resource integration[62]. - The company plans to continuously expand and improve its full range of product offerings to enhance market competitiveness[66]. - The company aims to optimize supply chain costs through refined management to improve operational efficiency and reduce costs[67]. - The company will increase R&D investment to enhance technological integration and innovation capabilities, focusing on upgrading products in the cosmetics active ingredients and industrial functional products sectors[67]. Awards and Recognition - The company received the "Best Social Responsibility Case Award" at the Frankfurt Central European ESG Best Practices Conference, highlighting its commitment to sustainable development[12]. - The company received multiple industry awards, including the "Best Social Responsibility Case Award" at the first Frankfurt Central European Enterprises ESG Best Practices Conference[30]. Corporate Governance - The company emphasizes corporate governance as a key driver for sustainable development and value creation[144]. - The board of directors is committed to maintaining high standards of corporate governance to ensure shareholder returns and manage business risks effectively[149]. - The company has adopted the corporate governance code as the basis for its governance practices, ensuring compliance throughout the fiscal year 2024[149]. - The board consists of a balanced mix of executive and independent non-executive directors, ensuring strong independence and effective decision-making[153]. - The company has established a board independence assessment mechanism to enhance effectiveness and identify areas for improvement[160]. - The chairman and CEO roles are currently held by the same individual, which the board believes benefits the company's strategic development[157]. - The board has consistently met the requirement of having at least three independent non-executive directors, ensuring compliance with listing rules[158]. - The company actively engages in partnerships with research institutions to accelerate innovation and product development[148]. - The board holds regular meetings, with a minimum of four meetings per year, to ensure active participation and oversight[156]. - The board has reviewed the implementation and effectiveness of the board independence assessment mechanism for the fiscal year 2024, and the results are satisfactory[161]. - The non-executive directors, including independent non-executive directors, have a specific term of three years, with reappointment possible after the term expires[162]. - The audit committee consists of three independent non-executive directors, with the main responsibilities including reviewing financial data and internal control systems[173]. - The remuneration committee held one meeting in the fiscal year 2024 to review the remuneration policies for executive directors and senior management[178]. - The company's remuneration policy aims to ensure that employee compensation is determined based on skills, knowledge, responsibilities, and contributions to the company[178]. - The training courses organized for all directors in the fiscal year 2024 covered a wide range of relevant topics, including directors' duties and corporate governance updates[168]. - The audit committee held two meetings to review the interim and annual financial performance and reports for the fiscal year 2024[173]. - The company encourages all directors to participate in relevant training courses, with costs covered by the company[166]. - The board has established three committees: the audit committee, remuneration committee, and nomination committee, each with specific written terms of reference[171]. - The remuneration for non-executive and independent non-executive directors is determined based on their participation and responsibilities within the company[178]. - The Nomination Committee held one meeting in the fiscal year 2024 to review the board's structure, number, and composition, as well as the independence of non-executive directors[182]. - The company aims to achieve measurable goals under the board diversity policy, including at least one female board member and at least one-third of the board members being independent non-executive directors[186]. - The current board composition analysis shows 10 male members and 1 female member, with 4 independent non-executive directors[187]. - The gender ratio among employees indicates that 26.20% are female and 73.80% are male, with the board currently having 9% female representation[190]. - The company plans to appoint at least one female director to improve gender diversity on the board[190]. - The board diversity policy emphasizes the importance of a diverse board for maintaining competitive advantage and will be reviewed annually[184]. - The Nomination Committee is responsible for evaluating the qualifications of candidates for board positions based on established criteria[192]. - The company recognizes the benefits of a diverse board and aims to maintain a balanced perspective related to business growth[184]. - The board diversity policy includes considerations of gender, age, cultural and educational background, professional qualifications, skills, knowledge, and industry experience[184]. - The nomination committee recommended the appointment of a new executive director, Mr. Lin Guangshui, and an independent non-executive director, Professor Chen Fadong, for the fiscal year 2024[198]. - The nomination committee will review the board nomination policy in a timely manner to ensure its effectiveness[199]. - The board has reviewed the company's corporate governance policies and practices, including training and continuous professional development for directors and senior management[200]. Shareholder Information - As of December 31, 2024, the company's cash and bank balances were approximately RMB 3,411.4 million, an increase from RMB 3,203.5 million as of December 31, 2023[79]. - The company's total borrowings increased to approximately RMB 1,729.0 million as of December 31, 2024, compared to RMB 327.0 million as of December 31, 2023[79]. - The company's debt-to-asset ratio rose to approximately 34.3% as of December 31, 2024, up from 17.6% as of December 31, 2023[81]. - The company's net asset value was approximately RMB 4,353.1 million as of December 31, 2024, compared to RMB 4,085.1 million as of December 31, 2023[82]. - The company has decided not to declare any final dividends for the fiscal year 2024, consistent with the previous fiscal year[75]. - As of December 31, 2024, the company issued convertible bonds totaling RMB 300 million and USD 40 million, with an initial conversion price of HKD 7.6 per share[85]. - If the convertible bonds are fully converted, the company will issue 43,815,789 shares and 40,789,474 shares, representing approximately 3.54% and 3.29% of the total issued shares as of December 31, 2024, respectively[89]. - The company has capital commitments amounting to approximately RMB 5,873.1 million as of December 31, 2024, compared to RMB 275.1 million as of December 31, 2023[95]. - The capital commitments include the renovation and expansion of the first phase of the production plant, construction of the second phase of the production plant, and the establishment of a new research and development center[95]. - The company plans to finance the above commitments through internal resources and external financing[95]. - The company applied for the listing and trading of 73,026,316 shares related to the convertible bonds issued on December 30, 2022, and 81,578,947 shares related to the convertible bonds issued on November 8, 2023[90]. - As of December 31, 2024, the total issued shares will increase to 1,282,685,921 after the full conversion of the A batch convertible bonds[91]. - The company’s major shareholder, Guangxi Investment Group Co., Ltd., holds 123,638,000 shares, representing 9.97% of the total issued shares as of December 31, 2024[92]. - The company’s public shareholders hold 654,713,803 shares, which is 52.85% of the total issued shares as of December 31, 2024[91]. - The company’s chairman and CEO, Mr. Su, holds 427,057,948 shares, representing 34.47% of the total issued shares as of December 31, 2024[92]. - Mr. Su holds a total of 301,155,800 shares, representing 24.31% of the company's equity[129]. - Mr. Jin holds 24,241,200 shares, representing 1.96% of the company's equity[129]. - Mr. Hu holds 19,285,200 shares, representing 1.56% of the company's equity[129]. - The total equity interests of the directors and key executives in the company are disclosed in accordance with the Securities and Futures Ordinance[131]. - The company has no other equity interests or short positions held by directors and key executives as of December 31, 2024[131]. - The interests of Mr. Su are primarily through controlled corporations, including Guangxi Hongzun Investment Group[132]. - Mr. Su is the sole director of several investment companies, indicating concentrated control over equity interests[132]. - The company maintains compliance with the Securities and Futures Ordinance regarding the disclosure of interests[131]. - The ownership structure includes various partnerships and investment entities linked to the directors[132]. - The report emphasizes the importance of transparency in the ownership and control of the company's shares[131]. - As of December 31, 2024, major shareholders include Hongzun International with 301,155,800 shares (24.31%) and Guangxi Energy Holdings with 107,178,000 shares (8.65%) [133]. Operational Efficiency - Cost of goods sold increased by approximately 44.7% from RMB 528.0 million in FY2023 to RMB 764.1 million in FY2024, driven by a 35.9% increase in sales volume of pearlescent pigments to approximately 25,404 tons[42]. - Gross profit rose by approximately 65.4% from RMB 528.3 million in FY2023 to RMB 873.7 million in FY2024, with a gross margin of approximately 53.0%, up 3.3% from the previous fiscal year[43]. - Other income and losses decreased significantly from RMB 28.0 million in FY2023 to approximately RMB 2.4 million in FY2024, primarily due to increased foreign exchange losses of approximately RMB 28.4 million[44]. - Financing costs surged by approximately 130.3% from RMB 51.4 million in FY2023 to RMB 118.4 million in FY2024, mainly due to increased bank loans and interest expenses from convertible bonds[48]. - Net profit for FY2024 was approximately RMB 320.3 million, a 50.2% increase from RMB 213.3 million in FY2023, with net profit margins of approximately 19.4% and 20.0% respectively[50]. - Sales expenses increased by approximately 52.1% from RMB 62.8 million in FY2023 to RMB 95.5 million in FY2024, attributed to increased sales and transportation costs[46]. - Administrative and other operating expenses rose by approximately 39.1% from RMB 188.6 million in FY2023 to RMB 262.4 million in FY2024, driven by professional service fees for potential acquisitions and increased employee costs[47]. - The company actively manages inventory to stabilize product supply and cash flow, while also developing new products to meet market demand[120]. - The company maintains effective communication with customers to meet their demands and provide high-quality services[99]. - The company regularly reviews employee compensation and benefits to attract and retain talent, participating in relevant retirement plans in China, South Korea, and Hong Kong[102]. - The company has established good relationships with reputable suppliers and conducts regular fair assessments of them[100]. Compliance and Risk Management - The company confirmed compliance with applicable laws and regulations, including the Cayman Islands laws and listing rules, with no known violations[121]. - The group has established an energy-saving culture and implemented various measures to reduce carbon emissions in its operations[122]. - The company has not committed to using any financial instruments to hedge foreign currency risks in the fiscal year 2024, as the board believes these risks are manageable[96]. - There were no related party transactions constituting connected transactions or continuing connected transactions for the fiscal year 2024[113]. - The board has not been aware of any significant transactions or arrangements in which directors or their related entities had a substantial interest during the fiscal year 2024[125]. - There were no significant events affecting the group that required disclosure after December 31, 2024, up to the date of the report[117].

Financial Performance - Revenue and gross profit from the media and culture business for 2024 were approximately HK$40.4 million, compared to HK$80.3 million and HK$15.1 million in 2023, indicating a significant decline[14]. - The Group reported a net loss attributable to owners of the Company of approximately HK$28.4 million for the year ended December 31, 2024, an improvement from a net loss of approximately HK$45.7 million in 2023[14]. - Basic loss per share for the year amounted to approximately 28.89 HK$ cents, down from approximately 55.51 HK$ cents in 2023[15]. - The net deficit of the Group was approximately HK$382.0 million, slightly increased from approximately HK$378.3 million in 2023[15]. - The ongoing impact of the COVID-19 pandemic and the 2023 strikes by the Writers Guild of America and Screen Actors Guild have negatively affected the Group's financial performance and project timelines[38][41]. - The Group's revenue from media and culture business for the year ended December 31, 2024, was approximately HK$40.4 million, a decrease from approximately HK$80.3 million in 2023[79]. - The gross profit for the media and culture business was approximately HK$40.4 million in 2024, compared to approximately HK$15.1 million in 2023[79]. - The company reported a net loss of approximately HK$382.0 million for the year ended December 31, 2024, compared to a net loss of approximately HK$378.3 million in 2023[113]. Strategic Initiatives - The Company plans to utilize its existing Hollywood intellectual property resources to develop metaverse businesses and expand cross-border e-commerce operations, with expected commencement around 2025[24][25]. - A strategic cooperation framework agreement was signed with Greenland Digital Technology Co., Ltd to enhance development in metaverse business and digital product platform construction[25][26]. - The Group aims to diversify its business in new energy and energy storage technology through the recent cooperation agreements, which are expected to broaden the revenue base and increase shareholder returns[31][34]. - The Group entered into a strategic cooperation framework agreement with Green Digital Technology Limited to enhance its metaverse business and expand its cross-border e-commerce operations, expected to commence around 2025[27][28]. - Another strategic cooperation framework agreement was signed with a high-tech enterprise in China focused on developing energy storage systems using artificial intelligence, with business expected to start in or around 2025[30][34]. - The Group is actively reviewing the future prospects of its other business segments while exploring new market opportunities in Mainland China[32][35]. - The Group's projects will explore financing through international sales, tax refunds, and derivative applications in the metaverse[77]. - The Group's strategy includes retaining copyright to establish a new ecosystem for monetization[78]. Film and Media Projects - The film "Scary Stories to Tell in the Dark" was produced for $25 million and earned $21 million at the domestic box office in its opening weekend, with a worldwide gross of $104,545,505 to date[52][55]. - "Midway" had a total investment budget of nearly $100 million and achieved over $30 million in overseas pre-sales, excluding the Greater China region[50]. - "Malignant" received a 76% rating on the Tomatometer and an IMDb rating of 6.3/10, indicating a mixed reception from critics and audiences[59][61]. - "Malignant" won the ReFrame Stamp for Best Feature at ReFrame 2022 and was nominated for several awards, showcasing its recognition in the industry[60]. - "Midway" grossed $126,696,475 globally, achieving box office success as it debuted at number one in North America[51]. - "Scary Stories to Tell in the Dark" was co-financed by CBS Films, eOne, and Rolling Hills, indicating a collaborative investment strategy[52]. - The film "Malignant" was released simultaneously in theaters and on HBO Max, reflecting a dual distribution strategy[53]. - "Malignant" was directed by James Wan, known for his expertise in horror films, which may have contributed to its marketing appeal[59]. - "Scary Stories to Tell in the Dark" was adapted from a bestselling series, leveraging existing intellectual property for audience engagement[52]. - "Midway" is based on a true story from World War II, which may enhance its historical significance and audience interest[50]. Corporate Governance - The Company complied with all applicable provisions of the Corporate Governance Code for the year ended December 31, 2024[136]. - The Board is comprised of five Executive Directors and three Independent Non-executive Directors, ensuring a balanced governance structure[144]. - Regular Board meetings are held at least four times annually, with additional meetings as necessary, ensuring effective oversight[146]. - Independent Non-executive Directors provide strong support and confirm their independence annually, aligning with regulatory requirements[145]. - Directors are encouraged to participate in continuous professional development activities, confirming compliance with training provisions[156]. - The Board has reserved decision-making on corporate strategy, annual results, and major acquisitions, ensuring strategic oversight[152]. - Directors are subject to retirement by rotation and re-election at the annual general meeting, promoting accountability[154]. - The Company Secretary is responsible for maintaining minutes of all Board meetings, ensuring transparency and accountability[146]. - The Board met at least once without the presence of executive Directors to discuss governance matters, enhancing independence[150]. - The Company has adopted a comprehensive approach to corporate governance, focusing on compliance with legal and regulatory requirements[138]. - The Board comprises eight Directors, including one female Director, achieving a gender diversity ratio of 12.5% on the Board[172]. - The Company has set a target of having at least one female Director and 20% female employees, which was achieved during the year ended 31 December 2024[176]. - The gender ratio in the workforce is 40% female and 60% male, with 58.3% female employees[176]. - The Nomination Committee held two meetings during the year ended December 31, 2024[169]. - The Company has adopted a board diversity policy to promote diversity in terms of skills, experience, knowledge, and gender[171]. - The Remuneration Committee is responsible for determining the remuneration packages of all executive Directors and senior management[180]. - The Company has complied with the code of conduct regarding Directors' securities transactions throughout the year ended December 31, 2024[162]. - The Board is satisfied with the implementation and effectiveness of the board diversity policy during the year ended December 31, 2024[179]. - The Nomination Committee assesses the independence of independent non-executive Directors and makes recommendations on appointments[164]. - The Company encourages Directors to engage in continuous professional development to fulfill their responsibilities[161]. Audit and Risk Management - The auditor's remuneration for the year ended December 31, 2024, is HK$1,330,000[190]. - The Audit Committee held four meetings during the year ended December 31, 2024[192]. - The Remuneration Committee has reviewed the existing terms of employment contracts of executive Directors and non-executive Directors, considering factors such as salaries paid by comparable companies and performance[189]. - The Audit Committee is satisfied with the adequacy and effectiveness of the risk management and internal control systems for the year ended December 31, 2024[197]. - The Audit Committee reviewed the unaudited consolidated financial statements for the six months ended June 30, 2024, and the audited consolidated financial statements for the year ended December 31, 2023[197]. - The Audit Committee discussed the accounting principles and practices adopted by the Group and is of the opinion that the consolidated results comply with applicable accounting standards[198]. Employee and Workforce Development - The Group employed 20 employees as of December 31, 2024, an increase from 13 employees in 2023[129]. - The Group is committed to providing career development opportunities to its female staff, deploying resources for training senior female staff since listing[184]. - The Group has implemented appropriate recruitment practices to ensure a diverse range of candidates are considered[184].