Business Development and Strategy - In 2024, the company focused on high-quality development and deepened reforms, achieving stable growth in main businesses and increasing market share[8]. - The company aims to develop four major industrial sectors: in-depth environmental treatment, environmental protection product manufacturing, new energy technology services, and resource recycling by 2025[10]. - The company is committed to improving quality and efficiency, consolidating competitive advantages in traditional industries, and advancing technological innovation[10]. - The company plans to establish three platforms for innovative research, investment in strategic emerging industries, and engineering consulting services[10]. - The company is positioned as the sole platform for environmental protection and energy conservation business under China Datang Corporation[16]. - The Group plans to actively explore clients in the iron and steel, cement, and petrochemical industries to diversify its client base[142]. - The Group aims to improve quality and efficiency, consolidating competitive advantages in traditional industries by enhancing value creation capabilities and optimizing procurement strategies for bulk materials[145]. - The Group plans to deepen its traditional environmental protection business, focusing on expanding the scale of liquid ammonia to urea and zero wastewater discharge projects[145]. - The Group will expand its franchise business by actively pursuing incremental projects in Chaozhou, Lvsi, and Sanmenxia, aiming for steady growth in profitability[145]. Financial Performance - For the year ended 31 December 2024, the Group's revenue amounted to RMB 5,770.9 million, representing an increase of 0.9% compared to the previous year[21]. - The gross profit for the year ended 31 December 2024 was RMB 1,229.4 million, reflecting a 7.4% increase year-over-year, with a gross profit margin of 21.3%, up by 1.3 percentage points[21]. - Total comprehensive income attributable to owners of the parent for the year ended 31 December 2024 was RMB 548.4 million, an increase of 4.9% compared to the previous year[21]. - The Group's profit for 2024 amounted to RMB 552.4 million, representing an increase of RMB 48.8 million, or 9.7%, from RMB 503.6 million in 2023[75]. - Profit before tax increased by 6.1% to RMB 655.1 million in 2024 from RMB 617.6 million in 2023[91][97]. - Profit attributable to owners of the parent increased by RMB 26.7 million to RMB 549.1 million in 2024 from RMB 522.4 million in 2023[94][100]. - The Group's return on total assets for 2024 was 3.6%, an increase from 2.8% in 2023[75]. - The Group's cash and cash equivalents decreased by 43.5% to RMB 994.7 million as of December 31, 2024, down from RMB 1,759.4 million as of December 31, 2023[111]. - Total assets decreased by 14.9% to RMB 15,348.1 million as of December 31, 2024, compared to RMB 18,045.1 million as of December 31, 2023[75]. Market Position and Industry Outlook - The Group maintained its position as the largest desulfurization and denitrification concession operator and the largest manufacturer of denitrification catalysts in the PRC[21]. - The environmental protection industry is projected to reach a scale of approximately RMB 15 trillion by 2030, indicating significant growth potential for the Group's related business[28]. - The environmental protection industry is projected to reach approximately RMB 15 trillion by 2030, driven by comprehensive green transformation initiatives[29]. - The Group's customers are spread across 30 provinces in the PRC and eight overseas countries, highlighting its extensive market reach[26]. - The Group's environmental protection facility concession operation business is strategically located in economically developed areas with high electricity demand, enhancing its operational efficiency[36]. Technological Innovation and Development - The company built an initial honeycomb catalyst product library and developed a 70-hole honeycomb catalyst, overcoming key technological bottlenecks[9]. - Significant progress was made in carbon monitoring, resource recycling, and solid waste disposal, supporting sustainable development[9]. - The Group's strategic focus on green recycling aligns with national policies aimed at enhancing resource recycling quality and efficiency[30]. - The Group intends to enhance its research and development capabilities in the new catalyst industry, aiming to develop catalysts for marine diesel engines and achieve SCR certification[149]. - The Group will accelerate the implementation of resource recycling projects, including the recycling of retired wind turbine blades and solid waste disposal projects, to meet the business needs of wind farms[149]. Shareholder and Dividend Information - As of December 31, 2024, the company had issued a total of 2,967,542,000 shares, with the controlling shareholder, China Datang, holding approximately 78.96%[15]. - The Board proposed a final dividend of RMB 0.051 per ordinary share (before tax) for the year ended 31 December 2024[21]. - The proposed final dividend for the year ended December 31, 2024, is RMB 0.051 per ordinary share, compared to RMB 0.076 per share for the year ended December 31, 2023[186]. Risk Management and Compliance - The company has implemented risk management and internal control measures to ensure compliance with relevant laws and regulations[167]. - The Group's exposure to foreign currency risk was deemed insignificant for the years ended December 31, 2024, and December 31, 2023[134]. - The Group's ability to generate adequate cash inflows from operating activities will depend largely on project schedules and timely collection of receivables[141]. Environmental and Social Responsibility - The company actively fulfilled its social responsibilities in 2024, focusing on sustainable development and cooperation with stakeholders[162]. - The Group's management believes that the PRC government is unlikely to revise environmental protection policies adversely, given the severity of pollution issues[137].

Financial Performance - Total revenue for the year ended December 31, 2024, was approximately HKD 35.7 million, a decrease of 1.7% compared to HKD 36.4 million in 2023[12]. - The loss attributable to the owners of the company for the year was HKD 8.3 million, reduced from HKD 15.3 million in 2023, primarily due to the absence of inventory write-downs[12]. - The group reported a loss of approximately HKD 8,310,000 for the year ending December 31, 2024[195]. - The company reported a pre-tax loss of HKD 8,310,000 for 2024, improving from a loss of HKD 15,346,000 in 2023[179]. - Basic and diluted loss per share for the year was HKD 14.91, compared to HKD 49.05 in the previous year, indicating a significant reduction in losses[179]. - The company’s total equity attributable to owners decreased from HKD 17,819,000 in 2023 to HKD 9,509,000 in 2024, a decline of approximately 46.7%[183]. - The group incurred a net loss of approximately HKD 8,310,000 as of December 31, 2024, with total current liabilities amounting to HKD 17,797,000 and cash reserves of only HKD 815,000[162]. Assets and Liabilities - Non-current assets decreased from HKD 2.94 million in 2023 to HKD 1.27 million in 2024[19]. - Current assets decreased from HKD 32.99 million in 2023 to HKD 26.08 million in 2024[19]. - Total assets decreased from HKD 35.93 million in 2023 to HKD 27.34 million in 2024[19]. - Total liabilities decreased slightly from HKD 18.12 million in 2023 to HKD 17.83 million in 2024[19]. - Total liabilities decreased from HKD 18,115,000 in 2023 to HKD 17,833,000 in 2024, a reduction of approximately 1.56%[182]. - Current liabilities increased to HKD 17,797,000 in 2024 from HKD 16,640,000 in 2023, representing an increase of about 6.9%[181]. - The company’s total liabilities exceeded total assets, indicating potential concerns regarding its ability to continue as a going concern[178]. Operational Challenges - The management acknowledges ongoing challenges in the restaurant industry, including rising food costs and competition, which may adversely affect performance[13]. - The group is facing ongoing challenges in the Hong Kong restaurant industry, including rising food costs, rent, utilities, and labor costs, which are putting pressure on profit margins[20]. - The group recognizes the need for flexibility in marketing strategies and operational adaptability to navigate the challenging macro environment[20]. - The group anticipates that the transformation of the local consumption market will continue to impact its performance negatively[27]. Strategic Initiatives - The company plans to expand its takeaway product line and diversify promotional strategies to enhance overall business performance[14]. - The group has implemented strategic measures to increase revenue and reduce costs, including negotiating lower rents and achieving more favorable terms with suppliers[20]. - The group plans to closely monitor supplier pricing for raw materials to ensure competitive pricing and improve market share[25]. - The group aims to expand its takeaway product line and enhance existing restaurant facilities to attract more customers[26]. - The company is actively seeking opportunities to expand revenue sources and increase shareholder value[14]. Corporate Governance - The company has a strong governance structure with a diverse board comprising members with expertise in finance, law, and public service[35][36][37][38][39]. - The board includes members with significant academic and professional qualifications, ensuring informed decision-making[36][39]. - The company has adopted a board diversity policy effective from January 3, 2019, ensuring a balanced composition with diverse management experience and industry knowledge[46]. - The independent non-executive directors play a crucial role in providing strategic advice and ensuring high standards of financial reporting[48]. - The board of directors is responsible for guiding management and reviewing its efficiency, focusing on long-term shareholder value enhancement[43]. Shareholder Relations - The group acknowledges the importance of effective communication with shareholders to enhance investor relations[92]. - The board will consider various factors, including the group's overall financial condition and future cash needs, when declaring dividends[88]. - The group has adopted a dividend policy outlining the criteria and manner for declaring dividends since January 3, 2019[86]. - The group will not recommend any dividend payment for the year ending December 31, 2024[99]. Compliance and Risk Management - The company has a strict code of conduct for securities trading, ensuring compliance with the GEM Listing Rules[50]. - The company has confirmed that all independent non-executive directors are independent as of December 31, 2024, based on assessments by the nomination committee[48]. - The company has implemented appropriate procedures to safeguard its assets and ensure compliance with relevant laws and regulations[77]. - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2024[160]. Future Outlook - The company is positioned for future growth with a strategic focus on expanding its market presence and enhancing its service offerings[35][38]. - The company's ability to continue as a going concern is dependent on the financial support from two major beneficial shareholders and the future economic outlook in Hong Kong[196]. - There is significant uncertainty regarding the group's ability to continue operations, which may affect the realization of assets and settlement of liabilities[196]. - The overall economic outlook in Hong Kong and consumer behavior related to cross-border spending remains uncertain[195].

Financial Performance - For the year ended December 31, 2024, the Group's revenue was approximately RMB 109.3 million, representing a year-on-year increase of 28.0%[17]. - The revenue from Smart PDLC products was approximately RMB 79.6 million, maintaining a leading market share position in the PRC[18]. - In 2024, the revenue from Smart PDLC products was approximately RMB 79.6 million, representing an increase of approximately RMB 30.7 million or 62.8% compared to RMB 48.9 million in 2023[31]. - Revenue from ITO film sales was approximately RMB 23.0 million for the year ended December 31, 2024, a decrease of approximately RMB 3.9 million or 14.5% from RMB 26.9 million in 2023[30]. - The Group recorded a profit attributable to owners of approximately RMB 11.4 million for the year ended December 31, 2024, compared to a loss of approximately RMB 39.8 million for the same period in 2023[35]. - The Group's revenue increased by approximately 28.0% compared to the same period in 2023[35]. - The Group's revenue from other products was approximately RMB 6.7 million for the year ended December 31, 2024, a decrease of approximately RMB 2.5 million from RMB 9.2 million in 2023[34]. - Gross profit increased by approximately RMB20.1 million or 89.3%, from approximately RMB22.5 million for the year ended December 31, 2023, to approximately RMB42.6 million for the year ended December 31, 2024[43]. - Gross profit margin increased from approximately 26.3% for the year ended December 31, 2023, to approximately 38.9% for the same period in 2024[43]. Cost Management - The Group effectively reduced production costs by changing the operation model and improving production techniques across all areas of operations[19]. - Cost of sales was approximately RMB66.7 million for the year ended December 31, 2024, reflecting an increase of approximately RMB3.8 million or 6.0% from approximately RMB62.9 million for the same period in 2023[42]. - Selling and distribution expenses were approximately RMB3.9 million for the year ended December 31, 2024, accounting for approximately 3.6% of revenue, down from approximately 5.7% for the same period in 2023[44]. - Administrative expenses were approximately RMB24.6 million for the year ended December 31, 2024, representing an increase of approximately RMB3.3 million or 15.5% from approximately RMB21.3 million for the same period in 2023[45]. Innovation and Development - The Group obtained 8 authorized patents in 2024, including 3 invention patents and 5 utility models, bringing the total to over 100 valid patents[24]. - The Group's technological innovations and standard formulations have laid a solid foundation for future development[24]. - The Group's Smart PDLC products are primarily sold to construction companies and contractors, indicating a strong market focus[33]. Market Conditions - The domestic market has begun to recover slightly, but the pace remains slow, impacting overall sales performance[29]. - The production of motor vehicle films continued to expand, with the Group officially joining the supplier system of well-known automotive glass manufacturers[20]. Financial Position and Borrowings - As of December 31, 2024, the Group had short-term borrowings of RMB30.0 million and no long-term borrowings[50]. - Gearing ratio as of December 31, 2024, was approximately 49.2%, stable compared to approximately 54.9% as of December 31, 2023[52]. - The Group recognized approximately RMB2.5 million as impairment losses on overdue trade receivables during the year ended December 31, 2024[63]. - As of December 31, 2024, the Group recognized an expected credit loss (ECL) of approximately RMB 2.5 million for trade receivables, primarily related to overdue balances exceeding three years[68][78]. Corporate Governance - The Board has complied with GEM Listing Rules, maintaining at least three independent non-executive Directors, representing more than one-third of the Board[104]. - Each independent non-executive Director has provided an annual confirmation of independence, and the Nomination Committee has assessed their independence[105]. - The roles of Chairman and Chief Executive Officer are held by different individuals, ensuring compliance with corporate governance standards[110]. - The Board encourages open expression of views among Directors during meetings, promoting transparency and accountability[112]. - The Audit Committee held four meetings during the year ended December 31, 2024, to review the Group's quarterly, interim, and annual financial results[123]. Shareholder Communication - The Company maintains a transparent and timely disclosure policy to keep shareholders informed of business performance and strategies[158]. - The annual general meeting provides a platform for direct dialogue between the Board and shareholders[159]. - The Company has adopted a shareholders' communication policy to maintain effective communication channels, including general meetings and the Company's website[171]. - The Company ensures that registered shareholders are notified by post of the AGM[171]. Management Team - Mr. Zhang Chao has over 16 years of experience in the curtain wall engineering sector and holds a patent for smart photovoltaic controller hubs[187]. - Mr. Zhu Xuping became the Chief Financial Officer in March 2023, having extensive experience in financial management across various subsidiaries[188]. - Ms. Pan Jianli has over 20 years of experience in accounting and financing and is currently the chairperson of the Audit Committee[194].

Financial Performance - The Group's revenue decreased by 25% from approximately HK$124,255,000 in 2023 to approximately HK$92,605,000 in 2024[20]. - Loss attributable to equity holders of the Company for the Year amounted to approximately HK$42,906,000, an increase of approximately HK$23,802,000 compared to HK$19,104,000 in 2023[20]. - The Group recognized a fair value loss on its financial asset at fair value through profit or loss of approximately HK$19,207,000 during the Year, compared to a fair value gain of approximately HK$10,647,000 in 2023[20]. - The financial results reflect prolonged pressure due to adverse market conditions and strategic challenges faced by the Group[20]. - The Group's total revenue for the year amounted to approximately HK$92,605,000, representing a 25% decrease compared to approximately HK$124,255,000 in 2023[44][50]. - Gross profit for the year was approximately HK$10,654,000, down by approximately HK$4,640,000 from approximately HK$15,294,000 in 2023, mainly due to the decline in revenue[52]. - The Group recorded net other losses of approximately HK$18,818,000, compared to net other gains of approximately HK$10,956,000 in 2023, largely due to a fair value loss of approximately HK$19,207,000 on the investment in Mobvoi[53]. Sales Performance - Sales of TFT-LCD panels and modules dropped approximately 52%, from HK$83,992,000 in 2023 to approximately HK$40,161,000[23]. - Sales of electronic signage products decreased by approximately 7%, from HK$14,029,000 in 2023 to approximately HK$12,997,000[24]. - Sales of optics products increased significantly to approximately HK$25,594,000, up approximately HK$20,600,000 from HK$4,994,000 in 2023[25]. - Sales of health-related products fell by approximately 30%, from HK$18,209,000 in 2023 to approximately HK$12,799,000[28]. - The decline in sales of electronic signage was mainly attributed to decreased demand in the education sector[24]. Market Conditions - The global display panel market faced challenges from supply and demand imbalance and changes in market demand, impacting the Group's financial results[20]. - Demand for pandemic-related hygiene products continued to decline in the post-pandemic era, further affecting the Group's performance[20]. - The Group anticipates facing challenges due to global economic uncertainty, geopolitical tensions, and trade frictions, and will adjust business strategies accordingly[33][36]. Strategic Initiatives - The Group is engaged in trading, development, and sales of display and optics products, as well as health-related products[19]. - The Company aims to navigate the complex market environment and explore new opportunities for growth in the future[20]. - The Group's strategy includes expanding its product portfolio to include rapid antigen test kits and health supplements in response to market changes[28]. - The Group strategically entered the pet-care market, launching a series of pet health food products during the year[28]. - The Group aims to explore new market opportunities and strengthen relationships with suppliers and customers to create greater shareholder value[33][36]. Cost Management - The cost of sales decreased to approximately HK$81,951,000, a 25% reduction from approximately HK$108,961,000 in 2023, primarily due to decreased sales of TFT-LCD panels and health-related products[51]. - Distribution and selling expenses decreased by approximately 43% to approximately HK$12,533,000 from approximately HK$22,087,000 in 2023, attributed to lower staff costs and promotion expenses[54]. - General and administrative expenses amounted to approximately HK$21,557,000, representing a 10% decrease from approximately HK$23,890,000 in 2023, mainly due to reduced staff costs[55]. - Research and development expenses increased by approximately 31% to approximately HK$1,227,000 from approximately HK$938,000 in 2023, driven by higher staff costs[56]. Cash Flow and Assets - Cash and cash equivalents decreased by approximately 48% to HK$24,407,000 from HK$47,372,000 in 2023[70]. - Total assets decreased by approximately 50% to HK$58,357,000 from HK$116,131,000 in 2023[69]. - The Group's net current assets position was HK$41,117,000 as of December 31, 2024, compared to HK$50,301,000 in 2023, indicating a decline of 18.2%[75]. - The Group's total bank borrowings as of December 31, 2024, were approximately HK$3,809,000, down 15.7% from HK$4,519,000 in 2023[72]. Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code during the year[120]. - The Board of Directors consists of four executive Directors and three independent non-executive Directors as of the date of the annual report[122]. - The Company is committed to high standards of corporate governance to protect shareholder interests[125]. - The audit committee held three meetings during the Year, reviewing the Company's annual financial statements and internal control systems[159]. - The Company has received annual independence confirmation from each of the existing independent non-executive Directors, affirming their independence[151]. Employee and Gender Diversity - The employee headcount decreased to 53 as of December 31, 2024, from 67 in 2023, reflecting a reduction of 20.9%[80]. - Total staff costs, including directors' emoluments, were approximately HK$22,595,000 for the year, down 8.6% from HK$24,713,000 in 2023[80]. - The employee gender ratio of the Group is 30 males to 23 females, reflecting the Group's commitment to gender diversity[196]. - The nomination committee has deemed the existing Diversity Policy suitable and effective after review during the year[200].

Financial Performance - For Q1 2025, the company achieved insurance service revenue of RMB 120.741 billion, a year-on-year increase of 6.1%[4] - The net profit for Q1 2025 reached RMB 11.312 billion, reflecting a significant year-on-year growth of 92.7%[4] - The original insurance premium income for Q1 2025 was RMB 180.421 billion, representing a year-on-year increase of 3.7%[5] - The underwriting profit for Q1 2025 was RMB 36.653 billion, a substantial year-on-year increase of 183.0%[7] - Operating revenue for the three months ended March 31, 2025, was RMB 128,563,879 thousand, an increase of 8.5% compared to RMB 118,988,001 thousand for the same period in 2024[13] - Net profit for the three months ended March 31, 2025, reached RMB 11,311,839 thousand, which is a significant increase of 92.5% from RMB 5,870,941 thousand in the same period of 2024[13] - The company reported investment income of RMB 4,989,902 thousand for the three months ended March 31, 2025, which is an increase of 131.5% from RMB 2,154,007 thousand in the same period of 2024[13] Investment and Assets - Total investment income for Q1 2025 amounted to RMB 57.464 billion, an increase of RMB 2.692 billion compared to the previous year[8] - The company's total assets increased to RMB 790,160,654 thousand as of March 31, 2025, up from RMB 773,926,554 thousand as of December 31, 2024, representing a growth of approximately 2.9%[12] - The company's cash and cash equivalents increased to RMB 16,963,276 thousand as of March 31, 2025, compared to RMB 9,127,946 thousand as of December 31, 2024, reflecting a growth of 86.5%[12] - The company recorded a significant increase in cash flow from investment activities, with a net cash flow of RMB (9,147,408) thousand for the three months ended March 31, 2025, compared to RMB 9,608,709 thousand in the same period of 2024[14] Solvency and Liabilities - The comprehensive solvency adequacy ratio as of March 31, 2025, was 237.5%, up 4.9 percentage points from the end of 2024[11] - The core solvency adequacy ratio increased to 216.3%, up 5.3 percentage points from the previous period[11] - The total liabilities of the company stood at RMB 519,916,244 thousand as of March 31, 2025, slightly up from RMB 515,875,306 thousand as of December 31, 2024[12] Business Strategy and Development - The company continues to optimize its business structure and enhance core competitiveness, focusing on high-quality development in personal and corporate insurance sectors[5] - The company is committed to long-term stable investment strategies, benefiting from a favorable capital market environment in Q1 2025[8] - The company reported a combined cost ratio of 494.5%, a decrease of 3.4 percentage points year-on-year[7] Cash Flow - Cash flow from operating activities generated a net amount of RMB 8,171,734 thousand for the three months ended March 31, 2025, compared to RMB 902,633 thousand for the same period in 2024, indicating a substantial improvement[14] - The company’s insurance service income for the three months ended March 31, 2025, was RMB 120,740,688 thousand, up from RMB 113,843,230 thousand in the same period of 2024, marking an increase of 6.5%[13] - The company’s total equity increased to RMB 270,244,410 thousand as of March 31, 2025, from RMB 258,051,248 thousand as of December 31, 2024, representing a growth of approximately 4.7%[12]

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue decreased by RMB 5.4 million or 2.0% to approximately RMB 258.5 million from RMB 263.9 million in the previous fiscal year[12]. - Gross profit for the same period fell by RMB 5.5 million or 14.4% to approximately RMB 32.7 million, primarily due to a decline in gross profit contribution from the mobile gaming business[12]. - The net loss for the fiscal year 2024 was approximately RMB 50.9 million, a decrease from the net loss of RMB 53.8 million in fiscal year 2023, primarily due to an increase in other income and gains of approximately RMB 10.9 million and a reduction in research and development expenses of approximately RMB 7.9 million[13]. - The company reported a total revenue of RMB 153,568,000 for the fiscal year 2024[91]. - The company incurred a net loss of RMB 25,469,000 during the same period[91]. - The gross profit decreased by RMB 5.5 million or 14.4% to approximately RMB 32.7 million in fiscal year 2024, primarily due to a decline in gross profit contribution from the mobile gaming business[133]. - The company reported a net loss of approximately RMB 50.9 million for fiscal year 2024, compared to a net loss of RMB 53.8 million in fiscal year 2023, indicating a narrowing of losses[133]. Assets and Equity - Non-current assets increased significantly to RMB 134.4 million in 2024 from RMB 38.9 million in 2023, indicating a strong investment in long-term assets[7]. - Current assets also rose to RMB 416.2 million in 2024 from RMB 189.3 million in 2023, reflecting improved liquidity and operational capacity[7]. - Total assets reached RMB 550.6 million in 2024, a substantial increase from RMB 228.2 million in 2023, showcasing overall growth in the company's financial position[7]. - The total equity increased to RMB 179.3 million in 2024 from RMB 116.5 million in 2023, indicating a stronger capital base[7]. Business Development and Strategy - The company has expanded into AI application development and related services, enhancing its technological capabilities and product offerings[10]. - The company aims to integrate AI technology into its existing business lines to improve user engagement and operational efficiency[10]. - The company plans to leverage the wave of artificial intelligence technology to enhance digital entertainment services, focusing on mobile game development, digital media development, and overseas market expansion[14]. - By 2025, the company aims to deepen its integration of artificial intelligence technology into mobile games and digital media, enhancing user experience and engagement[15]. - The company continues to explore new business models and opportunities in response to trends in the domestic internet market[11]. Market Performance - The mobile gaming segment experienced a revenue decline of approximately RMB 70.5 million, while the digital media segment saw an increase of about RMB 88.8 million[12]. - The number of paying players decreased by 74.5% from 1,833.8 thousand in 2023 to 468.4 thousand in 2024[138]. - Average monthly paying users dropped by 74.5% from 152.8 thousand in 2023 to 39.0 thousand in 2024[138]. - Mobile game revenue fell by 48.3% from approximately RMB 146.0 million in 2023 to approximately RMB 75.5 million in 2024[140]. Funding and Financial Management - The company has raised approximately RMB 88.18 million from the first share placement, with all funds allocated for game product and AI product development, game sector expansion, digital media sector expansion, and working capital[34]. - The net proceeds from the second placement as of December 31, 2024, amounted to RMB 25.32 million, fully utilized for R&D, game expansion, and working capital[35]. - The net proceeds from the third placement raised approximately RMB 12.96 million on March 28, 2024, and were fully utilized by December 31, 2024[36]. - The company has incurred loans from subsidiaries amounting to approximately RMB 3.2 million and interest-bearing loans of RMB 3.0 million during the fiscal year 2024[30]. - The company has adopted a prudent cash and financial management policy to minimize funding costs and enhance cost control[155]. Corporate Governance - The board of directors has committed to maintaining high standards of corporate governance and has appointed a female director to enhance gender diversity on the board[163]. - The company has established formal and informal channels for independent non-executive directors to express their opinions, including regular board evaluations and closed-door meetings with the chairman[178]. - The company has implemented internal control and risk management systems, with the senior management team responsible for monitoring the budget adopted by the board[171]. - The company is committed to compliance with listing rules, having appointed independent non-executive directors to meet the requirements[174]. - The board has confirmed that corporate governance is a shared responsibility among directors, including compliance with legal and regulatory requirements[192]. Shareholder Information - As of December 31, 2024, Mr. Wang Le holds a 61.39% stake in the company through Infinities Global, which is controlled by him and his associates[44]. - Major shareholders include Ms. An Fenghua and Infinities Cayman, each holding 450,776,711 shares, representing 61.39% of total shares[46]. - The company has no provisions for preemptive rights in its articles of association or under Cayman Islands law[38]. - The shareholders have pledged their shares according to the equity pledge agreement, which has been registered with the relevant Chinese regulatory authorities[85]. Compliance and Legal Matters - The company has complied with relevant laws and regulations that significantly impact its operations during the fiscal year 2024[23]. - The company is closely monitoring developments in Chinese laws and regulations to ensure compliance and maintain control by Chinese investors[94]. - The company may face risks related to contractual arrangements that may not be enforceable under Chinese law[102]. - The company has taken measures to ensure compliance with contractual arrangements and has received exemptions from strict adherence to certain listing rules[106].

Financial Performance - The Group's revenue for the year ended December 31, 2024, was approximately HK$902,316,000, a decrease of approximately 10.5% compared to HK$1,008,101,000 in 2023[11]. - The net profit for the year ended December 31, 2024, was approximately HK$18,884,000, representing a decrease of approximately 14.8% from HK$22,168,000 in 2023[11]. - The gross profit for the years ended 31 December 2024 and 2023 was approximately HK$120,939,000 and HK$129,565,000, respectively, with gross profit margins of approximately 13.4% and 12.9%[24][28]. - Profit attributable to owners of the Company for the years ended 31 December 2024 and 2023 was approximately HK$18,884,000 and HK$22,168,000, respectively, representing a decrease of approximately 14.8%[34][38]. - The Group's financial performance reflects ongoing challenges in the market, necessitating strategic adjustments[11]. Dividends and Shareholder Matters - The Board has recommended a final dividend of HK1.67 cents per ordinary share, totaling HK$13,360,000, for the year ended December 31, 2024[13]. - The upcoming annual general meeting will require shareholder approval for the proposed dividend payment[13]. Business Development and Strategy - New products launched include "Oodles Transformer," "Cubicles and Smart Washroom Solution," "Luminous Shelves," and "Smart Emergency System"[14]. - The technology solution "Oodles Smart" was officially launched in March 2024 and has expanded its geographical footprint to Japan and Singapore[14]. - The Group aims to refine its products and services while diversifying its business to capitalize on growth opportunities and increase profitability[14]. - The Group's efforts in business diversification are expected to reduce volatility in its operations amid market fluctuations[14]. - The Group anticipates that 2025 will be a challenging year for winning new tenders in the existing fitting-out industry in Hong Kong due to ongoing economic pressures[40]. - The Group plans to leverage GenAI technology and big data to digitalize its traditional business, enhancing productivity and customer experience[42]. Financial Position and Debt - Total debts of the Group, including bank borrowings and lease liabilities, was approximately HK$498,380,000 as of December 31, 2024, compared to approximately HK$444,341,000 in 2023[47]. - The gearing ratio of the Group was approximately 66.3% as of December 31, 2024, slightly down from approximately 66.5% as of December 31, 2023[53]. - The current ratio of the Group was approximately 1.1 as of December 31, 2024, down from approximately 1.2 as of December 31, 2023[53]. Employee and Administrative Matters - Employee benefit expenses for the year ended December 31, 2024, amounted to approximately HK$100,595,000, a decrease from approximately HK$119,216,000 in 2023[62]. - The Group employed a total of 233 employees as of December 31, 2024, down from 238 employees as of December 31, 2023[59]. - Contributions to the Mandatory Provident Fund for the year ended December 31, 2024, were approximately HK$3,406,000, compared to approximately HK$5,831,000 in 2023[61]. - Administrative expenses decreased from approximately HK$71,023,000 in 2023 to approximately HK$63,295,000 in 2024, representing a decrease of 10.9%[25][29]. Corporate Governance - The Company complied with the Corporate Governance Code provisions, except for a deviation regarding the "Chairman and Chief Executive" section[80]. - The Board consists of five members, including two executive Directors and three independent non-executive Directors[90]. - The Board is responsible for corporate policy formulation, business strategic planning, and risk management[82]. - The Company has arranged appropriate insurance cover for Directors' and officers' liabilities[89]. - The Board will review the effectiveness of mechanisms for independent non-executive Directors to express their views annually[97]. - The Company has mechanisms in place for independent non-executive directors to express their opinions openly, enhancing governance[104]. Board Composition and Diversity - The Board consists of five Directors, including one female executive Director and one female independent non-executive Director, reflecting a commitment to gender diversity[131]. - As of December 31, 2024, the workforce composition was approximately 73.4% male and 26.6% female, indicating efforts to attract female talent in a traditionally male-dominated industry[135]. - The Company does not set specific gender targets for its workforce but values diversity in recruitment and promotion policies[135]. - The Nomination Committee will review the Board Diversity Policy annually to ensure its effectiveness and monitor the implementation of diversity objectives[136]. Risk Management and Internal Control - The Board is directly responsible for the Group's risk management and internal control systems, rather than establishing a separate internal audit department[196]. - The Group's risk management functions and internal control procedures are considered effective and adequate, with annual reviews conducted by the Board and other Board Committees[195]. - The Company has adopted a whistleblowing system to allow employees to report serious concerns about possible improprieties confidentially[190]. - The independent internal control consulting firm recommended certain internal control improvement measures to enhance the Group's corporate governance and compliance with applicable laws and regulations[191]. Audit and Financial Reporting - The auditor, PricewaterhouseCoopers, received HK$1,380,000 for audit services for the year ended December 31, 2024, with no non-audit services provided[179]. - The Directors acknowledged their responsibility for preparing consolidated financial statements that present a true and fair view of the Group's state of affairs as of December 31, 2024[180]. - The Audit Committee reviewed the financial reporting process, risk management, and internal control systems during its meetings[144].

Financial Performance - The company's operating revenue for the year ending December 31, 2024, was approximately RMB 377,843,000, an increase of about 2.7% or RMB 9,898,000 compared to 2023[12]. - The gross profit for the reporting period was approximately RMB 38,075,000, a decrease of about 19.2%, with a gross margin of 10.1%, down from 12.8% in 2023[12]. - The net loss for the period was approximately RMB 74,044,000, a reduction of about 32.1% compared to a net loss of RMB 109,009,000 in 2023[12]. - Sales expenses decreased by approximately RMB 11,197,000 to about RMB 8,387,000, a decline of about 57.2%[12]. - Research and development expenses were approximately RMB 31.073 million, a decrease of about 6.5% compared to 2023, representing 8.2% of total revenue[39]. - The basic and diluted loss per share for the reporting period was approximately RMB 11.4 cents, compared to RMB 18.8 cents in 2023[43]. - The expected credit loss on financial and contract assets decreased by approximately RMB 24,600,000 to about RMB 2,669,000, a reduction of about 90.2% year-on-year[44]. - The company's cash and cash equivalents balance as of December 31, 2024, was approximately RMB 16,399,000, a decrease of about RMB 96,858,000 from the previous year[46]. - The net cash outflow from operating activities was approximately RMB 16,616,000, an improvement of about 21,753,000 compared to the previous year[47]. - The net cash outflow from financing activities was approximately RMB 73,744,000, compared to a net cash inflow of RMB 147,646,000 in 2023[49]. - The company's debt-to-asset ratio as of December 31, 2024, was approximately 277.9%, up from 150.2% in 2023[56]. Revenue Breakdown - The data solutions business's contribution to total revenue decreased from 45.4% to 39.2%, with a revenue decline of approximately 11.4% or RMB 19,019,000[12]. - The merchandise trading business's revenue increased by approximately 218.1% or RMB 85,589,000, raising its share of total revenue from 10.7% to 33.0%[12]. - The data solutions business accounted for 39.2% of total revenue, down from 45.4% in 2023, with a decrease of approximately 11.4% or RMB 19.019 million[35]. - The commodity trading business saw a significant increase, contributing 33.0% to total revenue, up from 10.7% in 2023, with a revenue increase of approximately 218.1% or RMB 85.589 million[35]. Market Outlook - In 2024, China's GDP is expected to grow by approximately 5.2%, with the digital economy surpassing RMB 70 trillion, accounting for over 50% of GDP[19]. - The financial technology market in China is projected to reach approximately RMB 2.6 trillion in 2024, achieving an 18% growth rate[26]. - The Chinese fintech market is projected to reach RMB 3.1–3.3 trillion by 2025, representing an 18% growth from 2024, driven by segments like banking wealth management and cross-border payments[62]. Strategic Initiatives - The company plans to deepen cooperation with leading financial institutions and expand into new business areas, focusing on data element circulation and digital asset integration[14]. - The company aims to enhance its core data business and strengthen its competitive advantage in the financial and governmental sectors[14]. - The strategic focus for 2025 includes transitioning from "scale expansion" to "value creation" in the financial technology market, with AI applications and data element value release as key growth drivers[14]. - The company is focusing on AI big data, marketing technology, and digital transformation as core business areas, leveraging its technical advantages in data intelligence[27]. - The company aims to explore new revenue streams through business integration and acquisitions in areas like AI big data and digital assets[66]. Governance and Leadership - The company has seen significant leadership changes, with Dr. Wu transitioning from CEO to Non-Executive Director in November 2022 and later stepping down as Chairman in July 2023[73]. - The management team has a diverse background in finance, technology, and business management, enhancing the company's strategic capabilities[75][79]. - The company has appointed several independent non-executive directors to strengthen its governance and oversight, including Dr. Tian Yu and Mr. Wei Junheng[78][80]. - The board believes that having the same individual serve as both chairman and CEO ensures consistent leadership and effective strategy implementation[184]. - The board will regularly review the effectiveness of the current structure to maintain a balance of power and authority between the board and management[200]. Compliance and Internal Controls - The audit committee has reviewed the group's annual performance and financial statements, confirming compliance with applicable accounting standards[177]. - The company has adopted corporate governance practices in line with the corporate governance code, ensuring transparency and accountability[184]. - The board has identified deficiencies in internal controls, particularly relying on self-reporting by directors to ensure compliance with the code of conduct[190]. - The company has implemented several remedial measures, including appointing an executive director to oversee compliance with the code of conduct[191]. - The company will conduct annual reviews of its internal control systems with the help of external consultants[191]. Employee and Shareholder Information - The group has a total of 226 employees in mainland China and Hong Kong as of December 31, 2024[133]. - The group provides competitive compensation, retirement plans, and benefits to employees, with performance-based discretionary bonuses[133]. - The company has not recommended the payment of any final dividends during the reporting period[108]. - The company has adopted a dividend policy, but there is no predetermined dividend payout ratio, with any dividends to be decided by the board based on factors such as operating performance and cash position[109]. - As of December 31, 2024, the company’s directors and senior management hold a total of 104,000,000 shares, representing 15.74% of the company’s equity[158]. Related Party Transactions - The company has adopted clear pricing policies and guidelines for related party transactions[155]. - The company has complied with all relevant regulations under the listing rules regarding related party transactions[155]. - The company confirms that all related party transactions were conducted on normal commercial terms and are fair and reasonable[159]. Share Incentive Plans - The stock option plan allows for the issuance of up to 40,000,000 shares, which is 10% of the total shares issued as of June 8, 2020[138]. - The company has adopted stock option and share award plans to incentivize and retain qualified participants[135]. - The maximum number of restricted shares that can be awarded under the share incentive plan is capped at 5% of the total issued shares as of June 8, 2020, which equates to 20,000,000 shares[147]. - The vesting period for restricted shares may vary among participants, with performance conditions tied to financial targets and individual key performance indicators[149]. Risk Factors - The group has faced significant risks related to technological advancements in the big data and AI solutions industry, which could adversely affect its business and financial performance[106]. - The group does not typically enter into long-term contracts that expose its revenue to uncertainty and potential volatility[106]. - The company faces foreign exchange risks due to most transactions, assets, and liabilities being denominated in functional currencies of its subsidiaries[60].

Content Production and Strategy - By the end of 2024, the Group has produced and distributed a total of 25 high-quality drama series, with 23 being original series where the Group acted as the lead/sole investor and executive producer[9]. - The Group's original drama series cover popular themes such as family life, education, and female empowerment, contributing to extensive discussions and positive value propositions[9]. - The Group is committed to diversified growth strategies, exploring new avenues such as content marketing, short drama series, overseas distribution, and IP derivative development[10]. - The Group aims to maximize the commercial value of its proprietary IP rights, reinforcing its leadership in the industry[10]. - The Group has a strong reserve of original IPs, which is a key driver for its business operations and market position[7]. - The Group's mission is to shape content by people and shape people with content, reflecting its commitment to quality and innovation in media[8]. - The Group aims to initiate production of new projects with over 200 episodes in the coming year, focusing on premium long-form drama series[49]. - The Group's short drama series business is expected to maintain scale development while producing premium content[49]. - The Group's strategy includes leveraging new business models in content marketing to expand strategic brand resources[49]. - The Group plans to explore new business models such as short drama series marketing and IP licensing, while also developing an artiste brokerage business[87]. Financial Performance - The Group's revenue for the year ended 31 December 2024 was approximately RMB657.0 million, a decrease of 46.2% compared to RMB1,221.8 million for the year ended 31 December 2023[26]. - Gross profit for the year ended 31 December 2024 was approximately RMB108.5 million, representing a decrease of 77.5% from approximately RMB481.6 million for the same period in 2023[26]. - Adjusted net loss for the year ended 31 December 2024 was approximately RMB184.2 million, compared to adjusted net profit of approximately RMB227.4 million for the same period in 2023[26]. - Net assets as of 31 December 2024 amounted to approximately RMB2,313.9 million, a decrease of 10.1% from RMB2,574.5 million as of 31 December 2023[27]. - The Group's total assets as of 31 December 2024 were approximately RMB3,217.9 million, down from RMB3,567.5 million as of 31 December 2023[29]. - The Group's total liabilities as of 31 December 2024 were approximately RMB904.0 million, compared to RMB992.9 million as of 31 December 2023[29]. - The Group's revenue and net profit for 2024 experienced a temporary year-on-year decrease due to a smaller number of drama series episodes broadcasted and ongoing investments in new businesses[54]. - The Group's cost of sales decreased by 25.9% from RMB740.2 million in 2023 to RMB548.5 million in 2024[95]. - Gross profit fell from RMB481.6 million in 2023 to RMB108.5 million in 2024, reflecting the impact of the broadcast situation of drama series[99]. - The gross profit margin decreased from 39.4% in 2023 to 16.5% in 2024[100]. - Other income and gains decreased by 43.7% from RMB121.7 million in 2023 to RMB68.5 million in 2024[101]. - Selling and distribution expenses increased by 70.7% from RMB93.0 million in 2023 to RMB158.7 million in 2024, primarily due to efforts to expand the short drama series business[102]. - The Group's adjusted net loss for the year ended December 31, 2024, was RMB184.2 million, compared to an adjusted net profit of RMB227.4 million in 2023[120]. Viewership and Audience Engagement - The average viewership per episode of the original drama series "Under the Skin II" ranked TOP1 across all platforms in Q4 of 2024[37]. - In 2024, the Group achieved over double growth in viewership, number of subscribers, and total viewing time on its overseas self-operated YouTube channels[44]. - The original drama series "Under the Skin II" achieved significant viewership, ranking TOP1 in Hong Kong, Taiwan, Korea, and TOP3 in Malaysia, while breaking viewership records on TRUEID in Thailand[79]. - The original drama series "In Between" ranked TOP2 in the urban romance drama category for 2024, with over 900 million exposures on Xiaohongshu, leading the Weibo Drama Influence List[60]. - "My Boss" reached a popularity rate exceeding 9,500 on Youku within 13 days of its release, ranking TOP5 in viewership for exclusive Youku dramas in the first half of 2024[60]. - Several short drama series recorded viewership exceeding 100 million, with recharge amounts per series exceeding RMB10 million, indicating top industry performance[72]. - The number of viewings, subscribers, and viewing time for self-operated overseas channels more than doubled year-on-year[78]. - In 2024, the Group's self-operated official YouTube channel recorded viewership exceeding 100 million, representing a year-on-year increase of 120%, with subscribers increasing by 180% and total viewing time increasing by 205%[79]. Product and IP Development - The Group successfully produced and released 3 original drama series and 1 cinema film in 2024, with the cinema film achieving good box office results for a non-holiday release[56]. - The sales volume of peripheral derivative products for the drama series "Under the Skin II" ranked among the top tier of drama series in 2024, securing the first place among modern drama series[45]. - The Group successfully launched over 200 peripheral derivative products for "Under the Skin II," with cotton-stuffed dolls selling out immediately, achieving a sales volume of one million in record time[82]. - The sales volume of peripheral products for "My Boss" ranked TOP1 among drama series products launched by Alifish in the first half of 2024[83]. - The Group's copyright purchase amount and number of copyrights reached the highest level in previous years, enhancing the influence and commercial value of its IPs[45]. - The Group plans to debut its first overseas localized project and continue diversifying its overseas business development[49]. - The overseas distribution of the film "The Unseen Sister" was released in multiple regions including Australia, the United States, Canada, and New Zealand, and was shortlisted for major film festivals[79]. Corporate Governance and Management - The listing date of the company was August 10, 2022, under stock code 9857[24]. - The Group's principal place of business is located in Shanghai, China, with additional operations in Hong Kong[18]. - The Group has established relationships with several major banks in China, supporting its financial operations and growth initiatives[23]. - As of December 31, 2024, the Group had 203 employees, with approximately 70.9% being female, maintaining a diverse workforce[92]. - The execution of the Supplemental Agreement on January 24, 2025, will not materially impact the control and corporate governance of the Company[159]. - Mr. Su, Ms. Chen, and Ms. Xu remain as a group of controlling shareholders following the Supplemental Agreement, while Mr. Zhou and others cease to be part of the controlling shareholders[160]. - Ms. Chen has approximately 20 years of experience in the planning, production, and marketing of TV series[167]. - Mr. Su has approximately 27 years of experience in the media industry and management[162]. - Ms. Xu Xiao'ou has approximately 18 years of experience in TV series production, having held various positions at Shanghai Radio and Television Station from 2006 to 2014[172]. - Ms. Wang Juan is currently the vice president of Tencent Online Video Business Unit, responsible for strategic planning and management of content copyright and development[179]. - Mr. Zhang Rong has over 10 years of investment experience, currently serving as a partner at Hony Capital, focusing on science, technology, and cultural creation sectors[181]. - Ms. Long Yu has been a member of the Bertelsmann Group Management Committee since 2011, advising on strategy formulation and development[185]. - Ms. Xu has been recognized with multiple awards, including "Producer of the Year" in 2023 by New Weekly[174]. - Ms. Wang obtained her MBA from China Europe International Business School in November 2017[180]. - Ms. Long has served as an independent non-executive director for various companies, providing independent judgment and oversight[185]. - Ms. Long has approximately 18 years of experience in the media industry and investment, having joined Bertelsmann Group in 2005[188]. - Ms. Long served as a principal at Bertelsmann Digital Media Investments, focusing on early-stage investments in innovative companies in the technology and media sectors[188]. - Ms. Long was the CEO of Bertelsmann China Corporate Center from 2008 to 2020, overseeing investment management and advisory services[189]. - Ms. Long has held various directorships, including Bitauto Holdings Limited and China Distance Education Holdings Limited, providing independent judgment to their boards[189]. - Ms. Long is an active member of the World Economic Forum's Young Global Leaders Advisory Council[191]. - Mr. Jiang Changjian has approximately 25 years of experience in political science and international politics, serving as an associate professor at Fudan University since 2001[192]. - Mr. Jiang has been an independent non-executive director of Sanxiang Impression Co., Ltd. since May 2018, providing independent judgment to the board[192]. - Mr. Jiang served as an independent non-executive director of BGI Genomics Co., Ltd. from June 2015 to June 2021[192]. - Ms. Long received a master's degree in business administration from Stanford Graduate School of Business in June 2005[191]. - Ms. Long has been a director of Tapestry Inc. since January 2016, providing independent judgment and serving on the audit committee[188]. - Mr. Jiang was appointed as an independent non-executive director on September 24, 2021, bringing approximately 25 years of experience in international relations and public affairs[194]. - Ms. Tang was appointed as an independent non-executive director on September 24, 2021, with around 14 years of experience in accounting and management[197]. - Ms. Tang has been a professor at Donghua University since January 2022, focusing on accounting research and education[197]. - Mr. Jiang holds a master's degree in international politics and a doctoral degree in political theory from Fudan University[200]. - Ms. Tang obtained a doctoral degree in accounting from Shanghai Jiao Tong University in December 2009[198]. - Ms. Tang has been recognized as a Chinese Certified Public Accountant since December 2009[198]. - Ms. Tang was awarded the Shanghai Pujiang Talent in August 2016 and selected as a "National Accounting Leading Talent" in December 2017[199]. - Ms. Tang has served as an independent non-executive director of Shanghai No.1 Pharmacy Co., Ltd. since June 2022[197]. - Mr. Jiang has previously held independent director positions at Shenzhen BGI Genomics Co., Ltd. and Suzhou EDL Technology Co., Ltd.[194]. - Mr. Jiang's experience includes being a visiting scholar at Yale University and Columbia University[194]. Market and Operational Insights - The accumulated duration of short drama series for the year was approximately 6,000 minutes, representing a year-on-year increase of approximately 5 times[38]. - The first cinema film "The Unseen Sister" ranked TOP3 in box office performance among domestic suspense-themed films in 2024[39]. - The revenue from the commercial short drama series segment doubled year-on-year[38]. - The Group's overseas drama series achieved significant viewership growth, with some breaking local broadcasting records for Chinese dramas[78]. - The Group did not incur any material foreign currency exchange losses for the year ended December 31, 2024, and will continue to monitor foreign exchange exposure[139]. - As of December 31, 2024, the group had no significant investments and utilized idle funds to subscribe to financial products[152]. - As of December 31, 2024, there were no assets registered as collateral[153]. - As of December 31, 2024, the group faced no significant contingent liabilities[154]. - As of December 31, 2024, there were no future plans for significant investments or capital assets[155].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 85,428,000, a significant increase from RMB 41,826,000 in 2023, representing a growth of 104.5%[17] - Loss before income tax improved to RMB (59,466,000) in 2024 from RMB (110,400,000) in 2023, indicating a reduction in losses by 46.2%[17] - The company reported a total comprehensive loss for the year attributable to owners of the Company of RMB (59,311,000) in 2024, down from RMB (127,033,000) in 2023, a reduction of 53.3%[17] - Net loss decreased by 53.21% from a loss of approximately RMB126.72 million for the year ended 31 December 2023 to a loss of approximately RMB59.29 million for the year ended 31 December 2024[29] - The Company achieved total operating revenue of RMB85.43 million for the Reporting Year, representing a 104.2% increase compared to RMB41.83 million in 2023[66] - The loss attributable to owners of the Company decreased by 53.0% to RMB59.50 million from RMB126.59 million in 2023[66] Assets and Equity - Total assets decreased to RMB 266,564,000 in 2024 from RMB 326,400,000 in 2023, a decline of 18.4%[19] - Total equity dropped to RMB 9,655,000 in 2024 compared to RMB 68,763,000 in 2023, reflecting a decrease of 86.9%[19] - Non-current assets decreased to RMB 79,140,000 in 2024 from RMB 91,819,000 in 2023, a decline of 13.9%[19] - As of 31 December 2024, the Group had net current liabilities of approximately RMB59.36 million, an increase from RMB10.84 million in 2023, and total equity attributable to owners of approximately RMB10.10 million, down from RMB69.41 million in 2023[85] - The Group's total borrowings as of 31 December 2024 were approximately RMB32.23 million, up from RMB26.99 million in 2023, with a weighted average effective interest rate of 3.85%[87] - The Group's gearing ratio was approximately 26.60% as of 31 December 2024, significantly higher than 3.75% in 2023[85] Market and Business Development - The company aims to leverage opportunities in high-tech and green low-carbon sectors, aligning with China's projected economic growth of 4.8% in 2024[21] - The marketing team is actively seeking project opportunities through industry exhibitions and client visits to reverse the downward business trend[21] - The company is facing challenges from geopolitical tensions and trade protectionism, which have impacted global trade dynamics[23] - Potential projects in Africa and Southeast Asia have experienced slow progress, affecting the company's international expansion efforts[23] - The Company signed 20 new contracts in 2024, increasing the project value from approximately RMB68 million in 2023 to around RMB192 million in 2024, primarily driven by the anhydrous ethanol dehydration business[44][46] - The total amount of contracts for the Reporting Year increased by approximately 182.4%, driven by new business opportunities in waste alcohol processing and recycling[66] Research and Development - The company plans to enhance research and development efforts in clean energy technologies, including hydrogen energy technology development and equipment manufacturing[30] - The Company invested a total of RMB2.7 million in R&D during the reporting year, focusing on biomass fuel production technology and small-scale hydrogen production equipment[45][47] - The Company aims to enhance its technical leadership in the ethanol fuel market through advancements in cellulose ethanol and hydrogen energy production technologies[62] - The company has developed 39 patented technologies and is recognized as a National High-Tech Enterprise, enhancing its competitive edge in the market[38] - The Company aims to create an organic combination of production, learning, and research through effective collaboration with customers, universities, and research institutes[30] Corporate Governance and Management - The Company is committed to high standards of corporate governance, which is key to safeguarding shareholder interests and creating long-term value[168] - The Board consists of five Directors, including two executive Directors and three independent non-executive Directors, ensuring a strong independent element for effective judgment[173] - The Company complied with all code provisions set out in Part 2 of the Corporate Governance Code during the year ended 31 December 2024, except for the disclosed deviation[169] - The Group has a strong management team with extensive experience in their respective fields, enhancing operational efficiency and strategic decision-making[140] - The Company encourages Directors to participate in continuous professional development courses and seminars[196] Industry Trends and Challenges - The fuel ethanol market in 2024 showed stable production but declining prices and weak domestic demand, with over 80% of production concentrated in four provinces[40] - The domestic supply of ethanol fuel is concentrated in Heilongjiang, Jilin, Anhui, and Liaoning, which together account for over 80% of national production, with Heilongjiang alone contributing approximately 50% in 2023[42] - The target consumption of ethanol fuels in China may reach 12 million tons by 2025, indicating a growing demand for equipment alongside production capacity expansion[49][51] - The biofuel industry is anticipated to have significant growth potential in the long run, driven by China's carbon peak and carbon neutrality goals[57] Leadership and Team Experience - The company has a strong leadership team with diverse backgrounds in technology, engineering, and management, enhancing its strategic planning and corporate development capabilities[112][115][122] - The leadership team collectively possesses over 150 years of experience across various relevant industries, positioning the company for future success[140] - Mr. Yu Weijun has over 36 years of experience in the technology sector and has held various significant positions in listed companies[113] - Mr. Tang Zhaoxing has over 34 years of experience in engineering and technology sectors, overseeing overall operations and project management[119] - Ms. Wong Mei Ling was appointed as an independent non-executive Director in March 2023, bringing over 30 years of accounting experience[132]