Financial Performance - The Group recorded a revenue of approximately HK$1,110,226,000 for the year ended 31 December 2024, representing a decrease of approximately 27.61% compared to HK$1,533,714,000 in the previous year[33]. - For the year ended 31 December 2024, the Group recorded a loss attributable to owners of the Company of approximately HK$68,486,000, a decrease in loss of approximately 95.8% compared to the loss of approximately HK$1,632,535,000 in 2023[34]. - The Group incurred a net loss of approximately HK$249,235,000 during the year ended 31 December 2024, with net current liabilities and net liabilities of approximately HK$1,488,805,000 and HK$570,868,000 respectively[36]. - The Group's revenue from continuing operations for the year ended 31 December 2024 was approximately HK$1,110,226,000, a decrease of about 27.61% from approximately HK$1,533,714,000 in the previous year[37]. - The decrease in revenue was primarily attributed to the chemical trading operation, which saw a decline compared to the previous year[33]. Mining Operations - Full-scale mining operations resumed in October 2024 after nearly three years of suspension due to licensing issues, with expectations to return to or exceed pre-suspension output levels in upcoming quarters[15][16]. - The molybdenum concentrate grades remained consistent, and the focus on cost control and process improvements positions the Group for a strong rebound in mining operations[17]. - Enhanced safety protocols and upgraded equipment have been implemented to ensure operational efficiency and environmental compliance in mining operations[16]. - The mining licence has been successfully renewed and is valid up to 22 February 2034, which is essential for the Group's mining activities[47]. - The Safety Production Licence has also been renewed, valid until 17 October 2027, allowing the Group to resume full mining operations[48]. - The mining operation sold approximately 714 tonnes of molybdenum concentrate during the year, with an average selling price of approximately HK$135,710 per tonne, contributing approximately HK$116,378,000 to the Group's revenue[49]. - The gross profit from the mining operation was approximately HK$54,745,000, resulting in a gross profit margin of 47.04%[49]. - For the year ended 31 December 2024, impairment losses for mining operations were approximately HK$147,503,000 for property, plant and equipment, HK$1,020,000 for right-of-use assets, and HK$215,715,000 for mining rights, compared to HK$30,818,000, HK$Nil, and HK$51,564,000 respectively in 2023[53][69]. Chemical Operations - Significant strides in cost optimization were achieved in the chemical operation, reducing operating expenses across several product lines through process automation and strategic sourcing[18][22]. - The Group continues to explore opportunities to expand its chemical product offerings in high-demand sectors, reinforcing its role in overall performance[25]. - The Group's revenue from chemical trading operations for the year ended 31 December 2024 was approximately HK$993,830,000, a decrease from approximately HK$1,533,714,000 in 2023[55][59]. - No impairment loss was recognized for the chemical trading operation for the year ended 31 December 2024, compared to an impairment loss of approximately HK$790,000 and HK$149,000 in 2023[58][62]. - The chemical operation aims to improve product quality and competitiveness through research and development and additional production facilities[87]. Financial Position and Liquidity - The Group's cash and cash equivalents increased from approximately HK$5,941,000 as of December 31, 2023, to approximately HK$15,247,000 as of December 31, 2024[97]. - As of December 31, 2024, the Group's current ratio improved to approximately 0.24, up from approximately 0.17 in 2023, primarily due to the resumption of mining operations[98]. - The Group's debt to equity ratio as of December 31, 2024, was approximately 48.72, an improvement from a deficit of approximately 52.44 in 2023, reflecting a reduction in total liabilities[101]. - The Group's total liabilities were approximately HK$2,109,133,000 as of December 31, 2024, compared to approximately HK$2,096,113,000 in 2023[101]. - Current liabilities rose to approximately HK$1,953,133,000 in 2024 from HK$1,842,120,000 in 2023, an increase of about 6.0%[102]. Strategic Focus and Future Outlook - The strategic focus includes sustaining safe and efficient mining production, expanding the chemical portfolio, investing in innovation, and strengthening financial resilience[32]. - The Group anticipates ongoing macroeconomic challenges in 2025, including geopolitical uncertainties and inflation, and aims to enhance resilience through strategic management and supply chain improvements[86]. - The Group aims to enhance its operational efficiency and broaden its revenue base by actively identifying investment opportunities and expanding mineral resources[91]. - Changes in the pre-tax discount rate and growth rate assumptions could significantly impact the recoverable amounts for both mining and chemical operations, with variations of 0.5% leading to changes of up to HK$25,056,000 for mining and HK$2,478,000 for chemical operations[72][78]. Governance and Management - The Group is committed to long-term value creation for shareholders and stakeholders through operational optimization and strategic initiatives[26]. - The Group will maintain effective communication with stakeholders and improve investor relations management to enhance operational management and corporate governance[88]. - The Directors do not recommend the payment of any dividend for the year ended December 31, 2024, consistent with 2023[156]. - The Group's single largest customer accounted for approximately 12% of total operating revenue in 2024, up from 11% in 2023[157]. - The Group's five largest customers accounted for approximately 33% of total operating revenue in 2024, down from 39% in 2023[157]. Risk Management - The Company is subject to economic environment risks due to macroeconomic conditions and policies in Mainland China and abroad, which could impact its mining and trading operations[140]. - Market price risks are significant, with sharp fluctuations in molybdenum concentrate and chemical product prices affecting cash flow and revenue[142]. - The Company has implemented measures to enhance risk control capabilities and strengthen production cost management in response to market price risks[143]. - Safety and environmental risks are critical, as any accidents could lead to substantial losses in reputation and assets, particularly in molybdenum concentrate production[146]. - The Company is committed to improving safety and environmental management through enhanced training and investment in technology upgrades[147].

（於開曼群島註冊成立之有限公司） （股份代號 : 2700） 2024 Green International Holdings Limited 格林國際控股有限公司 Annual Report 2024 年報 格林國際控股有限公司 二零二四年年度報告 目 錄 2 公司資料 3 主席報告書 4 管理層討論與分析 11 董事履歷 13 董事會報告 23 企業管治報告 40 環境、社會及管治報告 65 獨立核數師報告 70 綜合損益表 71 綜合損益及其他全面收益表 72 綜合財務狀況表 74 綜合權益變動表 75 綜合現金流量表 76 綜合財務報表附註 143 五年財務概要 格林國際控股有限公司 > 二零二四年年度報告 公司資料 董事會 執行董事 俞周杰先生 （主席） 余向進先生 Cricket Square Hutchins Drive P.O. Box 2681 Grand Cayman KY1–1111 Cayman Islands 香港主要營業地點 非執行董事 陳漢鴻先生 劉東先生 周璀琼女士 （於2024年12月18日獲委任） 獨立非執行董事 吳洪先生 蔡大維先生 王春林先生 公司秘書 辛英楠先生 審 ...

Financial Performance - Revenue for the fiscal year ended December 31, 2024, was $4,451,494 thousand, representing an increase of 6.1% compared to $4,195,550 thousand in 2023[7] - Gross profit increased to $878,646 thousand, with a gross margin of 19.7%, up from 19.2% in the previous year[7] - Operating profit rose to $326,757 thousand, reflecting an operating margin of 7.3%, compared to 6.3% in 2023[7] - Profit attributable to owners of the company was $153,732 thousand, with a profit margin of 3.5%, up from 3.1% in the prior year[7] - The company's revenue for the fiscal year ending December 31, 2024, was $4.451 billion, representing a 6.1% increase compared to the previous year, while operating profit rose by 19.1% to $154 million[19] - Annual profit rose by 19.1% from $130 million in 2023 to $154 million in 2024, with the profit margin increasing from 3.1% to 3.5%[39] Asset and Liability Management - Current assets increased to $3,159,618 thousand, while total assets reached $5,470,183 thousand[7] - Total liabilities increased to $2,987,095 thousand, with current liabilities at $2,241,300 thousand[7] - Cash and cash equivalents decreased from $1,316 million as of December 31, 2023, to $1,113 million as of December 31, 2024[40] - Total bank borrowings increased from $1,383 million in 2023 to $1,538 million in 2024, with short-term borrowings rising from $1,383 million to $904 million[41] - As of December 31, 2024, the company's debt-to-equity ratio was 15.4%, a significant increase from 2.6% as of December 31, 2023[53] Market Segments and Growth Strategies - The electric vehicle market revenue increased by 57.6% year-over-year, driven by the acquisition of FIT Voltaira Group GmbH, which will accelerate the development of the company's EV products[21] - The network infrastructure market revenue grew by 39.1% year-over-year, benefiting from increased demand for AI-driven server solutions and new platform rack connectors and cables[20] - The smartphone component revenue decreased by 9.7% year-over-year due to structural changes in high-end smartphone products and increased competition[19] - The company is focusing on AI-driven solutions and has developed high-speed AIoT connector solutions to meet the demands of new data centers[10] - The company is optimizing its product portfolio to align with next-generation platform demands, including new acoustic solutions and EV charging solutions[10] - Future strategies will leverage the 3+3 transformation to capture opportunities in AI infrastructure investment growth, aiming for sustainable growth and substantial returns for shareholders[14] Operational Efficiency - The average inventory turnover days improved to 87 days from 95 days in 2023, indicating better inventory management[7] - Distribution costs and selling expenses increased by 25.6% from $105 million in 2023 to $131 million in 2024, primarily due to the acquisition of Voltaira, contributing approximately $9 million to the increase[33] - Administrative expenses rose by 26.6% from $191 million in 2023 to $242 million in 2024, with Voltaira's administrative costs contributing approximately $16 million to this increase[35] - Research and development expenses increased by 7.3% from $308 million in 2023 to $330 million in 2024, with Voltaira contributing approximately $3 million to the increase and a focus on AI and acoustic product development[36] Corporate Governance and Management - The company has appointed new independent non-executive directors to strengthen its governance and oversight capabilities[73] - The management team is committed to strategic decision-making based on financial forecasting and analysis to support growth initiatives[68] - The board emphasizes a strong corporate culture based on core values such as integrity and collaboration, which supports the company's long-term strategic goals[194] - The board has established four committees to oversee specific areas of the company's affairs, including the audit committee and the remuneration committee[195] Strategic Partnerships and Acquisitions - The company completed the acquisition of the German automotive component design and manufacturing company Prettl SWH Group in July 2023, now renamed FIT Voltaira Group GmbH, to enhance its EV strategy[86] - A further acquisition of the German Auto-Kabel Group is planned by the end of 2024 to strengthen capabilities in high-voltage systems and automotive wiring harnesses[86] - The company has established a strategic partnership with PacBridge to identify specific projects for market expansion and risk management[155] Employee and Talent Management - The total employee benefits expenditure for 2024 was $927 million, up from $783 million in 2023, despite a decrease in the number of employees from 66,148 to 61,720[55] - Employee compensation is determined based on performance, skills, qualifications, and industry standards, with additional benefits including cash bonuses and retirement plans[55] - The company has experienced a decrease in employee count, indicating potential restructuring or efficiency measures[55] Compliance and Risk Management - The company emphasizes compliance with relevant laws and regulations, as well as maintaining relationships with employees, customers, and suppliers[91] - The company has adopted a prudent foreign exchange hedging policy, with a nominal principal amount of $235 million in forward foreign exchange contracts as of December 31, 2024[58] - The company faces significant foreign exchange risks due to operations in multiple currencies, including USD, EUR, TWD, and RMB, which could impact operational performance[56] Shareholder and Financial Policies - The company does not recommend a final dividend for the fiscal year ending December 31, 2024[89] - The company has entered into agreements with PacBridge Capital Partners (HK) Limited, agreeing to pay a total of $3,000,000 for business consulting services during the reporting period[109] - The beneficial ownership of shares by directors includes 420,651,000 shares (5.77%) held by Lu Songqing, 12,512,000 shares (0.17%) held by Lu Boqing, and 1,790,000 shares (0.02%) held by PIPKIN Chester John[117]

Financial Performance - The total revenue for the year ending December 31, 2024, was approximately RMB 21.96 million, representing an increase of about 168% compared to the same period in 2023[10]. - Revenue from antenna product sales and related services increased from approximately RMB 7.73 million in 2023 to about RMB 14.31 million, accounting for approximately 68% of the company's main business income[11]. - Revenue from agricultural product sales rose from approximately RMB 4.55 million last year to about RMB 6.88 million, making up around 32% of the company's main business income[12]. - The company achieved a gross profit of approximately RMB 7.43 million, with a gross margin of about 34%, an increase of 18% compared to the gross margin of approximately 16% in 2023[15]. - The net loss for the year was approximately RMB 15.76 million, a reduction of about 63% compared to the net loss of approximately RMB 42.99 million in 2023[21]. - Management expenses decreased from approximately RMB 19.21 million last year to about RMB 12.16 million this year, a reduction of approximately 37%[19]. - The company reported a segment profit of approximately RMB 0.54 million from the agricultural products sales segment, while the antenna products sales segment reported a loss of approximately RMB 9.59 million due to production scale being below normal operating levels[18]. - As of December 31, 2024, sales to the top five customers accounted for approximately 68.85% of the company's main business revenue, down from 81.12% in 2023[26]. - The company reported a net loss of RMB 15,760,875.92 for the fiscal year 2024, indicating a continued loss trend[67]. - As of the end of 2024, the company's net asset value was RMB -46,759,183.15, reflecting significant financial distress[67]. - The operating revenue for 2024 was RMB 21,960,142.24, with a negative operating cash flow of RMB -2,064,152.68[67]. - Current liabilities exceeded current assets by RMB 59,406,846.97, leading to overdue debts[67]. Corporate Governance - The board of directors consists of nine members, including the chairman and vice-chairman, ensuring a balance of executive and non-executive directors[40]. - The company has adopted and complied with all corporate governance code provisions as of the reporting date[38]. - The board is responsible for overseeing the preparation of financial statements, ensuring they present a true and fair view of the group's financial position and performance[42]. - The company had no CEO position as of December 31, 2024, with daily management handled by all executive directors[44]. - The board held a total of 7 meetings during the fiscal year ending December 31, 2024, ensuring effective management and monitoring of the group's operations[46]. - All directors attended 100% of board meetings and shareholder meetings, demonstrating strong engagement and commitment[47]. - The company emphasizes continuous professional development for all directors, ensuring they stay updated on governance and regulatory requirements[48]. - The board consists of one female director and eight male directors, reflecting a gender diversity ratio of 11% female to 89% male[53]. - The company recognizes the importance of diversity in its workforce, with a gender ratio of 67% male and 33% female among employees[54]. - The company has implemented appropriate insurance for directors and senior officers to protect against risks arising from their duties[51]. - All independent non-executive directors confirmed their independence according to GEM listing rules, ensuring unbiased oversight[52]. - The company is committed to improving gender equality within its workforce and aims to enhance gender balance in the medium term[55]. - The board will continue to review its diversity policy to ensure its ongoing effectiveness and alignment with stakeholder expectations[54]. Risk Management and Compliance - The company acknowledges significant uncertainties that may impact its ability to continue as a going concern[68]. - Despite the financial challenges, the preparation of financial statements is based on the assumption of the company's ability to operate as a going concern[69]. - The company has established an effective risk management and internal control system in accordance with the corporate governance code principle D.2[76]. - The board will regularly review the dividend policy, considering factors such as financial performance, retained earnings, liquidity, and future cash needs[81]. - The company has adopted a policy for timely and accurate disclosure of significant information to shareholders[77]. - The company has confirmed the effectiveness of its shareholder communication policy after a review for the year ending December 31, 2024[85]. - The company has established a robust anonymous reporting mechanism to encourage employees to report any illegal or dishonest behavior, ensuring confidentiality for whistleblowers[161]. - The company has implemented strict internal controls to prevent corruption and has established an audit committee to oversee compliance with financial reporting and governance requirements[160]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable development, focusing on resource efficiency and carbon reduction[100]. - The company emphasizes the importance of a quality work environment for employees and safety in the production process[100]. - The company conducts regular ESG meetings to ensure compliance with legal requirements and stakeholder expectations[95]. - The ESG report covers the company's overall performance, risks, strategies, and commitments from January 1, 2024, to December 31, 2024[96]. - The group adheres to the reporting principles outlined in the Environmental, Social, and Governance (ESG) Reporting Guidelines, ensuring the importance of stakeholder opinions in identifying key issues[101]. - The board of directors is responsible for overseeing ESG risk management and has established a vision focused on people, technological innovation, social service, and excellence[111]. - The ESG working group identifies and assesses ESG risks and opportunities, coordinating audits and information disclosure[112]. - The group actively engages with stakeholders through various communication channels to understand their concerns and improve relevant policies[109]. - The group emphasizes the importance of financial status and operational conditions to shareholders and investors, ensuring transparency through annual meetings and financial reports[108]. - The group has established a dedicated investor hotline to facilitate timely communication with investors, media, and the public[109]. - The group is committed to enhancing its ESG performance and creating greater value for the community[108]. - The company has established effective management policies and internal control systems for ESG issues, ensuring compliance with ESG reporting guidelines[118]. - The company adheres to national environmental laws and regulations, including the Air Pollution Control Ordinance and the Solid Waste Pollution Prevention Law, ensuring no significant air pollution emissions during production[119]. - Waste disposal is managed under strict guidelines, with no significant hazardous waste generated during operations[120]. - The company implements measures to reduce electronic waste, including encouraging the reuse of functioning electronic products and ensuring quality in purchasing[121]. - Wastewater generated is primarily domestic, treated appropriately before discharge into municipal systems to minimize environmental impact[122]. - The company has a clear departmental division for environmental supervision, with administrative departments overseeing energy consumption and environmental protection measures[117]. - The total energy consumption decreased to 199,569.89 kWh in 2024 from 350,509.09 kWh in 2023, representing a reduction of approximately 43%[129]. - Greenhouse gas emissions (Scope 1 and Scope 2) dropped to 101,928.44 kg CO2 equivalent in 2024 from 194,945.13 kg in 2023, a decrease of about 48%[129]. - The company achieved a reduction in nitrogen oxides (NOx) emissions to 19.59 kg in 2024 from 25.73 kg in 2023, a decline of approximately 24%[129]. - The total water consumption was reduced to 1,342.00 cubic meters in 2024 from 3,992.00 cubic meters in 2023, indicating a decrease of about 66%[129]. - The density of greenhouse gas emissions per million RMB revenue improved to 7,123.49 kg in 2024 from 25,235.09 kg in 2023, reflecting a significant enhancement in efficiency[129]. - The company has implemented measures to encourage employees to adopt energy-saving habits, such as turning off appliances when not in use and promoting recycling[124]. - The organization has established an effective environmental management system to mitigate the impact of its operations on the environment[125]. - The company is actively managing climate-related risks and has developed emergency response plans to ensure business continuity during extreme weather events[126]. - The total hazardous waste generated decreased to 3.93 kg in 2024 from 6.55 kg in 2023, a reduction of approximately 40%[129]. - The company is committed to continuous improvement in resource efficiency and regularly reviews its environmental measures to adapt to operational conditions[128]. Employee Management and Development - The group had 39 full-time employees, down from 56 in 2023, with total employee costs amounting to approximately RMB 4.61 million, a decrease from RMB 11.88 million in 2023[31]. - Employee turnover rate decreased to 35.79% in 2024 from 63.91% in 2023[135]. - Total number of employees reduced to 39 in 2024 from 56 in 2023[137]. - Male employees decreased to 26 in 2024 from 38 in 2023, while female employees decreased to 13 from 18[137]. - Full-time employees decreased to 37 in 2024 from 52 in 2023, and part-time employees decreased to 2 from 4[137]. - Employee retention improved significantly across age groups, with the turnover rate for ages 20-29 rising to 200.00% in 2024 from 93.33% in 2023[135]. - The company adheres to various labor laws and regulations, ensuring compliance in employee treatment and benefits[134]. - The company emphasizes a safe working environment, strictly following safety regulations and conducting regular safety training[138]. - The company provides various employee benefits, including paid annual leave, maternity leave, and sick leave[131]. - The company has established a comprehensive performance evaluation and promotion mechanism to ensure fair opportunities for all employees[132]. - The company maintains a commitment to diversity and equal opportunity in hiring and promotion practices[133]. - Total number of employees participating in training decreased from 44 in 2023 to 38 in 2024, representing a participation rate of 97.44%[141]. - The average training hours for male employees increased from 37 hours in 2023 to 38 hours in 2024, while female employees maintained an average of 52 hours[141]. - The company has implemented multiple safety measures to ensure occupational health and safety, with no reported work-related fatalities or serious injuries in the past three years[140]. - The internal promotion mechanism is based on fairness and transparency, prioritizing existing employees for vacancies to enhance confidence and reduce turnover[143]. Supply Chain Management - Approximately 25 domestic suppliers were managed during the reporting period, emphasizing the importance of supply chain management for sustainability and product quality[146]. - The procurement management system includes criteria for supplier selection and risk assessment, ensuring a competitive and transparent bidding process[147]. - The company has not employed child labor or forced labor, adhering strictly to local labor laws and regulations[145]. - Employee training programs include onboarding, skills training, mindset training, and comprehensive quality assessments to enhance overall employee capabilities[142]. - The proportion of employees participating in training increased significantly from 78.57% in 2023 to 97.44% in 2024[141]. - The company actively monitors and prohibits harassment and bullying in the workplace, maintaining high ethical standards[144]. - The company advocates for a green and sustainable supply chain model, emphasizing environmental protection from R&D to production[148]. - Regular audits of suppliers are conducted to ensure compliance with contractual obligations and national laws, promoting a sustainable supply chain[149]. - The company adheres strictly to various laws regarding product quality and consumer rights, ensuring environmentally friendly and safe production processes[150]. - No significant complaints regarding product quality or service delivery were received during the reporting period[151]. - The company has established a comprehensive customer complaint and product recall compensation mechanism, ensuring clear guidelines for handling complaints[154]. - There were no product recalls due to safety and health issues during the reporting period[155]. - The company places high importance on intellectual property protection, adhering to relevant laws and implementing strict confidentiality measures[156]. - No significant intellectual property infringement incidents occurred during the reporting period, with reasonable measures taken to prevent such infringements[157]. - The company adheres to high standards of integrity and has established a series of anti-corruption management systems in response to China's anti-corruption policies[158]. - The company has not identified any significant legal cases related to corruption, bribery, extortion, fraud, or money laundering during the reporting period[162].

Financial Performance - Revenue for the fiscal year 2024 decreased from approximately HKD 165.0 million in 2023 to about HKD 99.3 million in 2024, representing a decline of approximately 40%[10] - Gross profit margin fell from approximately 52.8% in 2023 to about 8.7% in 2024, with gross profit dropping from HKD 87.1 million to HKD 8.6 million[10] - The company reported a loss attributable to owners of approximately HKD 47.9 million for 2024, compared to a profit of HKD 18.9 million in 2023[10] - Earnings per share for 2024 were approximately HKD -13.31, down from HKD 5.30 in 2023[10] - The company has decided not to declare a final dividend for the fiscal year 2024, consistent with the previous year[10] - The company's revenue for the fiscal year 2024 was approximately HKD 99.3 million, a decrease of about 39.8% from HKD 165.0 million in 2023[30] - Gross profit fell to approximately HKD 8.6 million in 2024, down about 90.1% from HKD 87.1 million in 2023, with a gross margin of approximately 8.7% compared to 52.8% in the previous year[42] - The company reported a loss attributable to equity holders of approximately HKD 47.9 million for the fiscal year 2024, compared to a profit of HKD 18.9 million in 2023[30] - Sales costs increased by approximately 16.3% to about HKD 90.7 million in 2024, compared to HKD 77.9 million in 2023[41] - Other income decreased from approximately HKD 44.2 million in FY2023 to about HKD 38.9 million in FY2024, a reduction of approximately HKD 5.3 million[43] Market Performance and Strategy - The traditional watch sales experienced a significant decline, primarily due to over-reliance on the Chinese market, which accounted for over half of the sales points[12] - The company is actively participating in overseas exhibitions and adjusting marketing strategies to expand into international markets, including ASEAN and Dubai[12] - Sales in the smartwatch manufacturing segment increased compared to the previous year, but were affected by geopolitical factors and tariff issues, leading to more conservative order placements by clients[13] - Future sales strategies for traditional watches will focus on overseas markets, aiming to enhance brand recognition and develop exclusive designs for international buyers[14] - The company plans to stabilize customer orders in the smartwatch segment while controlling production costs and improving gross margins[14] - Revenue from the Chinese market decreased by approximately 37.9% to about HKD 81.9 million in 2024, accounting for approximately 82.5% of total revenue[32] - Sales in the Hong Kong and Macau markets increased by approximately 100.5% to about HKD 11.2 million in 2024, representing approximately 11.3% of total revenue[33] - Revenue from other markets, primarily in Europe, increased by approximately 62.7% to about HKD 3.4 million in 2024, accounting for approximately 3.4% of total revenue[34] Operational Changes and Employee Management - The total employee count increased by approximately 24.9% from 434 to 542 full-time employees, with total employee costs rising from approximately HKD 57 million to HKD 60.4 million[68] - The company encourages employee training and development, offering subsidies for external training courses[170] - Employee development is a priority, with the company providing training in management skills, sales, production, and quality control[198] - The employee turnover rate in mainland China reached 83.8%, significantly higher than Hong Kong's 5.4% and Switzerland's 10.8%[166] - The company reported zero work-related fatalities in the past three years, maintaining a safe working environment[168] Governance and Compliance - The company has adopted the corporate governance code as per the listing rules appendix 14, which is crucial for enhancing overall performance and accountability[84] - All directors have confirmed compliance with the standard code of conduct for securities trading as per listing rules appendix 10 for the fiscal year 2024[85] - The board consists of two executive directors, one non-executive director, and two independent non-executive directors, ensuring a diverse range of expertise and industry knowledge[87] - The company has established five committees: Audit, Remuneration, Nomination, Executive, and Investment, each with defined roles and responsibilities[99] - The Audit Committee includes members with appropriate professional qualifications and experience, ensuring effective oversight of financial reporting[100] - The company has implemented a whistleblowing policy to encourage employees to report potential violations, ensuring complete protection and confidentiality for whistleblowers[188] - The company has not faced any legal prosecution related to corruption or criminal offenses during the year[188] Environmental, Social, and Governance (ESG) Initiatives - The company has identified key ESG issues, including employee rights, safety and health, product quality and safety, and innovation management, to enhance performance in daily operations[132] - The report includes key performance indicators to track and list performance in resource utilization[136] - The total emissions of greenhouse gases for the year 2024 amounted to 96.61 tons of CO2 equivalent, a decrease of 22.6% from 124.88 tons in 2023[149] - The company aims to enhance resource efficiency and has implemented measures to track consumption patterns, leading to increased awareness of environmental conservation among employees[154] - The company has committed to sustainable waste management practices, including recycling old watch batteries and minimizing hazardous waste generation[150] - The company has established a procurement policy to control material purchases and minimize potential waste[154] - The company is committed to managing environmental and social risks in its supply chain, with specific practices in place for supplier selection and monitoring[192] Future Outlook - The external economic environment is expected to be complex and challenging, impacting the watch industry negatively in 2025[71] - The group plans to focus on inventory clearance and redesign existing watch inventory to improve cost efficiency and accelerate turnover[72] - In 2025, the group aims to enhance brand visibility through a new store design and promotional activities, including tiered gift offerings to stimulate sales[73] - The group intends to expand its market presence in Southeast Asia and North America, with a focus on increasing the number of duty-free stores in Singapore[77] - The company aims to reduce carbon emission density by 10% and energy consumption density by 10% by 2028[162]

Delivery and Project Development - Kaisa Group delivered over 10,000 housing units across 25 projects in 2024, demonstrating commitment to fulfilling delivery promises [20]. - The company has successfully completed the relocation of over 1,000 families in urban renewal projects, marking a significant milestone in community development [22]. - Kaisa Group opened over 20 new first stores in urban and regional areas throughout 2024, enhancing its business layout and invigorating local commercial districts [30]. - Kaisa Cultural and Sports Technology organized over 700 cultural and sports events in 2024, including 120 national and provincial competitions and 35 large concerts [35]. - The company has a total of 64 development projects with a total construction area of approximately 7.4 million square meters [66]. - The total managed construction area reached approximately 102.7 million square meters, with property management services operating in 77 cities across the country [67]. - The company has a total of 134 projects listed, with a significant focus on residential developments across various cities [134]. - The company is actively expanding its project portfolio across various cities, including Shanghai, Wuhan, and Hangzhou, focusing on residential and commercial developments [145]. Financial Performance - The group's revenue and gross profit for the year ended December 31, 2024, were approximately RMB 11,560.7 million and RMB 237.9 million, representing a decrease of about 55.8% and 86.0% respectively compared to 2023 [40]. - The loss attributable to equity holders was approximately RMB 28,533.7 million, with a basic loss per share of RMB 4.067, compared to a loss of RMB 19,932.2 million and a basic loss per share of RMB 2.841 in 2023 [40]. - The group achieved a cumulative contracted sales amount of approximately RMB 6,757 million in 2024, a year-on-year decrease of 47.2% [46]. - Revenue decreased from approximately RMB 26,158.8 million in 2023 to approximately RMB 11,560.7 million in 2024, a decline of 55.8% [70]. - Revenue from property sales dropped by approximately RMB 14,494.0 million or 64.3%, from approximately RMB 22,550.8 million in 2023 to approximately RMB 8,056.8 million in 2024 [71]. - Gross profit decreased from approximately RMB 1,698.5 million in 2023 to approximately RMB 237.9 million in 2024, a decline of approximately RMB 1,460.6 million or 86.0% [77]. - The net financing cost increased by approximately RMB 210.5 million or 12.1%, from approximately RMB 1,736.6 million in 2023 to approximately RMB 1,947.1 million in 2024 [85]. - Cash and bank deposits decreased by 29.7% from approximately RMB 3,401.1 million in 2023 to approximately RMB 2,390.4 million in 2024 [88]. Debt Restructuring and Financial Strategy - The company achieved significant progress in overseas debt restructuring, establishing a support agreement with creditor groups in August 2024 to ensure long-term recovery and financial flexibility [19]. - The company is actively pursuing debt restructuring to lay a foundation for long-term development while ensuring high-quality project delivery [45]. - The company plans to enhance its urban renewal reserves with quality resources and provide full-process renewal services to empower industrial upgrades [48]. - The company aims to explore innovative debt models and continue restructuring both domestic and foreign debts, leveraging its core advantages in land reserves and urban renewal [49]. - The company has made significant progress in restructuring its offshore debt, with approximately 75.11% of the outstanding principal in the Kaisa scope and 81.07% in the Ruijing scope agreeing to the restructuring support agreement [52]. Market Conditions and Risks - The real estate market is gradually stabilizing, with top-tier and strong second-tier cities seeing a rebound in new home sales, while third and fourth-tier cities remain under pressure [43]. - The company's business and revenue growth heavily rely on the performance of the residential real estate market in China, particularly in cities where the company operates, with potential declines in demand, sales, or prices posing significant risks to its financial condition [103]. - The company is actively monitoring the real estate market conditions in China, as any downturn could have a major adverse effect on its business operations [103]. - The company faces operational risks including material shortages, labor disputes, and external factors that could negatively impact operational performance [104]. - Legal risks are present due to the company's overseas restructuring activities, which may lead to lawsuits and regulatory investigations affecting its operations and reputation [105]. - Future financing capabilities depend on various uncertainties, including domestic and international financial market conditions, which could impact the company's business and financial performance [104]. Social Responsibility and Community Impact - Kaisa Group has funded over 80 charitable projects, accumulating more than RMB 1.7 billion in contributions to social responsibility initiatives [5]. - Kaisa Group's urban renewal projects have positively impacted over 120,000 individuals through poverty alleviation initiatives across four provinces [17]. - Kaisa Group's strategic focus on urban public services aims to create sustainable development models centered on community needs and ecological environments [4]. - The company is committed to green design principles, utilizing the latest materials and technologies to control building energy consumption and improve ecological environments [46]. Project Portfolio and Development Areas - As of December 31, 2024, the company has a total land reserve of 22.31 million square meters across 172 real estate projects in 48 cities, with approximately 61% of this reserve located in the Greater Bay Area [47]. - The company has over 100 urban renewal projects in the Greater Bay Area not yet included in land reserves, covering an area of approximately 37.0 million square meters [48]. - The total land reserve is approximately 22.31 million square meters, with about 61% located in the Guangdong-Hong Kong-Macao Greater Bay Area, sufficient for the group's development needs over the next five years [69]. - The company has a diverse portfolio with residential, commercial, and mixed-use developments, enhancing its market adaptability [111]. - The company is expanding its market presence with multiple projects in the Greater Bay Area, focusing on both residential and commercial developments [117].

Financial Performance - Revenue from solar power generation in China decreased by RMB 78.7 million or 33.0% to RMB 159.8 million for the year ended December 31, 2024, primarily due to the completion of share transfers related to solar power plants[25] - The gross profit for the year was RMB 41.1 million, down RMB 77.1 million or 65.2% from RMB 118.2 million in the previous year[27] - The company reported a revenue growth of -33.0% for the year 2024, with an EBITDA of -RMB 20.662 million, indicating a significant decline in operational performance[52] - The adjusted EBITDA ratio for 2024 was 61.1%, down from 74.5% in 2023, reflecting a decrease in operational efficiency[52] - The company reported a loss of RMB 440,269,000 for the year ending December 31, 2024, with total equity attributable to owners amounting to a loss of RMB 1,972,076,000[85] - The group reported a net loss of RMB 440,269,000 and RMB 471,040,000 for the years ended December 31, 2024, and 2023, respectively[196] Operational Metrics - The total electricity generation from solar power plants in China for 2024 was approximately 208,517 MWh, a decrease of 30.2% from 298,718 MWh in 2023[21] - The total installed capacity of solar power plants in China was approximately 256 MW as of December 31, 2024[21] - For the year 2024, the company's solar power plants generated approximately 208,517 MWh, saving 62,889 tons of coal compared to traditional coal-fired power plants, and reducing emissions of dust, CO2, and SO2 by 3 tons, 171,192 tons, and 16 tons respectively[142] Financial Position - Current liabilities exceeded current assets by RMB 2,587,807,000 as of December 31, 2024, an increase of RMB 817,225,000 compared to RMB 1,770,582,000 on December 31, 2023[85] - Total debt as of December 31, 2024, was RMB 2,326.836 million, with a debt-to-equity ratio of 571.0%, indicating a high level of financial leverage[52] - The company's cash and cash equivalents stood at approximately RMB 13,077,000 as of December 31, 2024[200] Debt and Financing - The company is currently facing a financial obligation of HKD 289.1 million related to overdue principal and interest, with a winding-up petition submitted to the Hong Kong High Court[51] - The total amount of bank and other borrowings, convertible bonds, and bonds payable as of December 31, 2024, was RMB 1,882,679,000, which is due within one year or on demand[196] - The overdue bank and other borrowings and bonds payable as of December 31, 2024, were approximately RMB 908,316,000 and RMB 585,372,000, respectively[196] - The company has been in continuous discussions with creditors and financial institutions regarding alternative refinancing and/or extending the maturity dates of related debts[93] Governance and Compliance - The company has adopted a standard code of conduct for securities trading, with all directors confirming compliance for the year[67] - The board of directors has established a diversity policy, ensuring at least one director of a different gender is appointed, with 44% of employees being female as of December 31, 2024[75] - The company has complied with all provisions of the corporate governance code for the year ending December 31, 2024[188] - The audit committee includes three independent non-executive directors, ensuring independence and objectivity in financial oversight[77] Risk Management - The company has established a two-part enterprise risk management framework consisting of a risk management structure and risk management procedures[101] - Management is tasked with identifying and continuously monitoring strategic, operational, financial, reporting, and compliance risks[104] - The internal audit function has been outsourced to a third-party professional internal control consultant to ensure independence in reviewing the effectiveness of the risk management procedures[105] - The audit committee has not identified any deficiencies in the risk management and internal control systems[114] Shareholder Engagement - The company is committed to maintaining high transparency and effective communication with shareholders and investors through various channels, including its website[116] - Independent non-executive directors are required to attend shareholder meetings, ensuring compliance with corporate governance codes[121] - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting within two months of submission[118] Employee Relations - The company emphasizes the importance of maintaining good relationships with employees and business partners, providing competitive compensation and a comfortable working environment[141] - The company has a total of 72 employees, with a gender distribution of 56% male and 44% female, reflecting its commitment to diversity[75] Future Outlook - The company is facing uncertainties regarding its ability to continue as a going concern, with significant measures being taken to improve liquidity and financial conditions[94] - The company anticipates that if the proposed plans and measures are successfully implemented, the auditor's report for the year ending December 31, 2025, may no longer include a disclaimer of opinion[94]

Financial Performance - The Group recorded a loss attributable to owners of the Company of approximately HK$756.7 million for Year 2024, a decrease of 20.1% compared to HK$947.4 million in Year 2023[6] - Basic loss per share improved to HK$0.3283 in Year 2024 from HK$0.4111 in Year 2023, reflecting a 20.1% reduction[6] - The Group recorded a loss attributable to shareholders of approximately HK$756,743,000 for the fiscal year 2024, compared to a loss of approximately HK$947,409,000 in 2023, resulting in a basic loss per share of 32.83 HK cents (2023: 41.11 HK cents) [17] - Other income, gains, and losses decreased from approximately HK$258,946,000 for Year 2023 to approximately HK$45,698,000 for Year 2024, primarily due to a decrease in interest income from HK$202,694,000 to HK$56,538,000[44] - The Group's share of losses from joint ventures increased from approximately HK$83,071,000 for Year 2023 to approximately HK$112,325,000 for Year 2024, an increase of about 35.2%[47] - The finance costs of the Group increased from approximately HK$342,422,000 for Year 2023 to approximately HK$439,055,000 for Year 2024, an increase of about 28.2%[55] - The impairment of financial assets, net, decreased from approximately HK$489,129,000 for Year 2023 to approximately HK$102,257,000 for Year 2024, a reduction of about 79.1%[53] - The loss from the fair value of investment properties increased from approximately HK$63,646,000 for Year 2023 to approximately HK$72,301,000 for Year 2024, an increase of about 13.4%[54] Assets and Liabilities - Net assets decreased by 24.4% to HK$2,634.8 million in 2024 from HK$3,486.4 million in 2023[6] - Total assets declined by 9.2% to HK$7,059.2 million in 2024 compared to HK$7,771.1 million in 2023[6] - Cash and bank balances significantly dropped by 91.4% to HK$4.9 million in 2024 from HK$57.3 million in 2023[6] - The gearing ratio increased to 148.30% in 2024 from 113.85% in 2023, marking a rise of 30.3%[6] - The current ratio decreased by 17.3% to 0.67x in 2024 from 0.81x in 2023[6] - As of December 31, 2024, the Group's total borrowings amounted to approximately HK$3,445,720,000, a decrease from HK$3,551,936,000 in 2023[70] - The Group's cash and bank balances decreased significantly from HK$57,333,000 in 2023 to HK$13,426,000 in 2024[65] - The Group's net borrowings were approximately HK$3,440,812,000 in 2024, down from HK$3,494,603,000 in 2023[70] - The Group's outstanding borrowings included approximately HK$2,215 million that were not repaid by the scheduled repayment date[76] Investment and Business Strategy - The Group plans to expand its investments in the new energy sector, focusing on photovoltaics, energy storage, and charging stations, amid severe price competition in the photovoltaic industry [19] - The Group's joint venture, Beijing Lingjun, achieved significant progress in R&D, including breakthroughs in heterojunction cells, meeting production capacity, yield rate, and battery efficiency targets [19] - By the end of 2024, the Group had over 40 distributed photovoltaic power generation reserve projects, covering more than 500,000 square meters of rooftop area, with a forecasted installed capacity exceeding 70 MW [19] - The Group aims to capture returns from its financial asset investments while closely monitoring market conditions and adjusting investment strategies as necessary [28] - The Group plans to diversify into short-term rentals to increase operating income alongside existing long-term tenancies[33] - The Group aims to establish a professional team to expand into the new energy business, focusing on photovoltaics, storage, and charging[34] Loan and Credit Management - The Group's outstanding loan receivables amounted to approximately HK$1,770,209,000, a decrease from HK$1,894,369,000 as of December 31, 2023[93] - The Group's gross loan receivables totaled approximately HK$2,235,818,000 as of December 31, 2024, down from HK$2,352,282,000 in the previous year[97] - The ageing analysis indicated that as of December 31, 2024, HK$1,677,127,000 of loan receivables were overdue for more than 365 days[102] - The Group has not taken legal action against borrowers despite their inability to repay loans on original maturity dates, opting instead for proposed repayment plans[103] - The Group plans to enhance measures for loan recovery to improve financial resources and efficiency[95] - The credit quality of Relevant Loan Receivables deteriorated, leading to an increase in amounts categorized into stage 2 and stage 3 under the Expected Credit Loss (ECL) model in Year 2024[115] Corporate Governance and Compliance - The Company complied with all applicable code provisions of the Corporate Governance Code throughout Year 2024, except for the separation of the roles of chairman and chief executive officer[149] - An independent Special Investigation Committee was established on March 18, 2024, to investigate the Loan Agreements and their approval process[119] - The investigation was initiated voluntarily in response to recommendations from the Company's auditor and regulatory bodies[122] - Further details of the investigation and its findings will be disclosed in the Company's announcement dated December 27, 2024[126] Employee and Operational Management - The Group's overall staff costs amounted to approximately HK$53,841,000 for Year 2024, down from HK$62,814,000 in Year 2023, reflecting a reduction in employee count from 55 to 45[142] - The Group has not experienced significant problems with employee retention or recruitment, maintaining a good relationship with its employees[144] - The Group values its employees and implements non-discriminatory hiring practices while ensuring a safe workplace[199] Future Outlook - The Group aims to maintain a strong financial position to prepare for future investment opportunities while maximizing shareholder interests[147] - Significant uncertainties exist regarding the Group's ability to implement plans for disposing of outstanding loan receivables and obtaining new financing[85]

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue reached RMB 9,107,978,000, representing a 16.5% increase from RMB 7,815,938,000 in 2023[9] - The gross profit for 2024 was RMB 7,828,376,000, up from RMB 6,641,640,000 in 2023, indicating a gross margin improvement[9] - The adjusted operating EBITDA for 2024 was RMB 3,402,296,000, a 23.0% increase from RMB 2,768,353,000 in 2023[9] - The company maintained a leverage ratio of 19.7% in 2024, down from 29.3% in 2023, indicating improved financial stability[9] - The total assets of the company reached RMB 24,212,740,000 in 2024, an increase from RMB 23,625,028,000 in 2023[9] - The company's revenue for the reporting period was approximately RMB 9,108.0 million, an increase of about RMB 1,292.1 million or approximately 16.5% compared to RMB 7,815.9 million for the year ended December 31, 2023[66] - Sales of the core product, Teibiao, increased to approximately RMB 5,062.0 million, up by about RMB 857.4 million or approximately 20.4%, accounting for about 55.6% of total revenue[66] - The total sales of Yibiao and Saibol reached approximately RMB 1,018.5 million, an increase of about RMB 78.2 million or approximately 8.3% compared to RMB 940.3 million for the year ended December 31, 2023[67] - The sales in the hair loss sector amounted to approximately RMB 1,351.8 million, an increase of about RMB 209.5 million or approximately 18.3% compared to RMB 1,142.3 million for the year ended December 31, 2023[68] - Net profit attributable to equity holders of the parent company was approximately RMB 2,090.3 million, an increase of RMB 541.1 million or 34.9% from RMB 1,549.2 million[83] - Basic earnings per share for the reporting period were approximately RMB 0.86, an increase of 34.4% from RMB 0.64 for the year ended December 31, 2023[84] Research and Development - Research and development costs increased significantly to RMB 1,326,530,000 in 2024, compared to RMB 794,794,000 in 2023, reflecting a focus on innovation[9] - The group is focusing on innovative drug development, particularly in oncology, nephrology, and autoimmune diseases, with significant clinical advancements expected in 2025[12] - The company has 30 key products in active development, with 29 of them being innovative drugs in mainland China[3] - The group has 30 products in its research pipeline, with key clinical advancements in blood and tumor fields, including multiple Phase II and III trials[11] - The company has a research team of nearly 700 scientists focused on developing innovative biopharmaceuticals and small molecules for unmet medical needs[45] - The company is actively preparing for the market launch of several innovative drugs, including Baerisu (Paclitaxel Oral Solution) and Teisen, with expectations of annual new drug commercialization starting in 2025[62] - The company has received approval for multiple new drugs, including 5% minoxidil foam for male pattern baldness and rhTPO for treating chronic ITP in children[42] - The company has completed the Phase III clinical trial for SSS06, a long-acting erythropoietin, for the treatment of anemia in chronic kidney disease, achieving the primary endpoint[50] - The Phase III clinical trial for the anti-IL-17A monoclonal antibody (608) has successfully met all efficacy endpoints, with an NDA submitted in November 2024 and accepted[50] Market Presence and Distribution - The company’s market share for its flagship product, Teplizumab, is projected to be 66.6% in the Chinese market for thrombocytopenia treatment in 2024[2] - The company’s distribution network reached over 11,000 hospitals and medical institutions across mainland China during the reporting period[4] - The group has established strategic partnerships for the commercialization of several products, including semaglutide injection and paclitaxel oral solution, enhancing its market presence[14] - The company has established a large sales and distribution network in mainland China, comprising 2,653 sales and marketing personnel, 1,248 distributors, and 1,811 third-party promoters[60] - The company’s products are sold in over 3,000 tertiary hospitals and nearly 9,000 secondary or lower-level hospitals and medical institutions across all provinces, autonomous regions, and municipalities in mainland China[60] Strategic Partnerships and Collaborations - The company has signed a cooperation agreement with Hanyu Pharmaceutical for the development and exclusive supply of Semaglutide injection for weight management, with a milestone payment of up to RMB 270 million, including RMB 45 million for preclinical technology achievements[21] - The company has obtained exclusive commercialization rights for Paclitaxel oral solution in mainland China and Hong Kong through a collaboration with Haihe Pharmaceutical, with milestone payments tied to R&D and sales[23] - The company has secured exclusive commercialization rights for Crizotinib in specific indications in mainland China through a partnership with Guangdong Dongyangguang Pharmaceutical, with initial and milestone payments involved[24] - The company has reached an agreement with InnoCare Pharma for the commercialization of HER2 ADC drug DB-1303 in mainland China, Hong Kong, and Macau, with upfront and milestone payments based on development progress[25] - The company is actively seeking global partnerships to expand its product pipeline internationally, preparing for competitive global market entry[16] Regulatory and Compliance - The drug development process is time-consuming and costly, with no guarantee of success, and may face delays due to regulatory requirements from the National Medical Products Administration[107] - The company emphasizes compliance with significant laws and regulations that impact its operations and stakeholder relationships[141] - The company may lose market share and face adverse impacts on revenue and profitability if it fails to win bids in provincial tendering processes for selling products to Chinese hospitals[105] - Under the current government centralized procurement framework, the company anticipates significant price reductions for its products, which could lead to decreased revenue and profit levels[106] Management and Governance - The management team includes experienced professionals with extensive backgrounds in pharmaceuticals and biotechnology, contributing to the company's strategic initiatives[120] - The board of directors includes independent non-executive members with rich experience in finance and pharmaceuticals, ensuring robust governance[125][126] - The remuneration committee has been established to review the group's remuneration policies and the compensation structure for all directors and senior management, considering the group's operational performance and individual contributions[167] Shareholder Information - The board proposed a final dividend of HKD 0.25 per share for the year ending December 31, 2024, consistent with the previous year's dividend[140] - As of December 31, 2024, the company's distributable reserves were approximately RMB 2,652.7 million, a decrease from RMB 3,382.4 million as of December 31, 2023[151] - The total number of issued shares is 2,395,573,912[171] - Major shareholder Decade Sunshine Limited holds 476,774,553 shares, representing 19.90% of the issued shares[177] - The company repurchased a total of 43,346,500 shares during the reporting period, with a total cash consideration of HKD 266,284,340[180] Risks and Challenges - There is a risk that partners or collaborators may not fulfill their obligations, which could lead to conflicts or inefficiencies in cooperation[113] - The company may struggle to maintain existing partnerships or establish new ones, which could negatively impact its ability to develop new products[108] - The company faces potential reputational damage and regulatory scrutiny if employees or third-party agents engage in corrupt practices[111] - The company’s ability to manufacture and launch sufficient quantities of products economically may be limited, affecting its market presence[109]

Financial Performance - For the year ended December 31, 2024, the company reported revenue of RMB 604,164,000, an increase from RMB 559,045,000 in 2023, representing an 8.0% growth[16]. - The gross profit for the year was RMB 255,805,000, slightly down from RMB 259,728,000 in the previous year, indicating a decrease of 1.1%[16]. - The company recorded a loss before tax of RMB 1,016,000 compared to a profit of RMB 26,085,000 in 2023, marking a significant decline[16]. - The loss for the year amounted to RMB 2,049,000, contrasting with a profit of RMB 25,011,000 in the prior year[16]. - The adjusted profit for the year, excluding IPO intermediaries fees, was RMB 14,916,000, down from RMB 36,709,000 in 2023, reflecting a decrease of 59.5%[16][18]. - The loss per share attributable to ordinary equity holders was RMB (0.65) cents, compared to earnings of RMB 8.72 cents per share in the previous year[16]. - The overall revenue for the year ended December 31, 2024, increased by 8.1% to RMB604.2 million from RMB559.0 million in 2023, mainly due to growth in digital marketing and other digital content services[47]. Revenue Breakdown - Over 90.0% of the company's revenue is generated from advertising services provided under online reading platform services and digital marketing services[3][6]. - In 2024, revenue from digital marketing services achieved RMB337.0 million, reflecting a year-on-year growth of 16.7%[29]. - Revenue from online games publishing services decreased to RMB6.1 million, representing a year-on-year decline of 41.8%[33]. - Revenue from other digital content services increased to RMB19.2 million, marking a year-on-year growth of 79.0%[34]. - Revenue from online reading platform services decreased by 2.9% from RMB248.9 million in 2023 to RMB241.8 million in 2024, primarily due to a reduction in advertisement placements and a focus on promoting free reading[48]. - Revenue from digital marketing services increased by 16.7% from RMB288.8 million in 2023 to RMB337.0 million in 2024, driven by efforts to expand services and improve advertising platform efficiency[49]. - Revenue from online games publishing services fell by 41.8% from RMB10.6 million in 2023 to RMB6.1 million in 2024, attributed to unsatisfactory performance of newly launched games overseas[50]. - Other digital content services achieved revenue of RMB19.2 million in 2024, marking a 79.0% year-over-year growth[36]. Expenses and Costs - Cost of sales increased by 16.4% from RMB299.3 million for the year ended December 31, 2023, to RMB348.4 million for the year ended December 31, 2024[54]. - Gross profit decreased by 1.5% from RMB259.7 million for the year ended December 31, 2023, to RMB255.8 million for the year ended December 31, 2024[59]. - Gross profit margin decreased from 46.5% for the year ended December 31, 2023, to 42.3% for the year ended December 31, 2024[59]. - Selling and distribution expenses increased by 20.4% from RMB153.7 million for the year ended December 31, 2023, to RMB185.0 million for the year ended December 31, 2024[69]. - Administrative expenses increased by 69.5% from RMB25.6 million for the year ended December 31, 2023, to RMB43.3 million for the year ended December 31, 2024[70]. - R&D expenses decreased by 4.0% from RMB37.6 million for the year ended December 31, 2023, to RMB36.1 million for the year ended December 31, 2024[71]. Assets and Liabilities - Total assets increased by 34.7% from RMB 505.4 million as of December 31, 2023, to RMB 680.8 million as of December 31, 2024, while total liabilities increased by 86.4% from RMB 126.1 million to RMB 235.1 million[82]. - Trade receivables increased by 39.0% from RMB 161.5 million as of December 31, 2023, to RMB 224.6 million as of December 31, 2024, mainly due to increased revenue from digital marketing services[89]. - Current assets increased by 43.7% from RMB 399.9 million as of December 31, 2023, to RMB 574.7 million as of December 31, 2024, while current liabilities increased by 89.9% from RMB 121.7 million to RMB 231.2 million[88]. - Cash and cash equivalents amounted to RMB160.8 million as of December 31, 2024, representing an increase of 80.6% from RMB89.1 million as of December 31, 2023, primarily due to proceeds from the Global Offering and increased bank borrowings[112]. - Interest-bearing bank and other borrowings increased by 127.4% to RMB193.1 million as of December 31, 2024, up from RMB84.9 million as of December 31, 2023, driven by working capital needs for business expansion[113]. - The gearing ratio increased to 43.3% as of December 31, 2024, compared to 22.4% as of December 31, 2023[114]. Strategic Initiatives - The company is committed to continuously improving its AI-based recommendation technology, which is foundational to its business operations[4]. - The Easou Recommendation Engine has been successfully applied in four scenarios, with plans to explore additional business opportunities[4]. - The company aims to achieve diversified monetization through synergy across its various business lines, leveraging its user base and digital content[5]. - The company plans to focus on overseas markets for game publishing and seek high-quality overseas game opportunities[21]. - The company will continue to invest in AIGC technologies and explore their application in various fields such as literary creation and advertising[28]. - The company is exploring recommendation services for short drama content to expand its application scenarios[32]. - The company plans to enhance the Easou AI Recommendation Engine by leveraging large model technology and multimodal feature fusion strategies in 2025[39]. - The company aims to expand overseas markets, focusing on high-quality translated and original short dramas targeting European and American users[42]. - In 2025, the company expects to launch no less than four new games in overseas markets, focusing on light games with in-app advertising as a monetization method[43]. - The company will continue to explore recommendation scenarios for digital music, videos, and e-commerce to achieve new business growth points[46]. Corporate Governance and Structure - The Group's executive team includes Mr. Wang Xi as CEO, Mr. Chen Jun as CFO, and Mr. Zhao Lei as COO, each with extensive experience in management and finance[139][144][148]. - The Company was incorporated in the Cayman Islands on February 9, 2022, and its shares were listed on the Main Board of the Stock Exchange on June 7, 2024[170]. - The Board did not recommend the payment of a final dividend for the year ended December 31, 2024, consistent with the previous year[173]. - The Group's operations are primarily managed in the PRC, with most income and expenses denominated in RMB[128]. - The Group has no future plans for significant investment and capital assets as of the date of the annual report[135]. - The Group's major business activities include digital reading recommendation services, digital marketing services, and online game publishing services[176]. - The Company recognizes the importance of integrating environmental, social, and governance (ESG) values into its corporate strategies[187]. - There were no material acquisitions or disposals of subsidiaries, associates, or joint ventures for the year ended December 31, 2024[129]. - The Group will continue to monitor exchange rates and enhance risk management measures[133]. - The Group has foreign investments in US dollars but no foreign currency borrowings[132]. Future Outlook - The company is enhancing its R&D capabilities with a focus on improving its technological capability in the Easou Recommendation Engine, investing 15.0% of net proceeds, amounting to HK$6.1 million, with an expected utilization by the fourth quarter of 2027[195]. - The company aims to expand its user base on its online reading platform services, targeting a 10.0% increase, which corresponds to HK$4.1 million, with no unutilized balance expected by the third quarter of 2026[196]. - The company is optimizing the application depth of its Easou Recommendation Engine in online reading platform services, allocating 5.0% of net proceeds, equating to HK$2.0 million, with an expected utilization by the third quarter of 2026[196]. - The company plans to relaunch its online games publishing services in overseas markets, utilizing 15.0% of net proceeds, which is HK$6.1 million, with an expected utilization by the third quarter of 2026[197]. - The company is expanding its collaboration with content providers, targeting a 10.0% increase, which corresponds to HK$4.1 million, with an expected utilization by the third quarter of 2026[196]. - The company is increasing its investment in equipment to improve hardware support capabilities, allocating 15.0% of net proceeds, amounting to HK$6.1 million, with an unutilized balance of HK$6.1 million[195]. - The company is establishing cooperative relationships with new media channels to strengthen cooperation depth and attract more traffic, allocating 10.0% of net proceeds, equating to HK$4.1 million, with no unutilized balance expected[196].