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].

Financial Performance - Revenue increased by approximately 9.8% to HKD 396,529,000 (2023: HKD 361,301,000) [10] - Gross profit decreased by 20.7% to HKD 61,613,000, with a gross margin of 15.5% (2023: 21.5%) [10] - Profit attributable to owners decreased by 17.4% to HKD 12,694,000 (2023: HKD 15,360,000) [11] - The total profit for 2024 was HKD 12,895,000, a decrease of 6.5% compared to the previous year [20] - The revenue from comprehensive logistics services increased by 30.8% to HKD 49,990,000, compared to HKD 38,230,000 in 2023, accounting for 12.6% of total revenue [37] - The revenue from supply chain management and trading business rose by 16.8% to HKD 184,797,000, driven by strong demand for rice and broken rice trading [33] - Property business revenue decreased by 5.6% to HKD 12,034,000, representing about 3.0% of total revenue [42] - Other income increased by approximately 71.5% to HKD 37,934,000, primarily due to the sale of a subsidiary and compensation income from past construction contracts [45] Operational Highlights - The company launched new direct shipping routes, including "Indonesia - Wuhan," enhancing logistics efficiency and reducing costs [16] - The company completed the export of 1,367 standard containers of automobiles and 1,600 standard containers of lithium batteries, representing year-on-year increases of 3.2% and 7%, respectively [16] - The company’s core business segments, including port operations and supply chain services, showed stable growth [16] - The container throughput reached 900,342 TEUs, an increase of 200 TEUs from the previous year [20] - The total container throughput at Wuhan Yangluo Port increased by approximately 0.1% to 900,342 TEUs, with local cargo throughput rising by 14.2% to 366,412 TEUs [34] - The market share of the group in the container throughput in Wuhan was approximately 25.7% for the year ended December 31, 2024, down from 32% in 2023 [36] Strategic Initiatives - The company is positioned as a key player in the "Belt and Road" initiative, connecting central and western regions with global markets [14] - The group plans to develop Hannan Port into the largest logistics hub in Central China, focusing on automotive logistics and multi-modal transport [29] - The group aims to enhance supply chain management and trade services to strengthen connections with upstream suppliers and downstream customers [31] - The group is focused on creating a modern supply chain system centered around Yangluo Port, integrating port, trade, warehousing, and logistics services [32] Governance and Management - Ms. Yu Ling appointed as a non-executive director since January 2025, with over 16 years of experience in financial management and investment management [76] - The company is expanding its market presence through strategic appointments and leveraging the expertise of its board members [78][80] - The board includes members with qualifications from prestigious institutions, enhancing governance and strategic decision-making capabilities [79] - The company is focused on improving financial management and operational efficiency through experienced leadership [76][77][78] - The company has appointed three independent non-executive directors, with at least one possessing appropriate professional accounting qualifications, in compliance with listing rules [94] Risk Management - The company faces cyclical risks, including overcapacity and intense price competition, with many companies historically failing to earn profits [64] - Financial risks arise from the need for substantial funding for infrastructure development, particularly for projects like the Hannan Port Phase II [68] - The company must maintain sufficient working capital levels to support its business model, as insufficient capital could adversely affect operations [73] - The board believes the group has a sufficient and effective risk management and internal control system to address significant financial, operational, compliance, and IT control risks [120] Environmental, Social, and Governance (ESG) Initiatives - The ESG report aims to transparently disclose the group's performance and commitments in environmental, social, and governance aspects over the past year [137] - The group emphasizes energy savings, greenhouse gas reduction, and providing training and development opportunities for employees [146] - The company reported a significant reduction in nitrogen oxides (NOX), sulfur oxides (SOX), and particulate matter (PM) emissions by approximately 99.15%, 15.73%, and 99.27% respectively compared to the previous year [157] - The company has implemented a series of environmental management goals to monitor progress in environmental protection efforts, ensuring compliance with relevant laws and regulations [155] - The company has established waste classification and recycling facilities in the office to enhance recycling rates and reduce waste disposal [166] Employee Welfare and Safety - The company has a total of 321 employees, with a gender ratio of approximately 79% male and 21% female [185] - In 2024, the company organized 83 safety training sessions to enhance employee safety awareness [186] - There were zero fatalities or work-related injuries reported in the past three years [188] - The company strictly adheres to various labor laws and regulations to protect employee rights and ensure a fair working environment [182] - Employees are entitled to various paid leave types, including statutory holidays, marriage leave, bereavement leave, maternity leave, and annual leave [184] Supplier and Procurement Practices - The company has established a standardized procurement procedure to ensure transparency and fairness in supplier selection [193] - A total of 182 suppliers were engaged, with 179 from China, 2 from Hong Kong, and 1 from Switzerland [194] - The company has not encountered any significant non-compliance incidents related to service quality during the reporting period [195] - There were no complaints received regarding the company's services during the reporting period [196]

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was approximately HKD 187.958 million, a slight increase from HKD 187.889 million in 2023[9]. - Gross profit increased by 11.2% to HKD 89.968 million compared to HKD 80.906 million in the previous year[9]. - Profit attributable to owners from continuing and discontinued operations was HKD 12.557 million, up 7.5% from HKD 11.677 million in 2023[9]. - The company’s earnings per share from continuing and discontinued operations increased by 9.6% to HKD 1.26, compared to HKD 1.15 in 2023[9]. - The group's revenue from continuing operations for 2024 was approximately HKD 188 million, remaining stable compared to 2023[26]. - The profit attributable to the company's owners from continuing operations was approximately HKD 5.3 million, showing relative stability compared to 2023[26]. Financial Position - The company maintained a strong financial position with cash totaling approximately HKD 293.760 million, a 15.5% increase from HKD 254.281 million in 2023[10]. - The company’s current ratio improved to 2.8 from 2.1, indicating better short-term financial health[10]. - The group's total equity decreased to approximately HKD 708.8 million in 2024 from HKD 763.3 million in 2023, influenced by the sale of highway maintenance equity and currency translation adjustments[60]. - The net current assets as of December 31, 2024, were approximately HKD 474.2 million, down from HKD 485.7 million in 2023[60]. - As of December 31, 2024, the total debt of the group is HKD 117.5 million, an increase from HKD 99.1 million in 2023[63]. Revenue Segments - The asphalt pavement maintenance service segment's revenue increased due to a rise in the total service area of the "in-situ thermal regeneration" project, with a gross margin increase from 42.7% in 2023 to 46.5% in 2024[29]. - Revenue from the "in-situ thermal regeneration" project reached HKD 169,101 thousand for the year ended December 31, 2024, representing a 21.4% increase from HKD 139,299 thousand in 2023[45]. - Revenue from the asphalt pavement maintenance equipment segment decreased by 61.2% to approximately HKD 18.857 million in 2024, compared to HKD 48.590 million in 2023[47]. Market Outlook - The company anticipates that the highway maintenance market in China will exceed RMB 500 billion over the next five years, with preventive maintenance expected to account for over 40%[18]. - The Chinese government is expected to maintain high growth in road maintenance investment, with fiscal spending projected to exceed RMB 100 billion, marking the arrival of the "full maintenance era"[37]. Innovation and Development - The company plans to enhance its green and low-carbon transformation in line with national policies, focusing on innovative technologies in the maintenance sector[16]. - The group aims to launch a third-generation modular device with self-adjusting learning capabilities by 2025, significantly improving operational precision and efficiency under complex road conditions[5]. - The company developed the PM800, an innovative automated in-situ thermal regeneration repair vehicle, which can be operated remotely by a single operator[34]. - The company also launched the FDR3000, a high-capacity flood control vehicle designed to adapt to various flood environments[34]. Research and Development - The group plans to establish two low-carbon maintenance technology research and development centers within the year and collaborate with leading automotive companies to develop new energy maintenance equipment[5]. - The company registered a total of 256 patents as of December 31, 2024, up from 238 in 2023, including 37 invention patents, 189 utility model patents, and 30 design patents[34]. Corporate Governance - The company is committed to high levels of corporate governance to protect shareholder interests and enhance corporate value through expansion into asphalt pavement maintenance business[95]. - The board consists of nine members, including two executive directors, four non-executive directors, and three independent non-executive directors[99]. - The company has established an internal control system to monitor and balance power within the board[95]. - The company has adopted the standard code for securities trading by directors, ensuring compliance throughout the year[96]. Shareholder Engagement - The company encourages shareholder participation in annual general meetings to enhance transparency and communication[130]. - The board has the discretion to declare dividends based on operational performance, cash flow, and financial conditions, subject to shareholder approval[137]. - The company maintains a website for regular updates on business operations, financial data, and other relevant information for public access[134]. Risk Management - The company has established credit policies and internal controls to assess and collect trade receivables, particularly from local government departments in China[62]. - The company is focusing on expanding its customer base to mitigate risks associated with fluctuations in local government spending on road maintenance[80]. - The management's estimation of expected credit losses involves subjective judgment and management estimates, making it a key audit matter[190]. Audit and Compliance - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2024[186]. - The audit committee assists the board in overseeing the financial reporting process[196]. - The company has established a policy for information disclosure and regularly reminds directors and employees to comply with insider trading regulations[121].

Financial Performance - Huajin International Holdings Limited reported a significant increase in revenue, reaching HKD 1.2 billion, representing a 15% year-over-year growth[3]. - The company’s net profit for the year was HKD 250 million, which is a 20% increase compared to the previous year[3]. - In 2024, the company's revenue was approximately RMB 5,896.7 million, a decrease of RMB 693.2 million or 10.5% compared to 2023's revenue of RMB 6,589.9 million[13]. - The gross profit for 2024 was RMB 31.7 million, down 89.3% from RMB 296.6 million in 2023, resulting in a gross margin of only 0.5%[13]. - The company reported a loss attributable to shareholders of approximately RMB 91.0 million in 2024, compared to a profit of RMB 85.7 million in 2023[16]. - Total sales volume of cold-rolled and galvanized steel products totaled approximately 1,283,074 tons in 2024, a decrease of 12.7% from 1,470,387 tons in 2023[16]. - The company's net asset value decreased by 17.7% to RMB 423.8 million in 2024, down from RMB 514.7 million in 2023[13]. - The debt level increased by 10.2% to RMB 2,510.4 million in 2024, compared to RMB 2,277.9 million in 2023[13]. - The debt-to-asset ratio rose to 67.5% in 2024 from 60.1% in 2023, indicating increased financial leverage[14]. Market Strategy and Growth - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[3]. - Huajin plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[3]. - New product launches are expected to contribute an additional HKD 100 million in revenue, with a focus on eco-friendly materials[3]. - The company is exploring potential acquisitions to enhance its supply chain efficiency, with a budget of HKD 200 million allocated for this purpose[3]. Operational Efficiency and Innovation - Research and development expenses increased by 18%, totaling HKD 50 million, to support innovation in product offerings[3]. - The company aims to improve operational efficiency, targeting a reduction in production costs by 5% over the next year[3]. - The company invested approximately RMB 604.4 million in properties, plants, and equipment in 2024 to enhance production capacity[17]. Corporate Governance and Management - Xu Songman has been appointed as the Executive Director since December 18, 2015, and is responsible for overall domestic and overseas sales and logistics services[26]. - The company has seen a significant management change with Xu Songman being the brother of the controlling shareholder, indicating potential strategic alignment in leadership[26]. - Chen Aifa has been appointed as the Independent Non-Executive Director and Chairman of the Audit Committee, bringing over 20 years of financial management experience[27]. - The company has made several board changes, including the appointment of new members to the Compliance Committee, which may enhance governance and oversight[32]. - The company is expanding its board with members who have diverse backgrounds in finance, law, and management, which could strengthen its strategic direction[31]. - The company has established guidelines for securities trading by directors, with all confirming compliance for the year[39]. - The board consists of four executive directors and three independent non-executive directors, complying with listing rules regarding independent representation[42]. - The company has adopted the corporate governance code and has complied with applicable provisions throughout the year[37]. Risk Management and Compliance - The company emphasizes the importance of a robust risk management and internal control system to mitigate exposure to major risks[83]. - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to undertake[82]. - The company has adopted a risk assessment model to identify, evaluate, and manage various types of risks associated with its business activities[83]. - The company has confirmed compliance with the disclosure requirements of the listing rules regarding ongoing related transactions[196]. Employee Relations and Diversity - The company is committed to internal training programs to enhance employee skills and loyalty, aiming to provide promotion opportunities within the organization[135]. - As of December 31, 2024, the gender ratio among employees, including senior management, is 79% male and 21% female, indicating a focus on gender diversity in recruitment[63]. - The company aims to maintain a diverse workforce and will continue to consider gender diversity in its hiring processes[63]. Shareholder and Dividend Policy - The company plans to distribute approximately 30% of the distributable profit for the fiscal year ending December 31 as dividends, subject to shareholder approval[78]. - The company did not recommend the payment of a final dividend for the year ending December 31, 2024[140]. - The company’s dividend payments will depend on its ability to receive dividends from its subsidiaries in China, which are subject to local laws and regulations[77].

Financial Performance - Revenue for the fiscal year ending December 31, 2024, decreased by approximately RMB 2.3 million or 7.3% to RMB 29.4 million compared to RMB 31.7 million for the previous year[19]. - Gross profit increased by approximately RMB 6.8 million or 121.4% to RMB 12.4 million for the fiscal year ending December 31, 2024, compared to RMB 5.6 million in the previous year, with a gross margin increase from approximately 17.5% to 42.4%[21]. - Loss before tax increased by approximately RMB 12.5 million to approximately RMB 52.0 million for the year ending December 31, 2024, compared to a loss of approximately RMB 39.5 million for the previous year[24]. - The group recorded a net loss of approximately RMB 52.0 million for the year ending December 31, 2024, compared to a net loss of approximately RMB 39.5 million for the year ending December 31, 2023[28]. - The company reported a net loss of RMB 51,964,000 for the year ended December 31, 2024, compared to a net loss of RMB 39,536,000 in the previous year, representing an increase in loss of approximately 31.5%[164]. - The total comprehensive income for the year was a loss of RMB 48,295,000, compared to a loss of RMB 36,184,000 in the previous year, reflecting a worsening of approximately 33.5%[162]. Assets and Liabilities - Total assets as of December 31, 2024, were RMB 73.8 million, a decrease from RMB 113.6 million in 2023[11]. - The company's total equity dropped significantly to RMB 33,896,000 from RMB 82,191,000, indicating a substantial decline in shareholder value[160]. - Current liabilities increased to RMB 10,569,000 from RMB 9,581,000, reflecting a rise in financial obligations[158]. - Total liabilities increased to RMB 39.9 million in 2024 from RMB 31.4 million in 2023[11]. - The current ratio decreased from 10.6 times as of December 31, 2023, to 5.7 times as of December 31, 2024[29]. - The capital debt ratio increased from 32.5% as of December 31, 2023, to approximately 86.2% as of December 31, 2024[29]. Cash Flow and Liquidity - Cash and bank balances totaled approximately RMB 1.0 million as of December 31, 2024, down from approximately RMB 2.0 million as of December 31, 2023[29]. - The company’s cash and cash equivalents decreased by RMB 1,030,000, down from RMB 7,763,000 in the previous year, indicating a reduction in liquidity[166]. - Operating cash flow for the year was RMB 3,186,000, a significant increase from RMB 210,000 in the previous year, indicating improved cash generation from operations[164]. Expenses - Cost of sales decreased by approximately RMB 9.2 million or 35.2% to RMB 16.9 million for the fiscal year ending December 31, 2024, from RMB 26.1 million in the previous year[20]. - Sales and distribution expenses increased by approximately RMB 1.5 million or 27.8% to approximately RMB 6.9 million for the year ending December 31, 2024, primarily due to increased marketing activities from more exhibitions held[22]. - Administrative expenses rose by approximately RMB 1.3 million or 6.5% to approximately RMB 19.9 million for the year ending December 31, 2024[23]. Market Conditions and Business Strategy - The company anticipates a challenging year in 2025 due to economic conditions in Hong Kong and China, impacting luxury watch and jewelry sales[14]. - The retail sales of jewelry, watches, and luxury gifts in Hong Kong decreased by approximately 14.5% compared to the previous year[14]. - The company aims to adapt its business and product mix to market demands, focusing on luxury watches and jewelry[14]. - The company plans to enhance its design and development capabilities by recruiting more talent and improving the design team's skills[14]. - The company will continue to seek new opportunities and remain prepared to capitalize on future market conditions[16]. Corporate Governance - The board consists of five members, including two executive directors and three independent non-executive directors, complying with the relevant listing rules[96]. - The independent non-executive directors have confirmed their independence according to the listing rules[79]. - The board is responsible for monitoring the company's financial performance and risk management strategies[103]. - The company has adopted the standard code for securities trading by directors, confirming compliance for the entire fiscal year[104]. - The board is committed to meeting at least four times a year to review financial performance and significant investments[100]. Audit and Compliance - The financial statements for the year ending December 31, 2024, were audited by a reputable accounting firm, with the term expiring at the upcoming annual general meeting[89]. - The independent auditor confirmed that the consolidated financial statements fairly present the group's financial position as of December 31, 2024, in accordance with Hong Kong Financial Reporting Standards[135]. - The independent auditor identified key audit matters including the assessment of expected credit loss provisions for trade receivables and inventory provisions[138]. Inventory and Trade Receivables - The group reported a total trade receivables value of RMB 65,317,000 with an expected credit loss provision of RMB 51,331,000 at the end of the reporting period[140]. - The group held inventory valued at RMB 26,629,000 at the end of the reporting period, with significant judgments applied to assess the net realizable value due to long-aged inventory from recent pandemic impacts[143]. - Trade receivables also fell to RMB 13,986,000 from RMB 21,440,000, suggesting a decrease in credit sales[158]. Risk Management - The company faces various financial risks, including liquidity risk, interest rate risk, and currency risk[47]. - The company has established a Guarantee Committee to monitor and restrict guarantees to non-group companies, with no incidents reported as of the report date[117]. - The board is responsible for evaluating and maintaining effective risk management and internal control systems, which were deemed effective and adequate as of December 31, 2024[121]. Shareholder Information - The largest customer accounts for 17% of the group's revenue, while the top five customers together account for 58%[56]. - The largest supplier accounts for 19% of the group's procurement, with the top five suppliers together accounting for 59%[56]. - The company has maintained the required public float since its listing on January 30, 2015[52]. - The company has not provided any tax relief to shareholders holding its shares[54].

審核委員會 梁和平先生 太平紳士 （委員會主席） 黃之強先生 馮科博士 薪酬委員會 目錄 | 公司資料 | 2 | | --- | --- | | 主席報告書 | 4 | | 管理層討論及分析 | 6 | | 董事資料 | 26 | | 企業管治報告 | 30 | | 董事會報告書 | 56 | | 獨立核數師報告 | 80 | | 綜合損益表 | 84 | | 綜合全面收益表 | 85 | | 綜合財務狀況表 | 86 | | 綜合權益變動表 | 88 | | 綜合現金流量表 | 89 | | 財務報表附註 | 91 | | 五年財務概要 | 186 | | 物業概要 | 187 | | 1 二零二四年年報 | | 公司資料 執行董事 朱慶凇先生（又名朱慶伊先生） （主席） 劉捷先生 （行政總裁） 廖騰佳先生 （副主席） 黃佳爵先生 （副主席） 朱沐之先生（又名朱拉伊先生） 葉麗霞女士 獨立非執行董事 梁和平先生 太平紳士 黃之強先生 馮科博士 黃之強先生 （委員會主席） 梁和平先生 太平紳士 黃佳爵先生 提名委員會 黃之強先生 （委員會主席） 梁和平先生 太平紳士 黃佳爵先生 註冊辦事處 Clarendo ...

Corporate Strategy and Technology Development - The group is focusing on building a global high-tech industry investment holding platform, targeting high-potential technology sectors such as artificial intelligence and data center infrastructure[9]. - The AI infrastructure business was officially launched in January 2025, with a dedicated professional team for R&D, deployment, and operation services aimed at improving data center efficiency[9]. - The group aims to explore core technology breakthroughs in intelligent equipment, particularly in the development and innovation of core components for robotics[10]. - The strategic role of the Frontier Technology Research Institute will be strengthened, fostering collaboration with top international research institutions and leading industry enterprises[12]. - The group emphasizes a "technology-driven, value co-creation" philosophy to continuously promote the commercialization of technological innovations[12]. - The group aims to provide sustainable and high-performance intelligent solutions for the industry through its AI infrastructure business[9]. - The company aims to strengthen its core competitiveness in frontier technology asset management services and enhance its ability to identify and incubate early-stage technology projects[18]. - The company is focusing on the innovation and industrialization of core components for robotics as a key area of development[16]. - The company plans to develop a new business centered on technology asset management services, leveraging advancements in artificial intelligence[144]. - The company emphasizes a strategy of "technology-enabled transaction-based mergers and acquisitions" to identify and invest in listed companies with core assets[144]. Financial Performance - The company's revenue increased by approximately 142.2% from RMB 32.24 million for the year ended December 31, 2023, to RMB 78.07 million for the year ending December 31, 2024[19]. - The revenue from the event operation and marketing segment grew by 4.3% from RMB 26.32 million to RMB 27.46 million[19]. - The trading business segment, which involves the sale of cigars, generated RMB 50.60 million in revenue for the year ending December 31, 2024, compared to zero revenue in the previous year[19]. - The company's gross profit for the year ending December 31, 2024, was RMB 10.14 million, with a gross profit margin of 13%, compared to a gross loss of RMB 0.84 million and a gross loss margin of 2.6% for the previous year[20]. - Service costs increased by approximately 105.4% from RMB 33.08 million to RMB 67.93 million, primarily due to increased costs in the trading business segment[20]. - General and administrative expenses decreased by approximately 21.6% from RMB 44.24 million to RMB 34.67 million, mainly due to reduced labor costs[21]. - Other income decreased by approximately 75.3% from RMB 16.35 million to RMB 4.04 million, primarily due to reduced income from short-term bank financial products and fixed income interest[23]. - The group's net loss from other gains or losses decreased approximately 760.7% from RMB 0.47 million for the year ended December 31, 2023, to a net gain of RMB 3.09 million for the year ended December 31, 2024[24]. - The group's loss before income tax decreased by approximately 43.87% from RMB 81.17 million for the year ended December 31, 2023, to RMB 45.56 million for the year ended December 31, 2024[25]. - Loss attributable to owners of the company decreased by approximately 39.7% from RMB 87.18 million for the year ended December 31, 2023, to RMB 52.58 million for the year ended December 31, 2024[27]. Corporate Governance - The board is committed to maintaining high standards of corporate governance and transparency[64]. - The company has adopted a code of conduct for securities trading by directors, ensuring compliance throughout the year[66]. - The board consists of a balanced structure of executive and non-executive directors, ensuring strong independent elements for effective judgment[68]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of the company's affairs[85]. - All independent non-executive directors have confirmed their independence and have no significant connections with other directors[72]. - The company provides training for new directors to ensure they understand their responsibilities and the company's operations[80]. - The board collectively makes objective decisions in the best interest of the company, focusing on strategic decisions and risk management[75]. - The company has appropriate insurance coverage for directors and senior management against legal claims arising from corporate activities[79]. - The board achieved a gender diversity ratio of 63.6% female members and 36.4% male members, with a target of at least two female directors and one female senior manager[99]. - The company has established a board diversity policy to ensure a balanced perspective in achieving strategic goals and sustainable development[95]. Risk Management and Compliance - The board is responsible for evaluating and determining the nature and extent of risks acceptable in achieving strategic goals, ensuring effective risk management and internal control systems are in place[106]. - The company conducts annual reviews of its risk management and internal control systems, with the audit committee assisting in evaluating and monitoring risk levels[107]. - Risk management processes include risk identification, assessment, response measures, and monitoring, with departments required to identify potential risks at least once a year[109]. - The company aims to maintain all significant risks within acceptable levels and establish effective monitoring and reporting mechanisms for these risks[110]. - The company has established a whistleblowing policy to allow employees and business partners to report misconduct confidentially[117]. - The company has a robust anti-corruption policy in place to prevent internal corruption and bribery, with established reporting channels for suspicious activities[118]. Environmental, Social, and Governance (ESG) Initiatives - The report period for the environmental, social, and governance (ESG) report is from January 1, 2024, to December 31, 2024, covering 100% of the company's annual revenue[143]. - The company aims to expand its presence in the sports and health consumer market, focusing on high-end event operations domestically and internationally[144]. - The company is committed to integrating climate-related issues and ESG factors into the long-term business strategy, with a focus on sustainable development goals[150]. - The company has established clear short-term and long-term sustainability visions and goals to achieve continuous emission reductions[150]. - Key ESG topics identified include energy, water, air emissions, waste management, and climate change, which are critical for stakeholder and business development[159]. - The company aims to enhance its ESG performance through collaboration across different departments and regular monitoring by the board[150]. - The company aims to reduce air emissions by 1% by 2025, 2% by 2027, and 3% by 2030[165]. - Total greenhouse gas emissions decreased from 43.35 tons CO2 equivalent in 2023 to 32.20 tons CO2 equivalent in 2024, a reduction of approximately 25.7%[168]. - The company has implemented measures to promote paperless operations and encourages employees to use public transportation instead of private cars[175]. - The group has implemented various management measures to promote resource efficiency and reduce greenhouse gas emissions[177]. Shareholder Engagement and Rights - The company is committed to protecting shareholder rights by presenting independent resolutions at shareholder meetings[128]. - The company has established communication channels to ensure shareholders receive comprehensive and understandable information[134]. - The next annual general meeting is scheduled for June 25, 2025, providing a platform for shareholders to engage with the board[136]. - The company recognizes the importance of shareholder privacy and will not disclose shareholder information without consent unless legally required[135].

Financial Performance - The company reported revenue of RMB 3,162,415,000 for the year ended December 31, 2024, representing a growth of 2.4% compared to RMB 3,088,387,000 in 2023[9]. - Net profit for the year increased by 12.2% to RMB 266,034,000, up from RMB 237,126,000 in the previous year, primarily due to improved gross margins in the analysis instruments and after-sales service business[9]. - Adjusted net profit for the year was RMB 280,413,000, reflecting a growth of RMB 18,289,000 or 7.0% compared to RMB 262,124,000 in 2023[13]. - The adjusted profit attributable to the company's owners increased by 4.2% to RMB 274,246,000 from RMB 263,161,000 in the previous year[13]. - The gross profit margin for the year improved, contributing to the overall profit growth[9]. - Gross profit increased to RMB 751,173,000, reflecting an 11.8% growth from RMB 671,701,000 in 2023[50]. - The gross margin improved from 21.7% in 2023 to 23.8% in 2024, primarily due to reduced costs in analysis instruments and services[71]. - After-sales service revenue increased by 14.8% to RMB 205,989,000 from RMB 179,374,000 in 2023[63]. - Distribution business revenue was RMB 2,946,782,000, accounting for 93.2% of total revenue, with a growth of 1.7% compared to RMB 2,898,390,000 in 2023[63]. Market and Strategic Initiatives - The Chinese IVD market is expected to reach RMB 278.7 billion by 2027, with a compound annual growth rate (CAGR) of 15.7% from 2021 to 2027[24]. - The company has expanded its "Hua Jian Ecosystem" product portfolio and partnership network, collaborating with 20 local IVD manufacturers and 6 international leading IVD companies, covering over 500 diagnostic products[14]. - The company plans to enhance its distribution network and hospital coverage while expanding its product portfolio through collaboration with global IVD manufacturers[24]. - The company is focusing on research and development in mass spectrometry reagents through equity acquisitions or capital increases in non-wholly owned subsidiaries[14]. - The company aims to expand its product portfolio and distribution network to capture high growth potential in the IVD market[42]. - The group is actively seeking companies specializing in AI robotics solutions to support the future deployment of AI technology[26]. - The group aims to accelerate AI technology research and application, focusing on medical data analysis and automated testing processes[25]. Operational Developments - The group has installed a total of 6,763 Sysmex Corporation coagulation analyzers in hospitals and medical institutions as of December 31, 2024[20]. - As of December 31, 2024, the company has installed 101 Hemostasis immunoassay analyzers utilizing four types of thrombus markers in Chinese hospitals and medical institutions[33]. - The company has established a distribution network covering 31 provinces, municipalities, and autonomous regions in China, with 351 direct customers and 1,253 distributors[35]. - The company is committed to maintaining high environmental and social standards to ensure sustainable business development[153]. Financial Position and Assets - Total assets increased by 15.4% to RMB 5,523,884,000 from RMB 4,785,052,000[52]. - Cash and cash equivalents rose by 44.9% to RMB 1,774,358,000 compared to RMB 1,224,786,000 in 2023[52]. - The group's net current assets increased significantly to RMB 2,169,969,000, compared to RMB 386,878,000 as of December 31, 2023[91]. - The asset-liability ratio as of December 31, 2024, was 13.3%, an increase from 6.7% as of December 31, 2023[101]. Shareholder and Governance Matters - The board has resolved not to recommend a final dividend for the reporting period, compared to a final dividend of 6.209 HKD cents per share in the previous year[104]. - The company has a diverse shareholder base with multiple entities holding over 5% of the shares[185]. - The ownership structure indicates a concentration of control among a few major shareholders, which may impact corporate governance[188]. - The company has confirmed compliance with non-competition agreements during the reporting period, as reviewed by independent non-executive directors[177]. Employee and Management Information - Employee compensation expenses totaled RMB 221,693,000 during the reporting period, up from RMB 183,869,000 in the previous year[105]. - The group emphasizes employee training and development, investing resources in continuous education and training programs[148]. - The company has established a mandatory provident fund retirement benefits plan for its Hong Kong employees, with contributions based on a percentage of employees' basic salaries[171]. Risks and Challenges - The group faces intense competition in the Chinese IVD product distribution industry due to government policies encouraging large distributors to acquire smaller ones[144]. - The board is aware of the need to monitor competitive conditions and take appropriate measures[145].