Financial Performance - The Company reported solid performance in 2024, highlighting a resilient business model and improved margin profile[2]. - Net sales for the year ended December 31, 2024, were $3,588.6 million, a decrease of 2.5% compared to $3,682.4 million for 2023[46]. - Gross profit for 2024 was $2,152.2 million, reflecting a decrease of 1.4% from $2,182.8 million in 2023[46]. - Operating profit decreased by 15.4% to $629.3 million in 2024 from $743.7 million in 2023[46]. - Profit for the year attributable to equity holders was $345.6 million, down 12.9% from $396.9 million in 2023[46]. - Adjusted net income for 2024 was $369.8 million, a decrease of 5.8% compared to $392.4 million in 2023[46]. - Adjusted EBITDA for 2024 was $683.0 million, down 3.7% from $709.3 million in 2023[46]. - Basic earnings per share decreased by 13.0% to $0.239 in 2024 from $0.275 in 2023[46]. - Diluted earnings per share decreased by 13.1% to $0.237 in 2024 from $0.273 in 2023[46]. - The Company recorded net sales of US$3,588.6 million for the year ended December 31, 2024, a decrease of only 0.2% year-over-year[61]. - The Company's profit margin for 2024 was 10.4%, down from 11.7% in 2023[190]. Sales and Market Trends - Year-over-year constant currency net sales performance improved sequentially across regions in Q4 2024 compared to Q3 2024, despite an uncertain macroeconomic environment affecting consumer sentiment[18]. - Net sales for Q1 2025 are expected to decline low to mid-single digits on a constant currency basis compared to Q1 2024, with growth trends anticipated to improve throughout 2025[18]. - Sales in mature markets are expected to increase, while penetration in emerging high-growth regions will deepen[19]. - The Company recognizes the impact of trends in the travel industry, particularly air travel, on its business[30]. - The Company believes that strong travel trends in the coming years will support long-term business growth[19]. - The Company anticipates low to mid-single digits decline in net sales for Q1 2025 compared to Q1 2024, but expects growth trends to improve over the course of 2025[122]. - The global bags and luggage industry had approximately $87 billion in retail sales during 2024, with the company's travel products comprising 65.7% of its net sales[147][150]. Strategic Initiatives - The Company aims to increase shareholder value through sustainable revenue and earnings growth, focusing on brand elevation and innovation[16]. - The Company plans to expand its brand portfolio through accretive M&A and deepen penetration in emerging, high-growth regions[18]. - The Company is focused on expanding its travel and non-travel product offerings through innovation and sustainability improvements[18]. - The Company is preparing for a potential dual listing of its securities in the United States to enhance value creation for shareholders[22]. - The Company aims to expand its product offerings and market reach, particularly in the non-travel category[30]. - The Company plans to deepen penetration in emerging markets with higher growth potential while increasing sales in established markets[30]. - The Company is excited about new products and marketing programs surrounding the TUMI brand, which is celebrating its 50th anniversary in 2025[123]. - The Company believes it has significant opportunities to grow net sales by expanding into adjacent product categories and leveraging brand recognition[168]. Cost Management and Profitability - The Company is confident in maintaining a robust margin profile and delivering positive operating leverage through disciplined expense management[18]. - The Company aims to generate strong adjusted free cash flow, providing flexibility for future investments and shareholder returns[19]. - Adjusted free cash flow increased by US$26.5 million to US$311.0 million for the year ended December 31, 2024, compared to US$284.5 million for 2023[53]. - The Company maintains substantial liquidity of $1.4 billion as of December 31, 2024[77][79]. - The Company expects its strategy to broaden its product offering within the non-travel category will help mitigate the impact of global travel trends over time[174]. - The Company anticipates that the growth rate of its sales costs will be lower than the growth rate of its net sales in the long term due to strict cost management and a shift towards higher-margin brands, product lines, and channels[198]. Sustainability and Innovation - The Company is committed to sustainability and addressing climate change-related matters[31]. - The Company continues to focus on sustainability and innovation in its product offerings, aligning with evolving consumer demands[143]. - The share of the Company's net sales from products incorporating recycled materials increased to approximately 40% in 2024, up from about 34% in 2023[117]. - The Company invested significantly in research and development for new materials and innovative designs to enhance product desirability and sustainability[155][158]. Operational Highlights - The Company emphasizes a decentralized management structure to foster innovation and efficient decision-making[15]. - The performance of the Company's direct-to-consumer (DTC) channel, including the expansion of retail stores and e-commerce platforms, is a key focus[30]. - Direct-to-consumer (DTC) net sales increased by 2.7%, with DTC e-commerce net sales rising by 5.8% year-over-year, contributing 39.8% of total net sales[64]. - The Company operates robust DTC e-commerce platforms worldwide, contributing to significant growth across its brands and regions[162]. - The Company has streamlined its retail store fleet to focus on driving profitable growth and employs a targeted approach to new store openings[162]. Economic Outlook - The macroeconomic outlook remains uncertain, but global travel and tourism is expected to see steady growth in 2025, supporting consumer demand for the Company's products[83]. - International tourist arrivals are expected to grow by 3% to 5% in 2025 compared to 2024, according to the United Nations World Tourism Organization[9]. - The Company is aware of the risks related to consumer spending and general economic conditions affecting its operations[32]. - Macroeconomic factors have led to consumers becoming more selective with their spending, adversely affecting the Company's net sales during the year ended December 31, 2024[169].

Financial Performance - The company reported operating revenue of approximately RMB 16,866.52 million, representing a year-on-year increase of 31.42% compared to RMB 12,833.61 million in the same period last year[6]. - The net loss attributable to shareholders was approximately RMB 1,234.60 million, a decrease in loss of 5.65% from RMB 1,308.58 million in the previous year[6]. - The company experienced a 31% increase in operating income, primarily due to growth in the green building materials and real estate sectors[12]. - Total operating revenue for Q1 2025 reached ¥16.87 billion, a 31.7% increase from ¥12.83 billion in Q1 2024[27]. - Net loss for Q1 2025 was ¥2.13 billion, compared to a net loss of ¥2.08 billion in Q1 2024, reflecting a slight increase in losses[28]. - The company reported a total profit of -¥1.96 billion for Q1 2025, compared to -¥1.99 billion in Q1 2024[28]. Cash Flow - The net cash flow from operating activities was negative at RMB 5,430.79 million, worsening by 10.39% compared to RMB 4,919.45 million in the same period last year[6]. - In Q1 2025, cash inflow from operating activities was CNY 20.20 billion, an increase of 15.4% compared to CNY 17.54 billion in Q1 2024[35]. - The net cash flow from operating activities in Q1 2025 was -CNY 5.43 billion, worsening from -CNY 4.92 billion in Q1 2024[35]. - Cash inflow from investment activities in Q1 2025 totaled CNY 1.05 billion, up from CNY 461.97 million in Q1 2024[36]. - The net cash flow from investment activities was -CNY 2.09 billion in Q1 2025, compared to -CNY 1.24 billion in Q1 2024[36]. - Cash inflow from financing activities in Q1 2025 was CNY 22.35 billion, down from CNY 26.25 billion in Q1 2024[36]. - The net cash flow from financing activities was CNY 6.70 billion in Q1 2025, compared to CNY 7.60 billion in Q1 2024[36]. - The total cash and cash equivalents at the end of Q1 2025 were CNY 14.06 billion, a decrease from CNY 15.18 billion at the end of Q1 2024[36]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 266,567.77 million, an increase of 0.97% from RMB 263,995.72 million at the end of the previous year[6]. - The equity attributable to shareholders decreased by 4.36% to RMB 70,502.15 million from RMB 73,717.50 million at the end of the previous year[6]. - Current liabilities decreased to CNY 92.84 billion from CNY 96.78 billion, a reduction of about 4.0%[20]. - Non-current liabilities rose to CNY 85.32 billion from CNY 75.10 billion, an increase of approximately 13.5%[20]. - The company reported a total liability of CNY 178.16 billion, up from CNY 171.88 billion, reflecting an increase of about 3.8%[20]. - The total equity of the company decreased to CNY 88.41 billion from CNY 92.12 billion, a decline of approximately 4.0%[21]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 110,647[13]. - The largest shareholder, Beijing State-owned Capital Operation Management Co., Ltd., holds 4,832,665,938 shares, accounting for 45.26% of the total shares[13]. - The company has reported no changes in the participation of major shareholders in financing and securities lending activities[14]. Operational Costs and Income - Operating costs increased by 29%, attributed to the rise in revenue[12]. - The company reported a significant increase of 1,545% in business taxes and additional charges, mainly due to tax refunds related to land appreciation tax from real estate projects[12]. - Other income rose by 56%, largely due to an increase in government subsidies recognized during the reporting period[12]. - The company’s cash outflow for purchasing goods and services in Q1 2025 was CNY 21.85 billion, compared to CNY 14.32 billion in Q1 2024, indicating increased operational costs[35]. Investment Activities - The company’s investment activities generated a net cash flow decrease of 68%, reflecting increased investment expenditures during the reporting period[12]. - The company plans to increase its shareholding through centralized bidding, with an initial purchase of 6,682,600 shares for RMB 8,525,554 on August 23, 2024[15]. - As of March 31, 2025, the total non-current assets amount to RMB 139,123,123,000.00, showing a slight increase from the previous period[19]. - The company has a plan to continue increasing its shareholding over the next 12 months, with a total of 35,308,366 shares purchased so far[15].

Financial Performance - Q1 2025 sales revenue reached HKD 31.2 billion (USD 4.02 billion), down 0.5% year-on-year and down 8.2% quarter-on-quarter[6] - Total new orders amounted to HKD 33.5 billion (USD 4.31 billion), up 4.8% year-on-year and up 2.9% quarter-on-quarter[6] - Operating profit was HKD 1.60 billion, down 33.3% year-on-year but up 3,044.6% quarter-on-quarter[6] - Adjusted profit was HKD 832 million, down 53.1% year-on-year but up 1.6% quarter-on-quarter[13] - The total profit for the period was HKD 82.6 million, compared to HKD 4.2 million in the previous quarter and HKD 177.5 million in the same quarter last year[21] - The company’s basic earnings per share for the period was HKD 0.01, compared to HKD 0.43 in the same quarter last year[20] - Basic and diluted earnings per share for the three months ended March 31, 2025, were HKD 0.20, compared to HKD 0.01 in the previous quarter[25] Segment Performance - Semiconductor Solutions segment sales revenue increased to HKD 19.9 billion (USD 2.56 billion), up 44.7% year-on-year[14] - Semiconductor Solutions segment gross margin was 46.3%, up 368 basis points quarter-on-quarter and up 167 basis points year-on-year[14] - The Surface Mount Technology Solutions segment reported total new orders of HKD 1,620.8 million (USD 208 million), a quarterly increase of 46.5% but a year-over-year decrease of 1.4%[16] - Sales revenue for the segment was HKD 1,134.8 million (USD 146 million), reflecting a quarterly decline of 20.3% and a year-over-year decline of 35.6%[16] - The gross margin for the segment was 31.5%, up 180 basis points quarter-over-quarter but down 827 basis points year-over-year[17] - The segment recorded a loss of HKD 5.3 million, indicating a negative profitability rate of -0.5%[18] - The semiconductor solutions segment achieved a profit margin of 11.9%, up from 3.8% in the previous quarter[24] - The surface mount technology solutions segment reported a loss margin of -0.5%, down from a profit margin of 1.4% in the previous quarter[24] Future Outlook - The company expects Q2 2025 sales revenue to be between USD 410 million and USD 470 million, with a median forecast of +3.0% year-on-year and +9.6% quarter-on-quarter[5] - The company expects sales revenue for the second quarter of 2025 to be between USD 410 million and USD 470 million, with a year-over-year increase of 3.0% at the median[19] - The company remains confident in the demand for advanced packaging solutions, particularly in artificial intelligence and high-performance computing applications[19] Cost Management - Operating expenses decreased by 11.3% quarter-on-quarter due to stringent cost control measures[13] - The group incurred restructuring costs of HKD 879 for the three months ended March 31, 2025, compared to HKD 95,325 in the previous quarter[27] Market Conditions - The segment's performance is influenced by the ongoing weakness in the overall market, despite some stabilization in the automotive and industrial end markets[16] - The company will continue to monitor the impact of tariffs and adjust its strategies accordingly to maintain flexibility in its global production layout[19] Other Financial Metrics - Interest income for the three months ended March 31, 2025, was HKD 25,710, a decrease from HKD 27,999 in the previous quarter[24] - Total sales revenue for the group was HKD 3,124,593, down 8.2% from HKD 3,403,352 in the previous quarter[24] - The group reported a pre-tax profit of HKD 106,733 for the three months ended March 31, 2025, compared to HKD 11,380 in the previous quarter[24] - Adjusted profit for the three months ended March 31, 2025, was HKD 83,224, reflecting a slight increase from HKD 82,093 in the previous quarter[27] - Semiconductor solutions revenue for the three months ended March 31, 2025, was HKD 1,989,768, an increase of 0.1% compared to HKD 1,978,748 for the previous quarter[24] - Surface mount technology solutions revenue decreased by 20.3% to HKD 1,134,825 from HKD 1,424,604 in the previous quarter[24]

Financial Performance - For the year ended December 31, 2024, revenue decreased by 0.4% to RMB 1,442,291,000 compared to RMB 1,448,376,000 in 2023[16] - Gross profit declined by 2.4% to RMB 978,205,000, resulting in a gross profit margin of 67.8%, down from 69.2%[16] - Loss before tax increased significantly by 195.8% to RMB 155,665,000, compared to a loss of RMB 52,625,000 in the previous year[16] - The loss for the year escalated by 228.6% to RMB 165,849,000, compared to RMB 50,475,000 in 2023[16] - Earnings attributable to owners of the Company turned into a loss of RMB 176,621,000, a drastic change from a profit of RMB 7,429,000 in the prior year, representing a 2,477.5% decline[16] - Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 287.9% to RMB 121,397,000, compared to RMB 31,295,000 in the previous year[16] - Adjusted non-HKFRS earnings for the year increased by 77.9% to RMB 75,230,000, up from RMB 42,289,000[16] Revenue and Sales Metrics - In 2024, Youzan achieved a gross merchandise volume of approximately RMB102.8 billion, with an average sales per merchant of approximately RMB1,840,000, representing a year-on-year increase of about 14%[21] - Youzan's revenue for 2024 was approximately RMB1.44 billion, with a year-on-year increase of over 4% in the second half of the year, and adjusted EBITDA of approximately RMB121 million, reflecting a year-on-year increase of approximately 288%[27] - The revenue renewal rate for the target customer group increased to 68%, with the new retail target customer group achieving a renewal rate of 86%[24] - Revenue from Subscription Solutions decreased by 6.9% year-on-year to approximately RMB780,638,000, primarily due to a decrease in the number of paying merchants[82] - Revenue from Merchant Solutions increased by 8.6% year-on-year to approximately RMB658,215,000, mainly driven by growth in logistic solutions[84] Asset and Equity Growth - The company reported a net current assets increase of 59.1%, rising from RMB222,928,000 in 2023 to RMB354,575,000 in 2024[18] - Youzan's total assets grew by 9.6% from RMB5,395,014,000 in 2023 to RMB5,911,211,000 in 2024[18] - The total equity attributable to owners increased by 5.5%, from RMB1,021,330,000 in 2023 to RMB1,077,159,000 in 2024[18] Operational Efficiency and Cost Management - Selling expenses decreased by 15% year-on-year, and the selling expense ratio decreased to 39%[66] - Staff costs decreased by 15.9% year-on-year to approximately RMB100,291,000, attributed to a reduction in headcount[92] - Administrative expenses decreased by 11.0% year-on-year to approximately RMB137,864,000 in 2024, compared to RMB154,949,000 in 2023, primarily due to reduced legal and professional fees related to the acquisition of approximately 48.10% equity in Youzan Technology[103][106] - The Group recorded a 15.3% year-on-year decrease in selling expenses to approximately RMB556,423,000, down from RMB657,038,000 in 2023[102][106] Technology and Innovation - Youzan has integrated intelligent technologies to help merchants increase transaction volumes and reduce operational costs[36] - The company aims for "Jarvis Intelligence" to help merchants double their existing team's productivity by 2025, completing over 1 million intelligent tasks daily[39][41] - In 2024, the company integrated DeepSeek for multi-channel food delivery product association and marketing plan generation, enhancing its intelligent capabilities[40] - The company plans to achieve business growth while maintaining a steady increase in profit margins and increasing the "silicon content" in all business processes to build an intelligent organization[46] Merchant Engagement and Community Building - The company has held nearly 200 offline meetings in 2024, with an average of over 200 merchants participating in each meeting, fostering extensive ecological cooperation[34] - Nearly 70% of active merchants are chain store merchants, indicating a strong market presence in various retail sectors[29] - The company aims to help merchants improve customer retention and operational efficiency through its Youzan Beauty solutions, targeting the beauty and health care sectors[57] Financial Position and Liquidity - The cash balance at the end of 2024 was approximately RMB889 million[66] - As of December 31, 2024, the Group's borrowings amounted to approximately RMB 338,725,000, down from RMB 470,444,000 in 2023[152] - The Group's gearing ratio as of December 31, 2024, was 5.7%, a decrease from 8.7% as of December 31, 2023, primarily due to increased balances with the central bank and reduced interest-bearing borrowings[154] Share Options and Employee Incentives - The Share Option Scheme 2019 was adopted on June 12, 2019, and terminated on June 29, 2023, but the validity of outstanding share options remains unaffected[184] - The Company approved a new Share Option Scheme 2023 at the 2023 annual general meeting, with no share options granted, exercised, lapsed, or cancelled under this scheme during the year ended December 31, 2024[192] - The Share Award Scheme, adopted on May 31, 2018, aims to recognize contributions by eligible persons and provide incentives for retention and attraction of suitable personnel[194] - The total number of shares granted across various awards reflects the company's commitment to employee retention and performance[199]

Financial Performance - In 2024, the Company reported revenue of RMB 5,258,919, a decrease of 3.2% compared to RMB 5,430,974 in 2023[15] - The profit before tax for 2024 was RMB 726,229, recovering from a loss of RMB 928,334 in 2023[15] - The profit attributable to owners of the Company for 2024 was RMB 646,742, compared to a loss of RMB 783,258 in 2023[15] - Basic earnings per share for 2024 was RMB 0.44, an improvement from a loss of RMB 0.53 in 2023[15] - The Group achieved a revenue of approximately RMB5,258.9 million and a net profit of approximately RMB624.9 million, marking significant year-on-year growth[27] - The Group achieved an operating revenue of approximately RMB5,258.9 million in 2024, representing a year-on-year decrease of approximately 3.2%[49] - Gross profit increased by approximately 84.9% year-on-year to approximately RMB1,739.3 million, with a gross margin of approximately 33.1%, up by approximately 15.8 percentage points year-on-year[49] - The Group turned from loss into profit, reporting a net profit of approximately RMB624.9 million, with net profit attributable to equity holders of the Company at approximately RMB646.7 million[49] - The Group's overall operating revenue was approximately RMB5,258.9 million, a year-on-year decrease of approximately 3.2%, while gross profit increased by approximately 84.9% to RMB1,739.3 million, with a gross margin of approximately 33.1%[52] - The impairment amount for inventory in 2024 was only approximately RMB7.6 million, significantly lower than RMB855.4 million in 2023, contributing to improved gross profit margins[102] - Finance costs decreased by approximately RMB82.9 million to approximately RMB145.2 million, representing a decrease of approximately 36.3% compared to 2023[106] - Income tax expense for the reporting period was approximately RMB 101.3 million, compared to a tax credit of approximately RMB 126.2 million in 2023[111] Assets and Liabilities - Total assets decreased to RMB 17,343,524 in 2024 from RMB 19,203,417 in 2023, reflecting a decline of 9.7%[16] - Total liabilities also decreased to RMB 5,141,403 in 2024, down from RMB 7,215,040 in 2023, a reduction of 28.8%[16] - The asset-liability ratio was approximately 29.6% as of December 31, 2024, down from approximately 37.6% in 2023[127] - As of December 31, 2024, the group's cash and bank balances were approximately RMB 1,421.8 million, down from approximately RMB 1,765.6 million in 2023[118] - The group recorded short-term loans of approximately RMB 2,367.2 million and long-term loans of approximately RMB 1,081.0 million as of December 31, 2024[119] - The Group's total financial indebtedness decreased to approximately RMB3,544.8 million from RMB5,562.8 million as of December 31, 2023, representing a reduction of about 36.4%[140] - The Group's interest-bearing bank and other borrowings were approximately RMB3,448.2 million as of December 31, 2024, down from RMB5,434.6 million in the previous year, indicating a decrease of approximately 36.5%[140] - The Group's lease liabilities decreased to RMB96.6 million as of December 31, 2024, from RMB128.2 million as of December 31, 2023, a reduction of about 24.6%[140] Business Strategy and Operations - The Company emphasized its commitment to innovation-driven and globalization strategies, enhancing its global marketing network[24] - The Company aims to consolidate its leading position in the international heparin market through a vertically integrated industry chain[24] - The Company has transformed from a local enterprise to a global leader in the heparin field over the past decade[24] - The heparin business, as the core pillar, set a historical best performance with a significant leap in market share due to enhanced local operations and market penetration[28] - The CDMO business exhibited strong growth, forming a "dual-wheel drive" development pattern, enhancing market competitiveness and overall performance[29] - The Group plans to further optimize the vertical integration of the heparin industry chain to enhance product competitiveness and market share[37] - The Group aims to accelerate the clinical progress of the H1710 project and explore more opportunities for innovative drug research and development[37] - The Group will strengthen the diversified operations of SPL and Cytovance to promote sustained growth in CDMO and specialty product businesses[37] - The Group remains cautiously optimistic about its business prospects while focusing on cost control to ensure stable financial benefits and cash flow levels[38] - The Group plans to further optimize the heparin supply chain's vertical integration to enhance product competitiveness and market share[40] - The CDMO business experienced rapid growth during the Reporting Period, with both business revenue and gross margin increasing year-on-year[48] - The Group aims to enhance its global presence and brand influence while increasing market penetration in the heparin industry despite trade protectionist challenges[82] - The Group plans to optimize marketing strategies and improve sales share in the finished dosage form business, targeting growth in Asia-Pacific and Latin America[84] Research and Development - The innovative drug H1710 project completed its IND application in China, marking a breakthrough in the Group's innovation efforts[30] - H1710, a candidate drug targeting heparanase, has shown significant anti-tumor effects in various animal models and received approval for clinical trials from the National Medical Products Administration in February 2025[73] - Oregovomab, an anti-CA125 immunotherapy drug, completed a Phase II clinical trial and is under further evaluation after not meeting its intended objectives in Phase III trials[74] - RVX-208 (Apabetalone) completed Phase III clinical trial (BETonMACE) to reduce major adverse cardiovascular events in high-risk patients, receiving FDA Breakthrough Therapy Designation[79] - The Group is actively exploring cooperation opportunities to accelerate the strategic layout of innovative drugs and diversify commercialization capabilities[76] Market Performance - The annual sales volume of enoxaparin sodium formulations achieved double-digit growth, successfully expanding the global formulation market share[47] - The Group maintained its market share as one of the top two in Europe for enoxaparin sodium formulation, successfully increasing the bid-winning rate to expand market share[56] - In the United States, the Group's sales revenue showed impressive growth, benefiting from a dual strategy of self-operated and agency-driven approaches[57] - The Group obtained market entry licenses in Thailand and New Zealand, enhancing its international market share and creating new sales opportunities[61] - The Group is actively working to increase market share in China while addressing pricing pressures from the national centralized procurement platform[58] Management and Governance - The Group's executive directors have over 30 years of experience in the pharmaceutical industry, contributing to strategic planning and decision-making[142] - The Group's strategic focus includes innovative drugs and CDMO sectors, with active participation from executive directors in formulating and implementing business strategies[149][152] - The Group's management team includes experienced professionals who oversee various aspects of the business, including production capacity, logistics, and human resources[152][149] - Ms. Li Tan has over 30 years of experience in the pharmaceutical industry and is responsible for major decisions and business development activities[155] - Mr. Shan Yu also has over 30 years of experience in the pharmaceutical industry, overseeing capacity, safety, logistics, and external matters[156] - Mr. Zhang Ping has extensive experience in manufacturing and operations, having served as General Manager at Hangzhou Innovax Biotech Co., Ltd. and Head of Industry Affairs at Sanofi, managing seven plants in China[157][161] - Dr. Lu Chuan has been an independent non-executive director since December 2019 and has extensive experience in investment banking and management[158][162] - Mr. Huang Peng, an independent non-executive director, has a Ph.D. in Management and has served as an independent director for multiple companies listed on the Shanghai and Shenzhen Stock Exchanges[164] - Mr. Yi Ming, another independent non-executive director, has a Master's degree in Finance and has held senior management positions in asset management companies[165] - Mr. Zheng Zehui, chairman of the Supervisory Committee, has served as general manager of URIT Medical Electronic Sales Co., Ltd. and has a background in biochemistry[166] - Ms. Tang Haijun has been with the company since February 2001 and serves as a Supervisor, managing the GXP document control department[167] Corporate Actions - The Company completed its initial public offering and listing of its A Shares on the Shenzhen Stock Exchange on May 6, 2010, and its H Shares on the Hong Kong Stock Exchange on July 8, 2020[181] - The Group proposed a final cash dividend of RMB2.5 (tax inclusive) per ten ordinary shares, compared to nil in 2023[187] - The Group has not incurred any additional costs specifically attributable to environmental compliance during the year ended December 31, 2024[191] - The Group has no current plans for significant acquisitions or capital asset investments as of December 31, 2024[138] Reporting and Analysis - A detailed analysis of the Group's revenue and operating profit for the year ended December 31, 2024, is provided in the "Management Discussion and Analysis" section of the annual report[182] - The business review includes discussions on principal risks and uncertainties faced by the Group, as well as an analysis of performance using financial key performance indicators[183] - Important events affecting the Group during the year ended December 31, 2024, are highlighted in the annual report[183] - Future developments in the Group's business are indicated in the annual report[183] - The Group's financial performance indicators and major events impacting the business are discussed in the "Chairman's Statement" and "Management Discussion and Analysis" sections of the annual report[186] - The Group's audited consolidated results for the reporting period are detailed on pages 85 to 86 of the annual report[188] - The Group's reserves and movements for the current and prior years are presented in the consolidated statement of changes in equity on pages 89 to 90 of the annual report[200]

Financial Performance - Revenue decreased by approximately 36.4% to approximately RMB119.5 million in 2024 compared to RMB188.0 million in 2023[14] - Gross profit for the Group was approximately RMB27.9 million in 2024, down from approximately RMB69.5 million in 2023[14] - The Group's loss for the year increased by approximately 239.5% to approximately RMB88.6 million in 2024, compared to RMB26.1 million in 2023[14] - Basic loss per share was approximately RMB3.28 cents in 2024, compared to RMB0.92 cents in 2023[14] - The Group's total revenue decreased by 36.4% year-on-year to approximately RMB 119.5 million, primarily due to weakening disposable incomes in European and American households amid persistent inflation[79] - The Group's net loss amounted to approximately RMB 88.6 million, compared to a net loss of approximately RMB 26.1 million in 2023[79] - Gross profit decreased to approximately RMB27.9 million in 2024, down approximately 60.0% from RMB69.5 million in 2023, with the gross profit margin declining from 37.0% to 23.3%[99] - The Group's basic and diluted loss per ordinary share was approximately RMB3.28 cents for 2024, compared to RMB0.92 cents in 2023[97] Strategic Initiatives - The Company adopted a dual production base strategy to mitigate operational risks, with production in both domestic and overseas locations[17] - Construction of the new production facility in Southeast Asia was completed, and trial production commenced in the second half of 2024[17] - The newly established overseas factory received positive customer feedback, evidenced by an increase in orders, including from new customers[17] - The company plans to phase out retail operations of its in-house sofa brand to reduce marketing expenses while focusing on export OEM business[21] - The Group established a joint venture with a local renowned furniture brand in the U.S. to enhance market exposure and leverage their sales capabilities[84] - The Group's strategic focus on product quality and innovative designs has helped to consolidate existing customer bases and penetrate new markets despite challenging economic conditions[86] - The Group's strategic adjustments aimed to bolster competitiveness and capture additional market share amid significant market challenges[82] Market Conditions - The Company faced significant economic challenges in major markets, particularly in the U.S., Europe, and China, due to high home prices and elevated mortgage rates[16] - The global household market is projected to reach USD 1,087.5 billion by 2032, with significant demand for personalized home decor products in the United States[25] - Southeast Asia has seen a continuous uptrend in furniture exports throughout 2024, supported by government policies aimed at fostering the furniture industry[20] - The consumer price index in China hit a decade-low, while the GDP growth rate reached 5%, aligning with the national target, indicating a challenging economic backdrop[78] - Challenges in the U.S. economy include budget deficits, public debt, and labor market issues, which have adversely impacted the Group's business due to changing trade policies with China[180] - The Group has assessed the business risks arising from changes in U.S.-China trade policies and is exploring various means to mitigate these risks[181] Corporate Governance - The Company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[183] - The Board of Directors is responsible for overseeing management and financial performance, holding regular meetings to discuss business operations[189] - The composition of the Board includes both executive and independent non-executive Directors, with specific roles and responsibilities outlined[194] - The board of directors consists of 3 executive directors, 2 non-executive directors, and 4 independent non-executive directors[196] - Independent non-executive directors represent more than one-third of the board, ensuring adequate control and balance for shareholder interests[200] - The independent non-executive directors provide independent and objective opinions to protect the overall interests of shareholders[199] Financial Management - The company has implemented prudent financial management practices, refraining from acquiring additional bank loans to maintain a robust financial position[26] - The Group's liquidity policy ensures sufficient cash reserves and committed funding lines to meet short and long-term liquidity requirements[168][172] - The Group's interest rate risk is monitored continuously, adjusting bank deposits and borrowings as necessary[176] - The Group's credit risk is primarily from trade receivables, with the five largest customers accounting for approximately 60.2% of total trade receivables as of December 31, 2024[174][175] Management and Leadership - The company is led by Chairman Tse Kam Pang, who holds approximately 74.86% of the issued share capital[40] - CEO Chong Tsz Ngai has over ten years of experience in corporate finance and was appointed as an executive director on October 17, 2022[41][47] - Zou Gebing, who served as chairman and CEO from 2016 to 2022, resigned on January 8, 2024[43][48] - The management team includes individuals with extensive backgrounds in international trade and corporate finance, enhancing strategic decision-making[42][47] Operational Challenges - The Group incurred a loss attributable to owners of the Company of approximately RMB 87,656,000 for the year ended 31 December 2024[134] - As of 31 December 2024, the Group had net current liabilities of approximately RMB 186,275,000 and net liabilities of approximately RMB 234,724,000[134] - The auditors were unable to obtain sufficient appropriate audit evidence regarding the balances with Zou Entities as at 31 December 2024 and 2023[139] - The management acknowledges the qualified opinion issued by the auditors due to the uncooperative attitude of the Zou Entities[145] - The company is exploring various solutions to recover amounts due from ZOU Entities, facing substantial difficulties due to the financial condition of ZOU Entities and suspected debt evasion[153] Employee and Operational Metrics - As of December 31, 2024, the Group employed 220 employees, a decrease from 338 employees as of December 31, 2023[161][163] - The total annual salary and related costs for 2024 were approximately RMB 37.8 million, down from RMB 53.8 million in 2023[161][163]

Business Overview - The company has established a strong reputation in the education services industry, focusing on extracurricular personal development courses for children and teenagers, including dance and sports [8]. - The company aims to provide high-quality, diversified comprehensive services to meet the personalized needs of different customer groups, leveraging its resources and experience [8]. - The company has set up consultation service centers in major cities in mainland China to offer overseas education consulting services for students seeking to study abroad [8]. - The company is focused on enriching service varieties and content through close communication with students, parents, and educational institutions [8]. - The group primarily engages in providing extracurricular personal quality courses and overseas education consulting services, as well as offering diversified consulting services to entities [68]. Market Development and Strategy - The company plans to enhance market development efforts while maintaining service quality for existing customers and actively seeking new business opportunities [8]. - The company plans to expand its overseas education consulting service centers through mergers, collaborations, and new establishments to cover a broader range of study abroad groups and families [18]. - The company aims to standardize and develop extracurricular personal quality courses in response to market trends and regulatory requirements [18]. Financial Performance - The total revenue for the fiscal year 2024 was approximately RMB 118.5 million, an increase of about 115.8% compared to RMB 54.9 million in fiscal year 2023 [20]. - Revenue from extracurricular courses increased by approximately 36.2% to about RMB 39.5 million, up from RMB 29.0 million in fiscal year 2023 [20]. - Revenue from overseas education services surged by approximately 178.9% to about RMB 44.9 million, compared to RMB 16.1 million in fiscal year 2023 [20]. - The gross profit for fiscal year 2024 was approximately RMB 33.9 million, a significant increase of about 276.7% from RMB 9.0 million in fiscal year 2023 [22]. - The gross profit margin for fiscal year 2024 was approximately 28.6%, compared to 16.4% in fiscal year 2023 [22]. - Other income for fiscal year 2024 was approximately RMB 12.6 million, an increase of about RMB 11.1 million from RMB 1.5 million in fiscal year 2023 [23]. - In the fiscal year 2024, the company recorded a loss of approximately RMB 33.6 million, a decrease of about 38.3% compared to a loss of approximately RMB 54.5 million in fiscal year 2023 [29]. - The basic and diluted loss per share for fiscal year 2024 was approximately RMB 3.23, compared to approximately RMB 6.49 in fiscal year 2023 [30]. Expenses and Liabilities - Sales and marketing expenses for fiscal year 2024 were approximately RMB 5.2 million, an increase of about 33.3% from RMB 3.9 million in fiscal year 2023 [25]. - Administrative expenses for fiscal year 2024 were approximately RMB 58.7 million, an increase of about 33.1% from RMB 44.1 million in fiscal year 2023 [26]. - As of December 31, 2024, the company's cash and bank balances were approximately RMB 52.0 million, a decrease of about 52.3% from approximately RMB 109.0 million as of December 31, 2023 [32]. - The company's current liabilities net amount was approximately RMB 40.9 million as of December 31, 2024, compared to a net current asset amount of approximately RMB 17.3 million as of December 31, 2023 [31]. - The capital expenditure for fiscal year 2024 was approximately RMB 19.1 million, slightly up from approximately RMB 18.8 million in fiscal year 2023 [38]. Shareholder and Capital Information - The total amount raised from the share issuance was HKD 250.0 million (approximately RMB 225.7 million), with a net amount of approximately HKD 204.0 million after deducting related expenses [77]. - Approximately 60.0% of the net proceeds will be used to expand after-school academic education services and self-operated teaching centers, particularly in Zhengzhou, China [78]. - About 30.0% of the net proceeds will be allocated to expand geographical reach and operational scale of after-school academic education services in China through strategic acquisitions or joint ventures [78]. - The largest customer accounted for approximately 9.9% of total revenue, while the top five customers represented about 24.3% of total revenue in the fiscal year 2024 [86]. - The largest supplier accounted for approximately 7.4% of total direct costs, with the top five suppliers making up about 22.5% of total direct costs in the fiscal year 2024 [87]. - The board does not recommend a final dividend for the fiscal year 2024, consistent with the previous fiscal year [83]. - The company has not conducted any share buybacks or repurchases of its listed securities during the fiscal year 2024 [82]. - The issued share capital as of December 31, 2024, was HKD 8,000,000, divided into 800,000,000 shares with a par value of HKD 0.01 each [90]. - As of December 31, 2024, the company's distributable reserves for shareholders amounted to approximately RMB 87.6 million, a decrease from RMB 157.0 million as of December 31, 2023 [93]. Corporate Governance - The board of directors includes independent non-executive directors who occupy more than one-third of the seats, promoting the overall interests of the group and its shareholders [170]. - The board consists of six directors, including three executive directors and three independent non-executive directors as of December 31, 2024 [196]. - The independent non-executive directors represent over one-third of the board, meeting the requirements of listing rules [198]. - The company has adopted a standard code of conduct for securities trading, confirmed by all directors for compliance throughout the fiscal year 2024 [191]. - The board has reviewed corporate governance practices and confirmed compliance with the corporate governance code, ensuring transparency and accountability [190]. - The company has arranged appropriate liability insurance for directors to cover legal liabilities arising from corporate activities, reviewed annually [195]. - The independent non-executive directors provide independent and objective opinions to safeguard the interests of shareholders and the company [198]. Compliance and Structural Contracts - The company has established structural contracts to comply with Chinese laws prohibiting foreign ownership in entities providing non-academic training services [151]. - The structural contracts allow the company to control affiliated entities and obtain economic benefits without holding equity [151]. - The company is committed to ensuring compliance with relevant Chinese laws and regulations through these contracts [151]. - The exclusive business cooperation agreement grants Daxian Yunxiao exclusive rights to provide necessary technical services, management support, and consulting services to affiliated entities [156]. - The exclusive technology service and management consulting agreement stipulates that affiliated entities will pay service fees equivalent to their operating profit after deducting all costs, expenses, taxes, and losses [157]. - The exclusive purchase rights agreement allows Daxian Yunxiao to acquire all or part of the equity interests of affiliated entities at the minimum price permitted by Chinese law [158]. - The equity pledge agreement ensures that shareholders unconditionally pledge their equity interests in Daxian Training to guarantee compliance with the agreements [159]. - The shareholder rights entrustment agreement allows Daxian Yunxiao to exercise all rights of shareholders in Daxian Training, subject to Chinese legal approval [160]. - The structural contracts carry risks, including potential invalidation if deemed non-compliant with Chinese laws, which could lead to significant consequences for the group [164]. - The group may face challenges in meeting qualification requirements if foreign ownership restrictions are lifted, impacting the ability to acquire interests in affiliated entities [165]. - The effectiveness of the structural contracts in providing operational control may not match that of direct ownership, posing risks if affiliated entities fail to fulfill their obligations [165]. - The group may incur substantial costs when exercising options to acquire equity interests in affiliated entities under the structural contracts [165]. - The structural contracts may be subject to scrutiny by Chinese tax authorities, potentially leading to significant reductions in consolidated net income and investment value if additional taxes are assessed [165]. - The company has implemented measures to ensure compliance with structural contracts, with no violations reported as of the report date [169]. - The company will disclose the overall performance and compliance status of structural contracts in its annual report to provide updated information to shareholders and potential investors [169]. - The company has committed to exercising exclusive purchase rights to hold all interests in the consolidated affiliated entities if the regulatory environment in China changes, allowing foreign investors to directly hold all interests [168]. - The company will review the implementation of structural contracts at least annually and report any significant issues to the board for discussion [169]. - The company may appoint external legal or professional advisors to assist the board in reviewing the implementation of structural contracts and addressing specific issues arising from them [169]. Audit and Financial Reporting - The new auditor, Zhonghui Anda, has been appointed effective May 25, 2023, following the resignation of Deloitte, and has audited the consolidated financial statements for the fiscal year 2024 [186]. - The company will continue to disclose details regarding structural contracts and ensure that transactions are conducted on fair and reasonable terms, aligning with shareholder interests [182]. - The company plans to publish its annual report for the fiscal year 2024 on the Stock Exchange and its website, ensuring accessibility for shareholders [187].

Financial Performance - Total revenue for 2023 reached RMB 1,583,082 thousand, representing a 106.5% increase from RMB 768,482 thousand in 2022[9] - Gross profit for 2023 was RMB 565,141 thousand, up 105.5% from RMB 275,290 thousand in 2022[9] - Net profit for 2023 was RMB 236,474 thousand, a 118.5% increase compared to RMB 108,488 thousand in 2022[9] - In 2024, the company achieved a revenue of RMB 2,073.3 million, representing a year-on-year growth of approximately 31.0%[14] - The net profit attributable to shareholders reached RMB 356.0 million in 2024, reflecting a year-on-year increase of about 50.5%[14] - Total revenue for the reporting period was approximately RMB 2,073.3 million, a year-on-year increase of about 31.0% from RMB 1,583.1 million in the same period of 2023[22] - Gross profit reached approximately RMB 835.4 million, reflecting a year-on-year growth of about 47.8%, with a gross margin of 40.3% compared to 35.7% in the same period of 2023[26] - Net profit increased by approximately 50.5% to RMB 356.0 million, up from RMB 236.5 million in the same period of 2023, with adjusted net profit rising about 57.9% to RMB 383.0 million[26] Assets and Liabilities - Current assets increased significantly to RMB 1,454,078 thousand in 2024 from RMB 531,186 thousand in 2023, marking a 174.5% growth[10] - Total assets rose to RMB 1,721,751 thousand in 2024, up from RMB 636,057 thousand in 2023, reflecting a 170.5% increase[10] - The company has no non-current liabilities reported for 2024, indicating a strong financial position[10] - The net asset value increased to RMB 1,255,683 thousand in 2024, compared to RMB 222,621 thousand in 2023, a growth of 464.5%[10] - The debt-to-equity ratio decreased significantly from 42.8% in 2022 to 4.4% in 2023, indicating improved financial stability[11] - The debt-to-equity ratio decreased from approximately 4.4% in 2023 to 0.3% in 2024, primarily due to an increase in equity and repayment of bank loans[62] Sales and Costs - The company reported a significant increase in sales costs, which reached RMB 1,017,941 thousand in 2023, up from RMB 493,192 thousand in 2022[9] - Sales costs increased from approximately RMB 1,018.0 million for the year ending December 31, 2023, to approximately RMB 1,237.9 million for 2024, reflecting a year-on-year increase of 21.6%[39] - Selling expenses increased from approximately RMB 245.4 million for the year ending December 31, 2023, to approximately RMB 375.5 million for 2024, a rise of about 53.0%[42] - Administrative expenses surged from approximately RMB 31.6 million for the year ending December 31, 2023, to approximately RMB 62.4 million for 2024, primarily due to listing preparation costs[43] - Research and development expenses grew from approximately RMB 35.9 million for the year ending December 31, 2023, to approximately RMB 41.4 million for 2024, an increase of about 15.3%[44] Market Strategy and Expansion - The company plans to launch new products and expand its market presence in 2024[9] - The company plans to expand its market presence in Eastern Europe, South America, and Australia to mitigate risks associated with U.S. tariffs on Chinese imports[19] - The company is focusing on research and development of new technologies to enhance product offerings and competitiveness[9] - The company plans to enhance product development and diversification, expand sales channels, and increase brand awareness in Europe and other emerging markets[35] - The company aims to improve its global brand image by focusing on quality, innovation, and customer service to enhance product value and premium pricing[35] Inventory and Receivables - The average inventory turnover days increased from 27.0 days in 2023 to 38.8 days in 2024, indicating a potential slowdown in inventory movement[11] - Inventory increased by approximately 43.0% from RMB 108.3 million on December 31, 2023, to RMB 154.8 million on December 31, 2024, with average inventory turnover days rising from 27.0 days to 38.8 days[53] - The average turnover days for trade receivables improved significantly from 28.3 days in 2022 to 14.9 days in 2023, indicating better collection efficiency[11] - Trade receivables rose by approximately 16.1% from RMB 73.9 million to RMB 85.8 million, while average turnover days decreased from 14.9 days to 14.1 days[54] Corporate Governance and Management - The company has adopted a going concern basis for preparing its consolidated financial statements[122] - The company has confirmed that there are no interests in competing businesses held by directors that require disclosure under the Listing Rules[119] - The board consists of six directors, including three executive directors and three independent non-executive directors, as of December 31, 2024[156] - The company has complied with the requirement of appointing at least three independent non-executive directors, with one possessing appropriate professional qualifications or relevant financial management expertise[157] - The chairman and CEO roles are held by the same individual, which the board believes ensures leadership consistency and effective strategic planning[161] Employee and Social Responsibility - As of December 31, 2024, the company had 188 employees, a slight increase from 185 employees in 2023[68] - Employee benefit expenses for the year were approximately RMB 35.5 million, compared to RMB 27.3 million in 2023, reflecting an increase of about 30.5%[110] - The company made corporate social responsibility donations of approximately RMB 238,000 for the year ending December 31, 2024, compared to RMB 241,900 in 2023[142] - The company has implemented a training program to enhance employee skills in procurement, planning, quality inspection, and operational skills[113] Audit and Compliance - The independent auditor for the year ending December 31, 2024, was PwC, with no changes in auditors since the listing date[137] - The audit committee, composed of three independent non-executive directors, reviewed the audited consolidated financial statements for the year ending December 31, 2024[136] - The company is committed to complying with relevant laws and regulations impacting its business operations[141] - The company has confirmed that it has complied with the disclosure requirements under the Listing Rules regarding related party transactions[128] Dividend and Shareholder Information - The company proposed a final dividend of HKD 0.1408 per share (approximately RMB 0.13), down from RMB 0.24 per share in 2023[64] - The proposed final dividend for the year ending December 31, 2024, is HKD 0.1408 per share, compared to RMB 0.24 per share in 2023, reflecting a decrease of approximately 41.67%[94] - The total reserves available for distribution to equity holders as of December 31, 2024, amount to approximately RMB 221 million, down from RMB 244 million in 2023, indicating a decrease of about 9.43%[103]

Financial Performance - The group's revenue decreased by approximately 6.5% to about HKD 22.6 million for the year ending December 31, 2024, compared to HKD 24.1 million in the previous year[9]. - Profit for the year fell by approximately 24.4% to about HKD 6.7 million, down from HKD 8.9 million in the previous year, primarily due to reduced revenue and a decrease in one-time impairment reversal of HKD 2.2 million[9]. - Basic earnings per share for the year were approximately HKD 0.81, compared to HKD 1.11 in the previous year[10]. - The group's revenue decreased by approximately 6.5% to HKD 22.6 million from approximately HKD 24.1 million in the previous year, primarily due to a reduction in placement and advisory fee income[21]. - The group's net profit after tax fell by 24.4% to HKD 6.7 million, despite a threefold increase in revenue in the previous year and achieving a turnaround in business performance[20]. - The group's profit for the year was approximately HKD 6.7 million, compared to HKD 8.9 million in the previous year, resulting in a profit margin of 29.8% compared to 36.9% in the previous year[30]. - The actual tax expense for the year was approximately HKD 1.9 million, down from HKD 2.5 million in the previous year, with an effective tax rate of 22.2%[29]. - Total revenue for the year ended December 31, 2024, was HKD 22,577,000, a decrease of 6.5% from HKD 24,143,000 in 2023[156]. - Net profit attributable to owners for the year was HKD 6,735,000, down 24.5% from HKD 8,909,000 in 2023[156]. - Basic and diluted earnings per share decreased to HKD 0.81 from HKD 1.11, representing a decline of 27.0%[156]. Dividend Policy - The board does not recommend the payment of a final dividend for the year, maintaining the previous year's policy of no final dividend[11]. - The company has adopted a dividend policy that allows for the declaration and distribution of dividends at the board's discretion, considering various factors including financial performance and cash flow[94]. - The board of directors does not recommend the payment of a final dividend for the year, consistent with the previous year[100]. Corporate Governance - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balanced composition[46]. - The company has established a board independence assessment mechanism to enhance board efficiency and protect shareholder interests[51]. - The company has complied with the corporate governance code and has received annual confirmations of independence from all independent non-executive directors[50]. - The company has established four committees: audit, remuneration, nomination, and risk management, each with defined written terms of reference[59]. - The audit committee, consisting of three independent non-executive directors, held two meetings this year to assess the company's auditor independence and review financial performance[61]. - The remuneration committee is responsible for recommending compensation for individual executive directors and senior management, ensuring transparency in the remuneration process[62]. - The nomination committee evaluates the board's structure and independence of non-executive directors, having held one meeting this year to review diversity policies[64]. - The company has implemented appropriate insurance for directors and senior management to protect against legal actions arising from company business[57]. - The board is responsible for key decisions regarding policy, strategy, budgeting, and risk management, ensuring objective decision-making in the company's best interest[56]. - The company has established a whistleblowing policy for employees and business partners to report concerns about misconduct confidentially and anonymously[84]. Operational Developments - The company continues to reinvest profits into technology development, successfully upgrading mobile applications and trading systems, and launching new products[11]. - The company successfully upgraded its mobile application and trading system, launched new products, and streamlined business processes, enhancing automation and electronic trading compared to traditional paper-based operations[20]. - The company plans to integrate resources and simplify operations through the "Well Link" platform, aiming to achieve competitive advantages and economies of scale[12]. - The group plans to integrate resources and further streamline operations in the coming year, leveraging the "Bridge" platform to enhance competitive advantages and economies of scale[31]. Financial Position - The total assets of the group increased from HKD 71.7 million to HKD 89.0 million, while net assets rose from HKD 7.7 million to HKD 52.6 million[19]. - The group generated approximately HKD 18.9 million from brokerage services, related advisory services, and margin financing, a decrease of about 15.6% or approximately HKD 3.5 million compared to the previous year[22]. - The group raised a total of HKD 40.0 million through a new share issuance to repay issued notes, along with an additional interest-free loan of HKD 30.0 million from the controlling shareholder to support the group's securities business[19]. - As of December 31, 2024, the group's receivables and interest balance, after deducting expected credit losses of approximately HKD 0.3 million, amounted to approximately HKD 17.1 million, compared to HKD 13.8 million in 2023[24]. - The interest income from receivables for the current year was approximately HKD 3.6 million, an increase from HKD 1.7 million in the previous year[24]. - The group employed a total of 14 employees as of December 31, 2024, compared to 12 in 2023, with total employee costs for the year amounting to approximately HKD 4.9 million, down from HKD 6.2 million in the previous year[27]. - Other operating and administrative expenses for the year were approximately HKD 8.7 million, an increase of HKD 0.7 million or 9.6% from the previous year[28]. - The company reported a net asset value of HKD 52,588,000, significantly up from HKD 7,653,000 in 2023[157]. - Cash and cash equivalents increased to HKD 13,898,000 from HKD 12,369,000, reflecting a growth of 12.4%[157]. - The company issued new shares, raising HKD 38,200,000, which contributed to the increase in total equity[158]. Risk Management - The group has adopted a comprehensive credit policy to manage its lending business, ensuring compliance with applicable laws and regulations[26]. - The group anticipates no significant credit risk due to all bank balances and deposits being held in recognized banks and financial institutions in Hong Kong and Macau[32]. - The group is exposed to liquidity risk due to timing differences in settlements with clearing houses and clients, which is closely monitored by the financial team[34]. - The company does not anticipate significant foreign currency risk due to its transactions being primarily in Hong Kong dollars and US dollars, and currently has no foreign currency hedging policy in place[35]. - The company has no significant contingent liabilities as of December 31, 2024[36]. - The company has no significant capital commitments that are contracted but not provided for as of December 31, 2024[37]. - The company has no assets pledged for borrowing as of December 31, 2024[39]. - The company has implemented a risk management policy to identify, assess, and mitigate operational risks[82]. Shareholder Information - Major shareholders include Lihqiao Financial Technology Holdings Limited, holding 523,672,000 shares (54.55%), and Mr. Xu Chujia and Ms. Zhang Meijuan, holding a combined 683,672,000 shares (71.22%) of the company[123]. - The total number of issued shares of the company is 960,000,000 shares as of the report date[126]. - The company maintains sufficient public float as per GEM Listing Rules[127]. - The company will hold its annual general meeting on June 13, 2025, with a suspension of share transfer registration from June 10 to June 13, 2025[101]. - The company has established a shareholder communication policy to ensure proper handling of shareholder opinions and concerns, with satisfactory results from the recent review[93]. Audit and Compliance - The total fees paid to the external auditor, Baker Tilly, for audit and non-audit services amounted to HKD 485,000[87]. - The company's audit was conducted in accordance with Hong Kong auditing standards, ensuring independence and compliance with ethical responsibilities[137]. - The independent auditor aims to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[151]. - The audit committee is responsible for overseeing the financial reporting process of the company[150]. - The independent auditor's report does not cover other information outside the consolidated financial statements[148]. Asset Management - The company did not recognize any impairment losses on property, plant, and equipment, right-of-use assets, or intangible assets in 2024, compared to HKD (2,907,000) in 2023[160]. - The company recognized a reversal of impairment losses amounting to HKD 743,000, compared to HKD 2,985,000 in 2023[156]. - The company experienced a significant increase in depreciation of right-of-use assets, rising to HKD 1,647,000 in 2024 from HKD 56,000 in 2023[160]. - The company faced an increase in accounts receivable from daily operations, which rose to HKD (16,529,000) in 2024 from HKD (14,023,000) in 2023[160].

Financial Performance - The group's revenue increased from approximately HKD 63.8 million for the year ended December 31, 2023, to approximately HKD 65.7 million for the year ended December 31, 2024, representing an increase of about 3.0%[16] - Revenue from the design and renovation business accounted for 93.4% of total revenue in 2024, amounting to HKD 61.3 million, compared to 100% in 2023[18] - The group's cost of sales and services decreased by approximately 4.1% to about HKD 46.6 million for the year ended December 31, 2024[19] - Administrative expenses remained stable at approximately HKD 34.1 million for both 2023 and 2024[20] - The loss for the year ended December 31, 2024, was approximately HKD 10.8 million, a reduction from a loss of approximately HKD 17.6 million in 2023[21] - As of December 31, 2024, the company's equity attributable to owners was approximately HKD -10.9 million, compared to HKD 6,000 in 2023[23] Business Strategy and Outlook - The management remains optimistic about the long-term prospects of the design and renovation business despite economic uncertainties[15] - The group plans to continue seeking new orders and customers to strengthen its client base in the design and renovation sector[15] - The board is optimistic about the prospects of the Hong Kong listed equity securities market, believing that the new securities investment business will enhance financial performance and shareholder value[15] - The group will actively monitor its performance and implement appropriate strategies in response to economic conditions[15] Cash and Debt Management - As of December 31, 2024, the group's unencumbered bank balance and cash amounted to approximately HKD 53.6 million, an increase of about 104.6% compared to HKD 26.2 million in 2023[24] - The debt-to-asset ratio as of December 31, 2024, was approximately 83.9%, up from 64.5% in 2023, primarily due to bond issuance during the year[25] - The group will regularly assess its financial condition and consider reducing leverage when appropriate[25] Investments and Acquisitions - The group held significant equity investments totaling approximately HKD 14 million, with notable investments including HSBC Holdings Limited and China Ping An Insurance Group[27] - System Return Limited, a wholly-owned subsidiary, agreed to acquire 100% of the shares of Haotian Design and Construction Limited for HKD 8 million, to be settled through the issuance of shares[32] Corporate Governance - The company has adopted a new logo following the name change effective December 17, 2024[31] - The company has not entered into any management or administrative contracts related to its entire business or any significant part thereof during the year[105] - The company has provided indemnity insurance for its directors and senior officers during the year[107] - The company has established various committees, including the audit committee, to effectively oversee different aspects of the company's affairs[195] Risk Management - The company faces risks related to contract acquisition, management team reliance, and supplier performance, which could significantly impact financial performance[89] - The company has established a risk management system that includes risk assessment processes to identify and prioritize key risks affecting strategic objectives[188] - The audit committee assists the board in overseeing the effectiveness of the risk management and internal control systems[190] Shareholder Information - The company has not declared a final dividend for the year, indicating a focus on financial stability and reinvestment[86] - The company has zero distributable reserves as of December 31, 2024, consistent with the previous year[94] - The company will suspend share transfer registration from June 24 to June 27, 2025, to determine eligibility for voting at the annual general meeting[124] Director and Management Changes - Liu Kejun was appointed as an independent non-executive director on December 12, 2024, with an annual director's fee of HKD 120,000[102] - Tang Zhichao was appointed as an independent non-executive director on December 30, 2024, with an annual director's fee of HKD 120,000[103] - The company is in the process of appointing a new CEO to separate the roles of Chairman and CEO, as per governance guidelines[138] Audit and Compliance - The company faced a qualified opinion from auditors regarding the consolidated financial statements due to the loss of control over a former subsidiary, ACE, as of November 8, 2023[54] - The audit committee reviewed the management's position regarding the qualified opinion and agreed with the management's rationale[57] - The company has not provided certain comparative figures in the financial statements due to the inability to audit the former subsidiary's records[56] Employee and Workplace Culture - The company emphasizes the importance of employee talent and provides a harmonious work environment to foster creativity in interior design projects[82] - The company has allocated sufficient resources and training to ensure compliance with applicable laws and regulations, with no significant violations reported this year[78]