On behalf of the board (the “Board”) of directors of Gilston Group Limited (“the Company”) and its subsidiaries (collectively “the Group”), I am pleased to present the annual report for the financial year ended 31 December 2024.

Reflecting on the year 2024, we have witnessed a notable divergence in the global economy and a declaration in consumer spending, impeding the pace of economic revival. Throughout the year, the Group has faced various challenges from geopolitical tensions, monetary policy fluctuations and persistent high interest rates. These multi-faceted factors have very significantly impacted the business landscape, demanding a strategic response needed to address this unpredictability. In these challenging economic conditions, the Group has adopted a cautious approach, continuously reviewing and adapting business strategies to align with the prevailing global economic trends. During the financial year ended 31 December 2024, the Group recorded revenue amounting to approximately HK$333,376,000, representing an increase of approximately 25.1% as compared to the corresponding year in 2023 (HK$266,548,000). The zipper business recorded revenue amounting to approximately HK$235,830,000, representing a sightly increase of approximately 1.4% as compared to the corresponding year in 2023 (HK$232,617,000). After adapting to changes such as the relocation of the Zhejiang production base last year, the zipper business has stabilized its production operations. On 30 August 2023 the Group entered into a management agreement to operate and manage land and properties located in Nanshan District, Shenzhen, Guangdong Province, China. The property currently operates as an auto city with showrooms providing car sales, maintenance, and after-sales services and the property management business recorded revenue amounting to approximately HK$95,501,000, representing an increase of approximately 190.5% as compared to the corresponding year in 2023 (HK$32,871,000). The increase was primarily due to a full year revenue contributed from the property management business as compared to last year with only four months starting from September 2023. Referring to the announcement of the Company dated 30 September 2024, pursuant to which the Group agreed with the original shareholders of Shenzhen Jiajinlong Industrial Development Co., Ltd.* (深圳市嘉進隆實業發展有限公司) (“Shenzhen Jiajinlong”) to subscribe for the registered capital of Shenzhen Jiajinlong at the consideration of RMB9,000,000, representing 90% of enlarged registered capital in the Shenzhen Jiajinlong. The Group would obtain control and management of Jiajinlong Car City, which enables the Group greater flexibility in the strategic directions and day-to-day management of Jiajinlong Car City, and hence to achieve operational and management efficiency which is beneficial to the Group’s long-term development. The Completion took place on 31 December 2024. For further details, please refer to the announcement of the Company dated 2 January 2025.

As the Group looks ahead to 2025, we recognize that the world’s economic development remains vulnerable and unpredictable towards geopolitical tensions, monetary policies, high interest rates, and various other factors. These uncertainties will continue to pose challenges for economic recovery. In response, the Group is committed to an adaptive approach. By diligently reviewing, responding to, and adjusting its operational policies and strategies for the zipper business, the Group has taken effective cost control measures to ensure the business remains resilient and adaptable from the impact of the production base relocation. With the inclusion of the property management business, we anticipate that this new venture will bring in fresh momentum and contribute to a more stable cash flow for the Group. This will help in the overall diversification of its operations and strengthen our business model, providing a more secure foundation for future growth.

To conclude, I would like to take this opportunity to extend my sincere appreciation to the management and staff of the Group for their unwavering efforts and dedication. I would also like to express gratitude to our shareholders, customers, suppliers, partner banks, and other professional institutions for their support during these challenging times. Together, we will seize opportunities to drive our continued growth for the future.

Chairman

Hong Kong, 28 March 2025