Digital Transformation and Innovation - The company achieved significant progress in its digital transformation strategy, focusing on AI, smart vehicles, and smart healthcare, with a strong emphasis on technological innovation and business transformation [6]. - The company launched innovative products such as "Voice of the Customer" and "Listening," leveraging AI for efficient data analysis and decision support, contributing to enhanced customer engagement [8]. - The company’s core productivity system, including AI innovation centers and multi-cloud management platforms, has become a crucial engine for driving digital transformation [6]. - The company has established the Futong Hengxian AI Innovation Center to boost its AI product development and technical service capabilities [44]. - The company emphasizes the importance of core technology in providing solutions to user pain points, aiming to enhance its market competitiveness [45]. Financial Performance - The group's revenue increased by approximately RMB 5,000,000 or 3.4% to about RMB 150,500,000 compared to the same period in 2023 [17]. - Gross profit decreased by approximately RMB 9,000,000 or 36.4% to about RMB 15,600,000, with the gross profit margin dropping from 16.9% to 10.4% due to intense competition in the Chinese IT market [18]. - Other income and net gains increased by approximately RMB 700,000 to about RMB 9,600,000, primarily due to an increase in interest income of about RMB 5,400,000 [19]. - Research and development expenses rose by approximately RMB 700,000 or 4.4% to about RMB 16,100,000, maintaining a stable level [22]. - Sales expenses decreased by approximately RMB 23,400,000 or 42.2% to about RMB 32,200,000 due to ongoing adjustments in business structure [24]. Corporate Governance - The company has appointed independent non-executive directors with extensive experience in finance and law, enhancing governance and oversight [48][49]. - The board of directors is responsible for the effective supervision of management and the strategic direction of the company, ensuring accountability and transparency [55]. - The company is committed to good corporate governance practices to enhance shareholder value and protect stakeholder rights [53]. - The board has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific responsibilities [55]. - The company has implemented appropriate insurance arrangements for potential legal claims against its directors and executives [57]. Risk Management - The company has implemented a comprehensive risk management system to continuously identify, assess, and manage significant risks related to its business operations [83]. - The audit committee is responsible for reviewing the effectiveness of the internal control system and reporting any significant risks to the board [83]. - The board confirmed that the existing risk management and internal control systems are adequate and effective, ensuring reasonable assurance against significant misstatements or losses [86]. - The group faces risks related to reliance on a small number of major suppliers, which could significantly impact revenue and profitability if any supplier fails to meet requirements [99]. - The company faces risks related to delayed payments from customers, which may lead to impairment losses and negatively impact financial condition, profitability, and cash flow [102]. Employee and Workforce Management - As of December 31, 2024, the total employee cost was approximately RMB 92.1 million, a decrease from RMB 99.6 million in 2023, with a total of 295 employees [38]. - The company has a total of 295 employees as of December 31, 2024, with approximately 70.2% male and 29.8% female employees [79]. - The board currently consists of one female director, representing 20% of the board, with a goal to achieve gender equality in the future [79]. - The company provides training for new directors covering business operations and statutory obligations [65]. - The company has established measurable targets to achieve its diversity policy, including specific ratios of non-executive directors and members with professional qualifications [78]. Environmental, Social, and Governance (ESG) Initiatives - The company has established a clear short-term and long-term sustainable development vision and goals to achieve continuous emission reduction [155]. - The company aims to achieve carbon neutrality in Hong Kong by 2050 and in China by 2060, focusing on reducing harmful and non-harmful waste density as well as energy, water, and paper consumption to support the transition to a circular economy [176]. - The company has implemented various measures to reduce resource consumption, waste, and emissions, including centralized processing of electronic waste and promoting a low-carbon lifestyle among employees [175]. - The group received the "AI Medical Pioneer Award" at the Healthcare Industry Ecosystem Conference for its continuous innovation in AI applications in healthcare [159]. - The company strictly adheres to environmental laws and regulations in China and Hong Kong, with no significant violations reported during the reporting period [177]. Future Outlook - The company reported a positive outlook for future growth, leveraging over 20 years of industry experience and global business technology collaborations [10]. - The company anticipates that the Chinese economy will gradually stabilize in 2025, with continued growth in the IT market, particularly in AI, cloud computing, big data, and IoT [43]. - The company plans to focus on emerging technologies such as cloud computing and AI, enhancing its digital business and cloud intelligence operations [43]. - The company will closely monitor any changes in government economic and regulatory policies that may impact its business operations [106]. - The company will continue to review and monitor its environmental, social, and corporate governance performance [156].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 150,546,000, an increase of 3.4% from RMB 145,562,000 in 2023[3] - Gross profit decreased to RMB 15,637,000, down 36.5% from RMB 24,605,000 in the previous year[3] - Operating loss narrowed to RMB 69,131,000 from RMB 83,883,000 in 2023, representing a 17.6% improvement[3] - Net loss attributable to owners was RMB 70,833,000, compared to RMB 83,299,000 in 2023, a reduction of 15%[4] - Basic and diluted loss per share improved to RMB (0.23) from RMB (0.27) in the previous year[4] - The company reported a net loss before tax of RMB 69,272,000, compared to RMB 84,025,000 in 2023, indicating a 17.5% improvement[3] - The company reported a loss of approximately RMB 70,868,000 for the year ending December 31, 2024, raising significant doubts about its ability to continue as a going concern[14] - Revenue from the enterprise management business was RMB 143,724,000 in 2024, compared to RMB 134,814,000 in 2023, reflecting an increase of 6.7%[17] - Total revenue for the company was RMB 150,546,000 in 2024, up from RMB 145,562,000 in 2023, representing a growth of 3.4%[25] - The company identified three reportable segments: enterprise management, smart health management, and smart applications, with total segment losses amounting to RMB 70,868,000 in 2024[17] Assets and Liabilities - Total assets decreased to RMB 248,850,000 from RMB 319,508,000, a decline of 22.1%[6] - Cash and cash equivalents decreased to RMB 201,806,000 from RMB 245,067,000, a drop of 17.6%[6] - Non-current assets in China decreased from RMB 69,554,000 in 2023 to RMB 52,070,000 in 2024, a decline of 25.4%[22] - The company’s total assets decreased from RMB 383,106,000 in 2023 to RMB 306,328,000 in 2024, a reduction of 20.1%[20] - Trade receivables decreased to RMB 11,136,000 from RMB 32,412,000, a reduction of approximately 65.6%[26] - The total amount of trade receivables and notes receivable was RMB 11,136,000, down from RMB 32,412,000, reflecting a significant decrease[41] - The total trade receivables at the end of the reporting period were RMB 11,118,000, down from RMB 32,412,000 in the previous year, reflecting a significant reduction in overdue amounts[43] - Trade receivables overdue for more than three months amounted to RMB 10,572,000, a decrease from RMB 26,508,000 in the previous year, indicating improved collection efforts[45] - The average credit period for purchases remained stable at 30 to 90 days, with trade payables totaling RMB 11,173,000, down from RMB 13,766,000 in the previous year[46] - The company had no bank borrowings as of December 31, 2024, maintaining a net debt-to-equity ratio of zero[69] Expenses and Costs - Research and development expenses increased to RMB 16,106,000 from RMB 15,420,000, reflecting a 4.5% rise[3] - The company reported a decrease in employee costs to RMB 92,059,000 from RMB 99,567,000, a reduction of about 7.6%[31] - Sales expenses for the year were approximately RMB 32,200,000, a decrease of about RMB 23,400,000 or 42.2% compared to the same period in 2023[60] - Administrative expenses increased to approximately RMB 35,500,000, an increase of about RMB 2,300,000 or 6.8% compared to the same period in 2023[62] - The company incurred financing costs of RMB 141,000 for lease liabilities, slightly down from RMB 142,000 in the previous year[29] Income and Other Gains - Interest income increased to RMB 10,466,000, up 105.4% from RMB 5,093,000[28] - Total other income and losses netted to RMB (974,000), compared to RMB (2,754,000) in the previous year, indicating a reduction in losses[29] - Other income and net gains amounted to approximately RMB 9,600,000, an increase of about RMB 700,000 from RMB 8,900,000 in the previous year, primarily due to an increase in interest income[56] - The company recorded a financial asset loss provision of approximately RMB 300,000, compared to a reversal of RMB 1,600,000 in the previous year, due to a long-term debtor's inability to repay[57] - Total revenue from contract liabilities recognized as income for the year was RMB 13,349,000, down from RMB 38,881,000[26] Strategic Focus and Future Plans - The company continues to focus on providing IT infrastructure products and cloud computing solutions, with no significant changes in business operations during the year[7] - The company plans to adopt IFRS 18 starting from the fiscal year ending December 31, 2026, which will require restating comparative information[12] - The company plans to terminate its smart health management business after completing existing contracts due to decreased demand for personalized health management solutions[52] - The company plans to increase R&D investment to strengthen its core competitiveness and improve operational efficiency[80] - The company aims to deepen the integration of AI technology with industry application scenarios to support enterprise-level clients in their digital transformation[79] - The company aims to accelerate business innovation and transformation by attracting high-end technology talent and enhancing market expansion[82] - Collaboration with research institutions, such as the Hong Kong Applied Science and Technology Research Institute, will focus on AI, big data, and communication technologies[80] - Despite successful cost control through business restructuring, external economic uncertainties will continue to impact the domestic market[80] - The company has established the Futong Hengxian Artificial Intelligence Innovation Center to enhance R&D and technical service capabilities in AI products[80] Dividend and Tax - The company did not recommend a final dividend for the years ended December 31, 2024, and 2023[35] - The income tax expense for the year was approximately RMB 1,600,000, an increase of about RMB 2,400,000 compared to a tax credit of RMB 800,000 in 2023[64] - The company did not recommend the payment of a final dividend for the year ending December 31, 2024[71]

Revenue and Profitability - Revenue for the six months ended June 30, 2024, increased by approximately RMB 27.6 million or 70.2% to about RMB 66.99 million compared to RMB 39.36 million in the same period of 2023[9]. - Gross profit for the period rose by approximately RMB 5.7 million or 82.5% to about RMB 12.6 million, with the gross margin increasing from 17.6% to 18.8%[10]. - The company reported a revenue of RMB 66,992,000 for the six months ended June 30, 2024, representing a 70.5% increase from RMB 39,364,000 in the same period of 2023[54]. - Gross profit for the same period was RMB 12,613,000, up from RMB 6,913,000, indicating a significant improvement in profitability[54]. - The company reported a total comprehensive loss of RMB (37,477) thousand for the six months ended June 30, 2024[56]. Loss and Financial Position - The company reported a loss for the period of RMB 30.54 million, a decrease from a loss of RMB 37.49 million in the same period of 2023[2]. - The group reported a total loss attributable to owners of approximately RMB 30,500,000, a decrease of about RMB 7,000,000 compared to RMB 37,500,000 in 2023[20]. - The company recorded a loss of approximately RMB 30,538,000 for the six-month period ending June 30, 2024, raising significant doubts about its ability to continue as a going concern[61]. - The total equity attributable to owners of the company decreased to RMB 284,482 thousand from RMB 314,898 thousand, reflecting a decline of approximately 9.7%[56]. Research and Development - Research and development expenses decreased by approximately RMB 2.7 million or 33.3% to about RMB 5.4 million compared to RMB 8.1 million in the same period of 2023[13]. - The company incurred research and development costs of RMB (3,661) thousand during the period, down from RMB (9,642) thousand in the previous year[57]. - Total research and development costs for the six months ended June 30, 2024, amounted to RMB 9,078,000, a decrease of 48.9% compared to RMB 17,768,000 for the same period in 2023[85]. Business Strategy and Future Outlook - The company plans to terminate its smart health management business due to reduced demand for personalized health management solutions amid economic slowdown[8]. - The company continues to invest in technology integration and market promotion for its intelligent application business, aiming to build a solid foundation for future growth[6]. - The group plans to enhance its development in smart business and cloud intelligence, focusing on emerging technologies such as cloud computing, big data, and artificial intelligence to support clients' digital transformation[33]. - The company is focusing on market expansion and new product development as part of its strategic initiatives moving forward[54]. Assets and Liabilities - As of June 30, 2024, the group had total assets of approximately RMB 354,600,000 and net assets of approximately RMB 289,100,000, compared to RMB 383,100,000 and RMB 319,500,000 respectively as of December 31, 2023[22]. - The company’s total liabilities as of June 30, 2024, were RMB 65,497,000, compared to RMB 63,598,000 as of December 31, 2023[68]. - The company’s total cash flow from investing activities was RMB 3,949 thousand, compared to a cash outflow of RMB (3,803) thousand in the previous year[57]. Employee and Shareholder Information - The company’s employee costs totaled approximately RMB 42,300,000, a decrease from RMB 49,200,000 in the same period last year, with a total of 281 employees as of June 30, 2024[27]. - The total compensation for directors and key management personnel for the six-month period ended June 30, 2024, was RMB 5,031,000, a decrease from RMB 6,032,000 in the same period of 2023[101]. - The company granted a total of 5,500,000 stock options under the new stock option plan, with an exercise price of HKD 0.518[43]. Market Performance and Customer Metrics - User data showed an increase in active users, reaching 2 million, which is a 15% increase compared to the previous quarter[104]. - Customer satisfaction ratings improved to 90%, indicating a 5% increase from the previous quarter[104]. Financial Management and Cash Flow - The net cash used in operating activities for the six months ended June 30, 2024, was RMB (30,463) thousand, compared to a net cash inflow of RMB 44,825 thousand for the same period in 2023[57]. - The company has prepared cash flow forecasts for the 18 months starting from June 30, 2024, indicating sufficient financial resources to continue operations and meet financial obligations[61].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 66,992,000, an increase of 70.5% compared to RMB 39,364,000 for the same period in 2023[2] - Gross profit for the same period was RMB 12,613,000, representing a gross margin of 18.9%, up from RMB 6,913,000 in 2023[2] - The net loss for the period was RMB 30,538,000, compared to a net loss of RMB 37,487,000 in the previous year, indicating an improvement of 18.5%[2] - The company reported a basic and diluted loss per share of RMB 0.10, an improvement from RMB 0.12 in the previous year[2] - The company reported a net loss of RMB 30,538,000 for the six months ended June 30, 2024, compared to a net loss of RMB 37,487,000 for the same period in 2023, indicating an improvement in financial performance[14] - For the six months ended June 30, 2024, the company reported a loss attributable to owners of RMB 30,529,000, compared to a loss of RMB 37,477,000 for the same period in 2023, representing a decrease of approximately 18.5%[26] - The total loss attributable to the company's owners for the period was approximately RMB 30,500,000, a decrease of RMB 7,000,000 from RMB 37,500,000 in 2023, driven by increased sales of cloud computing products and services[49] Cash Flow and Assets - Cash and cash equivalents at the end of the period were RMB 217,632,000, down from RMB 271,236,000 at the end of June 2023[5] - Operating cash flow for the period was a net outflow of RMB 30,463,000, compared to a net inflow of RMB 44,825,000 in the same period last year[5] - Total non-current assets decreased to RMB 61,846,000 from RMB 76,851,000, a decline of 19.6%[3] - Current assets totaled RMB 292,734,000, down from RMB 306,255,000, reflecting a decrease of 4.4%[3] - Total assets as of June 30, 2024, were RMB 354,580,000, a decrease from RMB 383,106,000 as of December 31, 2023[15] - The company’s total liabilities as of June 30, 2024, were RMB 65,497,000, compared to RMB 63,598,000 as of December 31, 2023, indicating a slight increase in financial obligations[15] Research and Development - Research and development expenses decreased to RMB 5,417,000 from RMB 8,126,000, reflecting a reduction of 33.3%[2] - The company invested RMB 9,078,000 in research and development for enhancing its cloud management system during the six months ended June 30, 2024, compared to RMB 17,768,000 in the same period of 2023[28] - The company recognized an impairment provision of RMB 10,334,000 for the smart digital application system segment, which was terminated due to decreased customer demand for personalized health management solutions[29] - Research and development expenses for the period were approximately RMB 5,400,000, a decrease of RMB 2,700,000 or 33.3% compared to RMB 8,100,000 in 2023, mainly due to a reduction in the number of R&D projects after product maturity[43] Business Operations - The company has identified three operating segments: Enterprise Management Business, Smart Health Management Business, and Smart Application Business[12] - The external customer revenue from the smart health management business was RMB 5,159,000, while the smart application business generated RMB 4,647,000, contributing to the overall revenue increase[14] - The enterprise management business saw a revenue increase of over 75.0%, with a gross margin of 18.8%[36] - The company decided to terminate its smart health management business due to decreased demand for personalized health management solutions[38] Financial Position and Governance - The company believes it has sufficient financial resources to continue operations and meet its financial obligations based on cash flow forecasts for the next 18 months[9] - The financial statements were prepared in accordance with International Accounting Standard 34 and applicable disclosure requirements of the Hong Kong Stock Exchange[7] - The financial statements have been reviewed by a reputable accounting firm in accordance with international review standards[8] - The board confirmed compliance with the corporate governance code as per the Hong Kong Stock Exchange listing rules during the reporting period[61] Future Outlook and Strategy - The company anticipates seeking additional financing sources if necessary to support its operations[9] - The company plans to enhance its development in digital business and cloud intelligence, focusing on emerging technologies such as cloud computing, big data, and artificial intelligence[59] - The group is committed to increasing R&D investment to strengthen its core competitiveness, particularly in artificial intelligence product development and technical services[59] - Collaboration with the Hong Kong Applied Science and Technology Research Institute aims to advance high-application technology research in AI, big data, and communication technologies[60] - The group emphasizes the importance of business innovation and market expansion to maintain a competitive edge in a rapidly changing market[60]

Business Transformation and Strategy - The company has transitioned from an information service provider to a technology application product company, focusing on digital transformation amid a challenging global economic environment[6]. - The enterprise management business remains a key revenue source, with significant improvements in gross margin and cash flow, driven by the launch of new products and optimization of existing offerings[15]. - The "5+AI Health" management product has been upgraded and successfully signed its first university campus health management project, contributing to revenue growth[16]. - The multi-cloud management platform (CMP2020) has received high recognition from users and partners across various industries, enhancing operational efficiency for clients[7]. - The company has established strategic partnerships with leading technology firms and research institutions to drive technology commercialization and enhance service offerings[7]. - The company plans to accelerate the marketization of its product business and strengthen its technological and product innovation capabilities in the coming year[11]. - The company aims to solidify its market advantage in product and technology through over 20 years of industry experience and global business collaborations[11]. - The company plans to focus on business innovation and industry development for enterprise-level clients, integrating artificial intelligence technology with industry applications[50]. - The company will continue to strengthen its research and development capabilities by collaborating with top research institutions and technology vendors[50]. - The company aims to enhance its core competitiveness by adjusting strategies in response to the increasingly competitive information technology market[50]. Financial Performance - The group's revenue for the year decreased by approximately RMB 197,500,000 or 57.6% to about RMB 145,600,000 compared to RMB 343,100,000 in 2022[19]. - Gross profit decreased by approximately RMB 6,600,000 or 21.2% to about RMB 24,600,000, while the gross profit margin increased significantly from 9.1% to 16.9%[20]. - Other income and net gains increased by approximately RMB 2,700,000 to about RMB 8,900,000, primarily due to increased dividends from financial asset investments[22]. - The net loss attributable to the company's owners for the year was approximately RMB 83,300,000, an increase of about RMB 7,700,000 compared to RMB 75,600,000 in 2022[31]. - As of December 31, 2023, the group had total assets of approximately RMB 383,100,000 and net assets of approximately RMB 319,500,000, down from RMB 498,500,000 and RMB 402,400,000 in 2022[32]. - The group had no bank borrowings as of December 31, 2023, and maintained a strong financial position with cash and cash equivalents of approximately RMB 245,100,000[32]. - The total employee cost for the group was approximately RMB 99.6 million, down from RMB 117.1 million in the previous year, reflecting a reduction in workforce from 329 to 303 employees[44]. - The company intends to distribute dividends amounting to no less than 30% of the audited consolidated profit after tax for each financial year, subject to board discretion and shareholder approval[40]. - The company reported a significant increase in user data, with a year-over-year growth of 25% in active users[63]. - Revenue for the fiscal year reached $500 million, representing a 15% increase compared to the previous year[63]. - The company has set a future outlook with a revenue guidance of $575 million for the next fiscal year, indicating a projected growth of 15%[63]. Research and Development - The company has established dual centers for its artificial intelligence laboratory and formed a research team comprising professors and researchers from renowned universities[52]. - The company has implemented strict R&D management policies for IT products and services to comply with international and national standards, continuously investing resources in R&D[184]. - The company has been recognized for its cloud management products, winning the "Best Technical Practice Award" at the 10th Trusted Cloud Conference[185]. - The company has established dual R&D centers in Beijing and Chengdu, focusing on artificial intelligence algorithms and expanding application capabilities across various industries[187]. Governance and Compliance - The board emphasized the importance of corporate governance, ensuring compliance with the listing rules and enhancing shareholder value[67]. - The board consists of five members, including one executive director, one non-executive director, and three independent non-executive directors, ensuring compliance with listing rules[73]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific responsibilities approved by the board[84]. - All independent non-executive directors have confirmed their independence, and the board believes they all meet the independence criteria[75]. - The company provides adequate resources for the board to fulfill its duties and allows directors to seek independent professional advice at the company's expense if necessary[73]. - The board holds regular meetings to discuss the overall strategy and financial performance of the group, with meeting notices sent at least 14 days in advance[78]. - Each new director undergoes an induction training program covering the group's business and statutory duties of listed company directors[81]. - The company has made appropriate insurance arrangements for its directors and executives against potential legal actions[72]. - The board's composition has been reviewed to ensure it meets the requirements of having at least three independent non-executive directors, constituting at least one-third of the board[73]. - The company encourages continuous professional development for directors to enhance their knowledge and skills, recognizing courses from registered professional bodies[81]. Risk Management - The group has established a comprehensive risk management system to continuously identify, assess, and manage significant risks related to its business operations[99]. - The internal audit department regularly conducts reviews of internal controls and reports findings to the audit committee annually[101]. - The audit committee independently reviews the effectiveness of the risk management and internal control systems and reports significant risks to the board[102]. - The company faces risks related to the rapid changes in information technology and consumer preferences, which could adversely affect its ability to respond to market demands[120]. - The overall health of the Chinese economy is expected to influence customer spending on enterprise IT products and services, with potential negative impacts on the company's business if spending declines[126]. - The company is closely monitoring changes in the Chinese government's economic and regulatory policies, which could significantly impact its operations and financial performance[127]. - Currency fluctuations, particularly the exchange rate of the Renminbi against foreign currencies, pose risks to the company's net asset value and profitability[123]. - The management regularly reviews and implements strict monitoring measures for accounts receivable and contract assets to ensure timely collections[122]. - The company is committed to compliance with relevant laws and regulations, with no significant violations reported during the review period[128]. Sustainability and Social Responsibility - The company emphasizes sustainable development as a long-term goal and has established clear short-term and long-term sustainability visions and targets[181]. - The board will continue to review and monitor the company's environmental, social, and corporate governance performance[182]. - The company has established an ESG working group to integrate environmental, social, and governance factors into operations, ensuring sustainable value creation for stakeholders[196]. - The company aims to fulfill its corporate social and environmental responsibilities while creating product value and meeting stakeholder satisfaction[188]. - Stakeholder engagement is crucial for the group's sustainable development and success, enhancing risk foresight and solidifying key relationships[197]. - The group identifies key stakeholders through internal and external materiality assessments, focusing on sustainability issues raised during operations[200]. - Stakeholders can express their opinions through various platforms, including annual reports, mid-term reports, and environmental, social, and governance reports[197]. - Customers provide feedback via fax, email, and customer service hotlines, contributing to product and service improvements[199]. - Shareholders and investors engage through annual general meetings and other shareholder meetings, as well as through the company website and public announcements[197].

Financial Performance - The company's loss attributable to owners for the year amounted to approximately RMB 83.3 million, an increase of about RMB 7.7 million compared to RMB 75.6 million in 2022[3]. - The company's total revenue for the year ended December 31, 2023, was RMB 145,562,000, compared to RMB 120,957,000 in 2022, representing an increase of approximately 20.4%[34]. - The gross profit for the year was RMB 24,605,000, down from RMB 31,224,000 in 2022, indicating a decrease of about 21.2%[34]. - The operating loss for the year was RMB 83,883,000, compared to a loss of RMB 75,058,000 in 2022, reflecting a deterioration in operational performance[34]. - The total comprehensive loss for the year was RMB 83,270,000, compared to RMB 75,581,000 in 2022, indicating an increase in losses of approximately 10.4%[34]. - The basic and diluted loss per share for the year was RMB (0.27), compared to RMB (0.24) in 2022, indicating a slight increase in loss per share[37]. - The company reported a loss of approximately RMB 83,270,000 for the year ended December 31, 2023, raising significant doubts about its ability to continue as a going concern[50]. - The company reported a loss of RMB 83,299,000 for the year ended December 31, 2023, compared to a loss of RMB 75,553,000 in 2022, indicating an increase in losses of approximately 10.3%[83]. Assets and Liabilities - The group had total assets of approximately RMB 383.1 million and net assets of approximately RMB 319.5 million as of December 31, 2023, down from RMB 498.5 million and RMB 402.4 million in 2022, respectively[4]. - Total assets decreased from RMB 402,355,000 in 2022 to RMB 319,508,000 in 2023, representing a decline of approximately 20.6%[50]. - Current assets decreased from RMB 402,439,000 in 2022 to RMB 306,255,000 in 2023, a reduction of about 24%[50]. - Current liabilities decreased from RMB 94,284,000 in 2022 to RMB 61,776,000 in 2023, a decrease of approximately 34.5%[50]. - The company's net asset value decreased from RMB 402,355,000 in 2022 to RMB 319,508,000 in 2023, reflecting a decline of around 20.6%[50]. - The company’s intangible assets decreased from RMB 63,976,000 in 2022 to RMB 48,759,000 in 2023, a decline of approximately 23.7%[50]. - The company’s equity attributable to owners decreased from RMB 397,774,000 in 2022 to RMB 314,898,000 in 2023, a decrease of about 20.8%[50]. - The company’s trade payables decreased to RMB 13,766,000 in 2023 from RMB 16,870,000 in 2022, a decline of about 18.5%[93]. Revenue and Income - The group's revenue for the year decreased by approximately RMB 197.5 million or 57.6% to about RMB 145.6 million, compared to RMB 343.1 million in the previous year[100]. - Gross profit decreased by approximately RMB 6.6 million or 21.2% to about RMB 24.6 million, while the gross profit margin increased from 9.1% to 16.9% due to a higher proportion of sales from proprietary brand products and services[101]. - Other income and net gains increased by approximately RMB 2.7 million to about RMB 8.9 million, primarily due to an increase in dividends from financial asset investments[103]. - The company generated other income of RMB 11,689,000 in 2023, up from RMB 9,573,000 in 2022, driven by increased interest income and dividend income[66]. Employee and Operational Costs - The company's employee costs totaled approximately RMB 99.6 million, a decrease from RMB 117.1 million in 2022, with a workforce of 303 employees compared to 329 in the previous year[14]. - Administrative expenses for the year were approximately RMB 33,200,000, an increase of about RMB 1,500,000 or 4.9% compared to RMB 31,700,000 in 2022[31]. - The company’s total service costs rose to RMB 91,836,000 in 2023 from RMB 84,053,000 in 2022, marking an increase of approximately 9.5%[76]. - Sales expenses decreased by approximately RMB 8.9 million or 13.8% to about RMB 55.6 million, attributed to ongoing adjustments in business structure[107]. - The company incurred intangible asset amortization costs of RMB 15,897,000 in 2023, up from RMB 10,366,000 in 2022, representing a 53.5% increase[76]. Strategic Initiatives - The company plans to focus on business innovation and industry development for enterprise-level clients, integrating artificial intelligence technology with customer scenarios[18]. - The group aims to enhance its research and development capabilities through collaboration with top research institutions and technology vendors[18]. - The company will continue to adjust its strategies to strengthen its core competitiveness in a challenging and uncertain economic environment[18]. - The company plans to continue focusing on autonomous innovation products and smart applications to enhance overall technical and service capabilities[21]. - The company aims to accelerate business innovation and transformation by attracting top-tier technology talent and solidifying research outcomes[20]. - The group is focusing on optimizing existing products and actively launching new products to increase service revenue and maintain good cash flow[96]. - The group has established an AI laboratory led by multiple PhDs to enhance its smart health management offerings[97]. - The group aims to continue providing quality services to more clients and accumulate industry reserves for future business development[99]. Financial Position and Ratios - The net debt-to-equity ratio remained at zero as of December 31, 2023, indicating a strong financial position with no bank borrowings[8]. - The company believes it will have sufficient working capital for at least the next twelve months to meet its operational needs and financial obligations[52]. - The company received government grants of RMB 130,000 in 2023, down from RMB 399,000 in 2022, reflecting a decrease in financial support[67]. - The interest expense on lease liabilities increased to RMB 142,000 in 2023 from RMB 93,000 in 2022, indicating higher financing costs[68]. Segment Information - The company has identified three operating segments: IT infrastructure management, smart health management, and smart manufacturing[54]. - The group successfully signed a health management project with a university, contributing to revenue growth in the smart health management business[97]. - The impairment loss provision for intangible assets was approximately RMB 14.8 million, primarily due to a slowdown in China's economic growth affecting revenue expectations in the smart health business[106].

Financial Performance - The company's revenue for the six months ended June 30, 2023, was approximately RMB 39.364 million, a decrease of 81.9% compared to RMB 218.204 million for the same period in 2022[25]. - The operating loss for the first half of 2023 was RMB 38.005 million, compared to an operating loss of RMB 33.384 million in the same period of 2022, indicating a worsening of 13.4%[25]. - Gross profit for the same period was RMB 6,913,000, down 38.9% from RMB 11,264,000 in 2022[92]. - The company reported a net loss of RMB 37,487,000 for the period, compared to a net loss of RMB 33,567,000 in 2022, representing an increase of 11.4% in losses[92]. - The company incurred a total loss of RMB 37,487,000 for the six months ended June 30, 2023, compared to a loss of RMB 33,567,000 for the same period in 2022[102]. - The company reported a loss before tax of RMB 38,072,000 for the six months ended June 30, 2023, compared to a loss of RMB 33,411,000 for the same period in 2022, indicating a worsening of 13.0%[110]. - The company reported a loss before tax of RMB 7,896,000 in the first half of 2023, which includes depreciation expenses of RMB 7,896,000 and administrative expenses of RMB 31,000[143]. - The company reported a fair value loss on financial assets measured at fair value through profit or loss of RMB 2,577,000 for the six months ended June 30, 2023, compared to a loss of RMB 3,729,000 in the same period of 2022[110]. - The company reported a total revenue of RMB 6,219,000 for the six months ended June 30, 2023, compared to RMB 1,951,000 for the same period in 2022, representing a significant increase of approximately 218%[140]. - The company reported a loss of RMB 37,477,000 for the six months ended June 30, 2023, compared to a loss of RMB 33,556,000 in the same period of 2022, indicating a 11.5% increase in losses[175]. Assets and Liabilities - The total assets as of June 30, 2023, were approximately RMB 441.784 million, down from RMB 498.468 million as of December 31, 2022, reflecting a decrease of 11.4%[25]. - The net asset value as of June 30, 2023, was approximately RMB 365.188 million, a decline of 9.2% from RMB 402.355 million at the end of 2022[25]. - The total assets as of June 30, 2023, were RMB 366,495,000, down from RMB 404,184,000 as of December 31, 2022, reflecting a decrease of 9.3%[117]. - The company’s total liabilities decreased from RMB 76,995,000 as of December 31, 2022, to RMB 60,602,000 as of June 30, 2023, a reduction of 21.3%[117]. - The company’s equity attributable to owners decreased from RMB 397,774,000 as of December 31, 2022, to RMB 360,617,000 as of June 30, 2023, a decline of 9.3%[117]. - The company’s trade receivables amounted to RMB 86,046,000 as of June 30, 2023, with an allowance for doubtful accounts of RMB 50,668,000, resulting in a net receivable of RMB 35,378,000[153]. - The company’s total liabilities for trade payables decreased to RMB 9,765,000 as of June 30, 2023, from RMB 16,870,000 as of December 31, 2022[156]. Cash Flow - For the six months ended June 30, 2023, the company recorded a net cash inflow from operating activities of RMB 44,825,000, a significant improvement compared to a net cash outflow of RMB 125,259,000 in the same period of 2022[96]. - Cash and cash equivalents increased by RMB 40,192,000 during the six months ended June 30, 2023, compared to a decrease of RMB 179,559,000 in the prior year[96]. - As of June 30, 2023, the company's cash and cash equivalents totaled RMB 271,236,000, up from RMB 170,863,000 at the same date in 2022[96]. - The company’s financing activities resulted in a net cash outflow of RMB 830,000 for the six months ended June 30, 2023, compared to RMB 971,000 in the same period of 2022[96]. Employee and Operational Costs - The total employee cost for the first half of 2023 was approximately RMB 49.2 million, down from RMB 54 million in the same period of 2022, indicating a reduction of 8.3%[37]. - Employee costs, including salaries and allowances, totaled RMB 43,581,000, down from RMB 50,131,000, a decrease of 13.1%[169]. - The company has successfully controlled operating costs after restructuring its business framework and internal resource integration in recent years[62]. - The company has implemented strict cost control measures to maintain a sound financial position[62]. - The company has streamlined its workforce to further reduce costs starting from the second half of 2022[62]. Research and Development - The company will continue to invest in R&D resources to enhance its cloud computing services and intelligent applications in manufacturing, healthcare, and transportation sectors[41]. - Research and development expenses amounted to RMB 8,126,000, with no expenses reported in the same period last year[92]. - The company has invested RMB 9,642,000 in the development of its cloud management system and digital intelligent application system during the first half of 2023, down from RMB 20,670,000 in the same period of 2022[151]. Strategic Initiatives - The company has signed a strategic cooperation memorandum with the Hong Kong Applied Science and Technology Research Institute to promote technology commercialization in areas such as artificial intelligence and big data[20]. - The company launched the "Voice of Customer" (VOC) product for the automotive industry, which collects and analyzes customer feedback to enhance service efficiency and customer satisfaction[28]. - The company plans to focus on business innovation and industry development for enterprise-level clients, integrating AI technology with client scenarios to support digital transformation[41]. Share Options and Dividends - A total of 13,560,000 share options were granted, with no options granted during the reporting period[67]. - The company has a total of 7,400,000 share options available for exercise as of June 30, 2023[46]. - The company has a total of 17,565,000 share options authorized for further grant under the new share option plan[67]. - The company has not declared any interim dividends for the six-month period ending June 30, 2023, consistent with the previous year[58]. - The company did not declare any dividends for the interim period, consistent with the previous year[174].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部 份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Futong Technology Development Holdings Limited 富 通 科 技 發 展 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：465） 未經審核中期業績公佈 截至二零二三年六月三十日止六個月期間 富通科技發展控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈截至 二零二三年六月三十日止六個月期間（「本期間」）本公司及其附屬公司（統稱「本集 團」）的未經審核簡明綜合業績連同比較數字。此等簡明綜合中期財務資料並未經審 核，但已由本公司核數師及審核委員會審閱。 ...

Financial Performance - The company reported a significant increase in total revenue, reaching $500 million, representing a 20% year-over-year growth[189]. - User data showed an increase in active users to 1.2 million, up from 1 million in the previous year, indicating a 20% growth in user base[189]. - The company provided an optimistic outlook for the next fiscal year, projecting revenue growth of 15% to 18%[189]. - New product launches are expected to contribute an additional $50 million in revenue, with a focus on cloud solutions and IT support services[192]. - The company is investing $10 million in research and development for new technologies aimed at enhancing service delivery[192]. - Market expansion plans include entering two new regions, which are projected to increase market share by 5%[192]. - The company is considering strategic acquisitions to bolster its technology portfolio, with a budget of $30 million allocated for potential deals[192]. Dividend and Shareholder Matters - The board does not recommend the payment of a final dividend for the year ended December 31, 2022, consistent with the previous year[2]. - The board does not recommend the distribution of a final dividend for the fiscal year ending December 31, 2022, consistent with the previous year[45]. - The total number of unexercised share options under the new share option scheme was 20,960,000, representing approximately 6.73% of the total issued shares as of the report date[81]. - The total shares available for issuance under the new share option plan is 10,165,000, representing approximately 3.27% of the total issued shares as of the report date[86]. - The total issued share capital held by the public is at least 25% as of the report date[99]. Risk Management and Compliance - The company has established several foreign exchange forward contracts to hedge against RMB/USD exchange rate fluctuations, which were settled by the end of the fiscal year[1]. - The management closely monitors foreign exchange risks and implements hedging arrangements when necessary to mitigate these risks[61]. - The board believes that the existing risk management and internal control systems are adequate and effective for achieving business objectives[37]. - The company emphasizes the importance of compliance with relevant laws and regulations in its operations[64]. - Compliance with labor laws and regulations remains a priority, with no reported violations in the past year[192]. Operational Efficiency and Cost Management - The company has successfully controlled operating costs following recent business restructuring and internal resource integration[9]. - The company will continue to implement resource management plans to ensure effective resource utilization and operational efficiency[9]. - The company aims to enhance its core competitiveness and execute strategic goals amid ongoing digital transformation efforts[8]. Market and Economic Outlook - For 2023, the company anticipates a recovery in the Chinese economy but acknowledges ongoing uncertainties and challenges in the market[8]. - The company closely monitors the overall economic situation in China, as any changes in economic and political strategies may significantly impact the market for IT products and services[63]. - The company is prepared to adjust its business direction in response to any trends indicating a decline in spending on IT products and services by clients or potential clients[63]. Employee and Training Initiatives - The total number of employees as of December 31, 2022, was 329[132]. - Employee training programs have increased, with 75% of employees receiving training, up from 60% last year[192]. - Training participation rate for the overall workforce was 64.4% in 2022, down from 69.5% in 2021[169]. - Average training hours per employee decreased to 2.49 hours in 2022 from 5.22 hours in 2021[169]. - Senior management training participation rate increased to 85.7% in 2022 from 30.8% in 2021[169]. - The company provides a variety of employee benefits, including medical insurance and online health consultation services, to enhance employee well-being[152]. Environmental, Social, and Governance (ESG) Initiatives - The company has established a working group to oversee environmental, social, and governance (ESG) issues and performance, ensuring effective management of sustainability initiatives[111]. - The company is committed to improving energy efficiency and promoting resource conservation in compliance with local laws and regulations[137]. - The company aims to achieve carbon neutrality in Hong Kong by 2050 and in China by 2060, with ongoing efforts to reduce harmful and non-harmful waste density as well as energy, water, and paper consumption[127]. - The total greenhouse gas emissions for the reporting period were recorded, with a focus on direct and indirect emissions from operations in China and Hong Kong[132]. - The company has not received any fines, complaints, or warnings related to significant violations of environmental regulations during the reporting period[128]. Innovation and Technology Development - The company will focus on business innovation and industry development for enterprise-level clients, integrating AI technology with industry scenarios to support digital transformation[8]. - The company has established a strict product R&D management policy to comply with international and national standards, continuously investing resources in R&D[105]. - The company aims to enhance user experience in products and services by leveraging AI technologies and industry integration[104]. - The group has achieved a total of 177 software copyrights and 10 patents, with 18 software copyrights and 2 patents added during the reporting period[176]. - The group has implemented ISO 9001 quality management and ISO 27001 information security management certifications[176]. Customer and Supplier Relations - The company relies on a small number of major suppliers, which accounted for approximately 76.1% and 71.1% of total procurement volume for the years ending December 31, 2022, and December 31, 2021, respectively[48]. - The company aims to diversify its product base by sourcing from multiple suppliers to reduce reliance on specific suppliers[55]. - Sales to the top five customers accounted for approximately 88.2% of total revenue, with the largest customer contributing about 48.4%[69]. - Purchases from the top five suppliers represented approximately 76.1% of total procurement, with the largest supplier accounting for about 23.4%[69].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部 份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Futong Technology Development Holdings Limited 富 通 科 技 發 展 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：465） 截至二零二二年十二月三十一日止 全年業績公告 全年業績 富通科技發展控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公 司及其附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度經審核綜 合業績，連同二零二一年同期的比較審核數據如下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 人民幣千元 人民幣千元 營業額 5 343,061 235,232 ...