Financial Performance - Revenue decreased by 19% to RMB 677.9 million, with a reported net loss of RMB 16.8 million for the year ended December 31, 2023[2] - The main reasons for the net loss were a decline in revenue and gross profit, as well as impairment losses on intangible assets and investments in an associate[4] - The company reported a net loss of RMB 16.8 million for the year ended December 31, 2023, compared to a profit of RMB 27.8 million in 2022[31] - The performance of the reporting segments showed a profit of RMB 14,249,000 for 2023, down from a profit of RMB 46,635,000 in 2022, indicating a decrease of about 69.5%[49] - The company reported a net loss attributable to equity holders of RMB 16,831 thousand in 2023, compared to a profit of RMB 27,830 thousand in 2022, representing a significant decline[70] Revenue Breakdown - The industrial solutions segment's revenue and profit decreased by only 5% and 2% to RMB 406.5 million and RMB 41.1 million, respectively, benefiting from the diversification strategy of industrial enterprises[12] - The smart office segment's revenue fell by 33% to RMB 266.1 million, resulting in a loss of RMB 27.9 million, mainly due to impairment of intellectual property and poor performance of the Personify business[13] - Revenue from the industrial solutions segment was RMB 406,549,000, while the smart office business generated RMB 266,130,000, and the new retail business contributed RMB 5,198,000 for 2023[48] - Revenue from related party Foxconn Technology Group was RMB 335,241,000, accounting for 49% of total revenue in 2023, compared to 40% in 2022, showing increased reliance on this relationship[53] - The company's revenue from China was RMB 315,892,000 in 2023, a decrease from RMB 370,610,000 in 2022, reflecting challenges in the domestic market[52] Asset and Liability Changes - Cash and cash equivalents amounted to RMB 189.8 million, up from RMB 166.9 million in the previous year, with total assets decreasing to RMB 620.1 million from RMB 726.3 million[7] - Total assets decreased to RMB 620,123,000 in 2023 from RMB 726,339,000 in 2022, representing a decline of approximately 14.6%[34] - Total liabilities decreased from RMB 275,306 thousand in 2022 to RMB 183,672 thousand in 2023, a reduction of about 33.3%[61] - Current liabilities decreased significantly to RMB 178,424,000 in 2023 from RMB 271,758,000 in 2022, a reduction of approximately 34.3%[36] - Non-current assets decreased to RMB 107,455,000 in 2023 from RMB 129,419,000 in 2022, reflecting a decline of approximately 16.9%[34] Operational Efficiency - Inventory turnover increased from 67 days to 73 days due to weak demand in the smart office equipment business[5] - Operating and leasing receivables turnover increased from 91 days to 115 days, primarily due to the overall decline in revenue[5] - Total operating and leasing receivables decreased from RMB 288,832 thousand in 2022 to RMB 274,101 thousand in 2023, a decline of approximately 5.1%[73] - Net operating and leasing receivables also fell from RMB 220,301 thousand in 2022 to RMB 205,290 thousand in 2023, representing a decrease of about 6.8%[73] - Accounts payable decreased significantly from RMB 168,081 thousand in 2022 to RMB 109,696 thousand in 2023, a reduction of about 34.7%[74] Future Outlook - The company plans to continue expanding its business in both China and overseas markets, particularly in the digital industrial sector, which is expected to contribute to performance in 2024[19] - The company plans to continue focusing on market expansion and new product development to drive future growth[59] Employee and Governance - The company employed 567 staff as of December 31, 2023, a decrease from 588 employees in 2022[29] - The company has complied with the corporate governance code, with some deviations noted regarding the appointment letters for independent non-executive directors[78] - The audit committee reviewed the group's accounting policies and discussed risk management and internal controls for the financial reporting period[84] Dividend and Securities - The company did not recommend the payment of dividends for the years ended December 31, 2023, and December 31, 2022[76] - The company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2023[83]

Financial Performance - Revenue for the reporting period was RMB353.8 million, consistent with the first half of 2022, while net profit decreased by 10.2% to RMB5.7 million year-on-year[9]. - Profit for the period decreased to RMB 5,696,000 for the six months ended June 30, 2023, down from RMB 6,343,000 in the same period of 2022, representing a decline of approximately 10.2%[108]. - Operating profit increased to RMB 10,913,000, compared to RMB 7,150,000 in the previous year, representing a growth of 52.5%[106]. - Total comprehensive income for the period increased to RMB 16,188,000, compared to RMB 12,585,000 in the prior year, reflecting an increase of approximately 28.3%[108]. - The company did not recommend any payment of interim dividend for the reporting period[10]. Revenue Breakdown - Segment revenue for the Industrial Solution Business was RMB194.6 million, with profit at RMB17.7 million, remaining largely unchanged compared to the same period in 2022[27]. - Smart Office Business segment revenue was RMB155.5 million, consistent with the first half of 2022, while profit increased by 14.6% to RMB2.6 million year-on-year[28]. - New Retail Business segment revenue and profit decreased by 38.6% and 83.3% to RMB3.7 million and RMB0.2 million respectively, due to the smaller scale of the phase III project compared to phase II in 2022[35]. - Revenue from the PRC was RMB 168,855,000, a decrease of 10.7% from RMB 188,969,000 in 2022[171]. - Revenue from Taiwan increased significantly to RMB 47,313,000, up 52.5% from RMB 30,994,000 in the previous year[171]. Assets and Liabilities - Total assets were RMB658.6 million, financed by total liabilities of RMB190.9 million and shareholders' equity of RMB467.7 million as of June 30, 2023[17]. - Total assets decreased to RMB 658,659,000 as of June 30, 2023, compared to RMB 726,339,000 at the end of 2022, a decrease of about 9.3%[110]. - Total liabilities decreased to RMB 190,930,000 as of June 30, 2023, down from RMB 275,306,000 at the end of 2022, indicating a decline of approximately 30.7%[112]. - Trade payables decreased significantly to RMB 118,773,000 as of June 30, 2023, from RMB 168,081,000 at the end of 2022, a reduction of about 29.4%[112]. Cash Flow and Financial Management - The net cash used in operating activities was RMB 28,881,000, an increase of 71.5% compared to RMB 16,824,000 for the same period in 2022[118]. - The total net decrease in cash and cash equivalents for the period was RMB 34,146,000, compared to a decrease of RMB 43,666,000 in the same period last year, reflecting a 21.8% improvement[118]. - Cash and cash equivalents at the end of the period stood at RMB 135,942,000, down from RMB 148,835,000 at the end of June 2022[118]. - The company’s cash flow management policies have remained unchanged since the last year-end, indicating stability in financial risk management[131]. Shareholder Information - As of June 30, 2023, Mr. CHIEN Yi-Pin holds 18,430,738 shares, representing approximately 2.63% of the company's issued share capital[55]. - FSK Holdings Limited is the largest shareholder with 239,050,141 shares, accounting for 34.07% of the total shareholding[62]. - No other interests representing 5% or more of the shares were reported as of June 30, 2023[63]. Corporate Governance - The company has complied with the Corporate Governance Code during the six months ended June 30, 2023, except for certain deviations[86]. - The company secretary is not an employee as required by the Corporate Governance Code, but a contact person has been assigned to ensure compliance[87]. Future Outlook - Future business prospects are optimistic, with expectations of an end to the monetary tightening cycle in major western countries and increased stimulus from the PRC government[36]. - The company is actively exploring business opportunities in the Greater China region to nurture its New Retail Business[35]. - The company plans to continue investing in both the PRC and overseas markets to support business development efforts[37].

Business Operations - The company provides a full range of smart manufacturing solutions, including ERP, MES, PLM, and WMS systems, aimed at lowering costs and increasing operational efficiency[11] - The smart office business includes the Personify platform, which offers high-quality virtual background experiences for video conferencing applications[14] - The new retail segment focuses on advanced digital signage and other retail solutions for customers[16] - The company operates primarily in the industrial solutions, smart office, and new retail sectors[10] Financial Performance - Revenue for the year ended December 31, 2022, was RMB 832,461,000, representing an increase of 39.6% from RMB 596,349,000 in 2021[32] - Profit attributable to shareholders for 2022 was RMB 27,830,000, a decrease of 18.3% compared to RMB 34,261,000 in 2021[32] - Total assets as of December 31, 2022, were RMB 726,339,000, up from RMB 641,930,000 in 2021, reflecting a growth of 13.2%[32] - Total liabilities increased to RMB 275,306,000 in 2022 from RMB 229,445,000 in 2021, marking a rise of 20%[32] - The company has doubled its revenue since the financial year 2016/17, indicating strong growth and operational turnaround[37] - Revenue increased by 40% to RMB832.5 million compared to RMB596.3 million in 2021, while net profit fell by 19% to RMB27.8 million from RMB34.3 million in 2021[46] - Core net profit remained stable at RMB25.8 million, similar to RMB26.3 million in 2021, after excluding unrealized net gains and share-based payment expenses[48] Market Outlook - The company is optimistic about future prospects due to new digital transformation and electric vehicle projects, which are expected to enhance order backlog[40] - The year 2023 is anticipated to be a turning point as the company adapts to post-pandemic market conditions[39] - The company is cautiously optimistic about securing new digital transformation and automobile-related projects in the Americas and Asia in 2023[76] Segment Performance - The industrial solutions segment saw revenue growth of 28% to RMB427.3 million, but profit decreased by 5% to RMB42.0 million[60] - Smart office segment revenue increased by 68% to RMB396.5 million, with profit rising by 41% to RMB4.6 million[62] - New Retail Business segment revenue and profit decreased by 68% and 97% to RMB8.7 million and RMB0.1 million respectively due to fewer stores installing solutions[73] Corporate Governance - The company has established good corporate governance practices and procedures to promote accountability and performance monitoring[161] - The board comprises four executive directors, one non-executive director, and three independent non-executive directors, exceeding the requirement of at least three independent non-executive directors as per Listing Rules[110] - The company confirmed that all directors and the company secretary have complied with the Corporate Governance Code during the reporting year[171] - Independent non-executive directors provide independent judgment and confirm their independence annually, with all meeting the qualifications for the reporting year[157] Risk Management - The group has established effective risk management and internal control systems in compliance with the CG Code[196] - The risk governance structure is guided by the "Three Lines of Defense" model to manage risks effectively[200] - The management is responsible for the design, implementation, and monitoring of risk management systems[197] Employee and Talent Management - The company aims to recruit, retain, and motivate talent for new market and product development[22] - As of December 31, 2022, the company employed a total of 588 employees, an increase from 543 employees in 2021[100] Investments - The investment in SigmaSense, LLC has increased in valuation to approximately USD 6.4 million, representing about 6.1% of the company's total assets as of December 31, 2022[83] - The company committed to invest RMB 30 million in the GRC SinoGreen Fund, accounting for approximately 6% of the total capital contributions by partners[87] Board Composition and Diversity - The board consists of 50% independent non-executive directors as of December 31, 2022, compared to 38% in 2021[134] - The company is actively seeking to appoint at least one female director by December 31, 2024[130] - The board diversity policy is reviewed annually, focusing on factors such as gender, age, and professional experience[129]

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，並明確表示概不會就因本公告全部或任何 部分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。 MAXNERVA TECHNOLOGY SERVICES LIMITED 雲智匯科技服務有限公司 （於百慕達註冊成立之有限公司） 1037 （股份代號： ） 年度業績 截至二零二二年十二月三十一日止年度 概要及摘要 截至二零二二年十二月三十一日止年度： • 40% 832.5 19% 27.8 收入增長 至人民幣 百萬元，但報告淨利潤下降 至人民幣 百 萬元。 • 25.8 倘撇除投資之未變現淨收益及股份支付開支，核心淨利潤為人民幣 百萬 26.3 ...

Revenue and Profit Performance - Revenue increased by 38.9% to RMB359.0 million compared to the first half of 2021, while net profit decreased by 44.8% to RMB6.3 million[14]. - For the six months ended June 30, 2022, the company reported revenue of RMB 359,002,000, an increase of 39% compared to RMB 258,542,000 for the same period in 2021[96]. - The profit for the period was RMB 6,343,000, down from RMB 11,486,000 in the previous year, representing a decline of approximately 44%[195]. - Basic and diluted earnings per share for the period were RMB 0.90, compared to RMB 1.69 in the previous year, a decline of approximately 47%[96]. - Total comprehensive income for the period increased to RMB 12,585,000 from RMB 8,193,000, marking a growth of approximately 53.5%[98]. Segment Performance - Segment revenue for the industrial solutions business increased by 17.3% to RMB196.1 million, while segment profit fell by 25.9% to RMB17.1 million compared to the first half of 2021[27][29]. - The smart office business saw revenue and profit growth of 98.6% and 97.7% respectively, reaching RMB156.9 million and RMB2.3 million during the reporting period compared to the same period in 2021[30][31]. - The BLSC business experienced a significant revenue increase of 124.0% year-on-year, attributed to low comparative figures from the previous year due to a shortage of key electronic components[36]. - The new retail business segment's revenue and profit decreased by 50.7% and 22.1% to RMB6.1 million and RMB1.2 million respectively, impacted by the pandemic in Taiwan[34][37]. Financial Position - Total assets were RMB656.0 million as of June 30, 2022, financed by total liabilities of RMB230.8 million and shareholders' equity of RMB425.2 million[20]. - Cash and cash equivalents were RMB148.8 million as of June 30, 2022, down from RMB189.1 million as of December 31, 2021[20]. - The company maintained a current ratio of 2.4 as of June 30, 2022, consistent with December 31, 2021[20]. - Total liabilities slightly increased to RMB 230,813,000 from RMB 229,445,000, reflecting a marginal growth of approximately 0.6%[104]. Cash Flow and Investments - For the six months ended June 30, 2022, the net cash used in operating activities was RMB 16,824,000, a decrease from RMB 31,117,000 in the same period of 2021, representing a 46.0% improvement[114]. - Cash flows from investing activities resulted in a net cash outflow of RMB 20,452,000, significantly higher than RMB 1,119,000 in the prior year, indicating increased investment activity[114]. - The investment in SigmaSense, LLC is valued at approximately $5.5 million, representing about 5.5% of the company's total assets as of June 30, 2022[42]. - The company reported an unrealized loss of approximately RMB0.6 million on the SigmaSense investment during the reporting period[42]. Employee and Management - The total number of full-time employees increased to 582 as of June 30, 2022, from 543 as of December 31, 2021, reflecting a growth of 7.2%[90]. - The company has established a remuneration committee to ensure competitive employee compensation and performance-related rewards[90]. - The company has adopted a Share Option Scheme approved on August 30, 2013, allowing options to be granted to eligible participants[72]. Risk Management and Compliance - The company has not made any changes to its risk management policies since the last year end, maintaining consistency in its financial risk management approach[131]. - The interim financial information was approved for issue by the Board on August 26, 2022, ensuring timely reporting to stakeholders[115]. - The company has adopted the Model Code for directors' securities transactions, with no reported non-compliance during the six months ended June 30, 2022[87]. Market and Strategic Outlook - The company plans to deliver several large projects in the industrial solutions segment in the second half of 2022, maintaining a cautiously optimistic outlook for the full year[39][43]. - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and service offerings[172].

Financial Performance - In 2021, the company's overall revenue increased by 14% to RMB 596.3 million, up from RMB 523.4 million in 2020, while net profit surged by 134% to RMB 34.3 million, compared to RMB 14.6 million in 2020[26]. - Core net profit, excluding fair value changes of financial assets and share-based payment expenses, rose by 34% to RMB 26.3 million[26]. - Revenue increased by 14% to RMB596.3 million, and net profit surged by 134% to RMB34.3 million compared to 2020[30]. - Smart manufacturing solutions revenue increased by 33% to RMB333.3 million, with segment profit rising by 40% to RMB44.4 million[41]. - Smart office business revenue rose by 1% to RMB236.0 million, but segment profit fell by 63% to RMB3.2 million[42]. - Personify business revenue grew by over 20% compared to 2020, driven by increased demand for software applications during the pandemic[44]. - New Retail Business segment revenue and profit decreased by 32% to RMB 27.1 million and RMB 3.7 million respectively due to pandemic disruptions in Taiwan[46][49]. - Personify business revenue increased by over 20% on a pro-rata basis compared to 2020, driven by a doubling of B2B revenue despite a halving of B2C revenue[47]. Business Expansion and Acquisitions - The company completed the acquisition of a basket of Personify-related intellectual properties from Hon Hai Precision Industry Company Limited on March 22, 2021[21]. - The BLSC business expanded from North America to Asian and European markets, resulting in a more balanced revenue mix from major regions[21]. - The company plans to launch new products in 2022 for both Personify and BLSC businesses, which are currently in an expansion phase[22]. - The acquisition of intellectual properties from Hon Hai Group for HKD 23.34 million was completed, enhancing the company's ability to develop new applications and products[61][62]. - The company completed the acquisition of Target Assets for HK$23.34 million, issuing 46.68 million new shares at HK$0.5 per share, representing 6.65% of the enlarged shareholding[64]. Inventory and Receivables Management - Inventory as of December 31, 2021, was approximately RMB110.1 million, up from RMB23.2 million in 2020, with inventory turnover increasing from 23 days to 50 days[31]. - Trade and lease receivables amounted to RMB195.1 million, a slight decrease from RMB202.0 million in 2020, with turnover improving from 149 days to 122 days[32]. Financial Position and Assets - Total assets grew to RMB641.9 million from RMB536.4 million in 2020, financed by total liabilities of RMB229.4 million and shareholders' equity of RMB412.5 million[33]. - The company maintained a healthy liquidity position with a current ratio of 2.4, down from 2.7 in 2020[33]. - The company had no bank borrowings and did not utilize available banking facilities of RMB30.6 million during the year[33]. - The investment in GRC Fund amounted to RMB30 million, with RMB9 million contributed in 2021, expected to generate long-term capital appreciation[69]. - The investment in SigmaSense increased in valuation to approximately US$5.6 million, representing about 5.5% of the total asset value of the group as of December 31, 2021[70]. - The unrealized gain from the SigmaSense investment was approximately RMB19.8 million during the reporting year[70]. - As of December 31, 2021, there were no charges on the group's assets and contingent liabilities[78]. - The total capital commitment as of December 31, 2021, was RMB26 million[73]. Governance and Board Structure - The board of directors consists of four executive directors, one non-executive director, and three independent non-executive directors[105]. - The board meets at least four times a year to approve annual and interim results and review business operations[105]. - The company has maintained compliance with the Corporate Governance Code, ensuring transparency and integrity in its operations[98]. - The company reported a significant increase in board diversity, with independent non-executive directors comprising 50% of the board as of December 2021, up from 38% in December 2020[140]. - The board's age distribution shows a balanced representation, with the majority of members aged between 50-64 years, indicating a mix of experience and fresh perspectives[141]. - The company has established a governance framework that encourages integrity and high standards of corporate governance, reflecting its commitment to stakeholder interests[152]. - The company has implemented a meritocratic approach to board appointments, considering various factors such as gender, age, and professional experience to enhance board diversity[136]. - The company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee to oversee specific aspects of the group's affairs[170]. Risk Management and Compliance - The group has established an effective risk management and internal control system in compliance with corporate governance code D.2[200]. - The risk management framework is designed to assist the audit committee and board in fulfilling their risk management responsibilities[200]. - The internal control system is based on guidelines, procedures, and frameworks established for the group[200]. - The risk assessment process is ongoing and aims to identify and analyze risks that may affect the achievement of the group's objectives[200]. - Monitoring activities are established based on policies and procedures to ensure the execution of management's directives to mitigate risks[200]. Employee and Training Initiatives - The company employed 543 staff as of December 31, 2021, an increase from 498 in 2020[84]. - The company is committed to providing more resources for internal and external training, including live broadcasting and online programs covering a variety of topics[87]. - The company has implemented a mentorship program where senior and middle management provide regular coaching to new employees[87]. - The remuneration policy aligns with market practices, with sales personnel receiving salaries and incentives based on sales targets and account receivables collection[86]. - Year-end discretionary bonuses for general staff are based on divisional performance and individual appraisals[86]. Future Outlook and Strategic Initiatives - The backlog orders from overseas clients for industrial solutions are promising and expected to contribute to performance in 2022[22]. - The company aims to explore opportunities in both the PRC and overseas markets due to manufacturers diversifying production capacities from China[22]. - The company is closely monitoring the impact of the Russia-Ukraine war on new product launches and is taking measures to mitigate potential adverse effects[56]. - The company aims to diversify production capacity overseas to mitigate risks associated with geopolitical tensions and pandemic-related disruptions[51][55]. - The company is experiencing increased foreign exchange risk exposure due to overseas business expansion and currency volatility[54][58]. - The company is actively working with suppliers to launch new product models to meet customer demands and enhance competitiveness[56].

Financial Performance - Revenue for the reporting period was RMB258.5 million, consistent with the first half of the previous year[11] - Net profit increased by 18% to RMB11.5 million compared to the same period in 2020, driven by strong performance in the industrial solutions business[11] - Profit for the period increased to RMB 11,486,000, up from RMB 9,713,000, representing a year-over-year growth of about 18.2%[102] - Basic and diluted earnings per share rose to 1.69 RMB cents, compared to 1.48 RMB cents in the prior year, indicating an increase of approximately 14.2%[100] - The company reported a total comprehensive income for the period of RMB 8,193,000, down from RMB 12,826,000 in the previous year, primarily due to currency translation differences[102] Revenue Breakdown - The Group's total revenue for the six months ended June 30, 2021, was RMB 258,542,000, with the Smart Office Business contributing RMB 79,001,000, Industrial Solutions Business contributing RMB 167,204,000, and New Retail Business contributing RMB 12,337,000[160] - The smart office business segment revenue fell by 41% to RMB 79.0 million, and profit decreased by 81% to RMB 1.1 million compared to the first half of 2020[30] - Industrial solution business revenue rose by 46% to RMB167.2 million and profit increased by 94% to RMB23.1 million during the reporting period compared to the same period in 2020[41] - New retail business segment revenue and profit increased by 37% and 16% to RMB12.3 million and RMB1.5 million respectively during the reporting period compared to the same period last year[43] Assets and Liabilities - Total assets increased to RMB574.4 million from RMB536.4 million at the end of 2020, financed by total liabilities of RMB191.6 million and shareholders' equity of RMB382.8 million[18] - Total current liabilities increased to RMB 179,611,000 from RMB 164,527,000, representing a growth of approximately 9.5% year-over-year[109] - Total non-current liabilities remained stable at RMB 11,973,000 compared to RMB 17,108,000, indicating a decrease of about 30.3%[109] - Total liabilities as of June 30, 2021, were RMB 191,584,000, compared to RMB 181,365,000 as of December 31, 2020, indicating an increase of about 5.5%[192] Cash Flow and Liquidity - Cash and cash equivalents were RMB173.1 million as of June 30, 2021, down from RMB212.4 million at the end of 2020[18] - Cash flows from operating activities showed a net cash outflow of RMB 31,117,000, a significant decline compared to a net inflow of RMB 57,153,000 in the previous year[119] - The company maintained a healthy liquidity position throughout the reporting period, financing operations primarily with internally generated resources[20] Research and Development - The increase in research and development expenses was attributed to product development in the Personify business[11] - Significant investments were made in research and development, leading to increased expenses that impacted the profitability of the Personify segment[36] Market and Business Development - The company is expanding its marketing and research efforts in the Personify business following the acquisition of target assets from Hon Hai Group in March 2021[36] - The company plans to launch "streaming services" and image beautification products by late 2021 or early 2022, following beta testing in the second half of 2021[43] - The company is exploring new opportunities in Taiwan's retail sector with digital signage solutions, having completed installations in 600 stores and secured a phase II project for over 400 additional stores[43] Shareholder Information - FSK Holdings Limited holds a beneficial interest of 239,504,122 shares, representing approximately 34.14% of the company's issued share capital[64] - FDG Fund, L.P. has a beneficial interest of 72,267,562 shares, accounting for approximately 10.30% of the company's issued share capital[65] - Foxconn (Far East) Limited holds a beneficial interest of 46,680,000 shares, which is about 6.65% of the company's issued share capital[66] Employee Information - The company had approximately 507 full-time employees as of June 30, 2021, compared to 498 employees as of December 31, 2020[91] - The company has established a competitive compensation structure linked to performance, including employee benefits such as provident fund, insurance, and medical coverage[91] - The company has implemented a mentoring program where senior and mid-level managers provide regular guidance and experience sharing to new employees[91] Financial Risks and Management - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[128] - The company has adopted a prudent treasury management approach to reduce credit risk exposure through periodic credit evaluations of external customers[20] - The company is exposed to foreign exchange risk primarily with respect to US dollars, managing this risk through regular reviews and potential use of foreign exchange contracts[20]

| --- | --- | |------------------------------------------|-----------------------------------------------------------------------------------------| | | | | | | | | | | | | | Industrial ANNUAL REPORT 2020年報 ● ● ● | Smart 智慧瓣公 Office Solution ɪ 業 解決方案 新零售 New Retail | | | | | | MAXNERVA TECHNOLOGY SERVICES LIMITED 雲智匯科技服務有限公司 (Stock Code 股份代號: 1037) | 公司資料 CORPORATE INFORMATION 公司資料 CORPORATE INFORMATION 董事會 執行董事 簡宜彬先生（主席） 蔡力挺先生（執行長） 高照洋先生 鄭宜斌先生 非執行董事 PARK Ho Jin先生1 JEON Eui Jong先生2 謝迪洋先生3 獨立非執行董事 鄧天樂先生 簡己然先 ...

| --- | --- | |-----------------------------------------------------------------------------------------|-------| | | | | | | | | | | | | | 想智能 | | | MAXNERVA TECHNOLOGY SERVICES LIMITED 婴智匯科技服務有限公司 (Stock Code 找留代號: 1037) | | 公司資料 CORPORATE INFORMATION 公司資料 CORPORATE INFORMATION BOARD OF DIRECTORS Executive Directors Mr. CHIEN Yi-Pin (Chairman) Mr. CAI Liting (Chief Executive Officer) Mr. KAO Chao Yang Mr. CHENG Yee Pun Non-Executive Directors Mr. JEON Eui Jong Mr. TSE Tik Yang Denis Independent Non-Execut ...

Financial Performance - The company significantly improved its revenue and net profit during the reporting year compared to the previous year, driven by accelerated product and platform development and stringent cost control measures[11][15]. - Revenue increased by 32% to RMB431.0 million in 2019, up from RMB326.2 million in 2018[31]. - Net profit surged by 704% to RMB11.6 million in 2019, compared to RMB1.4 million in 2018[36]. - As of December 31, 2019, the company had a net cash position of RMB183.8 million, an increase from RMB141.5 million in 2018[39]. - Total assets increased to RMB527.4 million in 2019 from RMB457.4 million in 2018, while total liabilities rose to RMB184.2 million from RMB127.8 million[39]. Business Strategy and Development - The company reduced its reliance on Hon Hai Precision Industry Company Limited and its subsidiaries by broadening its external customer base[15]. - The company appointed Mr. Liting Cai as the new CEO in late 2019 to prepare for balanced and sustainable business development[13][17]. - Starting in 2020, the company plans to reposition its business portfolio into industrial solutions, smart office, and new retail to diversify revenue sources and reduce concentration risk in manufacturing[19]. - The strategic reshuffle aims to increase overseas exposure and reduce concentration risk in the manufacturing sector[21]. - The company plans to establish a joint venture in the US alcohol retail advertising market, aiming to address the lack of resources for informed purchase decisions in liquor stores[62]. Inventory and Receivables Management - Inventory as of December 31, 2019, was approximately RMB30.7 million, an increase from RMB24.8 million in 2018[37]. - Inventory turnover improved to 29 days in 2019, down from 45 days in 2018, due to accelerated project delivery[37]. - Trade and lease receivables stood at approximately RMB226.4 million as of December 31, 2019, compared to RMB231.1 million in 2018[38]. - Trade and lease receivable turnover decreased to 194 days in 2019 from 264 days in 2018, primarily due to significant sales made near the end of 2018[38]. Segment Performance - The smart manufacturing segment revenue dropped 27% year-on-year to RMB97.1 million, with segment profit declining 87% to RMB7.2 million due to the absence of highly profitable mega projects[44]. - The IoT and system integration segment revenue surged 120% to RMB232.6 million, with a segment profit of RMB4.2 million compared to a loss of RMB49.4 million in 2018[45]. - The I.T. service segment revenue increased by 16% to RMB101.3 million, but segment profit fell 22% to RMB25.1 million due to a decrease in profit margin from 37% to 25%[52]. COVID-19 Impact - The COVID-19 pandemic has led to a significant increase in the usage of video conferencing and smart office equipment, partially offsetting adverse impacts on business in China[22]. - The COVID-19 outbreak has negatively impacted the company's business, with over 81,000 reported infections and over 3,300 fatalities in China as of the reporting date[97]. - The company's office in Wuhan was closed until late March 2020, while operations in Shenzhen and Chongqing resumed in mid-February 2020[97]. - The performance of the company's overseas business has been satisfactory, partially offsetting the adverse impact of COVID-19 on its business in China[103]. Corporate Governance - The company is committed to maintaining good corporate governance standards to enhance shareholder value[122]. - The board comprises four executive directors, two non-executive directors, and three independent non-executive directors, ensuring a balanced skill set appropriate for the company's business needs[130]. - The company has complied with the Corporate Governance Code, maintaining at least three independent non-executive directors, with one possessing appropriate professional qualifications in accounting or related financial management expertise[132]. - The board will continuously review and improve corporate governance practices to ensure proper regulation of business activities and decision-making processes[123]. - The company has established three board committees: audit committee, remuneration committee, and nomination committee to oversee specific aspects of the group's affairs[193]. Employee Management and Development - The company employed a total of 469 employees as of December 31, 2019, down from 488 employees in 2018[113]. - The company is committed to enhancing employee training and development to improve professional knowledge and management systems[115]. - The company plans to invest more resources in providing internal and external training for employees to enhance their professional knowledge and career development[117]. Marketing and Sales Strategy - Sales from regions outside of China are expected to increase from 25% of total revenue in 2019 to approximately 40% in 2020, achieving a more balanced sales mix[94]. - The marketing platform collects data to provide targeted marketing based on customer preferences and drinking habits[62]. - The joint venture will install over 1,000 interactive screens in US liquor stores by the end of 2020, sharing advertising revenue generated from the marketing platform[90].