Financial Performance - Revenue decreased by 18% to RMB 558.9 million, with a reported net loss of RMB 12.4 million for the year ended December 31, 2024[2]. - Adjusted net profit for 2024 was RMB 7.0 million, compared to an adjusted net loss of RMB 5.1 million in 2023[4]. - The company reported a net loss of RMB 12.44 million for 2024, an improvement from a net loss of RMB 16.83 million in 2023, indicating a reduction in losses by 26.5%[25]. - The basic and diluted loss per share for 2024 was RMB 1.77, compared to RMB 2.40 in 2023, reflecting a decrease in loss per share by 26.3%[25]. - The company reported a net financing income of RMB 2,169 thousand in 2024, up from RMB 1,636 thousand in 2023, indicating an increase of approximately 32.5%[55]. - The company recorded a foreign exchange gain of RMB 2,544 thousand in 2024, compared to a loss of RMB 214 thousand in 2023, showing a turnaround in foreign exchange performance[52]. Revenue Breakdown - Digital industrial business revenue decreased by 20% to RMB 325.2 million, with profit dropping 54% to RMB 18.8 million[10]. - Digital life business revenue increased over 7 times, contributing to a total revenue of RMB 233.7 million, despite a 33% decline in sales compared to 2023[11]. - Revenue from related parties, specifically Hon Hai Precision Industry Co., Ltd., accounted for RMB 238,433,000, representing 43% of total revenue, down from 49% in the previous year[46]. - The five largest customers accounted for approximately 27% of total revenue, a decrease from 37% in the previous year[45]. - The company did not generate more than 10% of total revenue from any single customer in the year ending December 31, 2024, compared to 14% from a single customer in the previous year[45]. Assets and Liabilities - Total assets increased to RMB 654.2 million from RMB 620.1 million in 2023, while total liabilities rose to RMB 229.3 million from RMB 183.7 million[6]. - Current assets rose to RMB 557,241 thousand in 2024, up from RMB 512,668 thousand in 2023, indicating an increase of about 8.7%[27]. - Total liabilities increased to RMB 229,277 thousand in 2024 from RMB 183,672 thousand in 2023, marking an increase of around 24.8%[28]. - Total equity decreased to RMB 424,913 thousand in 2024 from RMB 436,451 thousand in 2023, showing a decline of about 2.6%[28]. - Non-current assets decreased to RMB 96,949 thousand in 2024 from RMB 107,455 thousand in 2023, representing a decline of approximately 9.7%[27]. Inventory and Receivables - Inventory increased to RMB 123.3 million from RMB 82.7 million in 2023, with inventory turnover period rising from 73 days to 80 days[5]. - Operating and lease receivables decreased to RMB 190.6 million from RMB 205.3 million in 2023, with turnover period increasing from 115 days to 129 days[5]. - Operating receivables decreased from RMB 274,101 thousand in 2023 to RMB 259,847 thousand in 2024, a decline of approximately 5.5%[61]. - Net operating and leasing receivables also fell from RMB 205,290 thousand in 2023 to RMB 190,581 thousand in 2024, representing a decrease of about 7.1%[61]. - The aging analysis of receivables shows that amounts less than 60 days decreased from RMB 155,549 thousand in 2023 to RMB 132,033 thousand in 2024, a drop of around 15.2%[61]. Workforce and Investments - The company has reduced its workforce to 270 employees as of December 31, 2024, down from 567 employees in 2023, indicating a significant reduction in headcount[24]. - The company is investing RMB 30 million in the Fuhua Fund, which focuses on strategic emerging industries, representing approximately 6% of the total committed capital of the fund[18]. - The investment in SigmaSense, LLC, valued at approximately RMB 4.2 million, accounts for about 4.7% of the company's total assets as of December 31, 2024[17]. - Capital expenditures totaled RMB 11,165,000, with RMB 2,319,000 attributed to the Digital Industrial Business and RMB 8,846,000 to the Digital Life Business[41]. Corporate Governance and Compliance - The company does not recommend any final dividend for the year ended December 31, 2024[2]. - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations, with some deviations noted[65]. - The audit committee reviewed the financial performance and compliance with accounting policies for the year ending December 31, 2024[70]. - The company has not engaged in any purchase, sale, or redemption of its listed securities during the year ending December 31, 2024[69]. - The annual report will be published and made available to shareholders and on the company's website in due course[72].

Financial Performance - Revenue decreased by 26.8% year-on-year to RMB 258.9 million, with a net loss of RMB 16.2 million compared to a net profit of RMB 5.7 million in the first half of 2023[3]. - Adjusted net profit for the reporting period was approximately RMB 5.9 million, similar to the first half of 2023, excluding fair value changes on financial assets[3]. - The company incurred a net loss of RMB 16,198,000 for the six months ended June 30, 2024, compared to a profit of RMB 5,696,000 in the prior year[64]. - The total comprehensive loss for the period was RMB 15,618,000, compared to a comprehensive income of RMB 16,188,000 in the same period last year[64]. - The company reported a loss of RMB 16,198,000 for the six months ended June 30, 2024, compared to a profit of RMB 5,696,000 in the same period of 2023, indicating a significant decline in performance[108]. - The basic loss per share for the six months ended June 30, 2024, was RMB (2.31) compared to RMB 0.81 for the same period in 2023, indicating a negative performance shift[137]. Revenue Breakdown - Digital industrial business revenue and profit decreased by 28.6% and 55.1% year-on-year, respectively, to RMB 139.0 million and RMB 7.9 million[4]. - Digital life business revenue decreased by 24.7% year-on-year, while profit increased by 186.0% to RMB 8.0 million[4]. - The new retail business experienced a significant revenue growth of 303% year-on-year, driven by new projects in Taipei's major commercial areas[13]. - Revenue from the digital industry business decreased by 28.6% year-on-year to RMB139.0 million, with profit down 55.1% to RMB7.9 million due to weak overall demand[11]. - The digital life business saw a revenue decrease of 24.7% year-on-year to RMB120.0 million, but profit increased by 186.0% to RMB8.0 million during the reporting period[11]. Assets and Liabilities - Total assets decreased to RMB575.1 million from RMB620.1 million as of December 31, 2023, with total liabilities at RMB154.2 million and shareholders' equity at RMB420.9 million[6]. - Total liabilities per condensed consolidated balance sheet decreased from RMB 183,672,000 as of December 31, 2023, to RMB 154,215,000 as of June 30, 2024, reflecting a reduction of approximately 16.1%[122]. - The company’s total current liabilities decreased from RMB 178,424,000 to RMB 150,626,000, a reduction of about 15.6%[67]. - The reserves attributable to equity holders decreased from RMB 154,139,000 to RMB 138,558,000, a decline of approximately 10.1%[68]. Cash Flow and Liquidity - As of June 30, 2024, the company's net cash position was RMB183.1 million, a decrease from RMB189.8 million as of December 31, 2023[6]. - Cash and cash equivalents at the end of the period were RMB 183,068,000, down from RMB 189,756,000, indicating a decrease of approximately 3.63%[80]. - Net cash used in operating activities for the six months ended June 30, 2024, was RMB 6,137,000, compared to RMB 28,881,000 for the same period in 2023, showing an improvement in cash flow[80]. - The current ratio improved to 3.3 from 2.9 as of December 31, 2023, indicating a stronger liquidity position[6]. Corporate Governance and Share Options - The board of directors does not recommend any payment of interim dividend for the reporting period[3]. - No share options were granted, exercised, or lapsed under the company's share option schemes during the reporting period[38]. - The 2013 Share Option Scheme was terminated on May 31, 2023, and no further options will be granted under this scheme[38]. - The company has established a mechanism to ensure the company secretary can promptly access the group's developments without material delay[56]. - The company is not aware of any non-compliance with the corporate governance code regarding directors' securities trading during the six months ended June 30, 2024[54]. Market Outlook and Strategic Direction - The global economic environment remains weak with significant uncertainties due to ongoing geopolitical conflicts and rising financing costs in major Western countries[4]. - The company anticipates that the global economy will stabilize in the second half of the year, driven by potential easing of monetary policies in major Western countries[14]. - The company is repositioning its business to reflect new directions following the appointment of new directors and CEO in March 2024[4]. - The company plans to focus on exploring new markets and product categories as part of its near-term business development strategy[20]. Employment and Operational Changes - The company had a total of 272 full-time employees as of June 30, 2024, a significant reduction from 567 employees as of December 31, 2023[60]. - Employment benefit expenses decreased from RMB 65,267,000 in 2023 to RMB 46,481,000 in 2024, a reduction of about 28.7%[123]. - Key management compensation for the six months ended June 30, 2024, totaled RMB 828, an increase from RMB 716 in the same period of 2023, representing a growth of approximately 15.6%[173]. Financial Risks and Management - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[89]. - The Group's financial risk management policies have not changed since the last year end, and the interim financial statements should be read in conjunction with the annual financial statements as of December 31, 2023[89]. - The fair value estimates for financial assets at fair value through profit or loss are made according to the fair value measurement hierarchy under HKFRS 7[89].

Financial Performance - For the six months ended June 30, 2024, revenue decreased by 26.8% to RMB 258.9 million, with a net loss of RMB 16.2 million compared to a net profit of RMB 5.7 million in the same period of 2023[1]. - The adjusted net profit for the reporting period was approximately RMB 5.9 million, similar to the first half of 2023, excluding fair value changes of financial assets[3]. - Revenue for the six months ended June 30, 2024, was RMB 258,925 thousand, a decrease of 26.8% compared to RMB 353,815 thousand for the same period in 2023[16]. - Gross profit for the same period was RMB 49,099 thousand, representing a gross margin of approximately 19%[16]. - The company reported an operating loss of RMB 17,238 thousand for the six months ended June 30, 2024, compared to an operating profit of RMB 10,913 thousand in the previous year[16]. - The company reported a net loss of RMB 16,198 thousand for the six months ended June 30, 2024, compared to a profit of RMB 5,696 thousand in the same period of 2023[17]. - Basic loss per share for the six months ended June 30, 2024, was RMB (2.31), compared to earnings of RMB 0.81 per share in the same period of 2023[38]. Segment Performance - The digital industrial business segment's revenue and profit decreased by 28.6% and 55.1%, respectively, to RMB 139.0 million and RMB 7.9 million due to weak overall demand[10]. - The digital lifestyle business segment's revenue decreased by 24.7%, while profit increased by 186.0%, reaching RMB 120.0 million and RMB 8.0 million, respectively[11]. - The new retail business experienced a revenue increase of 303% during the reporting period, driven by new projects in Taipei's major commercial areas[11]. - The total revenue for the six months ended June 30, 2024, was RMB 258,925 thousand, with digital industrial business contributing RMB 138,951 thousand and digital lifestyle business contributing RMB 119,974 thousand[25]. - The reported segment profit for the digital industrial business was RMB 7,941 thousand, while the digital lifestyle business reported a profit of RMB 7,988 thousand, totaling RMB 15,929 thousand[25]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 575,085 thousand, a decrease from RMB 620,123 thousand as of December 31, 2023[18]. - Total liabilities decreased to RMB 154,215 thousand as of June 30, 2024, from RMB 183,672 thousand as of December 31, 2023[19]. - Cash and cash equivalents as of June 30, 2024, were RMB 183.1 million, compared to RMB 189.8 million as of December 31, 2023[5]. - Operating and lease receivables were approximately RMB 180.5 million as of June 30, 2024, down from RMB 205.3 million as of December 31, 2023, with turnover days increasing from 115 days to 136 days[4]. - The total accounts payable as of June 30, 2024, was RMB 100,309 thousand, down from RMB 109,696 thousand as of December 31, 2023, indicating a decrease of approximately 8.0%[42]. Investments - The investment in SigmaSense, LLC is valued at approximately RMB 3.4 million, accounting for 4.3% of the company's total assets as of June 30, 2024[14]. - The investment in the Fuhua Fund is valued at approximately RMB 30.6 million, representing 5.3% of the company's total assets as of June 30, 2024[15]. - The company experienced an unrealized loss of approximately RMB 22.4 million from its investment in SigmaSense during the reporting period[14]. Employee and Corporate Governance - The company had 272 full-time employees as of June 30, 2024, a significant reduction from 567 employees as of December 31, 2023, representing a decrease of about 52.0%[47]. - The company has maintained a competitive salary range for employees, with performance-based rewards included in the overall compensation framework[47]. - The audit committee reviewed the financial reports and internal controls for the six months ending June 30, 2024, ensuring compliance with accounting principles[48]. Dividends and Grants - The company does not recommend any interim dividend for the six months ended June 30, 2024[3]. - Government grants recognized during the six months ended June 30, 2024, were RMB 1,016 thousand, down from RMB 1,501 thousand in the same period of 2023[31]. - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[36]. Future Outlook - The company plans to continue focusing on new market development and new product categories as part of its short-term business strategy[14]. - The market anticipates that major Western countries will begin to ease monetary policy in the second half of the year, potentially stabilizing the global economy[12].

Financial Performance - The company reported a significant increase in revenue, achieving a total of $150 million for the fiscal year, representing a 20% year-over-year growth[2]. - Revenue for the year ended December 31, 2023, decreased by 19% to RMB 677.9 million compared to RMB 832.5 million in 2022[45]. - The company recorded a net loss attributable to shareholders of RMB 16.8 million in 2023, down from a profit of RMB 27.8 million in 2022[45]. - The industrial solutions segment revenue decreased by 5% year-on-year to RMB 406.5 million, while profit decreased by 2% to RMB 41.1 million[60]. - Smart office segment revenue declined by 33% to RMB 266.1 million, resulting in a loss of RMB 27.9 million, primarily due to impairment of intellectual property and poor performance of smart office equipment[62]. - Personify business revenue fell over 50% to barely over US$1 million in 2023, with a RMB10.6 million impairment on the net book value of the IPs[66]. - New Retail Business revenue decreased by 40% to RMB5.2 million, but profit increased over eight times to RMB1.1 million due to reversal of unnecessary expenses[72]. User Growth and Market Expansion - User data showed a 15% increase in active users, reaching 1.2 million by the end of the fiscal year[2]. - Market expansion efforts are underway, with plans to enter the European market by Q3 2024, targeting an additional 300,000 users[2]. - The company is optimistic about the future development in the Southeast Asia market due to increased production capacities in the region[40]. Product Development and Innovation - The company is investing in R&D, allocating $5 million towards the development of new digital signage technologies[2]. - New product launches included an advanced smart office solution, which is expected to contribute an additional $10 million in revenue in the next quarter[2]. - The company invested significant R&D resources in new product development, but new products have not gained market traction, leading to a substantial decline in revenue from the Personify business[63]. Corporate Governance - The board consists of two executive directors, three non-executive directors, and three independent non-executive directors, ensuring a diverse governance structure[105]. - The company has established mechanisms for independent views to be available to the board, which will be reviewed annually[110]. - The board is collectively responsible for leadership, control, and overall strategic development, overseeing internal control and financial performance[109]. - The company has established good corporate governance practices and promotes high standards of integrity and probity[148]. - The board has established three committees: Nomination Committee, Audit Committee, and Remuneration Committee to oversee specific aspects of the group's affairs[167]. Risk Management - The group has established an Enterprise Risk Management (ERM) framework to assist in managing key risks and ensuring compliance with governance codes[190]. - The risk governance structure follows the "Three Lines of Defense" model, involving management controls, financial control, and internal audit[194]. - The management is responsible for identifying and assessing risks that may impact business objectives and implementing monitoring procedures[196]. - The Audit Committee oversees the management's performance and conducts annual internal audits of the risk management and internal control systems[189]. Customer Satisfaction and Service Quality - Customer satisfaction ratings improved to 90%, reflecting the effectiveness of new service delivery strategies implemented this year[2]. - The company emphasizes the importance of customer satisfaction and quality service to drive repeat purchases and business opportunities[27]. Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of 25% and aiming to reach $187.5 million[2]. - The tightening cycle of major economies' monetary policy is expected to end, with a loosening cycle potentially starting as early as mid-2024[73]. - The company anticipates that digital life business will improve in the coming years, supported by new sizable digital signage projects starting in 2024[76]. Corporate Social Responsibility - The company is committed to maintaining high standards of integrity and protecting the environment as part of its corporate social responsibility[96].

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].