Financial Performance - For the six months ended June 30, 2019, revenue increased by 45% to RMB 152.9 million, with a net profit of RMB 6.0 million compared to a net loss of RMB 20.0 million in the first half of 2018[7]. - The improvement in financial performance was attributed to higher revenue, increased staff utilization, reduced selling and distribution expenses, and no impairment provision for trade receivables during the reporting period[7]. - Revenue for the six months ended June 30, 2019, was RMB 152,924,000, representing a 45.5% increase from RMB 105,140,000 in the same period of 2018[66]. - Gross profit for the same period was RMB 27,935,000, up from RMB 14,954,000, indicating an increase of 86.5%[66]. - Operating profit for the six months ended June 30, 2019, was RMB 6,649,000, compared to an operating loss of RMB 20,947,000 in the prior year[66]. - Profit for the period was RMB 6,030,000, a significant recovery from a loss of RMB 20,038,000 in the same period of 2018[70]. - Total comprehensive income for the period was RMB 5,096,000, compared to a total comprehensive loss of RMB 20,021,000 in the previous year[70]. Assets and Liabilities - Total assets were approximately RMB 474.9 million, financed by current liabilities of approximately RMB 108.5 million, non-current liabilities of approximately RMB 33.7 million, and shareholders' equity of approximately RMB 332.7 million[9]. - Total assets increased to RMB 474,925,000 as of June 30, 2019, up from RMB 457,425,000 at December 31, 2018, representing a growth of 3.3%[74]. - Total liabilities increased to RMB 142,239,000 from RMB 127,771,000, indicating a rise of 11.3%[77]. - Total equity attributable to owners of the Company reached RMB 332,686,000, up from RMB 329,654,000, reflecting a growth of 0.7%[81]. - The current ratio was approximately 3.5 times, indicating a strong liquidity position[9]. Cash Flow - For the six months ended June 30, 2019, the net cash generated from operating activities was RMB 40,232,000, an increase from RMB 4,888,000 in the same period of 2018[90]. - The net increase in cash and cash equivalents for the period was RMB 28,119,000, compared to a decrease of RMB (12,975,000) in the same period last year[90]. - Cash and cash equivalents increased to RMB 168,110,000 from RMB 140,138,000, a growth of 19.9%[74]. - The company reported a net cash used in investing activities of RMB (3,801,000), a significant improvement compared to RMB (16,379,000) in the previous year[90]. Segment Performance - Revenue from the smart manufacturing segment grew by 29% to RMB43.4 million during the reporting period, with a segment profit of RMB2.3 million compared to a segment loss of RMB6.6 million in the prior period[13]. - Segment revenue for Other IoT and system integration business increased by 111% to RMB 63.1 million, with a segment profit of RMB 0.3 million compared to a loss of RMB 16.6 million in the previous period[17]. - I.T. service business segment revenue rose by 11% to RMB 46.4 million, but segment profit dropped by 31% to RMB 10.6 million due to a decrease in profit margin from 37% to 23%[17]. - The company achieved a segment result of RMB 13,203,000, compared to a loss of RMB (7,975,000) in the prior year[172]. Shareholder Information - As of June 30, 2019, Asia-IO Acquisition Fund, L.P. holds 72,656,586 shares, representing approximately 11.09% of the company's total shares[38]. - FSK Holdings Limited holds 239,893,146 shares, accounting for approximately 36.63% of the company's total shares[38]. - Mr. Kao holds 1,104,350 shares and has an interest in 1,000,000 share options[30]. - The company has a Share Option Scheme approved on August 30, 2013, allowing the grant of options to eligible participants[41]. Corporate Governance - The company has complied with the Corporate Governance Code during the six months ended June 30, 2019, with no known deviations[53]. - There were no non-compliance issues regarding directors' securities transactions throughout the reporting period[58]. - Mr. Lee Eung Sang resigned as a non-executive director effective March 28, 2019, and Mr. Jeon Eui Jong was appointed as a non-executive director on the same date[59]. Accounting Policies - The company adopted HKFRS 16, which required changes in accounting policies, but other new standards did not have a material impact on the financial results[96]. - The Group adopted HKFRS 16 "Leases" on January 1, 2019, resulting in adjustments to the financial statements without restating comparative figures[106]. - The cumulative effect of the initial application of HKFRS 16 was recognized as an adjustment to retained earnings as of January 1, 2019[106]. Market Conditions - The geopolitical and macroeconomic uncertainties have led some customers to reduce their I.T. spending and investments in Mainland China[20]. - The company is closely monitoring the situation regarding customer spending in light of geopolitical tensions and will adopt measures to maintain stable performance[20].

Financial Performance - Revenue for the nine months ended 31 December 2017 was approximately RMB326.2 million, a slight decrease from RMB335.4 million in the comparable period[28]. - Gross profit for the same period was RMB125.8 million, an increase from RMB104.9 million year-over-year[28]. - Profit from continuing operations decreased to RMB1.4 million from RMB42.7 million, primarily due to an impairment provision of RMB57.1 million on trade receivables from a US customer[28]. - As of 31 December 2018, inventories were RMB24.8 million, up from RMB24.2 million a year earlier[30]. - Trade and lease receivables were RMB231.1 million, down from RMB240.3 million as of 31 December 2017[30]. - The total assets as of 31 December 2018 were RMB457.4 million, financed by total liabilities of RMB127.8 million and shareholders' equity of RMB329.7 million[34]. - The current ratio as of 31 December 2018 was 3.5, indicating a strong liquidity position[34]. - Segment revenue for smart manufacturing solutions increased to RMB133.2 million from RMB82.1 million year-over-year[41]. - Segment profit for smart manufacturing solutions rose to RMB54.7 million from RMB43.5 million in the previous period[41]. - The segment margin decreased to 41% from 53% due to lower utilization rates and increased competition[41]. - Segment revenue for IoT and system integration solutions was RMB105.5 million, down from RMB179.4 million in the previous nine months[47]. - Profit for the IoT segment was RMB7.7 million, compared to RMB12.0 million in the previous nine months[47]. - The Information Technology Services segment reported revenue of RMB87.5 million and profit of RMB32.0 million, with a margin decrease from 43% to 37% due to rising labor costs and price pressure from customers[55][57]. Strategic Initiatives - The company plans to strengthen alliances with key suppliers and has engaged a former senior business consultant from Accenture China to formulate a strategic business growth plan[18]. - The company aims to shift focus from highly price competitive segments to niche and scalable areas, enhancing product and platform development to fortify core competence[18]. - A strategic decision was made to spin off the VPanel product line, transferring related trademarks and IPs to a newly founded company in exchange for a strategic interest[19]. - The company is focused on reducing reliance on business from Hon Hai Precision Industry Company Limited and its subsidiaries[18]. - The company is committed to broadening its external customer base to enhance business sustainability[18]. - The company is currently bidding on multiple green field and brown field projects to establish a sustainable income stream[46]. - The company anticipates further growth in smart manufacturing solutions as a response to rising wages and labor shortages in China[60][61]. - There is a growing demand for advanced facility management control systems in China, driven by stricter environmental regulations and competitive pressures[62][64]. Shareholder Engagement - In 2018, the company repurchased approximately 7.4 million shares from the open market and returned over HK$5 million to shareholders[21]. - The largest shareholder, Hon Hai Group, remains supportive and has not disposed of any interest in the company since its investment in late 2015[20]. - Proceeds from a share subscription totaling HK$257.4 million were allocated to enhance engineering and managerial teams, increase working capital, and explore new business opportunities[65][66]. - As of December 31, 2018, HK$150 million was fully utilized to build a dedicated team for sales, software development, and system implementation[66][67]. - The remaining proceeds from the share subscription were used as general working capital following the disposal of the electronic products manufacturing business[66]. - The board does not recommend any payment of a final dividend for the reporting year, consistent with the previous year[76]. - Shareholders are encouraged to maintain direct communication with the company for any inquiries[198]. - Shareholders are encouraged to participate in general meetings or appoint proxies to vote if unable to attend[200]. Corporate Governance - The company is dedicated to maintaining high standards of corporate governance to enhance shareholder value and ensure transparency in its operations[89][90]. - The board consists of four executive directors, two non-executive directors, and three independent non-executive directors, with independent directors representing at least one-third of the board[95][97]. - The board has utilized telephone conferencing to ensure participation from directors unable to attend meetings in person[119]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific aspects of the group's affairs[136]. - The Audit Committee, comprising three independent non-executive directors, met three times during the reporting year to review the financial reporting process and internal control system[153]. - All directors and the company secretary confirmed compliance with the Corporate Governance Code during the reporting year[140]. - The company provides a comprehensive induction package to newly appointed directors to ensure awareness of their responsibilities under the Listing Rules[139]. - The board's commitment to corporate governance is reflected in its regular meetings and thorough oversight of significant corporate matters[118]. - The company promotes the highest standards of integrity and corporate governance within the group[132]. Risk Management - The company has established effective risk management and internal control systems, with no significant risks identified during the reporting year[177]. - The internal control system is aligned with the 2013 framework of the Committee of Sponsoring Organizations of the Treadway Commission, focusing on operational efficiency and compliance[175]. - The company has implemented a dynamic risk assessment process to identify and analyze risks affecting its objectives[178]. - The internal audit function is responsible for evaluating the effectiveness of the internal control and risk management systems on an annual basis[172]. - The board reviews the effectiveness of risk management and internal control systems annually, considering changes in significant risks and management's monitoring quality[191]. - The directors confirmed that they are not aware of any material uncertainties that may affect the company's ability to continue as a going concern[161]. - No significant control deficiencies were identified during the internal control reviews conducted for the reporting year[180]. Employee Development - The group employed a total of 488 employees as of December 31, 2018, an increase from 483 employees the previous year[80]. - The company is committed to enhancing employee training and development, recommending qualified staff to participate in professional courses to improve their skills and the management system of the group[83]. - The company aims to expand its project design, development, and implementation team to 300 members by the end of 2017[67]. - The company encourages continuous professional development for directors to keep them updated on statutory and regulatory developments[134]. Projects and Innovations - Completed a facial recognition project in Shenzhen, enhancing security for approximately 200,000 staff and visitors[48]. - Developed a smart construction site solution that improves worker productivity and safety through real-time monitoring[51]. - Entered a joint venture with Haier Group to commercialize the smart construction solution nationwide[51]. - Implemented a video conferencing system for a local government, significantly reducing travel time for officials[52]. - Planned to promote the video conferencing system to third and fourth tier county governments in China[52].