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的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何 部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 InvesTech Holdings Limited 威 訊 控 股 有 限 公 司 （於開曼群島註冊成立並於百慕達存續的有限公司） （股份代號：1087） 截至二零二二年十二月三十一日止年度之 全年業績公告 二零二二年財務摘要 截至十二月三十一日止年度 二零二二年 二零二一年 人民幣千元 人民幣千元 收入 556,679 484,598 毛利 85,371 57,108 除稅前虧損 (28,809) (22,048) ...

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 197,059,000, a decrease of 14.4% compared to RMB 230,406,000 in the same period of 2021[16]. - Gross profit increased to RMB 26,963,000, up 32.5% from RMB 20,354,000 in the previous year[16]. - Loss before tax for the period was RMB 13,514,000, slightly improved from a loss of RMB 14,773,000 in the prior year[16]. - Loss attributable to owners of the parent from continuing operations was RMB 15,230,000, compared to a loss of RMB 10,888,000 in the same period last year[16]. - Basic and diluted loss per share from continuing operations was RMB (14.32) cents, compared to RMB (14.31) cents in the previous year[18]. - Total comprehensive loss for the period amounted to RMB 27,674,000, a decrease from RMB 72,812,000 in the previous year[181]. - Other income and gains for the period were RMB 5,161,000, significantly higher than RMB 2,190,000 in 2021[177]. Operational Highlights - The company is focused on expanding its network system integration services and smart office software solutions[4]. - Future strategies include enhancing network infrastructure solutions and exploring new market opportunities[4]. - The company plans to invest in new technologies to improve service offerings and operational efficiency[4]. - Ongoing efforts in market expansion are expected to drive revenue growth in the upcoming periods[4]. - The Group recognized approximately RMB 12.4 million in revenue from a government contract for a smart library system during the period[35]. Assets and Liabilities - Total assets as of June 30, 2022, were RMB 663,561,000, a slight increase from RMB 655,429,000 as of December 31, 2021[25]. - The current ratio increased to 1.5 as of June 30, 2022, compared to 1.4 as of December 31, 2021[25]. - The Group's net cash flows used in operating activities were RMB(20,754,000) for the period, compared to RMB(16,078,000) in the same period of 2021[27]. - Total non-current liabilities decreased to RMB 43,643,000 from RMB 49,192,000, a reduction of approximately 11.3%[185]. - Net assets increased to RMB 341,575,000 from RMB 329,301,000, showing a growth of about 3.8%[185]. Shareholder Information - As of June 30, 2022, Mr. Chan Sek Keung holds 17,006,141 ordinary shares, representing approximately 14.51% of the issued share capital of the Company[107]. - Ms. Wang Fang has an interest in 15,505,941 shares, accounting for approximately 13.23% of the issued share capital[107]. - The total number of issued shares of the Company as of June 30, 2022, is 117,240,000 shares[112]. - The Company did not declare any interim dividend for the six months ended June 30, 2022, consistent with the previous year[141]. Governance and Compliance - The Company has adopted the Corporate Governance Code and complied with its principles throughout the six months ended June 30, 2022, with some deviations noted[146]. - The roles of chairman and CEO are held by the same individual, Mr. Chan Sek Keung, Ringo, which deviates from the Corporate Governance Code[146]. - All Directors confirmed compliance with the Model Code for Securities Transactions during the six months ended June 30, 2022[151]. - The Audit Committee consists of three independent non-executive Directors as of June 30, 2022, and convened one meeting during the review period[152][157]. Investment and Capital Management - The Group plans to maintain stable development in its IT infrastructure system integration business and expedite the development of its smart office software business, which is expected to drive revenue growth[87]. - The company reported a significant increase in inventories, which rose to RMB 29,717,000 from RMB 17,320,000, a growth of approximately 71.8%[182]. - The company issued shares worth RMB 40,055,000 during the period, with share issue expenses amounting to RMB 1,207,000[187]. - The foreign exchange translation differences resulted in a loss of RMB 24,827,000[187]. Employee and Market Development - The total number of employees increased to 301 as of June 30, 2022, up from 285 as of December 31, 2021[93]. - The Group intends to explore business opportunities in Southeast Asia and countries along the Belt and Road Initiative to capture market opportunities[88]. - The Group will continue to explore bidding for public and private projects in Hong Kong to increase its market share[88].

Revenue Growth and Market Demand - The Group reported significant revenue growth driven by robust demand for IT infrastructure system integration and smart office software solutions in the Chinese market [18]. - The global market for IT infrastructure system integration grew substantially during the year, reflecting a surge in demand for new software and networking tools [19]. - The market for smart office solutions experienced explosive growth due to the widespread adoption of remote work during the COVID-19 pandemic [20]. - The Group's revenue growth was supported by the effective control measures over the COVID-19 pandemic in China, positioning it among the fastest-growing major economies [18]. - The emphasis on industrial digital transformation in China has fostered a broader market for IT services, benefiting the Group's operations [18]. - The Group aims to capitalize on the ongoing digital transformation trends to further expand its market presence and service capabilities [18]. - Revenue for the year ended December 31, 2021, was RMB 484,598,000, an increase from RMB 469,116,000 in 2020, representing a growth of approximately 3.1% [39]. - Revenue from smart office software solutions surged by approximately RMB 13.6 million or 60.7% to approximately RMB 36.0 million, compared to RMB 22.4 million in 2020 [68]. - The total contracted sales backlog increased by approximately 340.3% to approximately RMB802.9 million as of December 31, 2021, compared to 2020 [173][176]. Financial Performance - Gross profit for 2021 was RMB 57,108,000, up from RMB 51,267,000 in 2020, indicating a growth of about 11.4% [39]. - The loss before tax from continuing operations improved to RMB 22,048,000 in 2021, compared to a loss of RMB 78,278,000 in 2020, reflecting a significant reduction in losses [39]. - The loss attributable to the owners of the parent for 2021 was RMB 18,176,000, an improvement from RMB 75,027,000 in 2020 [39]. - The net loss for the year narrowed to approximately RMB 21.0 million from RMB 86.7 million in the previous year, primarily due to the absence of impairment losses recognized in 2020 [62]. - The Group recorded a loss from continuing operations of approximately RMB 22.3 million for the Year, a significant decrease from approximately RMB 78.7 million in 2020 [96]. - The Group recorded a profit from discontinued operations of approximately RMB1.3 million in 2021, compared to a loss of approximately RMB8.0 million in 2020 [158]. Strategic Initiatives and Development - The Group's business development efforts were focused on enhancing service offerings to meet the increasing demand for system integration solutions [20]. - The Group aims to expedite the development of its smart office software business, which is expected to be the revenue growth engine, focusing on increasing market share in China [28]. - The Group plans to continue investing in its research and development center in Xi'an, China, to enhance its capabilities in smart office solutions [28]. - The Group's hybrid smart office solution allows users to work both in physical workplaces and remotely, enhancing overall productivity and competitiveness [31]. - Strategic alliances with tech giants were formed to enhance client acquisition and deliver advanced IT infrastructure solutions [66]. - The management aims to expand revenue and diversify the business by identifying suitable acquisition and investment targets, particularly in the Asia-Pacific region [174][176]. Operational Metrics and Assets - The Group's total assets as of December 31, 2021, were RMB 655,429,000, a decrease from RMB 720,470,000 in 2020 [44]. - Current assets as of December 31, 2021, were RMB 378,406,000, slightly up from RMB 366,343,000 in 2020 [51]. - Cash and cash equivalents decreased to RMB 54,920,000 in 2021 from RMB 76,128,000 in 2020 [51]. - Total equity attributable to owners of the parent decreased to RMB 322,750,000 in 2021 from RMB 371,099,000 in 2020 [51]. - The gearing ratio increased to 10.8% in 2021 from 5.8% in 2020, indicating a rise in financial leverage [47]. - The balance of trade and bills receivables as of December 31, 2021, was approximately RMB208.0 million, compared to approximately RMB199.6 million in 2020, with average turnover days decreasing to 154 days from 159 days [107]. Human Resources and Management - As of December 31, 2021, the total number of employees increased to 285 from 256 in 2020, with notable growth in manufacturing and technical engineering (93 employees, up from 81) and research and development (79 employees, up from 67) [143]. - The Group's employee count in sales and marketing increased to 61 from 58, indicating growth in this area [143]. - The Group's compensation policy is regularly reviewed based on individual employee performance [144]. - The company has a diverse board of directors with expertise in various industries, including IT, communication, finance, and textiles [183]. Investments and Acquisitions - The Group acquired a 25% equity interest in Fortune Grace Management Limited for HK$30.0 million, which was settled through the issuance of a convertible bond [147]. - Following the acquisition on November 26, 2021, Fortune Grace became a wholly-owned subsidiary, allowing the Group full control over its management and operations [152]. - The Group discontinued its money-lending business during the year [61]. - The capital reorganisation included a share consolidation where every 20 shares of US$0.02 were consolidated into one share of US$0.40, effective July 28, 2021 [162]. Challenges and Future Outlook - The demand for smart office solutions is anticipated to gain momentum even in the post-pandemic era, driven by fundamental changes in the global business environment due to COVID-19 [27]. - The evolution of AI and IoT technology presents promising developments for the Group's future growth in smart office and PropTech solutions [68]. - The company expects revenue growth as more income will be recognized upon project completion in the coming years [173][176].

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 230,406,000, an increase of 15.1% compared to RMB 200,032,000 in 2020[14]. - Gross profit for the same period was RMB 20,354,000, down 12.3% from RMB 23,147,000 in 2020[14]. - Loss before tax improved to RMB 14,773,000 from RMB 67,965,000 in the previous year, indicating a significant reduction in losses[14]. - The loss attributable to owners of the parent from continuing operations was RMB 10,888,000, compared to RMB 66,926,000 in 2020, reflecting a substantial improvement[14]. - Basic and diluted loss per share from continuing operations was RMB (15.51) cents, an improvement from RMB (95.34) cents in the prior year[14]. - The total comprehensive loss for the period attributable to owners of the parent was RMB 12,197,000, significantly reduced from RMB 68,607,000 in the previous year[14]. - The Group's revenue for the six months ended 30 June 2021 was approximately RMB230.4 million, an increase of approximately RMB30.4 million or 15.2% compared to approximately RMB200.0 million for the same period in 2020[26]. - The Group recorded a loss from continuing operations of approximately RMB 13.5 million, a significant decrease from RMB 68.9 million in the same period last year, primarily due to the absence of goodwill impairment losses[45]. - The total loss for the period was RMB 12,197,000, compared to a loss of RMB 68,607,000 in 2020[191]. - The total comprehensive loss for the period was RMB (72,812) thousand, a decrease of 63.1% from RMB (197,405) thousand in the prior year[197]. Operational Expenses - The cost of sales increased by approximately RMB33.2 million or 18.8% to approximately RMB210.1 million for the Period, aligning with the revenue increase[27]. - Selling and distribution expenses increased by approximately RMB0.5 million or 4.2% to approximately RMB12.5 million, driven by increased marketing activities[34]. - Administrative expenses rose by approximately RMB0.4 million or 1.7% to approximately RMB23.7 million, reflecting increased business operations[35]. - Selling and distribution expenses increased to RMB 12,495,000 from RMB 11,989,000, reflecting a rise of 4.2%[191]. - Administrative expenses slightly increased to RMB 23,684,000 from RMB 23,295,000, showing a marginal rise of 1.7%[191]. - Other income and gains decreased to RMB 2,190,000 from RMB 4,378,000, a decline of 50%[191]. - Finance costs decreased to RMB 1,089,000 from RMB 1,624,000, a reduction of 33%[191]. Strategic Focus and Future Outlook - The company continues to focus on network system integration and smart office software solutions as part of its core business strategy[3]. - Future outlook includes potential market expansion and the introduction of new technologies to enhance service offerings[3]. - The company is actively exploring opportunities for mergers and acquisitions to strengthen its market position[3]. - The Group is developing Smart Office Software Solutions and PropTech solutions, with a focus on AI and IoT technology to enhance sustainability and productivity in the commercial real estate sector[92]. - The Group plans to proactively invest to strengthen its market position in the PRC, Hong Kong, and expand into overseas markets[94]. Capital Structure and Shareholder Information - As of June 30, 2021, the Group's gearing ratio was approximately 8.1%, up from 6.7% at the end of 2020, mainly due to a decrease in total assets and an increase in borrowings[46]. - Total interest-bearing bank and other borrowings amounted to approximately RMB 53.1 million, an increase from RMB 48.2 million at the end of 2020, with approximately RMB 34.9 million being unsecured[52]. - The Group recorded a tax credit of approximately RMB 1.2 million for the period, compared to a tax expense of approximately RMB 1.0 million in the same period last year, mainly due to deferred tax credits[44]. - The total number of issued shares of the Company as of June 30, 2021, is 1,404,000,000 Shares, used for calculating approximate percentage shareholdings[1]. - The New Share Option Scheme allows for a maximum of 72,000,000 Shares to be issued upon exercise of options, representing 10% of the issued share capital[124]. - The Company has changed its domicile from the Cayman Islands to Bermuda, effective 7 July 2021[145]. Corporate Governance and Compliance - The Company has adopted the Corporate Governance Code and complied with its principles, except for the deviation regarding the roles of chairman and CEO being held by the same individual[157]. - The Audit Committee held two meetings during the six months ended June 30, 2021, and consists of three independent non-executive Directors[164]. - The financial results for the six months ended June 30, 2021, have not been audited[165]. - The Company will seek to comply with the Corporate Governance Code provision regarding the separation of the roles of chairman and CEO in the future[157].

Financial Performance - The Group recorded revenue of approximately RMB 470.6 million for the year, a decrease from approximately RMB 488.7 million in 2019, representing a decline of about 3.3%[17]. - The gross profit amounted to approximately RMB 52.8 million, down approximately RMB 12.2 million or 18.8% compared to RMB 65.0 million in 2019[18]. - The gross profit margin decreased to approximately 11.2% from approximately 13.3% in the previous year, impacted by increased industry competition[18]. - The Group recorded a net loss after tax of approximately RMB86.7 million for the year, compared to a loss of approximately RMB24.7 million in 2019, reflecting an increase in losses of approximately 250%[22][23][39]. - Revenue for the year was approximately RMB470.6 million, a decrease of about 3.9% from RMB488.7 million in 2019[39][41]. - The Group incurred impairment losses on goodwill and financial assets totaling approximately RMB66.9 million, significantly higher than the RMB3.8 million recorded in 2019[22][23]. - Loss attributable to the owners of the parent was approximately RMB83.1 million, compared to RMB21.1 million in 2019, indicating a significant increase in losses[39][42]. - Basic and diluted loss per share for the year was RMB5.92, compared to RMB1.51 in 2019, reflecting a substantial decline in shareholder value[39]. - Total comprehensive loss for the year was RMB 360,818,000, compared to RMB 249,745,000 in 2019[58]. Impact of COVID-19 - The COVID-19 pandemic caused disruptions in daily operations, particularly in the first half of the year, affecting product delivery and order schedules[17]. - The pandemic led to delays in order recognition due to late deliveries from suppliers and city lockdowns[17]. - The Group's business activities faced challenges due to pandemic prevention measures implemented during the year[17]. - The overall business and operating environment remained challenging throughout the year due to the pandemic[17]. - Demand for Smart Office Software Solutions increased slightly due to the COVID-19 pandemic, driven by work-from-home policies and the closure of offices[25][26]. - The Group identified increased demand for Smart Office Software Solutions during the COVID-19 outbreak, driven by work-from-home policies[61]. Operational Recovery and Strategy - The Group's operations showed a gradual recovery in the second half of the year, supported by a solid foundation and strong customer relationships[17]. - The Group continued to focus on its core business of IT infrastructure system integration and smart office software sales[17]. - The Group plans to expand its service area to Central Asian and Southeast Asian countries to minimize risks and adapt to changing business activities[29][33]. - The Group aims to become a one-stop IT service provider by identifying IT infrastructure projects and enhancing its branding and product positioning[30][33]. - The Group has diversified risks by partnering with manufacturers in Mainland China, enhancing competitiveness in providing a wide range of products and services[24][26]. - The Group will continue to seek new partnerships and investment opportunities in local and overseas markets to strengthen its core business[155]. Financial Position and Assets - Current assets decreased to RMB 366,343,000 in 2020 from RMB 399,185,000 in 2019[51]. - Cash and cash equivalents (excluding pledged deposits) increased to RMB 76,128,000 in 2020 from RMB 48,781,000 in 2019[51]. - The gearing ratio increased to 6.7% in 2020 from 5.8% in 2019[56]. - Trade and bills receivables balance as of December 31, 2020, was approximately RMB 199.6 million, down from RMB 210.3 million in 2019, with average turnover days increasing to 159 days[104]. - The average turnover days for trade payables increased to 145 days as of December 31, 2020, compared to 142 days in 2019, with a balance of approximately RMB 161.7 million[105]. - The Group's cash conversion cycle improved to 25 days in 2020 from 26 days in 2019[106]. - The net cash generated from operating activities for the Year was approximately RMB 19.9 million, while net cash from investing activities was approximately RMB 24.7 million[107]. Management and Governance - Mr. Lu has over 24 years of management experience in Fortune 100 companies, assisting enterprises with business transformation and growth[190]. - Mr. Wong has approximately 25 years of experience in management and operation of textile, knitting, food, and beverages business[178]. - Mr. Liu has over 9 years of working experience in legal, finance, and management[176]. - Mr. Huang has been the chief representative of the Shenzhen Research Institute of Xiamen University since August 1999[195]. - Mr. Huang graduated from Xiamen University with a major in statistics in August 1966[194]. - Mr. Wong holds multiple degrees including a bachelor's in Accountancy and a master's in Corporate Governance[183]. - Mr. Liu has been acting as a director of Blue Sky Solar Energy Management Limited since November 2018[176]. - Mr. Wong has been an independent non-executive director of Confidence Intelligence Holdings Limited since October 2019[184]. Future Outlook - The Group remains optimistic about long-term business prospects despite uncertainties from COVID-19 and geopolitical tensions[154]. - The Group is closely monitoring its financial position and market conditions to adapt promptly to changes[154]. - The Group has identified the need for new software solutions to adapt to recent changes in working behavior[154]. - The Group is optimistic about benefiting from market stability in the future despite short-term uncertainties[156].

Financial Performance - The Group recorded a total revenue of approximately RMB201.3 million, representing a decrease of approximately RMB20.8 million, or approximately 9.4% compared to RMB222.1 million in the same period in 2019[16]. - The Group reported a net loss of approximately RMB68.6 million during the Period[16]. - The gross profit amounted to approximately RMB24.5 million, a decrease of approximately RMB0.4 million, or approximately 1.6% compared to RMB24.9 million in the same period in 2019[16]. - Loss before tax for the six months ended June 30, 2020, was RMB67.6 million, compared to a loss of RMB16.0 million for the same period in 2019[31]. - The net loss margin for the six months ended June 30, 2020, was (34.1%), compared to (7.1%) for the same period in 2019[32]. - The net loss for the six months ended June 30, 2020, increased to approximately RMB68.6 million, representing an increase of approximately RMB52.8 million or 334.2% compared to RMB15.8 million for the same period in 2019[54]. - The company reported a loss for the period of RMB 68,607,000, significantly higher than the loss of RMB 15,805,000 in 2019[182]. - Basic and diluted loss per share attributable to ordinary equity holders was RMB (4.74 cents), compared to RMB (0.94 cents) in the prior year[182]. Business Strategy and Operations - The Group focused on two core business areas: Systems Integration Business and Smart Office Software Solutions, expanding gradually to other Asian countries[14]. - The Group is adjusting its business strategy by partnering with manufacturers in China to enhance competitive strength and diversify risks[21]. - The Group is optimizing its Smart Office Software Solutions to leverage opportunities from IoT technology[22]. - The Group continues to establish alliances with industry partners to increase awareness and consolidate its leading position in the industry[22]. - The Group remains optimistic about the long-term prospects of its core business despite the challenging business environment[25]. - The Group plans to adopt a more cautious approach in the second half of 2020 to ensure effective business development[25]. - The Group will continue to invest in its existing core business and explore opportunities in new technologies such as cloud computing and IoT[24]. Impact of COVID-19 - The COVID-19 pandemic led to reduced IT spending, impacting the Group's revenue and performance negatively[15]. - The impairment loss recorded for goodwill was approximately RMB57.6 million, primarily due to the impact of the COVID-19 pandemic on the global economy[51]. - The inventory balance as of June 30, 2020, was approximately RMB 37.3 million, with an average turnover period of 26 days, an increase from 11 days as of June 30, 2019, due to COVID-19 delivery delays[70]. Financial Position and Assets - Total assets as of June 30, 2020, were RMB895.3 million, a decrease from RMB1,109.9 million as of December 31, 2019[35]. - The current ratio as of June 30, 2020, was 1.3, compared to 1.4 as of June 30, 2019[32]. - The total interest-bearing bank and other borrowings amounted to approximately RMB70.3 million as of June 30, 2020, an increase from approximately RMB64.6 million as of December 31, 2019[61]. - The gearing ratio increased to approximately 7.9% as of June 30, 2020, compared to approximately 5.8% as of December 31, 2019[60]. - Cash and cash equivalents increased from RMB 48,781,000 as of December 31, 2019, to RMB 65,894,000 as of June 30, 2020, marking an increase of approximately 35.1%[186]. Shareholder Information and Corporate Governance - The company did not declare any interim dividend for the six months ended June 30, 2020, consistent with the previous year[154]. - The company has adopted and complied with the Corporate Governance Code throughout the six months ended June 30, 2020, with some deviations noted[159]. - The roles of chairman and CEO are held by the same individual, Mr. Chan Sek Keung, Ringo, which deviates from the Corporate Governance Code[160]. - The company recognizes the importance of good corporate governance to enhance overall performance and accountability to shareholders[159]. - The company will seek to comply with the Corporate Governance Code by appointing a suitable candidate for the CEO position in the future[160]. Employee and Operational Metrics - The total number of employees as of June 30, 2020, was 249, down from 259 as of June 30, 2019[86]. - Selling and distribution expenses decreased by approximately RMB0.8 million to approximately RMB12.0 million for the six months ended June 30, 2020, compared to approximately RMB12.8 million for the same period in 2019[49]. - Administrative expenses decreased by approximately RMB1.6 million to approximately RMB23.4 million for the six months ended June 30, 2020, compared to approximately RMB25.0 million for the same period in 2019[50].

Financial Performance - The Group recorded total revenue of approximately RMB488.7 million, an increase of approximately RMB73.8 million or 17.8% compared to RMB414.9 million in 2018[16] - The Group's gross profit amounted to approximately RMB65.0 million, representing an increase of approximately RMB29.4 million or 82.6% compared to RMB35.6 million in 2018[16] - The gross profit margin increased to approximately 13.3% from approximately 8.6% in the previous year[16] - The Group experienced a net loss of approximately RMB24.7 million during the year[16] - Revenue for 2019 was RMB 488,682,000, an increase of 17.7% from RMB 414,864,000 in 2018[34] - Gross profit for 2019 was RMB 65,042,000, resulting in a gross profit margin of 13.3%, up from 8.6% in 2018[34][46] - Loss before tax decreased to RMB 22,638,000 in 2019 from RMB 58,416,000 in 2018, indicating improved financial performance[34] - The loss attributable to owners of the parent was RMB 21,096,000 in 2019, a significant reduction from RMB 46,171,000 in 2018[34] - The net loss decreased by approximately RMB 30.0 million or 54.8% to approximately RMB 24.7 million for the year ended December 31, 2019, compared to a net loss of approximately RMB 54.7 million for the previous year[72] Market Conditions and Strategy - The ongoing trade tensions between the United States and China impacted the business environment, but the Group achieved growth through risk diversification and operational efficiency[17] - The phase one trade agreement between the United States and China was signed in January 2020, which may influence future business conditions[17] - The Group's strategy included investments in Vietnam to mitigate risks associated with global economic volatility[17] - The uncertain business environment due to the US-China trade war and COVID-19 may impact IT spending in 2020, but the Group remains cautiously optimistic about long-term prospects[22][23] - The Group anticipates increased demand for mobile OA software due to the shift towards remote work and the benefits of cloud computing and VPN technologies[23][24] - The Group plans to explore overseas market opportunities, particularly related to the "One Belt and One Road Initiative" and "Guangdong-Hong Kong-Macao Greater Bay Area Development" policies[26][27] Operational Efficiency - Continuous investment in advanced technology and exploration of overseas markets contributed to the overall performance improvement[15] - The Group's performance reflects a steady growth trajectory despite external economic challenges[15] - Cost of sales increased by approximately RMB 44.3 million, or approximately 11.7%, from approximately RMB 379.3 million in 2018 to approximately RMB 423.6 million in 2019[56] - Selling and distribution expenses increased by approximately RMB 2.5 million or 11.3% to approximately RMB 24.7 million, primarily due to increased salaries and commissions in the sales and marketing department[63] - Administrative expenses rose by approximately RMB 8.1 million or 16.9% to approximately RMB 56.0 million, mainly due to increased staff costs for business development[64] Cash Flow and Liquidity - Net cash from operating activities was RMB 39.3 million for the year ended December 31, 2019, a decrease from RMB 89.1 million in 2018[50] - Net cash used in investing activities was RMB 40.3 million for the year ended December 31, 2019, compared to RMB 195.4 million in 2018[50] - Current assets decreased to RMB 399.2 million as of 31 December 2019 from RMB 404.4 million in 2018[48] - The current ratio for 2019 was 1.3, indicating a slight decrease from 1.4 in 2018, reflecting changes in liquidity[46] - The cash conversion cycle for the year ended December 31, 2019, was 26 days, significantly improved from 54 days in 2018[90][1] Corporate Governance - The company is focused on enhancing its corporate governance through experienced directors and committees[159] - The Board consists of four executive Directors, one non-executive Director, and three independent non-executive Directors as of December 31, 2019[180] - The Company aims to re-comply with the Corporate Governance Code provision A.2.1 by appointing a suitable candidate for the CEO position in the future[175] - The Board is committed to adopting sound corporate governance practices continuously in the interest of shareholders[174] - The independent non-executive Directors provide independent judgment and scrutiny of the Group's performance, significantly influencing Board decisions[198] Investments and Fair Value - The Group's investment in China Communication Technology Co., Ltd. (CCT) was approximately RMB382.6 million, accounting for approximately 34.5% of the Company's total assets as of 31 December 2019[119] - CCT recorded revenue of approximately RMB7,828.8 million for the year ended 31 December 2019, representing a decrease of approximately 22.8% compared to RMB10,145.4 million in 2018[120] - The Group recorded a fair value loss of approximately RMB227.1 million in respect of its investment in CCT for the year ended 31 December 2019[120] - The company recognized a fair value loss of approximately RMB 227.1 million (after tax) on non-listed equity investments, which was included in other comprehensive losses[122]

Financial Performance - The Group recorded total revenue of approximately RMB222.1 million, an increase of approximately RMB14.8 million or 7.1% compared to RMB207.3 million in the same period in 2018[14]. - The Group's gross profit amounted to approximately RMB24.9 million, representing an increase of approximately RMB13.5 million or 118.4% compared to RMB11.4 million in the same period in 2018[14]. - The gross profit margin increased to approximately 11.2% from approximately 5.5% in the same period in 2018[14]. - The Group incurred a net loss of approximately RMB15.8 million during the period[14]. - Gross profit for the period was RMB 24.9 million, up from RMB 11.4 million in the previous year, indicating a significant improvement in profitability[30]. - The gross profit margin increased to 11.2% in 2019 from 5.5% in 2018, reflecting enhanced operational efficiency[33]. - Loss before tax decreased to RMB 16.0 million from RMB 26.4 million year-on-year, showing a reduction in financial losses[30]. - The net loss decreased by approximately RMB 9.2 million or 36.8% for the six months ended June 30, 2019, compared to a net loss of approximately RMB 25.0 million for the same period in 2018[63]. - The loss for the period was RMB 15,805,000, compared to RMB 24,960,000 in the previous year, showing a year-over-year improvement[198]. - The company reported a loss for the period of RMB 15,805,000, a decrease of 36.5% compared to a loss of RMB 24,960,000 in the same period of 2018[200]. Assets and Liabilities - The Group's total assets as of 30 June 2019 were RMB 1,304.2 million, down from RMB 1,359.8 million at the end of 2018[37]. - Cash and cash equivalents, excluding pledged deposits, decreased to RMB 39.7 million from RMB 98.3 million at the end of 2018[37]. - The current ratio as of 30 June 2019 was 1.4, compared to 1.6 in the previous year, indicating a slight decline in liquidity[33]. - The Group's gearing ratio as of 30 June 2019 was approximately 4.0%, down from approximately 6.7% as of 31 December 2018[70]. - Total interest-bearing bank and other borrowings amounted to approximately RMB 52.0 million as of 30 June 2019, an increase from approximately RMB 42.7 million as of 31 December 2018[71]. - The balance of trade and bills receivables was approximately RMB 203.7 million as of June 30, 2019, with an average turnover days of 168 days, a decrease from 195 days as of June 30, 2018[80]. - The balance of trade and bills payables was approximately RMB 177.6 million as of June 30, 2019, with an average turnover days increasing to 154 days from 144 days as of June 30, 2018[81]. - As of June 30, 2019, the inventory balance was approximately RMB 11.7 million, with an average turnover days of 11 days[79]. Investments and Market Expansion - The Group has commenced operations in Vietnam, aiming for higher returns for shareholders in the future[15]. - The Group continues to invest in research and development to enhance its competitive strength in the PRC market[15]. - The Group is focusing on innovating and exploring new technologies such as IoT and Artificial Intelligence for its mobile OA software[16]. - The Group plans to accelerate investment in wireless, IoT, cloud computing, and Software Defined Networking (SDN) technology to prepare for the 5G era[21]. - The Group is actively exploring overseas markets, particularly opportunities arising from the "One Belt and One Road Initiative" and "Guangdong-Hong Kong-Macao Greater Bay Area Development" policies[22]. - The Group aims to establish strategic cooperation with partners to enhance competitiveness and accelerate software distribution[16]. - The Group remains optimistic about future business prospects despite challenges in the network communication and mobile OA software sectors due to intense competition[23]. Shareholder Information and Corporate Governance - The Board did not declare any interim dividend for the six months ended 30 June 2019, consistent with the previous year[165]. - The Company has adopted and complied with the principles of the Corporate Governance Code throughout the six months ended June 30, 2019, with some deviations noted[169]. - The roles of chairman and CEO are currently held by the same individual, Mr. Chan Sek Keung, Ringo, due to the rapid development of the Group[170]. - All Directors confirmed compliance with the Model Code for Securities Transactions during the six months ended June 30, 2019[172]. - The company maintained a public float of not less than 25% of its issued shares as required under the Listing Rules during the reporting period[180]. - Ernst & Young was re-appointed as auditors of the company until the conclusion of the next annual general meeting[181]. Share Option Scheme - The Share Option Scheme allows for a maximum of 10% of the Shares in issue to be granted, which equates to 97,500,000 Shares after the refresh on May 24, 2017[146]. - The total number of Shares available for issue under the Share Option Scheme is 105,420,000, representing approximately 7.51% of the issued share capital of the Company[147]. - During the six months ended June 30, 2019, no share options were granted, exercised, lapsed, or cancelled under the Share Option Scheme[155]. - The total number of share options granted to Directors under the Share Option Scheme is 7,920,000, with no options exercised during the reporting period[153]. - As of June 30, 2019, 2,376,000 share options granted on October 25, 2016, have not yet vested[147]. - The closing price of the Company's shares immediately before the options were granted was HK$1.73[157]. - Up to 40% of the options granted (the "First Options") are exercisable from 25 October 2016 to 25 October 2026[157]. - Up to 30% of the options granted (the "Second Options") are exercisable from 25 October 2017 to 25 October 2026[157]. - Up to 30% of the options granted (the "Third Options") are exercisable from 25 October 2018 to 25 October 2026[157]. Other Financial Information - The financial results for the six months ended June 30, 2019, have not been audited, indicating that the figures are preliminary[178]. - The company reported a decrease in finance costs to RMB 2,245,000 from RMB 5,825,000, representing a reduction of 61.5%[198]. - Total comprehensive loss for the period was RMB 20,832,000, down 20.5% from RMB 26,282,000 in the prior year[200]. - Other comprehensive loss for the period, net of tax, was RMB 5,027,000, compared to RMB 1,322,000 in the previous year[200]. - The fair value change of financial assets at fair value through other comprehensive income resulted in a loss of RMB 7,315,000[200]. - Exchange differences on translation of foreign operations contributed a gain of RMB 459,000, improving from a loss of RMB 1,322,000 in 2018[200]. - The loss attributable to owners of the parent was RMB 18,108,000, compared to RMB 20,123,000 in the same period last year[200]. - Non-controlling interests reported a loss of RMB 2,724,000, down from RMB 6,159,000 in the previous year[200].

Financial Performance - The Group recorded a net loss of approximately RMB54.7 million for the year ended 31 December 2018[16]. - Total revenue amounted to approximately RMB414.9 million, representing a decrease of approximately RMB87.0 million, or approximately 17.3% compared to RMB501.9 million in 2017[16]. - The Group's gross profit was approximately RMB35.6 million, a decrease of approximately RMB28.2 million, or approximately 44.2% from RMB63.8 million in 2017[16]. - The gross profit margin decreased to approximately 8.6% from approximately 12.7% in the same period in 2017[16]. - The loss attributable to the owners of the parent was RMB 46,171,000 in 2018, a significant improvement from a loss of RMB 95,611,000 in 2017[38]. - The net loss decreased by approximately RMB42.0 million or 43.4% for the year ended 31 December 2018, compared to a net loss of approximately RMB96.7 million for the year ended 31 December 2017[74]. - Basic and diluted loss per share was RMB(3.95) for the year ended 31 December 2018, compared to RMB(10.38) in 2017[48]. Revenue and Cost Analysis - The Group recorded a revenue decline in the mobile OA software business, with revenue of RMB 414,864,000 in 2018 compared to RMB 501,933,000 in 2017, representing a decrease of approximately 17.3%[38]. - Gross profit decreased to RMB 35,606,000 in 2018 from RMB 63,848,000 in 2017, resulting in a gross profit margin of 8.6% compared to 12.7% in the previous year[38][40]. - The cost of sales decreased by approximately RMB58.8 million, or approximately 13.4%, from approximately RMB438.1 million in 2017 to approximately RMB379.3 million in 2018[51]. - Selling and distribution expenses decreased by approximately RMB3.7 million, or approximately 14.3%, from approximately RMB25.9 million in 2017 to approximately RMB22.2 million in 2018[59]. - Administrative expenses decreased by approximately RMB9.9 million for the year ended 31 December 2018, compared to RMB57.8 million for the year ended 31 December 2017, primarily due to effective cost control measures[63]. Assets and Liabilities - Current assets decreased to RMB 404,426,000 in 2018 from RMB 744,695,000 in 2017, while non-current assets increased to RMB 955,346,000 from RMB 691,423,000[44]. - The total assets of the Group were RMB 1,359,772,000 in 2018, a decrease from RMB 1,436,118,000 in 2017[34]. - The current ratio decreased to 1.4 in 2018 from 2.3 in 2017, indicating a tighter liquidity position[40]. - The Group's gearing ratio decreased to approximately 6.7% as of 31 December 2018, down from 8.6% as of 31 December 2017, primarily due to early redemption of coupon notes[75]. - The balance of trade and bills receivables as of December 31, 2018, was approximately RMB 209.7 million, down from approximately RMB 228.2 million as of December 31, 2017, primarily due to decreased sales of network communications products and services[89]. Cash Flow and Investments - Net cash from operating activities was RMB89.1 million for the year ended 31 December 2018, compared to RMB56.9 million in 2017[46]. - Net cash used in investing activities was RMB195.4 million for the year ended 31 December 2018, a decrease from RMB443.9 million in 2017[46]. - The net cash flows from operating activities for the year ended December 31, 2018, were approximately RMB 89.1 million, mainly due to collections from loan receivables[92]. - The net cash flows used in investing activities for the year ended December 31, 2018, were approximately RMB 195.4 million, primarily due to a capital injection of approximately RMB 280.0 million[94]. Strategic Focus and Future Plans - The Group aims to focus on the medium and high-end market to target large-scale enterprise customers, which require more high-value professional solutions[22][26]. - The Group plans to continue technology investments to enhance its product range, including cloud computing and cybersecurity[17]. - The Group aims to accelerate software solution development and widen customer networks through alliances with other business partners[17]. - The Group plans to explore business opportunities in other Asian countries, including initial operations in Vietnam, to boost growth momentum[24][27]. - The Group will strategically position itself to take advantage of the growth opportunities arising from the development of the Guangdong-Hong Kong-Macao Greater Bay Area[25][27]. Corporate Governance - The Company recognizes the importance of good corporate governance and has adopted the Corporate Governance Code throughout the year, with some deviations noted[180]. - The roles of chairman and CEO are currently held by Mr. Chan Sek Keung, Ringo, to facilitate execution of business strategies, with plans to appoint a suitable candidate for the CEO position in the future[181]. - The Board held a total of 9 meetings during the year ended December 31, 2018, including 4 regular meetings and passed 12 written resolutions[192]. - The Company aims to enhance corporate governance by adopting principles from the Corporate Governance Code, with a focus on shareholder interests[183]. - The Board's composition is balanced, bringing diverse experiences and expertise relevant to the Group's business[188].