Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 561,011,000, a slight increase from RMB 556,679,000 in 2022, representing a growth of approximately 0.6%[33]. - Gross profit decreased to RMB 69,698,000 in 2023 from RMB 85,371,000 in 2022, indicating a decline of about 18.4%[33]. - The loss before tax for 2023 was RMB 33,519,000, compared to a loss of RMB 28,809,000 in 2022, reflecting a worsening of approximately 16.5%[33]. - The loss attributable to the owners of the parent increased to RMB 41,229,000 in 2023 from RMB 35,882,000 in 2022, marking an increase of about 14.3%[33]. - The company reported a stable growth in sales from its smart office software solutions, benefiting from market changes in 2023[23]. - The company anticipates continued revenue from the smart library system project in Hong Kong, which is expected to provide a stable income source[19]. - The loss per share attributable to owners for 2023 was RMB 28.90 cents, compared to RMB 26.69 cents in 2022, indicating a decline in shareholder value[33]. - Revenue for 2023 was RMB 561,011,000, a slight increase from RMB 556,679,000 in 2022, representing a growth of 0.2%[49]. - Gross profit margin decreased to 12.4% in 2023 from 15.3% in 2022, indicating a decline in profitability[42]. - Net loss for the year from continuing operations was RMB 35,421,000, compared to RMB 33,019,000 in 2022, reflecting an increase in losses of approximately 7.3%[49]. - The Group's total revenue increased by approximately RMB4.3 million or approximately 0.8% to approximately RMB561.0 million for the year ended 31 December 2023[54]. - The Group's gross profit decreased by approximately RMB15.7 million or approximately 18.4% to approximately RMB69.7 million for the year[54]. - A net loss for the year was recorded at approximately RMB35.4 million, compared to a net loss of approximately RMB33.0 million in 2022[54]. Market Conditions - The Group's core traditional IT infrastructure system integration business in Mainland China faced a decline due to intense competition and geopolitical uncertainties, leading to reduced customer demand and sales orders[16]. - The global economic environment in 2023 was challenging, with inflation, rising interest rates, and geopolitical tensions affecting markets and supply chains[15]. - The Group's performance was impacted by the overall economic slowdown in China, which affected customer demand[16]. - The Group is well-positioned to capture market opportunities arising from changes in the economy and market needs[17]. - The Group's financial performance reflects the ongoing challenges in the global business environment, but it continues to adapt and seek growth opportunities[15]. Strategic Initiatives - The Group maintained strategic partnerships with various tech giants to acquire new customers through alliances[16]. - The integration of Internet of Things (IoT) solutions is becoming increasingly important for companies in China, enhancing efficiency and competitiveness[17]. - The Group is focused on leveraging its core competitiveness to provide advanced and customized IT infrastructure solutions across diverse segments[16]. - The Group aims to maintain stable development in IT infrastructure and smart office software solutions, leveraging its enhanced customer base[147]. - The Group will continue to develop one-stop smart-space solutions to facilitate enterprises' digital transformation[147]. - The Group actively participates in tenders to secure income streams from both private and public sector customers[147]. - The company plans to explore new markets vigorously, particularly in the Asia Pacific region, to tap into emerging business opportunities[24]. Financial Position and Liquidity - Current ratio decreased to 1.0 in 2023 from 1.3 in 2022, suggesting a decline in short-term liquidity[42]. - Cash and cash equivalents increased to RMB 76,196,000 in 2023 from RMB 59,436,000 in 2022, showing improved cash position[45]. - Total liabilities increased, with current liabilities rising to RMB 467,012,000 in 2023 from RMB 382,620,000 in 2022, indicating higher financial obligations[45]. - Gearing ratio increased significantly to 31.2% in 2023 from 12.7% in 2022, suggesting a higher level of debt relative to equity[42]. - Net cash used in operating activities was RMB (36,906,000) in 2023, slightly worse than RMB (35,242,000) in 2022[47]. - Finance costs rose to RMB 10,704,000 in 2023 from RMB 4,249,000 in 2022, indicating increased borrowing costs[49]. - Equity attributable to owners of the parent decreased to RMB 266,833,000 in 2023 from RMB 309,236,000 in 2022, reflecting a decline in shareholder equity[45]. - The average turnover days for trade and bills receivables increased to 202 days in 2023 from 173 days in 2022, attributed to longer collection periods for certain customers[95]. - The cash conversion cycle for the Group increased from 37 days in 2022 to 73 days in 2023, influenced by the rise in average turnover days for trade and bills receivables[96]. Leadership and Governance - The company has a strong leadership team with diverse backgrounds in finance, technology, and management, enhancing its strategic capabilities[170]. - The board includes experienced non-executive directors who contribute to corporate governance and strategic oversight[172][179]. - The leadership team's extensive experience in their respective fields positions the company well for future growth and innovation[170]. - Mr. Lu has over 20 years of experience in the communication industry, including roles in base station software development and management of TD-SCDMA/TD-LTE production lines[165][168]. - Ms. Chung has over 20 years of experience in banking, finance, and investment, with a focus on strategic planning and business development[173][176]. - Mr. Tsoi has over 30 years of experience in accounting, auditing, and financial management, currently serving as a director at Alliott, Tsoi CPA Limited[180][181]. - Mr. Hon has over 15 years of experience in listed companies and financial institutions, with extensive expertise in corporate finance, mergers and acquisitions, investment, and financial management[189]. Investment Activities - The Group held equity securities listed in Hong Kong worth approximately RMB6.8 million as financial assets for trading as of 31 December 2023, down from approximately RMB13.5 million in 2022[62]. - The Group recorded a net fair value loss on equity investments of approximately RMB3.0 million during the year, compared to a fair value gain of approximately RMB5.1 million in 2022[62]. - Net fair value losses on investment properties amounted to approximately RMB6.8 million for the year, compared to approximately RMB3.2 million in 2022[62]. - The company recorded fair value losses on equity investments of approximately RMB3.0 million for the year, compared to gains of RMB5.1 million in 2022, due to geopolitical tensions and economic volatility affecting the Hong Kong stock market[124][127]. - The company aims to strengthen its financial position and enhance liquidity through the placement and subscription, expanding its shareholder base[123][126].

Financial Performance - For the year ended December 31, 2023, the total revenue was approximately RMB 561.0 million, an increase of about RMB 4.3 million or approximately 0.8% compared to RMB 556.7 million for the year ended December 31, 2022[4]. - The net loss for the year ended December 31, 2023, was approximately RMB 35.4 million, compared to a net loss of approximately RMB 33.0 million for the year ended December 31, 2022[4]. - Basic and diluted loss per share for the year ended December 31, 2023, was approximately RMB 28.90, compared to RMB 26.69 for the year ended December 31, 2022[4]. - The gross profit for the year ended December 31, 2023, was RMB 69.7 million, down from RMB 85.4 million in the previous year[5]. - The company reported a pre-tax loss of RMB 41,229,000 in 2023, compared to a loss of RMB 35,882,000 in 2022, indicating a deterioration in financial performance[39]. - The group reported a loss of approximately RMB 35.4 million for the year, compared to a loss of RMB 33.0 million in 2022, primarily due to a decline in gross profit and increased financing costs[77]. Revenue Breakdown - Revenue from external customers in 2023 was RMB 561,011,000, a slight increase of 0.6% from RMB 556,679,000 in 2022[25]. - Revenue from the communication systems segment was RMB 561,011,000 in 2023, with product sales contributing RMB 318,590,000 and service provision contributing RMB 242,421,000[28]. - Revenue from the library project in Hong Kong contributed approximately RMB 105.7 million, an increase of about RMB 55.9 million or approximately 112.2% from RMB 49.8 million in 2022[65]. - Revenue from smart office software solutions increased by approximately RMB 0.4 million or about 0.7% to approximately RMB 56.3 million, compared to RMB 55.9 million in 2022[67]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the year were RMB 76.2 million, an increase from RMB 59.4 million at the beginning of the year[12]. - The company recorded a net cash outflow from operating activities of RMB 36.9 million for the year ended December 31, 2023[12]. - The group has implemented measures to enhance liquidity to meet financial obligations over the next twelve months[18]. - Cash used in operating activities was approximately RMB 36.9 million, while cash used in investing activities was approximately RMB 20.4 million, primarily for the acquisition of investment properties[82]. Assets and Liabilities - The total assets less current liabilities amounted to RMB 279.4 million as of December 31, 2023, compared to RMB 363.8 million in the previous year[10]. - The company’s total liabilities increased, with current liabilities totaling RMB 467.0 million as of December 31, 2023, compared to RMB 382.6 million in the previous year[10]. - The company’s non-current assets totaled RMB 281.8 million as of December 31, 2023, compared to RMB 250.8 million in the previous year[9]. - The group’s current liabilities totaled RMB 225,763,000 as of December 31, 2023, while cash and cash equivalents amounted to RMB 76,196,000[18]. Investment and Acquisitions - The total consideration for the acquisition of Huaying Trading included a cash outflow of approximately RMB 26.26 million after deducting deposits and cash acquired[61]. - The company completed the acquisition of Huaying Trading Co., Ltd. for HKD 87.9 million (approximately RMB 81.36 million) on June 8, 2023[58]. - The company acquired a 30% interest in a joint venture, Wafer iMusic Joint Venture, through a settlement agreement involving a payment of HKD 9 million[93]. Expenses and Cost Management - Financing costs increased significantly to RMB 10,704,000 in 2023 from RMB 4,249,000 in 2022, primarily due to higher interest expenses on bank and other borrowings[30]. - Sales and distribution expenses decreased by approximately RMB 1.3 million or 4.5% to about RMB 27.4 million, compared to RMB 28.7 million in 2022[72]. - Administrative expenses decreased by approximately RMB 6.2 million or 9.1% to about RMB 62.3 million, down from RMB 68.5 million in 2022, due to ongoing cost reduction efforts[73]. Shareholder Returns and Dividends - The company did not declare any dividends for the year ending December 31, 2023, consistent with the previous year[36]. - No final dividend is recommended for the year ending December 31, 2023, similar to the previous year[100]. Future Outlook - The company anticipates continued growth through expanding its customer base and exploring opportunities in other regions, despite facing challenges in the network system integration business[46]. - The group maintains a cautiously optimistic outlook for its business and operational prospects, supported by an expanding customer base and stable revenue sources[99]. - The integrated product matrix and strong R&D capabilities enhance the group's core competitiveness in smart office solutions[99]. - The group will continue to develop and optimize solutions to provide customers with one-stop smart space solutions, aiding in digital transformation[99].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 261,641,000, representing an increase of 32.8% compared to RMB 197,059,000 in the same period of 2022[16]. - Gross profit for the same period was RMB 33,355,000, up from RMB 26,963,000, indicating a growth of 23.5%[16]. - Loss before tax increased to RMB 18,710,000 in 2023 from RMB 13,514,000 in 2022, reflecting a rise of 38.5%[16]. - The loss for the period attributable to owners of the parent was RMB 23,133,000, compared to RMB 15,230,000 in 2022, marking a 52.1% increase[16]. - Basic and diluted loss per share for the six months ended June 30, 2023, was (19.73) RMB cents, compared to (14.32) RMB cents in 2022[18]. - The Group recorded a net loss of approximately RMB 19.3 million for the Period, compared to a net loss of approximately RMB 14.1 million for the same period in 2022[33]. - Loss for the period was RMB 19,327,000, compared to a loss of RMB 14,096,000 in the prior year, reflecting a 37.5% increase in losses[188]. - Loss attributable to owners of the parent was RMB 23,133,000, compared to RMB 15,230,000 in the previous year, marking a significant increase in losses[188]. - Total comprehensive loss for the period was RMB (17,963,000), down from RMB (27,674,000) in the previous year, reflecting a reduction of 34.9%[192]. Operational Insights - The company is engaged in network system integration, providing network infrastructure solutions and smart office software solutions[3]. - The interim report indicates ongoing challenges with increasing losses, necessitating strategic adjustments moving forward[15]. - The company continues to explore market expansion opportunities and new technology developments to enhance its service offerings[15]. - Future outlook includes a focus on improving operational efficiency and potentially diversifying revenue streams through new product offerings[15]. - The Group's smart office software solutions and PropTech solutions recorded stable growth, driven by increased demand for smart office devices[32]. - The Group aims to maintain stable development in its IT infrastructure system integration and smart office software solution businesses, focusing on digital transformation and customer needs[90]. - The Group aims to continue developing integrated smart office solutions to meet corporate needs in areas such as operational efficiency and carbon reduction[93]. - The Group plans to expand its R&D team and enhance the construction of its R&D center in Xi'an to provide more diversified products and services[93]. - The Group is establishing strategic partnerships with cloud services and technology giants to enhance its market position[94]. Financial Position - Current ratio decreased to 1.1 times as of 30 June 2023, down from 1.3 times as of 31 December 2022[26]. - Gearing ratio increased to 19.6% as of 30 June 2023, compared to 12.7% as of 31 December 2022[26]. - Total assets increased to approximately RMB 792.2 million as of 30 June 2023, up from approximately RMB 746.4 million as of 31 December 2022[26]. - Cash and cash equivalents (excluding pledged deposits) rose to approximately RMB 78.2 million as of 30 June 2023, compared to approximately RMB 59.4 million as of 31 December 2022[26]. - Total equity decreased to RMB 302,130,000 from RMB 320,093,000 at the end of 2022, a reduction of 5.6%[197]. - Interest-bearing bank and other borrowings rose to RMB 101,022,000 from RMB 59,574,000 at the end of 2022, an increase of 69.6%[194]. - As of June 30, 2023, total non-current assets increased to RMB 311,730,000 from RMB 250,761,000 at the end of 2022, marking a growth of 24.3%[194]. - Current assets decreased to RMB 480,498,000 from RMB 495,651,000 at the end of 2022, a decline of 3.1%[194]. - Net current assets were RMB 58,499,000, down from RMB 113,031,000 at the end of 2022, indicating a decrease of 48.2%[197]. Governance and Management - The roles of chairman and CEO are held by the same individual, which deviates from the Corporate Governance Code, but the Board believes this facilitates business strategy execution[153]. - The Audit Committee consists of three independent non-executive Directors and convened one meeting during the review period[159]. - The Company has complied with the principles and applicable code provisions of the Corporate Governance Code throughout the six months ended June 30, 2023, with noted deviations[153]. - The company appointed Ms. Chung, Elizabeth Ching Yee as a non-executive Director effective January 3, 2023[145]. - Mr. Lu, Brian Yong Chen resigned as independent non-executive Director effective January 31, 2023[145]. - Ms. Tin Yat Yu Carol was appointed as vice-chairman of the company effective June 15, 2023[146]. - The company appointed Mr. Hon Ming Sang as independent non-executive Director and chairman of the Compensation and Benefits Committee effective January 31, 2023[171]. Shareholder Information - As of June 30, 2023, Mr. Chan Sek Keung, Ringo held a 14.51% interest in the Company, while Ms. Tin Yat Yu, Carol held a 15.50% interest[105]. - As of June 30, 2023, the total number of issued shares of the Company was 117,240,000 shares[110]. - The company did not declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[147]. - The total number of shares available for issue under both the Old and New Share Option Schemes is 6,924,600, representing approximately 5.91% of the total issued shares as of June 30, 2023[122]. - The New Share Option Scheme was approved by shareholders on June 23, 2021[118]. Acquisitions and Investments - The acquisition of Sino Profit Trading Limited was completed on June 8, 2023, making it an indirect wholly-owned subsidiary of the Company, with a total consideration of HK$87,900,000[89]. - The acquisition of all shares of Huaying Trading Co., Ltd. was completed on June 8, 2023, for a total consideration of HKD 87,900,000[91][92]. - As of June 30, 2023, the Group had outstanding capital commitments of approximately RMB 7.4 million related to the acquisition of a 30% interest in an unincorporated joint venture[69][76].

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） 截至二零二三年六月三十日止六個月 中期業績公告 摘要 截至六月三十日止六個月 二零二三年 二零二二年 人民幣千元 人民幣千元 （未經審核）（未經審核） 收入 261,641 197,059 毛利 33,355 26,963 除稅前虧損 (18,710) (13,514) 期內虧損 (19,327) (14,096) ...

Market Growth and Opportunities - In 2022, the Group experienced a substantial increase in the adoption of smart office devices and solutions, driven by the ongoing penetration of the collaborative office concept[17]. - The smart mobile office market in China maintained rapid growth during the Year, indicating strong market demand for IT solutions[17]. - The national 14th Five-Year Plan (2021-2025) and the Digital China strategy provided fertile opportunities for the IT industry, contributing to market growth[16]. - The Outline of the Strategic Plan for Expanding Domestic Demand (2022-2035) issued by the State Council encourages the development of innovative infrastructure, benefiting the IT sector[16]. - The ongoing evolution of the smart office industry presents practically limitless opportunities for growth and expansion[17]. - The smart office market is experiencing rapid growth, with significant adoption of smart office equipment and solutions globally, particularly in China[19]. - The smart office solutions are expected to become an embedded trend, offering virtually limitless opportunities for rapid growth in the market[22]. Financial Performance - Revenue for the year ended December 31, 2022, was RMB 556,679,000, representing a 14.9% increase from RMB 484,598,000 in 2021[35]. - Gross profit for 2022 was RMB 85,371,000, up from RMB 57,108,000 in 2021, resulting in a gross profit margin of 15.3% compared to 11.8% in the previous year[40]. - Loss before tax increased to RMB 28,809,000 in 2022 from RMB 22,048,000 in 2021, indicating a growing financial challenge[35]. - The loss attributable to owners of the parent for continuing operations was RMB 35,882,000 in 2022, compared to RMB 18,176,000 in 2021[35]. - The Group's total comprehensive loss for the year was approximately RMB 50.4 million, compared to a loss of approximately RMB 93.7 million in 2021[52]. - The net loss for the year was approximately RMB 33.0 million, compared to a net loss of approximately RMB 21.0 million in 2021, primarily due to a fair value loss of approximately RMB 10.9 million from a debt investment[55]. Operational Challenges - Despite the resurgence of COVID-19 and its impact on economic recovery, the Group successfully navigated the complex external environment[15]. - The gearing ratio increased to 12.7% in 2022 from 10.8% in 2021, reflecting a higher level of debt relative to total assets[40]. - The return on total assets was (4.7%) in 2022, worsening from (3.1%) in 2021, highlighting declining efficiency in asset utilization[40]. - The average turnover days for trade and bills receivables increased to 173 days as of December 31, 2022, from 154 days in 2021, attributed to longer collection periods for certain customers[98]. Strategic Initiatives - The Group managed to enhance sales during the Year by capturing market opportunities presented by favorable national policies and addressing government needs[16]. - The Group's focus on network system integration and smart office software solutions aligns with the growing demand in the digital economy[3]. - The Group aims to enhance its research and development capabilities by allocating more resources to provide diverse products and services[27]. - The Group's strategy includes securing more orders from both private and public sector customers, with a focus on collaborations with technology giants and participation in tenders[28]. - The Group formed a strong alliance with Microsoft, launching two enterprise digital transformation solutions: "AIoT-based Smart Building Digital-twin Solution" and "Teams-based Digital Administrative Office Solution" in 2022[21]. Human Resources and Governance - The total number of employees increased to 306 as of December 31, 2022, from 285 in the previous year, with notable growth in manufacturing and technical engineering roles[137]. - The company aims to leverage the extensive experience of its directors to improve investment strategies and market expansion efforts[169][174]. - The Board of Directors consists of four executive Directors, two non-executive Directors, and three independent non-executive Directors as of December 31, 2022[197]. - The company is committed to enhancing overall performance through good corporate governance practices[194]. - The appointment of experienced directors reflects the company's commitment to robust corporate governance and strategic oversight[172][174].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 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].