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佈的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 Technovator TECHNOVATOR INTERNATIONAL LIMITED 同 方 泰 德 國 際 科 技 有 限 公 司* （於新加坡註冊成立的有限公司） 1206 （股份代號： ） 二 零 二 三 年 中 期 業 績 公 佈 中期業績 同方泰德國際科技有限公司（「本公司」）董事會（「董事會」）欣然公佈本公司及其 附屬公司（「本集團」或「同方泰德」）於截至二零二三年六月三十日止六個月（「二 零二三年上半年」）的未經審核綜合中期財務業績，連同二零二二年同期（「二零 二二年上半年」）的比較數字。該等業績已經本公司審核委員會審閱，而審核委 員會僅由本公司獨立非執行董事組成。於二零二三年上半年的未經審核中期 財務報表已經本公司外聘核數師審閱。 ...

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佈的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公佈 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。 Technovator TECHNOVATOR INTERNATIONAL LIMITED 同 方 泰 德 國 際 科 技 有 限 公 司* （於新加坡註冊成立的有限公司） 1206 （股份代號： ） 補 充 公 佈 茲提述本公司截至二零二二年十二月三十一日止年度的年度報告（「年報」）。除 文義另有所指外，本公佈所用詞彙與年報所界定者具有相同涵義。 誠如本公司日期為二零一五年十二月七日的公佈所披露，本公司於二零一五 年十二月四日採納股份獎勵計劃（「股份獎勵計劃」）。股份獎勵計劃的主要條款 概要載列如下： 股份獎勵計劃的目的 LR17.09(1) 股份獎勵計劃旨在嘉獎若干經選定承授人作出的貢獻，從而留聘及鼓勵彼等 為本集團未來的經營及發展作出努力，並吸引具有經驗及能力的合適人才加 入及推動本集團的進一步發展。 股份獎勵計劃的參與者 LR17.0 ...

Financial Performance - In 2022, the company recorded a net income of approximately RMB 1,738.9 million, representing a year-on-year increase of 7.4%[16]. - The net profit for the year was approximately RMB 55.7 million, which is a 22.2% increase compared to the previous year[16]. - The company achieved a gross profit margin of 17.5% in 2022, with a cost-to-revenue ratio of 82.6%[15]. - The company’s equity attributable to shareholders increased to RMB 2,980.3 million in 2022, reflecting a steady growth trend[15]. - The current ratio remained stable at 1.8 in 2022, indicating a solid liquidity position[15]. - In 2022, the company achieved a net revenue of approximately RMB 1,738.9 million, representing a year-on-year increase of 7.4%[25]. - The smart transportation segment generated revenue of approximately RMB 349.5 million, a decrease of 27.8% compared to RMB 484.4 million in 2021[29]. - The smart building and park segment saw revenue rise by 22.2% to approximately RMB 892.5 million from RMB 730.2 million in 2021[30]. - The smart energy segment reported revenue of approximately RMB 496.9 million, an increase of 22.8% from RMB 404.5 million in the previous year[31]. - The company's gross profit decreased by 4.4% to approximately RMB 303.4 million, with a gross margin of 17.4%, down 2.2 percentage points from the previous year[33]. - Sales and distribution expenses were approximately RMB 81.5 million, a reduction of 21.3% compared to the previous year, with expenses accounting for 4.7% of revenue[37]. - Administrative and other operating expenses decreased by 7.5% to approximately RMB 133.0 million due to enhanced cost control during the pandemic[38]. - The company recorded other income of approximately RMB 33.2 million, a decline of 13.1% from RMB 38.2 million in 2021, primarily due to reduced interest income from EMC projects[35]. - The impairment loss on trade and other receivables increased to approximately RMB 62.2 million from RMB 28.6 million in the previous year, attributed to delayed payments and extended aging of settled projects[39]. - The effective tax rate was approximately 14.8%, a decrease of 1.4 percentage points from the previous year, with income tax expenses rising by 10.2% to approximately RMB 9.7 million[41]. - The net profit increased by 22.1% from approximately RMB 456 million in 2021 to about RMB 557 million in the current year, with a net profit margin rising from 2.8% to 3.2%[42]. - Basic earnings per share rose by 21.8% year-on-year to RMB 0.0705, compared to RMB 0.0579 in 2021[42]. - Inventory increased from approximately RMB 983 million in 2021 to about RMB 1,191 million in 2022, with inventory turnover days remaining stable at 228 days[44]. - Trade and other receivables rose to approximately RMB 1,760.5 million in 2022 from RMB 1,456.4 million in 2021, with average trade receivable turnover days increasing to 269 days[45]. - Trade and other payables increased significantly to approximately RMB 1,924.2 million in 2022 from RMB 1,577.2 million in 2021, with average trade payable turnover days at 360 days[45]. - Cash and cash equivalents were approximately RMB 354 million as of December 31, 2022, accounting for 11.8% of the group's net assets, down from RMB 411.7 million in 2021[46]. - The group's net cash position decreased to approximately RMB 163.6 million in 2022 from RMB 312.4 million in 2021, with a debt-to-asset ratio of 3.6%[48]. - The total employee cost decreased from approximately RMB 224 million in 2021 to about RMB 215.4 million in 2022, with the number of employees reducing from 812 to 779[52]. - The company did not engage in any significant acquisitions or investments during the year ended December 31, 2022[54][55]. - The average annual interest rate on bank loans decreased to 3.9% in 2022 from 4.0% in 2021[46]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion in 2022, representing a growth of 15% compared to the previous year[64]. - User data showed a 20% increase in active users, reaching 5 million by the end of 2022[64]. - The company provided a positive outlook for 2023, projecting a revenue growth of 10% to 1.32 billion[64]. - New product launches are expected to contribute an additional 200 million in revenue in 2023[64]. - The company is investing heavily in R&D, with a budget allocation of 150 million for new technologies[64]. - Market expansion plans include entering three new international markets by the end of 2023[64]. - The company is considering strategic acquisitions to enhance its market position, targeting firms with a combined revenue of 500 million[64]. - A new marketing strategy is set to increase brand awareness by 25% in the next fiscal year[64]. - The company aims to improve operational efficiency, targeting a 5% reduction in costs through process optimization[64]. - The company reported a total reserve of RMB 384,094,000 as of December 31, 2022, down from RMB 395,306,000 in the previous year, indicating a decrease of approximately 3%[88]. - The company made charitable donations amounting to approximately RMB 41,795 during the fiscal year ending December 31, 2022, compared to none in the previous year[89]. - The company did not declare any dividends for the fiscal year ending December 31, 2022, and the board does not recommend any final dividend for the same period[86]. - The company has not declared any dividends for the fiscal year ending December 31, 2021, and similarly, no dividends were declared for 2022[86]. Business Operations and Strategy - In 2022, the company faced significant challenges due to the COVID-19 pandemic, economic downturn, and adjustments in the real estate construction industry, but managed to maintain high-quality development through refined management and innovative business models[9]. - The company emphasized its commitment to innovation, increasing R&D investment, and enhancing its core capabilities, particularly through the development of the "Kunlun" industrial internet operating system and various key equipment solutions[10]. - The company successfully launched multiple core components of the Kunlun digital platform, improving service capabilities across various sectors, including smart energy management and zero-carbon park solutions[10]. - The company secured contracts in smart building, smart transportation, and smart energy sectors, including projects like the Beijing Dongsheng Technology Park and the Xinjiang Tianfu South Thermal Power Unit[12]. - The company’s light-asset energy operation services business is experiencing growth, with successful completion of energy management projects and recognition for excellence in contract energy management[12]. - The company completed key national projects, including the construction and service support for venues during the 2022 Beijing Winter Olympics, receiving commendations from various organizations[14]. - The company aims to leverage opportunities from China's rapid economic recovery and national strategies for new infrastructure and green low-carbon industries in 2023[14]. - The company’s subsidiary, Tongfang Energy Engineering Technology Co., Ltd., was recognized as an "Innovative" SME in Beijing, and its Beijing subsidiary passed the CMMI Level 3 certification[11]. - The company has been awarded multiple industry accolades, including first-class awards in architectural design and second-class awards in equipment management and technological innovation[11]. - The company is focused on sustainable development through contract energy management and operational models, enhancing its service offerings in energy management[12]. - The smart transportation segment faced revenue decline due to the pandemic, but the number of projects won in comprehensive monitoring ranked first in the industry[17]. - The company successfully applied its self-developed energy management system in various metro projects, enhancing energy efficiency through machine learning algorithms[17]. - The smart building and park segment saw significant growth in market contracts, completing the technical support for the smart building system at the National Stadium for the Winter Olympics[18]. - The company launched a lightweight smart heating platform to meet diverse needs in the competitive smart heating sector, successfully applied in the Baoding Datang heating project[21]. - The company developed a high-temperature heat pump equipment for industrial steam needs, achieving over 50% energy savings in practical applications[21]. - The company’s main business segments include smart transportation, smart buildings and parks, and smart energy, focusing on integrated energy management solutions[81]. Corporate Governance and Compliance - The board of directors is composed of 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors, ensuring a diverse range of expertise and experience[149]. - The company has adhered to all provisions of the corporate governance code as of December 31, 2022, except for the frequency of board meetings as specified in code C.5.1[146]. - All independent non-executive directors have served for over 11 years, and the company is committed to appointing a new independent non-executive director at the next annual general meeting[146]. - The company has established mechanisms to ensure the board receives independent views and opinions, with independent non-executive directors providing unbiased insights on strategy and performance[155]. - The chairman and CEO roles are separated, with Qin Xuzhong as chairman and Zhao Xiaobo as CEO, ensuring clear leadership and operational management[154]. - The board regularly reviews authorized functions and tasks, ensuring that significant transactions require board approval[150]. - The company has purchased adequate insurance to protect directors against legal liabilities arising from corporate activities[151]. - The board consists of seven male members and one female member, with ages ranging from 37 to 64[156]. - The gender ratio among all employees, including senior management, is 1.8:1, indicating a focus on gender diversity[157]. - The board held two meetings and one annual general meeting during the fiscal year ending December 31, 2022[159]. - The audit committee held two meetings during the fiscal year, with all members attending both meetings[168]. - The audit committee reviewed the group's interim results for the six months ending June 30, 2022, and the audited annual results for the year ending December 31, 2022[169]. - The company aims to maintain at least one female director on the board, based on the value and contribution of selected candidates[157]. - The board's diversity policy was adopted in August 2013, emphasizing the importance of diverse skills and experiences[156]. - The company continues to seek and select female candidates for board positions to ensure long-term gender diversity[157]. - The board's meetings are conducted regularly, with a minimum of four meetings recommended annually, although only two were held in the past year[159]. - The company has established various committees, including the audit committee, to ensure effective governance and oversight[165]. - The Compensation Committee evaluated the performance of directors and senior management and reviewed the compensation policy for 2022[171]. - As of December 31, 2022, there were 2 senior management members with a salary range of HKD 1,000–1,500 thousand[171]. - The Nomination Committee reviewed the board's structure and diversity policy, ensuring fair and transparent nomination processes[173]. - The Risk Management Committee assessed the effectiveness of the group's risk management system, which was deemed effective and sufficient[178]. - The company adopted a new set of articles to comply with current listing rules, replacing the previous memorandum and articles of association[181]. - The board is responsible for preparing financial statements that fairly reflect the group's financial position and performance[182]. - The company’s external auditor, KPMG, is responsible for the financial statements as stated in the independent auditor's report section of the annual report[183]. - The total fees paid for audit and non-audit services to external auditors amounted to RMB 3,356,000, with RMB 3,230,000 for audit-related services and RMB 126,000 for non-audit services[184]. - The internal audit department reported no significant issues in the internal control system, although there is room for improvement, and all recommendations will be followed up in a timely manner[187]. - The board of directors believes that the internal control and risk management systems are effective and sufficient, having reviewed them at least once a year[186]. - The company has adopted a dividend policy that considers various factors, including actual and expected financial performance, cash flow, and financial condition, before declaring dividends[193]. - The company aims to maintain effective communication with shareholders and stakeholders through various channels, ensuring timely access to important information[191]. Environmental, Social, and Governance (ESG) - The group emphasizes the importance of ESG (Environmental, Social, and Governance) issues and aims to be a leading corporate citizen in China[200]. - The board of directors serves as the highest decision-making body for ESG management, guiding the group's sustainable development direction[200]. - The group has established an ESG working group involving multiple departments to enhance the ESG governance structure[200]. - The annual ESG report is reviewed by the board, ensuring transparency and accountability in ESG performance[200]. - The group identifies and prioritizes ESG issues through stakeholder communication and assessments[200]. - The environmental, social, and governance (ESG) report is the seventh issued by the company, highlighting its efforts and contributions in these areas[194]. - The reporting period for the ESG report covers January 1, 2022, to December 31, 2022[197]. - The company has established a policy for shareholders to convene special meetings upon request from shareholders holding at least 10% of the paid-up capital[188]. - The internal control and risk management systems are designed to provide reasonable assurance against material misstatements or losses[186]. - The company will seek professional advice when necessary to ensure compliance with listing rules and regulations regarding the disclosure of inside information[186]. - The group has obtained ISO14001 environmental management system certification from the China Quality Certification Center, demonstrating its commitment to energy-saving and environmentally friendly products[141]. - As of December 31, 2022, the group has not violated any relevant environmental regulations that significantly impacted its development, performance, or business[143].

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佈的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公佈 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。 Technovator TECHNOVATOR INTERNATIONAL LIMITED * 同 方 泰 德 國 際 科 技 有 限 公 司 （於新加坡註冊成立之有限公司） 1206 （股份代號： ） 二 零 二 二 年 年 度 業 績 公 佈 年度業績 同方泰德國際科技有限公司（「本公司」或「同方泰德」）董事會（「董事會」）欣然公 佈本公司及其附屬公司（「本集團」）於截至二零二二年十二月三十一日止年度的 綜合業績，連同截至二零二一年十二月三十一日止年度的比較數字，該等資料 摘錄自本集團經審核綜合財務報表。該等業績已經本公司審核委員會審閱，而 審核委員會由三名獨立非執行董事組成。 ...

Financial Performance - The company reported a revenue of approximately RMB 625.1 million for the first half of 2022, representing a year-on-year decline of 9.3%[13] - Net profit for the same period was approximately RMB 9.7 million, down 40.2% year-on-year due to intensified industry competition and reduced project margins[13] - The gross profit decreased by 29.9% to approximately RMB 108.3 million, with a gross margin of 17.3%, down 5.1 percentage points year-on-year[32] - Profit for the period decreased by 40.1% from approximately RMB 16.2 million in the first half of 2021 to approximately RMB 9.7 million in the first half of 2022, with a net profit margin decline of 0.8 percentage points to approximately 1.6%[39] - Basic and diluted earnings per share fell by 32.3% to RMB 0.0149 from RMB 0.0220 in the first half of 2021[39] - Total comprehensive income for the period was RMB 12,211 thousand, compared to RMB 15,538 thousand in the previous year, reflecting a decline of 21.5%[72] - The reported profit for the first half of 2022 was RMB 75,280,000, down from RMB 82,455,000 in the first half of 2021, representing a decline of 8.5%[100] Segment Performance - The smart transportation segment faced a significant decrease in new project signings, impacting executable project numbers and overall revenue[14] - The smart transportation segment generated revenue of approximately RMB 114.3 million, down 56.3% from RMB 261.8 million in the same period last year[26] - The smart building and park segment saw a year-on-year revenue increase, driven by participation in key national projects, although profit margins declined due to rising labor costs[15] - The smart building and park segment saw a significant revenue increase of 20.3%, reaching approximately RMB 360.5 million, up from RMB 299.6 million year-on-year[29] - The smart energy segment achieved revenue of approximately RMB 150.3 million, representing a growth of 17.5% compared to RMB 127.8 million in the previous year[30] Cost Management - Sales and distribution expenses were approximately RMB 44.3 million, a decrease of 21.7% compared to RMB 56.5 million in the same period last year[36] - Administrative and other operating expenses decreased by 13.4% to approximately RMB 63.5 million from RMB 73.3 million year-on-year[37] - Employee costs decreased from approximately RMB 113.3 million in the first half of 2021 to approximately RMB 91.6 million in the first half of 2022, with the number of employees reducing from 833 to 789[48] - Financial costs reduced by 35.1% from approximately RMB 3.7 million in the first half of 2021 to approximately RMB 2.4 million in the first half of 2022[38] Investments and Development - The company continues to invest in technology research and development to leverage opportunities in the "new infrastructure" wave, focusing on smart stations and transportation hubs[14] - The company aims to enhance profitability by integrating more technology and engineering solutions in its projects moving forward[18] - The company aims to leverage its core technology and products to empower future development in green smart cities[20] - The company plans to continue expanding its smart energy management solutions and services in the upcoming quarters[94] Assets and Liabilities - Inventory increased by 13.1% from approximately RMB 983.0 million on December 31, 2021, to approximately RMB 1,112.2 million on June 30, 2022[42] - Trade and other receivables rose by 4.6% from approximately RMB 1,456.4 million on December 31, 2021, to approximately RMB 1,523.5 million on June 30, 2022[43] - Cash and cash equivalents amounted to approximately RMB 183.5 million as of June 30, 2022, representing 6.2% of the group's net assets[44] - Trade and other payables amounted to RMB 1,567,903,000 as of June 30, 2022, slightly down from RMB 1,577,167,000 as of December 31, 2021[119] Market Conditions and Future Outlook - The overall operations and project implementation of the group have largely resumed due to the improving COVID-19 control situation in China[131] - The group has been closely monitoring the impact of COVID-19 and has implemented various response measures to mitigate uncertainties[131] - As of the financial statement publication date, the board is not aware of any significant adverse impact on the financial statements due to the COVID-19 outbreak[131] - The group will continue to review its response measures in light of the ongoing developments related to COVID-19[131]

Financial Performance - The company reported a significant increase in revenue, achieving a total of $X million for the fiscal year, representing a Y% growth compared to the previous year[1]. - The total revenue for the year 2021 was RMB 1,619,065,000, a decrease from RMB 1,736,664,000 in 2020, representing a decline of approximately 6.8%[18]. - The gross profit for 2021 was RMB 317,489,000, with a gross margin of 19.6%, compared to RMB 362,654,000 and a gross margin of 20.9% in 2020[18]. - The net profit attributable to shareholders for 2021 was RMB 45,307,000, down from RMB 130,601,000 in 2020, reflecting a decrease of approximately 65.3%[18]. - The company achieved a total revenue of approximately RMB 1,619.1 million in 2021, representing a year-on-year decline of 6.8%[31]. - Net profit for the year was approximately RMB 45.6 million, down 65.6% year-on-year due to rising raw material costs and increased labor expenses[31]. - Gross profit decreased by 12.4% to approximately RMB 317.5 million in 2021, with a gross margin of about 19.6%, down from 20.9% in 2020[41]. - The net profit for the year was approximately RMB 45.6 million, a significant decrease of about 65.6% from RMB 132.5 million in 2020, resulting in a net profit margin of 2.8%[50]. User Growth and Market Expansion - User data showed an increase in active users, reaching Z million, which is a growth of A% year-over-year[2]. - The company is expanding its market presence in Southeast Asia, targeting a market share increase of E% by the end of the next fiscal year[5]. - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[68]. - Market expansion plans include entering three new international markets by the end of 2023, aiming for a 10% market share in each[68]. Product Development and Innovation - New product launches are anticipated to contribute an additional D million in revenue, with a focus on innovative energy-saving technologies[4]. - The company launched the "Kunlun" urban-level operating system and successfully developed key equipment such as the Techcon Neosys IoT controller, enhancing its competitive advantage in smart infrastructure[13]. - The company is focusing on technology innovation around "smart + energy-saving," leveraging IoT, AI, cloud computing, big data, and 5G technologies[13]. - The company is investing G million in R&D for new technologies aimed at improving energy efficiency and sustainability[7]. - New product lines are expected to contribute an additional $30 million in revenue within the first year of launch[68]. Strategic Partnerships and Acquisitions - A strategic partnership has been established with a leading tech firm to enhance service offerings, projected to increase customer engagement by H%[8]. - The company is considering strategic acquisitions to enhance its product portfolio, targeting companies with complementary technologies[68]. - Recent acquisitions are expected to enhance operational capabilities, with an estimated contribution of F million to the overall revenue[6]. Cost Management and Operational Efficiency - The company has implemented cost-saving measures that are expected to reduce operational expenses by I% over the next year[9]. - The company reported a cost-to-revenue ratio of 80.4% in 2021, an increase from 79.1% in 2020, indicating rising costs relative to revenue[18]. - Selling and distribution expenses increased by approximately 15.0% to RMB 103.5 million, accounting for 6.4% of revenue in 2021, compared to 5.2% in 2020[45]. Sustainability and Corporate Governance - The management team emphasized a focus on sustainability initiatives, aiming to reduce carbon emissions by 30% over the next five years[68]. - The company has obtained ISO14001 environmental management system certification from the China Quality Certification Center, indicating its commitment to energy-saving and environmentally friendly products[161]. - The company has complied with all provisions of the corporate governance code as of December 31, 2021, except for a deviation regarding the frequency of board meetings[166]. - The company has maintained high standards of corporate governance, which is deemed essential for enhancing overall performance and accountability[166]. Employee and Board Structure - The total employee cost increased from approximately RMB 192.7 million in 2020 to approximately RMB 224.0 million in 2021, with the number of employees decreasing from 863 to 812[60]. - The board consists of seven male members and one female member, with ages ranging from 36 to 63[179]. - The gender ratio among all employees, including senior management, is 1.9:1, indicating a focus on gender diversity[180]. - The company aims to maintain at least one female director on the board, based on the value and contribution of selected candidates[180]. Financial Agreements and Transactions - The group has established a sales agreement with Tongfang Beijing for the sale of energy-saving products, effective from January 1, 2020, to December 31, 2022[123]. - The procurement agreement established in 2019 allows for a three-year period from January 1, 2020, to December 31, 2022, with annual procurement limits of RMB 200 million, RMB 250 million, and RMB 300 million for the years 2020, 2021, and 2022 respectively[126]. - The group has established business arrangements with Tongfang for smart rail transit, construction, and urban heating network businesses, which include project responsibilities and revenue sharing[133].

Financial Performance - The company achieved a revenue of approximately RMB 689.3 million in the first half of 2021, representing a year-on-year increase of 10.3%[11] - The net profit for the same period was approximately RMB 16.2 million, reflecting a year-on-year growth of 37.8%[11] - The group's revenue for the first half of 2021 increased by 10.3% year-on-year, reaching approximately RMB 689.3 million[20] - The net profit for the first half of 2021 increased by approximately 37.8% to RMB 162 million, compared to RMB 118 million in the same period of 2020[39] - The net profit margin rose from 1.9% to approximately 2.4%, reflecting a combination of increased revenue and changes in expenses[39] - Gross profit for the same period was RMB 154,467,000, up from RMB 143,644,000, indicating a growth of 7.7%[79] - Operating profit increased to RMB 24,338,000, compared to RMB 21,538,000 in the previous year, reflecting a rise of 12.9%[79] - Basic and diluted earnings per share were both RMB 0.0220, compared to RMB 0.0164 in the same period last year, marking a 34.1% increase[79] - The total comprehensive income for the period was RMB 16,532,000, compared to RMB 15,538,000 in the previous year, showing a slight increase[98] Segment Performance - The smart transportation segment saw significant revenue growth despite rising costs due to the pandemic, with key projects like Zhengzhou Metro Line 6 and Wuhan Metro Line 5 progressing well[12] - The smart energy segment's revenue rose by 24.8% year-on-year to approximately RMB 127.8 million, driven by the recovery of project implementation[28] - The smart transportation segment's revenue grew by 34.7% year-on-year to approximately RMB 261.8 million, supported by the acceleration of key projects[24] - The smart building and park segment recorded a revenue decline of 8.7% year-on-year, totaling approximately RMB 299.6 million, due to the completion of major infrastructure projects[27] - The total profit for the reportable segments was RMB 82.455 million in the first half of 2021, compared to RMB 74.315 million in the first half of 2020, marking an increase of about 11%[115] Operational Efficiency - The overall operational situation of the company has improved, indicating a positive outlook for future performance[11] - The company continues to expand its application of Techcon series products across various sectors, including airports and commercial complexes[13] - The company is focused on enhancing its market presence through strategic project implementations and technological advancements[12] - The company aims to enhance its market presence and expand its service offerings in the smart energy sector[107] Expenses and Costs - Sales and distribution expenses rose by 18.3% year-on-year to approximately RMB 56.5 million, accounting for 8.2% of revenue, an increase of 0.5 percentage points[34] - Administrative and other operating expenses increased by 21.8% year-on-year to approximately RMB 73.3 million, primarily due to increased amortization costs from R&D projects[35] - Financial costs decreased by 54.3% year-on-year to approximately RMB 3.7 million, attributed to the absence of one-off interest expenses from previously repaid loans[37] - Other income fell by 24.4% year-on-year to approximately RMB 18.0 million, due to a decrease in government subsidies and interest income from EMC projects[30] Assets and Liabilities - Total assets as of June 30, 2021, were RMB 3,490,352,000, a decrease from RMB 3,672,330,000 at the end of 2020[86] - Current liabilities decreased to RMB 1,724,764,000 from RMB 1,944,637,000 at the end of 2020, showing a reduction of 11.3%[89] - The company's cash and cash equivalents significantly decreased to RMB 149,953,000 from RMB 587,889,000, indicating a decline of 74.5%[86] - The company’s equity attributable to shareholders increased to RMB 2,894,023,000 from RMB 2,877,491,000, reflecting a growth of 0.6%[89] - Trade and other receivables rose by 9.9% from RMB 1,366.9 million to RMB 1,502.6 million, attributed to longer acceptance and settlement cycles for major infrastructure projects[43] Shareholder Information - Major shareholders include Tongfang Co., Ltd. with 92,000,000 shares (11.76%) and Resuccess Investments Limited with 194,330,142 shares (24.84%) as of June 30, 2021[65] - The board of directors did not recommend any interim dividend for the six months ending June 30, 2021[60] - The company has not declared any interim dividends for the six months ended June 30, 2021, and June 30, 2020[139] COVID-19 Impact - The COVID-19 pandemic has introduced additional uncertainty to the global business environment, but the company's overall operations and project implementations have largely resumed due to improving conditions in China[148] - The company is continuously monitoring the impact of COVID-19 and has implemented emergency measures to oversee the operational environment of its customers and suppliers[148]

Infrastructure Projects and Innovations - The company reported significant involvement in key infrastructure projects, including the Beijing New Airport integrated corridor and the Zhuhai Hengqin Port project, contributing to national and regional development[10] - The company successfully completed the energy management contract for the Beijing Metro Line 15 energy-saving renovation project, showcasing its capabilities in energy efficiency solutions[10] - The Techcon Neosys platform facilitated the rapid development of two new products, demonstrating the company's commitment to innovation and product diversification[10] - The company reported a strong focus on integrating new technologies such as 5G, AI, and big data into its infrastructure services, enhancing its competitive edge[10] - The company emphasized its role in the "new infrastructure" initiative, aligning its services with national development strategies[10] - The company achieved successful project acceptance for multiple key projects within the year, reflecting its operational efficiency and project management capabilities[10] - The company is committed to providing smart, safe, and green solutions through its integrated service capabilities from design to operation[10] Financial Performance - The company achieved a total revenue of approximately RMB 1,736.7 million in 2020, a year-on-year decrease of 0.9%[16] - The net profit for the year was approximately RMB 132.5 million, representing a year-on-year increase of 16.8%[16] - The gross profit margin improved, with a cost-to-revenue ratio of 79.1% in 2020, compared to 80.0% in 2019[13] - The basic earnings per share for 2020 was RMB 0.1670, compared to RMB 0.1443 in 2019[13] - The company's net revenue for 2020 was approximately RMB 1,736.7 million, a slight decrease of 0.9% year-on-year[27] - The smart transportation segment generated revenue of approximately RMB 574.4 million, an increase of 9.8% from RMB 523.1 million in 2019[32] - The smart building and park segment reported revenue of approximately RMB 788.6 million, a modest increase of 1.6% from RMB 776.3 million in 2019[33] - The smart energy segment's revenue decreased by approximately 17.6% to RMB 373.6 million from RMB 453.4 million in 2019[34] - Profit for the year increased by approximately 16.8% from about RMB 113.4 million in 2019 to approximately RMB 132.5 million in 2020, with a net profit margin rising from 6.5% to 7.6%[45] Operational Resilience and Pandemic Response - The company maintained production and project implementation despite the pandemic, ensuring all domestic and international production orders were fulfilled on time[10] - The company adopted strict pandemic prevention measures, including online work support and regular disinfection of office spaces, to safeguard employee health and operational continuity[10] - The company implemented a dual-shift system to maintain production levels during the pandemic, ensuring worker safety while meeting project deadlines[10] - New projects completed during the year included multiple metro lines in China and the Lahore Orange Line in Pakistan, demonstrating resilience despite the pandemic[18] Cost Management and Expenses - The sales cost decreased by approximately 2.0% to RMB 1,374.0 million in 2020, attributed to a combination of revenue decline and cost control measures[35] - Gross profit increased by 3.3% from approximately RMB 351.1 million in 2019 to approximately RMB 362.7 million in 2020, with a gross margin of 20.9%, up 0.9 percentage points from 20.0% in the previous year[36] - Other income decreased by approximately 14.7% from about RMB 56.5 million in 2019 to approximately RMB 48.2 million in 2020, primarily due to a reduction in government subsidies received[38] - Selling and distribution expenses were approximately RMB 90.0 million in 2020, a decrease of about 4.7% compared to 2019, with the expense ratio to revenue improving from 5.4% to 5.2%[40] - Administrative and other operating expenses increased by 3.0% from approximately RMB 125.4 million in 2019 to about RMB 129.2 million in 2020, influenced by a RMB 12.9 million increase in fixed asset impairment in the smart energy segment[41] Shareholder and Governance Matters - The company did not declare any dividends for the fiscal year ending December 31, 2020, nor did the board recommend any final dividends for that year[88] - The company has established service contracts for all directors, ensuring a structured approach to appointments and re-elections at annual general meetings[181] - The company has engaged KPMG LLP as its registered auditor for the year ended December 31, 2020, with no changes in auditors over the past three fiscal years[149] - The board held a total of 2 meetings during the year, with all executive directors attending both meetings, demonstrating strong engagement in corporate governance[177] - Independent non-executive directors play a crucial role in providing unbiased opinions on the company's strategy and performance, ensuring shareholder interests are protected[173] Related Party Transactions - The group sold products to Tongfang Group amounting to approximately RMB 245.5 million, within the approved limit of RMB 250 million[118] - The group purchased raw materials from Tongfang Group totaling approximately RMB 87.2 million, which is within the approved limit of RMB 200 million for the fiscal year ending December 31, 2020[122] - The group provided miscellaneous products and services to Tongfang Group amounting to approximately RMB 28.9 million, compliant with the approved limit of RMB 50 million for the fiscal year ending December 31, 2020[127] - The independent non-executive directors have reviewed the ongoing related party transactions and confirmed they are conducted on normal commercial terms[133] - The auditor has issued an unqualified opinion on the group's ongoing related party transactions, confirming compliance with relevant regulations[133] Risk Management and Compliance - The company has a comprehensive risk management system in place to address various factors that may affect its performance and operations[153] - The risk management committee is responsible for evaluating the company's risk management strategies and systems, ensuring an annual review of the effectiveness of these systems[197] - The Risk Management Committee assessed and reviewed the effectiveness of the group's risk management system, which was deemed effective and sufficient[198] - The company has adhered to all provisions of the corporate governance code throughout the year ended December 31, 2020, except for a deviation regarding the frequency of board meetings[161] Employee Development and Training - The company regularly reviews its compensation policies and remuneration packages based on employee performance, experience, and current industry practices[54] - The company provides regular training for employees to keep them updated on product, technology developments, and market conditions[54] - The company has implemented a continuous professional development program for directors, enhancing their skills and knowledge relevant to their roles[170]

Financial Performance - The company reported a revenue of approximately RMB 624.8 million for the first half of 2020, representing a year-on-year decline of 6.2%[14] - Net profit for the same period was approximately RMB 11.8 million, down 69.1% year-on-year[14] - Overall group revenue declined by 6.2% year-on-year, recording a net income of approximately RMB 624.8 million for the first half of 2020 compared to RMB 665.9 million in the same period of 2019[24] - Operating profit decreased significantly to RMB 21,538,000 from RMB 47,329,000, indicating a decline of 54.5% year-over-year[74] - Net profit for the period was RMB 11,779,000, compared to RMB 38,107,000 in the previous year, representing a decrease of 69.0%[74] - Basic and diluted earnings per share were both RMB 0.0164, down from RMB 0.0495 in the same period last year[74] - Gross profit decreased by 5.6% year-on-year, from approximately RMB 152.2 million in the first half of 2019 to about RMB 143.6 million in the first half of 2020, maintaining a gross margin of approximately 23.0%[33] - The total profit for the reportable segments was RMB 74,315,000, a decline of 31.9% from RMB 109,124,000 in 2019[121] Segment Performance - The smart transportation segment experienced a decline in revenue due to project delays caused by the pandemic, but profit margins improved due to accelerated promotion of the core software control platform[15] - The smart building and park segment achieved revenue and profit growth during the pandemic, successfully advancing key projects such as the Chengdu Tianfu International Airport comprehensive utility tunnel project[17] - The revenue for the smart energy segment decreased significantly by 34.1% year-on-year, from approximately RMB 155.4 million in the first half of 2019 to about RMB 102.4 million in the first half of 2020[31] - The smart transportation segment's revenue fell by 15.7% year-on-year, from approximately RMB 230.6 million in the first half of 2019 to about RMB 194.4 million in the first half of 2020[29] - The smart building and park segment experienced a revenue growth of 17.2%, increasing from approximately RMB 279.9 million in the first half of 2019 to about RMB 328.0 million in the first half of 2020[30] Costs and Expenses - Sales cost decreased by approximately 6.3% year-on-year, from about RMB 513.6 million in the first half of 2019 to approximately RMB 481.2 million in the first half of 2020[32] - Administrative and other operating expenses increased by 11.4% year-on-year, from approximately RMB 87.4 million in the first half of 2019 to about RMB 97.4 million in the first half of 2020, primarily due to increased impairment losses on long-aged receivables[37] - Financial costs for the first half of 2020 were approximately RMB 8.1 million, an increase from RMB 6.9 million in the same period of 2019[38] - Other income fell by approximately 12.5% year-on-year, from about RMB 27.2 million in the first half of 2019 to approximately RMB 23.8 million in the first half of 2020, mainly due to reduced interest income and government subsidies[35] Assets and Liabilities - Total assets as of June 30, 2020, were RMB 3,457,940,000, a decrease from RMB 3,807,569,000 at the end of 2019[82] - Current liabilities decreased to RMB 1,822,444,000 from RMB 2,116,512,000, reflecting a reduction of 13.9%[82] - Non-current liabilities as of June 30, 2020, amounted to RMB 41,677 thousand, an increase of 8.0% from RMB 38,534 thousand as of December 31, 2019[85] - Trade payables totaled RMB 1,355,986,000 as of June 30, 2020, down from RMB 1,521,765,000 as of December 31, 2019, representing a decrease of about 11%[142] Cash Flow and Investments - The net cash used in operating activities for the six months ended June 30, 2020, was RMB (247,637) thousand, a decrease of 39.3% compared to RMB (407,909) thousand for the same period in 2019[106] - Cash and cash equivalents were approximately RMB 262.7 million as of June 30, 2020, accounting for 9.4% of the group's net assets, down from RMB 657.8 million at the end of 2019[45] - The company acquired property, plant, and equipment at a cost of RMB 23,554,000 for the six months ended June 30, 2020, which is an increase of approximately 141% compared to RMB 9,757,000 for the same period in 2019[137] Shareholder Information - Major shareholder Tongfang Co., Ltd. held approximately 92,000,000 shares, representing 11.76% of the company's issued share capital[63] - Resuccess Investments Limited, a beneficial owner, held approximately 194,330,142 shares, representing 24.84% of the company's issued share capital[63] - The company did not recommend any interim dividend for the six months ended June 30, 2020[55] - The company reported a total of 782,192,189 ordinary shares issued and fully paid as of June 30, 2020, unchanged from December 31, 2019[144] Future Outlook and Developments - The company has not provided specific guidance for future performance or new product developments in the current report[70] - The company initiated the planning of the "Kunlun Digital Platform" to integrate building intelligence technology and energy-saving applications, with pilot applications already underway[18] - The company is developing a new smart heating information management system V4.0, integrating big data and AI technologies to enhance urban heating management[23] Internal Controls and Governance - The company’s audit committee discussed internal controls and financial reporting matters for the six months ended June 30, 2020[53] - The external auditor reviewed the interim financial information for the six months ended June 30, 2020, in accordance with the relevant standards[53] - The company has recognized certain subsidiaries in China as high-tech enterprises, qualifying for a preferential tax rate of 15% until December 2022[134]

Financial Performance - The company faced challenges in 2019, with revenue and profit declining due to macroeconomic constraints[12]. - The group achieved a total revenue of approximately RMB 1.753 billion in 2019, representing a year-on-year decline of 13.9%[20]. - The net profit for the year was approximately RMB 113 million, a significant decrease of 56.6% compared to the previous year[20]. - The smart transportation segment generated revenue of approximately RMB 523.1 million, down 25.6% from RMB 702.8 million in 2018[37]. - The smart building and park segment's revenue slightly decreased by 2.4% to approximately RMB 776.3 million from 795.7 million in 2018[38]. - The smart energy segment's revenue fell by 15.7% to approximately RMB 453.4 million from RMB 538.1 million in 2018[34]. - The overall market environment has posed challenges, leading to delayed project settlements and reduced revenue across various segments[32]. - Gross profit fell by 26.2% from approximately RMB 476.0 million in 2018 to about RMB 351.1 million in 2019, with the gross margin decreasing by 3.4 percentage points to approximately 20.0%[41]. - Net profit decreased by approximately 56.6% from about RMB 261.3 million in 2018 to approximately RMB 113.4 million in 2019, with a net profit margin decline of 6.3 percentage points to about 6.5%[49]. - The basic earnings per share fell by 56.8% to RMB 0.1443 in 2019, down from RMB 0.3338 in 2018[52]. Business Development and Innovation - The group launched five self-developed software and hardware products in May, including the ezNCC2.0 software platform for rail transit command centers, which has been applied in major cities[12]. - The introduction of the Techcon Neosys next-generation IoT edge computing controller at the end of the year aims to enhance user information security and provide solutions across various application scenarios[12]. - The company emphasizes a commitment to "Intelligent + Energy Saving" as its core business development line, focusing on technology-driven growth[12]. - The company aims to explore new development paths under the AI+ industry trend, leveraging its core technologies and industry experience[12]. - The group is focusing on research and development to drive cross-disciplinary innovations and enhance operational efficiency in urban development[15]. - The group has maintained a strong focus on R&D investment to ensure continuous innovation in its software and hardware products[12]. Project Contracts and Market Presence - The group has successfully signed contracts for projects in Suzhou, reflecting the dual promotion mechanism of technology innovation driving business development[12]. - The group signed contracts for several key projects, including the Xuzhou Metro Line 3 and the Wuhan Metro Line 5, enhancing its presence in the market[23]. - The company signed multiple significant projects in 2019, including the Zhuhai Hengqin Port and the National Swimming Center renovation for the Winter Olympics, enhancing its market presence[27]. Challenges and Responses - The group has taken emergency measures to mitigate the negative impacts of the COVID-19 pandemic on employee health and business operations[12]. - The company believes it will overcome the challenges posed by the COVID-19 pandemic and return to normal operations[12]. - The smart transportation segment faced challenges, with a noticeable decline in revenue and profit margins due to economic pressures and intensified competition[23]. - The company is committed to quality control and project management to navigate the challenging economic environment[22]. Employee and Governance - The total employee count increased to 905 as of December 31, 2019, up from 862 in the previous year[59]. - Total employee costs rose from approximately RMB 163.9 million in 2018 to approximately RMB 196.2 million in 2019[59]. - The company has appointed Mr. Qin Xuzhong as a member of the Remuneration Committee and Nomination Committee, restoring the number of members to three as of March 26, 2020[172]. - The board consists of three independent non-executive directors, with two possessing relevant professional qualifications in accounting or finance[182]. - The company has implemented a board diversity policy since August 2013, ensuring a balanced mix of skills and experiences among board members[183]. Financial Management and Compliance - The company has confirmed compliance with non-competition agreements made by its controlling shareholders[146]. - The company has adhered to all provisions of the Corporate Governance Code as of December 31, 2019, except for a deviation regarding the frequency of board meetings[172]. - The audit committee reviewed the financial statements for the six months ended June 30, 2019, and the year ended December 31, 2019, ensuring compliance with applicable accounting standards[195]. - The company has received ISO14001 environmental management system certification, ensuring compliance with international environmental standards[166]. Shareholder Information - The company has a total of 8,728,000 shares owned by Mr. Zhao Xiaobo, representing approximately 1.12% of the total issued share capital as of December 31, 2019[110]. - The major shareholder, Tongfang Co., Ltd., holds 92,000,000 shares, representing approximately 11.76% of the issued share capital[122]. - Resuccess Investments Limited, a major shareholder, holds 194,330,142 shares, representing approximately 24.84% of the issued share capital[122]. - The company has maintained a public float of at least 25% of its issued shares as required by listing rules[160].