Financial Performance - The group reported stable revenue growth for the fiscal year ending December 31, 2024, demonstrating strong operational performance and effective cost control[12]. - The company recorded a revenue of approximately RMB 122.3 million for the year, an increase of about 28.9% compared to RMB 94.9 million in 2023[22]. - Revenue increased by approximately 28.9% from RMB 94.9 million in 2023 to approximately RMB 122.3 million, driven by a 58.4% increase in the automatic meter reading and other business segments[26]. - The automatic meter reading and related business segment generated revenue of approximately RMB 67.1 million, up 58.4% from RMB 42.3 million in 2023, accounting for 54.8% of total revenue[22]. - The gross profit rose from RMB 15.6 million in 2023 to approximately RMB 37.1 million, representing an increase of about 138.3%[28]. - The gross margin improved from approximately 16.4% in 2023 to about 30.3% in the review year, mainly due to an increase in the gross margin of the automatic meter reading segment[28]. - The group recorded a loss attributable to equity shareholders reduced from RMB 138.5 million in 2023 to approximately RMB 73.5 million in the review year, primarily due to the absence of one-time impairments in financial and contract assets[23]. - The company recorded a loss attributable to equity shareholders of approximately RMB 73.5 million for the review year, compared to a loss of RMB 138.5 million in 2023[40]. Market Demand and Growth - The demand for communication modules is expected to rise due to the anticipated steady growth in the national grid's smart meter procurement[12]. - The national grid's push for new technology standards and the promotion of next-generation smart meters are expected to drive market growth[12]. - The demand for broadband dual-mode communication modules from the State Grid is estimated to be around 89 million units in 2024, while the Southern Grid's demand exceeds 10 million units, remaining stable compared to the same period in 2023[17]. - The State Grid plans to procure over 80 million broadband dual-mode communication modules in 2025, with three public bidding rounds scheduled[18]. - The company anticipates steady growth in demand for smart meters and communication modules due to the ongoing development of a new energy-based power system[54]. - The investment in the distribution network during the "14th Five-Year Plan" is expected to exceed RMB 1.2 trillion, accounting for over 60% of the total investment in power grid construction[55]. - The industrial automation market in China is expected to continue healthy growth due to low penetration rates and rising labor costs, particularly in the petrochemical sector[56]. - The wind power operation and maintenance market in China is projected to see significant demand as many wind turbines exit their warranty periods, with total spending on wind power operation and maintenance services reaching USD 16 billion from 2015 to 2022[58]. Strategic Initiatives and Acquisitions - The group actively expanded its market presence in smart city lighting, smart air conditioning, and integrated energy management systems[13]. - The acquisition of Zhongyi (BVI) International Limited has enabled the group to enter the wind farm operation and maintenance business, enhancing its competitive edge[13]. - The company has completed the acquisition of Zhongyi (BVI) International Limited, expanding its operations into wind farm maintenance services[19]. - The company plans to contribute approximately RMB 25.4 million from the wind farm operation and maintenance business starting March 2024, which will account for about 20.8% of total revenue[23]. - The company is focusing on broadband dual-mode communication technology for electricity information collection systems and low-voltage distribution networks, aiming to enhance competitiveness in domestic markets[55]. - The company is expanding its wind power operation and maintenance services, including maintenance and replacement projects, as existing contracts' warranty periods will expire between 2026 and 2029[59]. Research and Development - Research and development expenses increased by approximately 10.8% to RMB 22.6 million, primarily due to costs associated with the new broadband dual-mode products[34]. - The company aims to enhance its capabilities in power line carrier communication technology and R&D to improve the functionality and features of its automatic meter reading products[96]. - The company aims to leverage its R&D resources and collaborate with external firms to develop proprietary smart factory applications and integrate big data platforms, enhancing core competitiveness[58]. Corporate Governance and Leadership - The group aims to maintain a lean cost strategy to mitigate future risks and pressures while enhancing corporate governance[14]. - The company is focused on expanding its market presence and enhancing its product offerings through strategic appointments in the board[67]. - The board includes members with diverse backgrounds in law, finance, and management, contributing to a well-rounded governance structure[70]. - The company has established a strong leadership team with a mix of experience in various sectors, positioning itself for future growth[71]. - The board has established the company's purpose, values, and strategies, promoting a complementary culture within the group[162]. - The company has received annual confirmations of independence from all independent non-executive directors, affirming their compliance with independence guidelines[178]. - The company has adopted a board diversity policy, aiming to enhance the diversity of the board as a key factor in maintaining competitive advantage[192]. Employee and Training Initiatives - The company has maintained a stable core management team and is committed to employee training and development[92]. - The company provides regular and onboarding training to employees, emphasizing continuous skill development through R&D capabilities[154]. - Employee costs, including director remuneration, amounted to RMB 41.9 million for the year, compared to RMB 36.2 million in 2023, reflecting an increase of approximately 20.8%[154]. Financial Position and Liabilities - As of December 31, 2024, the company's current assets were approximately RMB 108.1 million, down from RMB 152.5 million on December 31, 2023[41]. - The total interest-bearing liabilities amounted to RMB 247.1 million as of December 31, 2024, an increase from RMB 194.0 million on December 31, 2023[42]. - The net debt-to-equity ratio was approximately -208% as of December 31, 2024, compared to -458% on December 31, 2023[42]. - The company has no capital commitments as of December 31, 2024, compared to RMB 1.83 million on December 31, 2023[45]. - The company has no contingent liabilities as of December 31, 2024, consistent with the previous year[46]. Share Capital and Dividends - The company has issued a total share capital of approximately HKD 255,729, with 255,728,860 ordinary shares at a par value of HKD 0.001 each as of December 31, 2024[88]. - The company has not issued any debentures during the review period[89]. - The company has adopted a dividend policy intending to distribute at least 30% of the profit attributable to equity shareholders as dividends, subject to financial conditions[99]. - No final dividend has been recommended for the review year[103]. - As of December 31, 2024, the company's distributable reserves, including share premium and accumulated losses, are zero[104]. Compliance and Regulatory Matters - The audit committee has reviewed the financial performance for the year, ensuring compliance with accounting principles and standards[158]. - The financial statements for the year ended December 31, 2024, were audited by Shinewing (HK) CPA Limited, which was appointed to fill a vacancy after the resignation of another firm[159]. - The company has complied with listing rules regarding the appointment of at least three independent non-executive directors, representing one-third of the board[174]. - The company has not disclosed any changes in director information that require disclosure under the listing rules[106]. - No related party transactions were reported that would constitute continuous connected transactions during the review year[138].

Revenue Performance - Revenue for the year reached approximately RMB 122.3 million, an increase of about 28.9% compared to RMB 94.9 million in 2023[3] - Revenue from automatic meter reading and other business segments increased by approximately 58% to about RMB 67.1 million, up from RMB 42.3 million in 2023[3] - Revenue from smart manufacturing and industrial automation decreased by approximately 43% to about RMB 29.8 million, down from RMB 52.5 million in 2023[3] - The revenue from wind farm maintenance was approximately RMB 25.4 million for the year[3] - The total revenue for 2024 is RMB 122,298,000, compared to RMB 94,868,000 in 2023, representing a year-over-year increase of approximately 29%[21] - The revenue from the power line carrier communication module reached RMB 30,755,000 in 2024, a significant increase from RMB 11,167,000 in 2023, marking an increase of about 175%[21] - The revenue from smart manufacturing and industrial automation software licensing was RMB 23,749,000 in 2024, down from RMB 36,023,000 in 2023, indicating a decrease of approximately 34%[21] - The total revenue from the automatic meter reading and other businesses was RMB 67,075,000 in 2024, up from RMB 42,337,000 in 2023, reflecting an increase of approximately 58%[21] - The revenue from wind farm maintenance services was RMB 25,384,000 in 2024, with no revenue reported for 2023, indicating a new revenue stream[21] Financial Losses and Improvements - The net loss attributable to equity shareholders for the year was approximately RMB 73.5 million, compared to a net loss of RMB 138.5 million in 2023[3] - Basic loss per share for the year was approximately RMB 28.76, improved from RMB 62.65 in 2023[3] - The total comprehensive loss for the year ended December 31, 2024, was RMB 76,813,000, compared to RMB 146,571,000 in 2023, indicating a 47.6% improvement[6] - The net loss attributable to the company's shareholders for 2024 was RMB 73,543,000, a decrease from RMB 143,648,000 in 2023, reflecting a 48.7% reduction[6] - The company reported a total loss before tax of RMB 72,235 for the fiscal year 2024, compared to a loss of RMB 120,436 in 2023, indicating an improvement[27] - The annual loss for the group was RMB 73,543,000 for 2024, compared to RMB 138,514,000 for 2023, indicating a significant reduction in losses[35] Assets and Liabilities - The company's total assets as of December 31, 2024, amounted to RMB 236,573,000, down from RMB 250,488,000 in 2023, representing a 5.5% decline[7] - The total liabilities decreased from RMB 111,346,000 in 2023 to RMB 105,701,000 in 2024, showing a 5.9% reduction[7] - The company's cash and cash equivalents decreased from RMB 35,919,000 in 2023 to RMB 15,183,000 in 2024, a decline of 57.8%[7] - As of December 31, 2024, the company's current liabilities net amount was approximately RMB 181,005,000, and total liabilities net amount was approximately RMB 111,346,000[13] - The total amount of current liabilities was RMB 289,134,000, an increase from RMB 170,399,000 in 2023, representing a growth of 69.5%[13] - The total amount of non-current liabilities decreased from RMB 114,622,000 in 2023 to RMB 58,785,000 in 2024, a reduction of 48.7%[13] - The total interest-bearing liabilities amounted to RMB 247.1 million as of December 31, 2024, compared to RMB 194.0 million as of December 31, 2023, with a net debt-to-equity ratio of approximately -208%[76] Operational Strategies and Challenges - The company has implemented cost control measures and timely collection of receivables to generate sufficient operating cash flow[13] - The board believes that the company will have adequate financial resources to meet its operational funding needs for the next twelve months[14] - The company continues to face significant uncertainty regarding its ability to execute its plans and measures[15] - The group is actively negotiating with lenders to extend the maturity of other borrowings, including RMB 146 million that does not need to be repaid within the next 12 months[17] - The group is exploring potential asset sale opportunities to generate liquidity, including repayment of borrowings[17] - The company is focusing on maintaining its operational plans to ensure business continuity despite the financial challenges[14] Segment Performance - The company has three reportable segments: automatic meter reading and other businesses, smart manufacturing and industrial automation, and wind farm maintenance services[23] - The reported performance for the Smart Manufacturing and Industrial Automation segment showed a loss of RMB 10,133, while the Automatic Meter Reading and Other Businesses segment incurred a loss of RMB 47,526[26] - The smart manufacturing and industrial automation business segment recorded revenue of approximately RMB 29.8 million, a decrease of about 43.2% from RMB 52.5 million in 2023, accounting for approximately 24.4% of the group's total revenue[56] - The Automatic Meter Reading and Other Businesses segment reported revenue of RMB 29,839 for the fiscal year 2024, showing growth from the previous year[26] Research and Development - Research and development expenses amounted to RMB 22,613,000 in 2024, up from RMB 20,406,000 in 2023, reflecting a year-over-year increase of approximately 10.8%[32] - The company’s intangible asset amortization for 2024 was RMB 7,483, compared to RMB 12,569 in 2023, indicating a reduction in amortization expenses[26] - The company has a substantial intellectual property portfolio, including 23 patents, 137 software copyrights, and 9 registered integrated circuit layout designs[59] - The group plans to leverage its proprietary technology and intellectual property to capture opportunities in industrial automation systems, particularly in the oil and petrochemical industries[93] Employee and Governance - The group had a total of 56 employees, a decrease from 155 employees as of December 31, 2023[109] - Employee costs, including director remuneration, amounted to approximately RMB 41.9 million for the review year, compared to approximately RMB 36.2 million in 2023, reflecting an increase of about 20.5%[109] - The group is committed to providing regular and onboarding training for employees to enhance their skills and capabilities[110] - The group has implemented a stock option plan to incentivize qualified participants, including employees, contributing to the group's business achievements[110] - The company has adhered to all applicable corporate governance code provisions during the review year[98] Future Outlook and Market Trends - The demand for broadband dual-mode communication modules is projected to be around 89 million units for the State Grid in 2024, maintaining a similar demand level compared to 2023[46] - The Southern Power Grid's demand for broadband communication modules is expected to exceed 10 million units in 2024, consistent with the previous year's demand[46] - The company aims to expand its broadband dual-mode communication products into more provincial markets, enhancing competitiveness in the domestic market[89] - The new generation of smart meters is expected to see steady growth in demand, driven by the construction of a new energy-based power system[86] - The market for power line carrier communication technology is projected to maintain a positive growth trend, particularly in the oil and petrochemical sectors[91] - The industrial automation market in China is anticipated to continue healthy growth due to low penetration rates and rising labor costs[92]

Revenue Performance - Revenue for the year reached approximately RMB 122.3 million, an increase of about 28.9% compared to RMB 94.9 million in 2023[3] - Revenue from automatic meter reading and other business segments increased by approximately 58% to about RMB 67.1 million, up from RMB 42.3 million in 2023[3] - Revenue from smart manufacturing and industrial automation decreased by approximately 43% to about RMB 29.8 million, down from RMB 52.5 million in 2023[3] - The revenue from wind farm maintenance was approximately RMB 25.4 million for the year[3] - The total revenue for 2024 is RMB 122,298,000, compared to RMB 94,868,000 in 2023, representing a year-over-year increase of approximately 29%[21] - The total revenue from the automatic meter reading and other businesses segment is RMB 67,075,000 in 2024, up from RMB 42,337,000 in 2023, reflecting an increase of approximately 58%[21] - The revenue from wind farm maintenance services is RMB 25,384,000 in 2024, with no revenue reported in 2023, indicating the establishment of this service line[21] - The revenue from power line carrier communication modules increased significantly to RMB 30,755,000 in 2024 from RMB 11,167,000 in 2023, marking an increase of approximately 175%[21] - The revenue from power line carrier chips decreased to RMB 4,443,000 in 2024 from RMB 7,977,000 in 2023, a decline of about 44%[21] - The revenue from smart manufacturing and industrial automation software licensing decreased to RMB 23,749,000 in 2024 from RMB 36,023,000 in 2023, a decline of about 34%[21] Financial Losses and Equity - The net loss attributable to equity shareholders for the year was approximately RMB 73.5 million, compared to a net loss of RMB 138.5 million in 2023[3] - Basic loss per share for the year was approximately RMB 28.76, compared to RMB 62.65 in 2023[3] - The company reported a total comprehensive loss of RMB 76,813,000 for the year ended December 31, 2024, compared to a loss of RMB 146,571,000 in 2023, indicating a 47.6% improvement year-over-year[6] - The basic and diluted loss per share for the year was RMB 28.76, a decrease from RMB 62.65 in 2023, reflecting a 54.3% reduction in losses per share[6] - The company recorded a loss of RMB 73,543,000 attributable to owners in 2024, down from RMB 143,648,000 in 2023, marking a 48.8% improvement[6] - The group reported a significant increase in revenue from the Automatic Meter Reading segment, rising from RMB 42,337,000 in 2023 to RMB 29,839,000 in 2024[26] - The company recorded a loss attributable to equity shareholders of approximately RMB 73.5 million for the review year, compared to a loss of approximately RMB 138.5 million in the same period of 2023[73] Assets and Liabilities - Total assets decreased to RMB 236,573,000 in 2024 from RMB 250,488,000 in 2023, representing a decline of 5.5%[7] - Current assets decreased significantly from RMB 152,513,000 in 2023 to RMB 108,129,000 in 2024, a decline of 29.1%[7] - The company’s cash and cash equivalents decreased from RMB 35,919,000 in 2023 to RMB 15,183,000 in 2024, a drop of 57.8%[7] - The total equity attributable to the owners of the company was RMB 111,346,000 in 2024, compared to RMB 34,533,000 in 2023, indicating a significant increase in equity[7] - The company’s total liabilities decreased from RMB 105,701,000 in 2023 to RMB 105,923,000 in 2024, reflecting a slight increase of 0.2%[7] - The total amount of current liabilities increased from RMB 170,399,000 in 2023 to RMB 289,134,000 in 2024, representing a growth of 69.5%[8] - The company's total debt decreased from RMB 114,622,000 in 2023 to RMB 58,785,000 in 2024, a reduction of 48.7%[8] - The company’s goodwill remained unchanged at RMB 12,000,000, indicating stability in intangible assets[7] Operational Strategies and Future Outlook - The company has implemented cost control measures and timely collection of receivables to improve cash flow[14] - The board believes that the company will have sufficient financial resources to meet its operational funding needs for the next twelve months[14] - The company continues to face significant uncertainty regarding its ability to execute its plans and measures[15] - The group is actively negotiating with lenders to extend the maturity of other borrowings, including RMB 1,460,000,000 that does not need to be repaid within the next 12 months[17] - The group is exploring potential asset sale opportunities to generate liquidity, including repayment of borrowings[17] - The company is focused on expanding its services in energy management and renewable energy solutions, particularly in wind farm operations[26] - The company aims to expand its broadband dual-mode communication products in domestic markets, focusing on smart distribution and energy management applications[89] - The group plans to leverage its proprietary technology and intellectual property to capture opportunities in industrial automation systems, particularly in the oil and petrochemical industries[93] Employee and Governance - The company has implemented a stock option plan to incentivize qualified participants, including employees, contributing to the group's business achievements[110] - The group provides regular and onboarding training to employees, emphasizing continuous skill development[110] - The company is committed to maintaining competitive compensation packages for all employees based on individual performance and current market salary levels[109] - The audit committee has reviewed the group's financial performance for the review year, ensuring compliance with accounting principles and regulations[112] - The independent auditor confirmed that the financial statements for the year ending December 31, 2024, were consistent with the amounts audited[114] - The company has adhered to all applicable corporate governance code provisions during the review year[98] Market Trends and Opportunities - The demand for broadband dual-mode communication modules is expected to reach approximately 89 million units for the State Grid in 2024, maintaining a steady demand compared to 2023[46] - The Southern Power Grid's demand for broadband communication modules in low-voltage collection systems is projected to exceed 10 million units, consistent with the previous year's demand[46] - The company is actively participating in the digital transformation of the power grid, enhancing smart transmission and distribution capabilities[45] - The market for power line carrier communication technology is expected to maintain a positive growth trend, driven by government support for smart grid and smart city initiatives[91] - The industrial automation market in China is projected to continue healthy growth due to low penetration rates and rising labor costs[92] - The maintenance service expenditure for China's wind power operation and maintenance market reached approximately $16 billion from 2015 to 2022[94] - The demand for maintenance services is expected to increase significantly as many wind turbines exit their warranty periods, creating a substantial maintenance market[95]

Market Demand and Technology - The number of tenders for the power data collection system is approximately 46.5 million, representing a year-on-year increase of about 75.5% compared to the same period in 2023[11]. - The projected demand for broadband dual-mode communication modules from the State Grid in 2024 is expected to exceed 80 million units[11]. - The implementation of the dual-mode technology (HPLC+HRF) is set to meet the new power system's communication performance requirements, with all tenders for the power data collection system in the next three years being for broadband dual-mode communication technology products[11]. - The demand for broadband dual-mode communication technology is expected to grow significantly as the Southern Power Grid accelerates its digital transformation[11]. - The broadband power line carrier communication technology has been widely applied in various fields, including distribution automation and smart grids, enhancing the performance requirements for communication speed and data capacity[11]. Financial Performance - The group's revenue for the period was approximately RMB 41.4 million, an increase of about 18.1% compared to RMB 35.1 million in the same period of 2023[16]. - The automatic meter reading and other business segment recorded revenue of approximately RMB 18.3 million, up approximately 130.4% from RMB 7.9 million in the same period of 2023, accounting for about 44.1% of total revenue[16]. - The smart manufacturing and industrial automation segment reported revenue of approximately RMB 14.4 million, a decrease of about 46.9% from RMB 27.2 million in the same period of 2023, accounting for about 34.8% of total revenue[17]. - The wind farm maintenance business segment generated revenue of approximately RMB 8.8 million, accounting for about 21.1% of total revenue, with long-term maintenance service contracts signed with six wind farm owners totaling approximately RMB 1,293 million[18]. - The group recorded a loss attributable to owners of approximately RMB 24.7 million, down from RMB 32.9 million in the same period of 2023, mainly due to increased gross profit from the automatic meter reading business and contributions from the wind farm maintenance business[18]. Research and Development - The group has developed proprietary integrated circuit design and advanced power line carrier communication technology for automatic meter reading systems[16]. - Research and development team expanded to 53 employees as of June 30, 2024, up from 48 employees in 2023, representing about 34% of total staff[21]. - The company established a significant intellectual property portfolio, including 20 patents and 129 software copyrights[21]. - The company aims to enhance its expertise in integrated solutions for smart factories in oil refining and pipeline construction, leveraging its technology and intellectual property[43]. Cost Management and Financial Strategy - The group has maintained a lean cost strategy to reduce operating expenses, particularly in administrative and R&D personnel costs[18]. - Financing costs decreased by approximately 53.7% from RMB 9.6 million in 2023 to RMB 4.5 million in the current period[27]. - The company is implementing cost control measures and timely collection of receivables to improve cash flow and meet current and future obligations[87]. - The company plans to raise new funds through equity financing to support its operations and financial obligations[87]. Corporate Governance and Shareholder Information - The company’s board is committed to maintaining a robust and transparent corporate governance framework and has complied with the corporate governance code[56]. - Major shareholders include SB Asia Investment Fund II L.P. and Cisco System, Inc., each holding approximately 6.96% of the issued share capital[46]. - The company’s executive director, Ding Zhigang, holds 34,070,092 shares, representing 13.32% of the total issued shares[44]. - The company’s major shareholder, Cisco Systems, Inc., holds a 38.9% stake in the company[3]. Acquisitions and Investments - The acquisition of Zhongyi (BVI) was completed on March 27, 2024, for a total consideration of RMB 110,000,000, making Zhongyi an indirect wholly-owned subsidiary[58]. - The group acquired 100% of the issued share capital of Zhongyi (BVI) for a total consideration of RMB 110 million, primarily consisting of identifiable assets related to wind farm operation contracts[94]. Market Trends and Future Outlook - The company anticipates positive impacts on its industry due to the rapid growth in demand for charging piles and energy storage driven by the integration of new energy and distributed photovoltaic generation[12]. - The company is focused on enhancing its competitive advantage by providing comprehensive solutions in the wind farm maintenance service sector[16]. - The domestic wind power service market is expected to see significant growth, with total expenditures reaching $16 billion from 2015 to 2022, driven by the expiration of warranty periods for wind turbines[43]. - The company is expanding its wind farm maintenance services, including maintenance and replacement projects, with existing contracts' warranty periods ending between 2026 and 2029[43].

Revenue and Profitability - The revenue for the six months ended June 30, 2024, was approximately RMB 41.4 million, an increase of about 18.1% compared to RMB 35.1 million for the same period in 2023[1]. - The revenue from the automatic meter reading and other business segments increased by approximately 130.4% to about RMB 18.3 million compared to the same period in 2023[1]. - The revenue from the smart manufacturing and industrial automation segment decreased by approximately 46.9% to about RMB 14.4 million compared to the same period in 2023[1]. - The gross profit increased by approximately 86.6% to about RMB 15.3 million, with the gross profit margin rising from approximately 23.4% in 2023 to 37.0% in the current period[1]. - The company reported a net loss of RMB 24,700,000 for the six months ended June 30, 2024, compared to a net loss of RMB 32,928,000 for the same period in 2023, showing an improvement in loss by approximately 25%[25]. - Basic and diluted loss per share for the six months ended June 30, 2024, was RMB (0.097) based on a weighted average of 255,729,000 shares, compared to RMB (0.173) based on 189,554,000 shares in 2023[25]. Financial Position - The total assets as of June 30, 2024, amounted to RMB 294.6 million, compared to RMB 250.5 million as of December 31, 2023[4]. - The total liabilities as of June 30, 2024, were RMB 169.9 million for non-current liabilities and RMB 184.4 million for current liabilities[6]. - As of June 30, 2024, the group's net liabilities amounted to approximately RMB 59.7 million, indicating significant uncertainty regarding the group's ability to continue as a going concern[8]. - The company's cash and cash equivalents amounted to RMB 4,497,000 as of the reporting date[14]. - As of June 30, 2024, the group's current assets were approximately RMB 154.1 million, with cash and cash equivalents totaling approximately RMB 32.5 million[53]. - As of June 30, 2024, the total interest-bearing liabilities of the group amounted to approximately RMB 261.2 million, an increase from RMB 193.9 million as of December 31, 2023[54]. Acquisition and Business Development - The group completed the acquisition of Zhongyi (BVI) International Limited on March 27, 2024, establishing a new business segment to provide wind farm management and operation services in China[8]. - The company agreed to acquire all shares of Zhongyi (BVI) for a total consideration of RMB 110,000,000, with potential adjustments based on the sale agreement[66]. - The acquisition of Zhongyi constitutes a major transaction as the applicable percentage exceeds 25% but is below 100%, requiring compliance with listing rules[67]. - The identifiable assets of Zhongyi (BVI) primarily consist of wind farm maintenance contracts[13]. - The wind farm maintenance service market in China has experienced a compound annual growth rate of 16.42% from 2016 to 2023[39]. Operational Performance - The company reported other comprehensive losses of RMB 469,000 due to foreign exchange differences for the period[3]. - The company reported a foreign exchange loss of RMB (1,067,000) in 2024, compared to a gain of RMB 967,000 in 2023, indicating a significant shift in foreign exchange impact[20]. - The company has implemented operational plans to control costs and generate sufficient cash flow to meet current and future obligations[8]. - The company has three reporting segments: Automatic Meter Reading, Smart Manufacturing and Industrial Automation, and Wind Farm Maintenance[15]. - The company’s operating loss before tax for the six months ended June 30, 2024, was RMB 24,195,000[16]. Research and Development - The R&D team consists of 53 employees, representing about 34% of the total workforce, focusing on the design and development of power line carrier chips and software for the oil and petrochemical industry[45]. - The group has established a substantial intellectual property portfolio, including 20 patents, 129 software copyrights, and 10 registered integrated circuit layout designs[45]. - Research and development for electric line communication technology received approximately HKD 95.7 million from the initial public offering[69]. Market Trends and Future Outlook - The rapid development of the smart manufacturing industry is expected to create significant opportunities for the company, with goals set for 70% of large-scale manufacturing enterprises to achieve digital transformation by 2025[38]. - The group anticipates continued growth in the electric line carrier communication technology market, driven by government support for smart grids and smart city construction, as well as the expansion of the overseas smart meter market under the Belt and Road Initiative[61]. - The group is focusing on the development of broadband dual-mode communication products to enhance competitiveness in the domestic market[59]. - The demand for broadband dual-mode communication modules from the State Grid is expected to exceed 8 million units in 2024[37]. Corporate Governance - The company adheres to corporate governance standards and continuously reviews their effectiveness[65]. - The company has implemented a set of standards for directors' securities trading, confirming compliance during the reporting period[65]. - The Audit Committee has reviewed the interim financial performance and found no disagreements regarding accounting practices[74].

Business Development and Strategy - The company has developed a broadband dual-mode chip and module, which is expected to contribute positively to sales starting January 2024[8]. - The acquisition of Zhongyi (BVI) International Limited and its subsidiaries, which focus on wind farm operation and maintenance services, was completed on March 27, 2024, anticipated to bring new profits and business opportunities starting in 2024[8]. - The company is actively restructuring its business framework and expanding sales channels to improve operational efficiency amid a challenging business environment[8]. - The company has been continuously investing in research and development of broadband carrier technology, streetlight series products, and photovoltaic series products to seize market opportunities[8]. - The company is focusing on broadband dual-mode communication technology applications in low-voltage distribution networks and measurement switches, enhancing competitiveness in domestic markets[72]. - The company aims to strengthen its expertise in integrated solutions for smart factories in oil refining and pipeline construction, leveraging its R&D resources and external collaborations[74]. - The company is actively promoting its broadband dual-mode communication products in various provincial markets to expand its market presence[72]. Financial Performance - In 2023, the group recorded a revenue of approximately RMB 94.9 million, a decrease of about 36.7% compared to RMB 149.9 million in 2022[18]. - The automatic meter reading and other business segment generated revenue of approximately RMB 42.3 million, down 52.0% from RMB 88.1 million in 2022, accounting for about 44.6% of total revenue[18]. - The smart manufacturing and industrial automation segment recorded revenue of approximately RMB 52.5 million, a decrease of about 14.9% from RMB 61.7 million in 2022, contributing approximately 55.4% to total revenue[21]. - The group’s loss attributable to equity shareholders increased from approximately RMB 118.6 million in 2022 to approximately RMB 138.5 million in the current year[22]. - Revenue decreased from approximately RMB 149.9 million in the same period of 2022 to approximately RMB 94.9 million, a decline of about 36.7%[24]. - Gross profit fell from approximately RMB 39.1 million in 2022 to approximately RMB 15.6 million, a decrease of about 60.1%, with the gross margin dropping from 26.1% to 16.4%[27]. - The company confirmed a financial asset and contract asset impairment loss provision of approximately RMB 22.0 million, up from RMB 7.4 million in the same period of 2022[31]. - Other income for the review year was approximately RMB 4.5 million, compared to a loss of RMB 0.6 million in the same period of 2022, primarily due to the absence of a one-time loss from the cancellation of a subsidiary[28]. - Research and development expenses decreased by approximately 8.3% to about RMB 20.4 million, mainly due to reduced costs associated with the new broadband dual-mode product[34]. - Selling and marketing expenses decreased by approximately 31.6% to about RMB 11.8 million, attributed to better control over marketing costs[32]. - Financing costs increased by approximately 60.7% to about RMB 11.8 million, mainly due to increased interest expenses from refinancing and bank borrowings[35]. - The company recorded an income tax expense of approximately RMB 23.2 million, compared to a tax credit of RMB 17.9 million in the same period of 2022, primarily due to deferred tax expenses[36]. Market Trends and Opportunities - The demand for broadband dual-mode communication modules from the State Grid is expected to exceed 80 million units in 2024, indicating significant market growth potential[13]. - The smart manufacturing industry is projected to expand rapidly, driven by government policies and the push for digital transformation, presenting opportunities for the group[16]. - The market for power line carrier communication technology is expected to maintain a positive development trend in the coming years, driven by government support for smart grid and smart city initiatives[73]. - The industrial automation market in China is projected to continue healthy growth due to low current penetration rates and rising labor costs[73]. Corporate Governance and Management - The company is committed to enhancing corporate governance to maintain shareholder value[9]. - The company has a strong management team with Zhang Baojun serving as president, responsible for product research and development in automatic meter reading[90]. - The board includes independent directors with significant experience in law and finance, contributing to corporate governance[84]. - The company is actively involved in compliance and risk management, leveraging the expertise of its legal advisors[85]. - The board is committed to maintaining high levels of corporate governance, which is crucial for protecting shareholder interests and enhancing corporate value[195]. Shareholder and Capital Management - The company successfully issued a total of 274,000,000 new shares at a subscription price of HKD 0.064 per share, representing an 11.1% discount to the closing price of HKD 0.072 on May 22, 2023[51]. - The net proceeds from the May 2023 subscription amounted to approximately HKD 17,516,000, which will be used to reduce the group's debt without increasing financing costs[52][53]. - The company raised approximately HKD 17.5 million from the issuance of 274 million shares in May 2023, which was fully utilized to repay outstanding debts, thereby reducing the group's debt-to-equity ratio[179]. - In June 2023, the company raised approximately HKD 23.8 million from the issuance of 42.62 million shares, with the funds allocated for debt repayment and general operational expenses[180]. - The company reported zero distributable reserves as of December 31, 2023, compared to zero in 2022[124]. - The board does not recommend the distribution of a final dividend for the review year[123]. Environmental and Compliance - The company’s two main operating subsidiaries have obtained ISO 14001:2015 environmental management system certification, valid until May 2024 and December 2024 respectively[107]. - There were no pollution-related notifications or warnings received during the review period, and the company was not fined or subjected to legal actions for violations of environmental laws in China[107]. - The company has implemented several policies in accordance with environmental regulations, focusing on assessing environmental impacts during the design, research, and development stages[107]. - The company’s senior management has established a clear environmental management framework and system to ensure compliance with domestic and international standards[107]. - The group has been closely monitoring the latest developments in domestic and international environmental laws and regulations[107]. Employee and Training - The group has maintained a stable core management team and focuses on employee training and development to ensure technical proficiency[110]. - Employee costs, including director remuneration, amounted to RMB 36.2 million for the year, down from RMB 38.9 million in 2022, representing a decrease of approximately 6.9%[187]. - The company emphasizes continuous training for employees to maintain current skills, providing onboarding and on-the-job training[187]. - The company has adopted an employee stock ownership plan to incentivize and reward qualified participants contributing to business achievements[187].

Revenue Performance - Revenue for the year ended December 31, 2023, was approximately RMB 94.9 million, a decrease of about 36.7% compared to RMB 149.9 million in 2022[4] - Revenue from the Automatic Meter Reading segment decreased by approximately 52.0% to about RMB 42.3 million, down from RMB 88.1 million in 2022[4] - Revenue from the Smart Manufacturing and Industrial Automation segment decreased by approximately 14.9% to about RMB 52.5 million, down from RMB 61.7 million in 2022[4] - The total revenue for the group in 2023 was RMB 94,868,000, compared to RMB 149,851,000 in 2022, representing a decrease of approximately 36.7%[23] - The revenue from automatic meter reading services was RMB 42,337,000 in 2023, down from RMB 88,140,000 in 2022, indicating a decline of about 52.0%[23] - The revenue from smart manufacturing and industrial automation services was RMB 44,662,000 in 2023, compared to RMB 53,804,000 in 2022, reflecting a decrease of approximately 16.9%[23] - The expected revenue from contracts with customers for the next year is RMB 35,133,000, down from RMB 64,752,000 in 2022, a decline of about 45.3%[24] Financial Losses - The net loss attributable to equity shareholders for the year was approximately RMB 138.5 million, compared to a net loss of RMB 118.6 million in 2022[4] - The company reported a total comprehensive loss of RMB 146,571,000 for the year ended December 31, 2023, compared to a loss of RMB 132,903,000 in 2022, representing an increase in loss of approximately 10.3%[7] - For the year ended December 31, 2023, the group reported a net loss of approximately RMB 143,648,000[15] - The annual loss for the group in 2023 was RMB 138,514,000, compared to RMB 118,584,000 in 2022, indicating an increase in losses of approximately 16.5%[41] Assets and Liabilities - The company's total assets decreased to RMB 250,488,000 as of December 31, 2023, down from RMB 341,340,000 in 2022, indicating a decline of about 26.7%[9] - The company’s cash and cash equivalents decreased significantly to RMB 35,919,000 in 2023 from RMB 86,652,000 in 2022, a reduction of approximately 58.5%[8] - The company’s non-current liabilities increased to RMB 114,622,000 in 2023 from RMB 17,718,000 in 2022, reflecting a substantial rise of about 547.5%[9] - The company’s total current liabilities decreased to RMB 170,399,000 in 2023 from RMB 249,241,000 in 2022, a decrease of approximately 31.5%[9] - The company’s equity attributable to owners of the parent decreased to RMB 222,000 in 2023 from RMB 158,000 in 2022, an increase of approximately 40.5%[8] - As of December 31, 2023, the group's net liabilities amounted to approximately RMB 34,533,000, indicating significant uncertainty regarding the group's ability to continue as a going concern[15] Cash Flow and Financial Management - The management has implemented cost control measures and timely collection of receivables to generate sufficient operating cash flow[15] - The financial statements have been prepared on a going concern basis, despite the significant uncertainties mentioned[17] - The group continues to focus on its operational plans to manage costs effectively and ensure cash flow generation[15] - The company plans to rely on internal resources, including cash and cash equivalents, to meet its liquidity needs[106] Research and Development - Research and development expenses amounted to approximately RMB 20,406,000 in 2023, down from RMB 22,265,000 in 2022, reflecting a decrease of about 8.3%[38] - The total research and development costs, including employee costs and other expenses, were approximately RMB 14,601,000 in 2023, compared to RMB 14,257,000 in 2022, showing a slight increase of about 2.4%[38] - The R&D team grew to 55 employees, representing about 35% of the total workforce, up from 47 employees and approximately 31% in 2022[77] Dividends and Shareholder Returns - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2023[4] - The company does not recommend any dividend payment for the years ended December 31, 2023, and 2022[39] Acquisitions and Strategic Initiatives - The group completed the acquisition of Zhongyi (BVI) International Limited on March 27, 2024, establishing a new business segment to provide wind farm management and operation services in China[19] - The company paid RMB 110,000,000 for the acquisition of Zhongyi (BVI), with RMB 60,000,000 already paid as a deposit and the remaining RMB 50,000,000 due upon completion[57] - The financial performance of Zhongyi (BVI) will be consolidated into the company's financial statements following the completion of the acquisition on March 27, 2024[125] Market and Industry Trends - The group is expanding its market in smart city lighting, smart air conditioning, and integrated energy management systems, driven by government support for smart grids and energy efficiency initiatives[132] - The industrial automation market in China is expected to continue healthy growth due to low penetration rates and rising labor costs, particularly in the petrochemical sector[133] - The group aims to enhance its expertise in integrated solutions for smart factories in oil refining and pipeline construction, leveraging its R&D resources and partnerships[134] Employee and Management Compensation - The management team’s total compensation for 2023 was RMB 9,182,000, an increase from RMB 8,880,000 in 2022[56] - Employee costs, including directors' remuneration, were approximately RMB 36.2 million for the year, compared to RMB 38.9 million in 2022[155] - The group had a total of 155 employees as of December 31, 2023, up from 151 employees in 2022[155] Financial Reporting and Compliance - The independent auditor confirmed that the financial statements for the year ended December 31, 2023, were consistent with the amounts reported by the group[159] - The group has adopted new Hong Kong Financial Reporting Standards effective from January 1, 2023, which do not have a significant impact on the financial position and performance for the current and prior years[19]

Revenue Performance - Revenue for the year ended December 31, 2023, was approximately RMB 94.9 million, a decrease of about 36.7% compared to RMB 149.9 million in 2022[4] - Revenue from the Automatic Meter Reading segment decreased approximately 52.0% to about RMB 42.3 million, down from RMB 88.1 million in 2022[4] - Revenue from the Smart Manufacturing and Industrial Automation segment decreased approximately 14.9% to about RMB 52.5 million, down from RMB 61.7 million in 2022[4] - The total revenue for the group in 2023 was RMB 94,868,000, compared to RMB 149,851,000 in 2022, indicating a decrease of approximately 36.7%[23] - The revenue from automatic meter reading and related services was RMB 42,337,000 in 2023, down from RMB 88,140,000 in 2022, representing a decline of about 52.0%[23] - The revenue from smart manufacturing and industrial automation services was RMB 44,662,000 in 2023, compared to RMB 53,804,000 in 2022, reflecting a decrease of approximately 17.0%[23] Financial Losses - The net loss attributable to equity shareholders for the year was approximately RMB 138.5 million, compared to a net loss of RMB 118.6 million in 2022[4] - The company reported a total comprehensive loss of RMB 146,571,000 for the year ended December 31, 2023, compared to a loss of RMB 132,903,000 in 2022, representing an increase in loss of approximately 10.3%[7] - For the year ended December 31, 2023, the group reported a net loss of approximately RMB 143,648,000[15] - The company recorded a pre-tax loss of RMB 120,436,000 in 2023, an improvement from a loss of RMB 137,025,000 in 2022[33] - The annual loss for the group in 2023 was RMB 138,514,000, compared to RMB 118,584,000 in 2022, indicating an increase in loss of approximately 16.5%[41] Assets and Liabilities - Total assets decreased to RMB 250,488,000 in 2023 from RMB 341,340,000 in 2022, indicating a decline of approximately 26.7%[8] - The company's total liabilities increased to RMB 250,488,000 in 2023 from RMB 341,340,000 in 2022, showing a rise of about 26.7%[9] - The company reported a significant increase in borrowings, with non-current borrowings rising to RMB 108,705,000 in 2023 from RMB 2,683,000 in 2022[9] - As of December 31, 2023, the group's net liabilities amounted to approximately RMB 34,533,000, indicating significant uncertainty regarding the group's ability to continue as a going concern[15] - As of December 31, 2023, the total interest-bearing liabilities of the group amounted to RMB 193.9 million, an increase from RMB 132.8 million as of December 31, 2022[108] Cash Flow and Financing - The cash and cash equivalents held by the group as of December 31, 2023, amounted to approximately RMB 35.9 million, compared to RMB 86.7 million as of December 31, 2022[107] - Financing costs increased to RMB 11,823,000 in 2023 from RMB 7,358,000 in 2022, primarily due to higher interest expenses on bank loans[35] - The company completed a share subscription on June 2, 2023, issuing a total of 274,000,000 shares at a subscription price of HKD 0.064 per share, representing an 11.1% discount to the market price[111] - The net proceeds from the May 2023 subscription were approximately HKD 17.5 million, which were fully utilized to reduce the group's debt[111] - The net proceeds from the June 2023 subscription totaled approximately HKD 23.8 million, with plans to allocate HKD 10 million for business development funds[149][150] Research and Development - Research and development expenses for the automatic meter reading segment increased to CNY (20,406) thousand in 2023 from CNY (22,265) thousand in 2022, showing a focus on innovation despite overall revenue decline[31] - The R&D team grew to 55 employees, representing about 35% of the total workforce, up from 47 employees and approximately 31% in 2022[77] - The total research and development costs, including employee costs and other expenses, were approximately RMB 14,601,000 in 2023, compared to RMB 14,257,000 in 2022, showing a slight increase of about 2.4%[38] Strategic Initiatives - The company plans to continue focusing on energy-saving and environmental protection products, particularly in the areas of streetlight control and photovoltaic power management[31] - The group aims to enhance its expertise in integrated solutions for smart factories in oil refining and pipeline construction, leveraging its R&D resources and partnerships[134] - The group plans to develop proprietary smart factory application programming interfaces and visual management platforms, which will enhance its core competitiveness[134] Market Outlook - The demand for charging piles and energy storage is expected to grow rapidly due to the integration of new energy and distributed photovoltaic generation[66] - The "14th Five-Year Plan" aims for 70% of large-scale manufacturing enterprises to achieve digital networking by 2025, which will expand the smart manufacturing market[67] - The industrial automation market in China is expected to continue healthy growth due to low penetration rates and rising labor costs, particularly in the petrochemical sector[133] Dividend and Shareholder Returns - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2023[4] - The company does not recommend any dividend payment for the years ended December 31, 2023, and 2022[39]

Financial Performance - The company recorded a revenue of approximately RMB 35.1 million for the period, a decrease of about 43.0% compared to RMB 61.6 million in the same period of 2022[10]. - The group's revenue from the smart manufacturing and industrial automation segment was approximately RMB 27.2 million, a decrease of about 28.3% compared to RMB 37.9 million in the same period of 2022, accounting for approximately 77.4% of total revenue[11]. - Gross profit decreased from approximately RMB 16.1 million in 2022 to approximately RMB 8.2 million, representing a decline of about 48.9%[18]. - Gross margin fell from approximately 26.1% in 2022 to about 23.4% in the current period, a decrease of approximately 2.7%[19]. - The group recorded a loss attributable to the owners of the company of approximately RMB 32.9 million, a slight decrease from approximately RMB 34.7 million in the same period of 2022[29]. - Total comprehensive loss for the period was RMB 36,955 thousand, down from RMB 41,952 thousand in the previous year, indicating a reduction of about 12%[104]. - The company reported a net loss of RMB 32,928,000 for the six months ended June 30, 2023, compared to a net loss of RMB 34,651,000 in the same period of 2022[164]. Revenue Breakdown - The automatic meter reading and other business segment generated a revenue of approximately RMB 7.9 million, down approximately 66.6% from RMB 23.7 million in the same period of 2022, accounting for about 22.6% of the total revenue[10]. - Revenue from automatic meter reading and other businesses totaled RMB 7,929,000, down 66% from RMB 23,710,000 in the previous year[152]. - Revenue from smart manufacturing and industrial automation business was RMB 21,123,000, a decline of 38% from RMB 34,197,000 in 2022[152]. Cash Flow and Financing - The company faced cash shortages that increased the difficulty of undertaking new projects, primarily due to the repayment of a large loan during the period[10]. - The company's cash and cash equivalents totaled approximately RMB 51.3 million as of June 30, 2023, compared to RMB 86.7 million as of December 31, 2022[30]. - The net cash used in operating activities was RMB 39,570 thousand for the six months ended June 30, 2023, compared to RMB 23,661 thousand in the same period of 2022, indicating an increase in cash outflow of about 67%[112]. - Financing costs surged by approximately 2391.2% to about RMB 9.6 million, mainly due to increased interest expenses from other borrowings[27]. - The company raised approximately HKD 17.5 million through a share subscription in May 2023, which was fully utilized to repay certain outstanding debts[95]. Research and Development - Research and development expenses increased by approximately 3.9% to about RMB 9.5 million, mainly due to higher employee costs and testing expenses related to new broadband dual-mode products[26]. - The R&D team consisted of 48 employees, accounting for approximately 32% of the total workforce, focusing on power line carrier communication products and applications[14]. - The company is developing new broadband dual-mode products and expanding its broadband power line communication products into more provincial markets in China[62]. Market Conditions and Strategic Initiatives - The company is exploring the industrial automation system field, particularly in maintenance and safety integrity systems for the oil and petrochemical industry[6]. - The market potential for smart manufacturing is expected to expand significantly, driven by government support and the digital transformation of the manufacturing sector[7]. - The company is experiencing various uncertainties in the market due to U.S. sanctions affecting domestic chip supply and delivery delays[6]. - The company plans to form strategic alliances with international system integrators to enhance its smart manufacturing and industrial automation business segments[63]. Share Capital and Corporate Governance - The company completed a share subscription on May 22, 2023, issuing 274 million shares at a subscription price of HKD 0.064 per share, raising approximately HKD 17.5 million net[34]. - A second share subscription was completed on July 19, 2023, issuing 42.62 million shares at a subscription price of HKD 0.56 per share, raising approximately HKD 23.8 million net[40]. - The company did not recommend the payment of an interim dividend for the period, consistent with the previous year[81]. - The company has adopted a corporate governance code and has complied with its provisions during the review period[83]. Assets and Liabilities - As of June 30, 2023, the group's current assets were approximately RMB 193.2 million, down from RMB 233.3 million as of December 31, 2022[30]. - Total interest-bearing liabilities amounted to approximately RMB 133.9 million as of June 30, 2023, slightly up from RMB 132.8 million as of December 31, 2022[32]. - The net debt-to-equity ratio was approximately 156.1% as of June 30, 2023, significantly increased from 62.0% as of December 31, 2022[32]. - The company's total assets amounted to RMB 294,691 thousand, down from RMB 341,340 thousand, indicating a decrease of approximately 14%[107]. Employee and Management Information - As of June 30, 2023, the company had 150 employees, a slight decrease from 151 employees at the end of 2022, with total employee costs around RMB 171 million[96]. - The total remuneration for directors and key management personnel for the six months ended June 30, 2023, was RMB 4,350,000, an increase from RMB 3,945,000 in the same period of 2022[190]. - The company has implemented training and development programs for employees to enhance their skills and capabilities[98].

Financial Performance - The group's total revenue for the year was approximately RMB 149.8 million, a decrease of about 39.6% from RMB 248.2 million in 2021[15]. - Revenue from the automatic meter reading and other business segment increased to approximately RMB 88.1 million, representing an increase of about 82.6% compared to RMB 48.3 million in 2021, accounting for approximately 58.8% of total revenue[15]. - The smart manufacturing and industrial automation business segment recorded revenue of approximately RMB 61.7 million, a decrease of about 69.1% from RMB 199.9 million in 2021, accounting for approximately 41.2% of total revenue[16]. - The group reported a loss attributable to equity shareholders of approximately RMB 118.6 million, an increase from RMB 55.3 million in the same period of 2021[17]. - Gross profit decreased to approximately RMB 39.1 million from RMB 43.0 million in 2021, with a gross margin increase to approximately 26.1% from 17.3%[24]. - The company recorded a net loss of approximately RMB 119.1 million for the review year, with current liabilities exceeding current assets by RMB 16.0 million[163]. Cost Management - The company will maintain a lean cost strategy to reduce operating expenses in response to future risks and pressures[7]. - The group maintained a lean cost strategy to reduce operating expenses in response to revenue declines due to the pandemic[16]. - Sales and marketing expenses decreased by approximately 30.0% to about RMB 17.3 million from RMB 24.7 million in the same period of 2021[27]. - General and administrative expenses reduced by approximately 9.2% to about RMB 55.2 million from RMB 60.8 million in the same period of 2021[28]. - Financing costs decreased by approximately 22.4% to about RMB 7.4 million from RMB 9.5 million in the same period of 2021[31]. Research and Development - The R&D team consisted of 47 employees as of December 31, 2022, representing about 31% of the total workforce, focusing on power line carrier chip design and software development for the oil and petrochemical industry[20]. - The company is strategically investing in product development in areas such as broadband technology, streetlight control, building energy management, and photovoltaic management to seize market opportunities[6]. - Research and development expenses increased by approximately 13.6% to about RMB 22.3 million from RMB 19.6 million in the same period of 2021, mainly due to increased amortization of capitalized development costs related to broadband technology[30]. Market Opportunities - The market demand for power line carrier communication products remains stable, driven by the Chinese government's push for broadband technology and smart city construction[6]. - The overall market potential for smart meters is large, driven by the integration of distributed energy sources and the increasing demand for charging stations and energy storage[10]. - The rapid development of the intelligent manufacturing industry is anticipated to create significant opportunities for the company, with government policies supporting digitalization and networking in manufacturing[11]. - The company believes that the industrial automation market in China will continue to grow due to low penetration rates and rising labor costs[55]. Corporate Governance - The company has adhered to the corporate governance code throughout the review year, except for the deviation regarding independent non-executive directors' attendance at the annual general meeting[171]. - The board comprises a total of six directors, including three independent non-executive directors, fulfilling the requirement of at least one with appropriate professional qualifications[182]. - The company has established a code of conduct for directors' securities transactions, ensuring compliance with the standards set forth in the listing rules[173]. - The company aims to maintain a suitable balance of diversity across all levels of the organization, including gender, age, and professional experience[200]. Shareholder Information - The total issued share capital of the company as of December 31, 2022, was approximately HKD 185,709, divided into 1,857,088,606 ordinary shares with a par value of HKD 0.0001 each[84]. - The largest customer accounted for approximately 24.3% of the total revenue for the year, down from 36.9% in 2021, while the top five customers contributed about 63.6% of total revenue, compared to 74.0% in 2021[148]. - Major shareholders include Seashore Fortune with 93,543,624 shares (5.0%) and SB Asia Investment Fund II L.P. with 197,340,537 shares (10.6%)[122]. Debt and Financing - The company extended the maturity date of the convertible bonds by 12 months to August 13, 2022, through a second amendment and extension agreement[43]. - The company fully redeemed its convertible bonds with a principal amount of HKD 150 million on September 2, 2022, and paid all accrued interest[43]. - The company plans to utilize the net proceeds from the general mandate subscription, totaling approximately HKD 14.5 million, to repay outstanding debts and reduce its debt-to-asset ratio[156]. - The company is in discussions with creditors to extend the repayment date of a HKD 120 million loan due on August 11, 2023[163]. Risk Management - The group faced various major risks and uncertainties, which are discussed in the relevant sections of the report[86]. - The group has not entered into any foreign currency forward contracts or other hedging instruments to mitigate foreign exchange risks during the review year[97]. Strategic Initiatives - The company plans to develop new broadband dual-mode products and expand its market presence in the broadband power line communication sector[55]. - The company aims to form strategic alliances with international system integrators to enhance its smart manufacturing and industrial automation business[56]. - The company is exploring industrial automation systems, particularly in the maintenance and safety integrity systems for the oil and petrochemical industry, utilizing its core technological capabilities[10].