Financial Performance - The total revenue for the year ended December 31, 2024, was RMB 439,871,713.59, a decrease of approximately 10.87% compared to RMB 493,541,069.55 in the previous year[9]. - The net loss attributable to shareholders for the year was RMB 420,592,151.70, compared to a net profit of RMB 1,994,964.77 in the previous year[9]. - The main business revenue was RMB 409,439,659.83, down about 10.33% from RMB 456,611,297.51 in the previous year[16]. - The gross profit margin for the year was approximately 14.61%, a decrease of about 3.11% from 17.72% in the previous year[17]. - Sales expenses for the year were RMB 37,439,448.90, a decrease of about 0.87% compared to the previous year[18]. - Management expenses for the year were RMB 29,841,757.25, a decrease of approximately 19.63% compared to the previous year[19]. - Financial expenses for the year ended December 31, 2024, were RMB 26,899,765.69, down about 17.85% from the previous year, primarily due to the repayment of loans using internal funds[21]. - The net loss attributable to shareholders for the year ended December 31, 2024, was RMB 420,592,151.70, compared to a net profit of RMB 1,994,964.77 in the same period last year, mainly due to increased credit impairment and contract asset impairment[22]. - Credit impairment losses for the year ended December 31, 2024, were RMB 136,875,673.87, an increase of RMB 153,907,691.89 compared to the previous year, primarily due to a lawsuit loss[23]. - Asset impairment losses for the year ended December 31, 2024, were RMB 214,720,181.52, an increase of RMB 209,883,360.30 from the previous year, influenced by deteriorating customer credit conditions[24]. - The debt ratio as of December 31, 2024, was approximately 0.28, up from 0.21 in the previous year[27]. - The asset-liability ratio as of December 31, 2024, was 48.93%, an increase of approximately 5.75% from 43.18% the previous year[28]. - Total employee compensation costs for the year ended December 31, 2024, were RMB 45,744,190.43, down from RMB 48,429,827.93 in the previous year, with a total of 195 employees[38]. - As of December 31, 2024, the company's distributable reserves amounted to RMB 119,155,929.90, a decrease from RMB 539,748,081.60 in 2023[109]. Business Operations - The revenue from system integration business was RMB 372,093,830.04, a decrease of about 5.67% compared to the previous year[16]. - Revenue from smart terminal sales increased by approximately 40.34% to RMB 18,968,604.62 compared to the previous year[16]. - The company aims to enhance operational resilience and expand market share while focusing on cost reduction and efficiency improvement strategies[13]. - In 2024, the company aims to maintain a stable operation while actively expanding its research and development efforts in the Internet of Things (IoT) smart applications market[40]. - The company has successfully completed major projects in the smart transportation sector, including the construction and acceptance of various toll systems and traffic control systems[40]. - New contracts signed include significant highway projects, showcasing the company's strong capabilities in smart transportation technology[41]. - The company has developed a "Smart Logistics Digital Supervision Platform" using AI and 5G technology, recognized as one of the top ten cases in Jiangsu Province for 2024[42]. - The company plans to focus on smart transportation and smart logistics as core industries, enhancing operational efficiency and reducing costs through comprehensive solutions[46]. - The company will optimize its marketing strategy and enhance project management to improve order acquisition rates in the smart transportation sector[47]. - The company is committed to developing green transportation solutions, focusing on smart highways, smart ports, and smart vehicles[47]. - The company has established research partnerships with universities to advance technology in smart transportation and logistics[44]. - The company aims to continue expanding its market presence in key projects such as the Ganzhou Comprehensive Bonded Zone and the Shangrao Comprehensive Bonded Zone[47]. - The company focuses on technology development in RFID, video recognition, IoT, big data, and AI, aiming to provide integrated IoT solutions for smart transportation and logistics[48]. - The Jiangsu Province Smart Highway Engineering Technology Research Center has been established to develop smart highway management systems utilizing cloud computing, AI, and big data[48]. - The company has developed over 40 mature products in the smart logistics sector, achieving a high industry position domestically[50]. - The company is committed to enhancing service capabilities and optimizing product functions to solidify research results and business foundations[50]. - The company aims to create replicable smart highways and propose new technical standards for highway engineering based on demonstration projects[48]. - The company is focused on providing core value and addressing key pain points for users to gain a competitive advantage in a complex market environment[50]. - The group provides comprehensive solutions based on video recognition and RFID technology for smart transportation and customs logistics applications[70]. Governance and Compliance - The company has adopted corporate governance principles and has complied with the corporate governance code throughout the year[125]. - The board of directors is responsible for the overall leadership and monitoring of the company's strategic decisions and performance[132]. - The company has mechanisms in place to ensure the board receives independent views and opinions[133]. - The board has reviewed the effectiveness of its mechanisms for obtaining independent opinions and found them sufficient[134]. - The board of directors consists of seven members, including three independent non-executive directors, ensuring compliance with relevant regulations[135]. - The company has appointed a female director, bringing the total to one female and six male directors, aiming to maintain this level of female representation[142]. - The company conducted three internal training sessions for directors, focusing on updated listing rules and ESG requirements[143]. - The chairman and CEO roles are held by the same individual, which deviates from corporate governance guidelines, but the board believes this structure benefits future development[145]. - The company has established a code of conduct for securities trading, ensuring compliance among all directors and senior management[137]. - The independent non-executive directors have confirmed their independence annually, and the company considers all of them to be independent[139]. - The company has a diversity policy in place, which is integrated into the entire employee recruitment process to promote equal opportunities[142]. - The audit committee and nomination committee are composed of a majority of independent non-executive directors, complying with listing rules[138]. - The company has provided updates and training materials related to regulatory requirements and market conditions to all directors[144]. - The company has arranged appropriate liability insurance for directors and will review the coverage annually[135]. - The board held eight meetings during the fiscal year ending December 31, 2024, with all directors attending 100% of board meetings[150]. - The company conducted one extraordinary general meeting and one annual general meeting during the review period, approving various resolutions including the reappointment of auditors and amendments to the articles of association[149]. - The remuneration committee held two meetings to review the compensation structure for directors and senior management, ensuring no director participated in determining their own remuneration[156]. - The nomination committee conducted two meetings to review the board's structure and recommend candidates for board positions, ensuring compliance with diversity policies[158]. - The attendance rate for board meetings was 100% for all executive directors, with the chairman attending all meetings[152]. - The company’s independent non-executive directors also maintained a 100% attendance rate at board meetings[152]. - The nomination committee is currently composed of two independent non-executive directors and one executive director, focusing on board diversity and succession planning[158]. - The company’s governance practices adhere strictly to the articles of association and relevant regulations, ensuring equal rights for all shareholders[149]. - The remuneration committee evaluates executive performance and recommends compensation packages based on market conditions and responsibilities[156]. - The board has established four committees to enhance governance effectiveness, including the remuneration, nomination, audit, and strategic committees[153]. Audit and Risk Management - The audit report confirmed that the financial statements fairly reflect the company's financial position and operating results for the year 2024[187]. - The management's estimates regarding expected credit losses for accounts receivable and contract assets are critical, given the significant balances and their impact on the financial statements[197]. - The company has implemented internal controls to ensure the accuracy of revenue recognition related to system integration projects, which are based on the progress of contract performance[194]. - The audit identified key audit matters, including revenue recognition and expected credit losses, which are significant due to their complexity and the management's judgments involved[190]. - The board believes that the risk management and internal control systems are sufficient and effective to meet internal business needs and external environmental changes[169]. - The Audit Committee reviewed the annual audit report submitted by the external auditor, ensuring the reliability of financial data used for business and disclosures[168]. - The company is committed to preventing non-compliance situations and has taken measures to improve internal processes and systems following the audit issues[167]. - The Audit Committee's responsibilities include independent review and monitoring of financial reporting and risk management effectiveness[160]. - The board is responsible for assessing the nature and extent of risks the company is willing to take to achieve its strategic objectives[166]. - The group has established internal procedures to handle insider information in accordance with listing rules[171]. - The audit fees for the year ending December 31, 2024, amounted to RMB 1,000,000 for audit services, with no fees for non-audit services[174]. - The company has adopted a whistleblowing policy to promote compliance and ethical behavior throughout the group, with no significant fraud or misconduct reported for the year ending December 31, 2024[172]. Shareholder Relations - The company emphasizes effective communication with shareholders to enhance investor relations and transparency[182]. - The company allows shareholders holding more than 10% of shares to request the board to convene an extraordinary general meeting[179]. - The company has implemented a policy to ensure that all resolutions presented at shareholder meetings are voted on a one-share-one-vote basis[181]. - The company has made amendments to its articles of association to comply with the latest revisions of the Company Law of the People's Republic of China[183]. - The company has not declared a final dividend for the fiscal year ending December 31, 2024, consistent with the previous year[80]. - The company has not reported any significant legal or regulatory violations that could impact its operations[76]. - The company has not granted any options under the stock option plan since its termination in 2011[97]. - The company did not engage in any buybacks, redemptions, or sales of its listed securities during the year[115]. - There were no significant changes in the public float as of December 31, 2024, in compliance with listing rules[114]. - The company has a total of 792,058,500 shares issued, consisting of 562,558,500 domestic shares and 229,500,000 H-shares[92]. - Sanmin holds 3,375,000 domestic shares directly, representing 0.43% of the company's registered capital[88]. - Sanmin indirectly controls 397,821,000 domestic shares through Sanbao Group, which accounts for 50.77% of the company's issued capital[89]. - Sanbao Group is the largest shareholder, holding 50.77% of the domestic shares and 4,310,000 H-shares[91]. - Jiangsu Sanbao, which owns 49% of Sanbao Group, is further controlled by Shanghai Jiaxin, which has a 60.40% stake[89]. - The company has no directors or supervisors authorized to subscribe for any H-shares as of December 31, 2024[96]. - Active Gold Holding Limited and its affiliates hold 15.64% of the domestic shares[94]. - Season International Pte. Ltd. holds 6.79% of the H-shares[94]. - The top five customers accounted for 45.50% of the total annual sales, with the largest customer contributing 25.86% of the total sales[101]. - The top five suppliers represented 30.75% of the total annual purchases, with the largest supplier accounting for 11.23% of the total purchases[102].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 439,871,713.59, a decrease of approximately 10.87% compared to RMB 493,541,069.55 in the same period last year[3]. - Net loss attributable to shareholders for the year was RMB 420,592,151.70, compared to a net profit of RMB 1,994,964.77 in the previous year[3]. - Basic loss per share for the year was approximately RMB 0.531, compared to basic earnings per share of RMB 0.003 in 2023[3]. - The company reported a total revenue loss of approximately RMB 464.99 million in 2024, compared to a profit of RMB 1.74 million in 2023, indicating a significant decline in performance[11]. - The net profit attributable to the parent company's shareholders was a loss of approximately RMB 420.59 million in 2024, down from a profit of RMB 1.99 million in 2023[12]. - The total comprehensive income for the year was a loss of approximately RMB 414.56 million in 2024, compared to a comprehensive income of RMB 75.12 million in 2023[12]. - The company's operating profit was reported as a loss of approximately RMB 409.95 million in 2024, compared to a profit of RMB 9.37 million in 2023[11]. Assets and Liabilities - Total current assets decreased from RMB 2,140,827,616.33 in 2023 to RMB 1,624,126,419.15 in 2024[6]. - Total liabilities decreased from RMB 1,241,287,401.51 in 2023 to RMB 1,167,687,754.34 in 2024[9]. - Total assets decreased from RMB 2,874,452,654.75 in 2023 to RMB 2,386,292,423.53 in 2024[7]. - The company's total equity decreased significantly, with retained earnings dropping to approximately RMB 119.16 million in 2024 from RMB 539.75 million in 2023[22]. - The company's debt ratio was approximately 0.28 as of December 31, 2024, compared to 0.21 in 2023[43]. - The asset-liability ratio increased to 48.93% from 43.18% in the previous year, indicating a rise of about 5.75%[44]. Expenses - Operating costs for the year were RMB 375,625,654.92, down from RMB 406,102,733.27 in the previous year[10]. - Research and development expenses were RMB 19,155,472.26, compared to RMB 23,171,313.59 in 2023[10]. - Financial expenses totaled RMB 26,899,765.69, down about 17.85% from the previous year[38]. - Sales expenses were RMB 37,439,448.90, a decrease of approximately 0.87% compared to the previous year[35]. - Management expenses were RMB 29,841,757.25, down approximately 19.63% from the previous year[36]. - Total employee compensation costs were RMB 45,744,190.43, down from RMB 48,429,827.93 in the previous year, with the number of employees reduced from 215 to 195[54]. Revenue Breakdown - Main business revenue was RMB 409,439,659.83, down about 10.33% from RMB 456,611,297.51 in the previous year[33]. - System integration revenue was RMB 372,093,830.04, a decrease of about 5.67% compared to the previous year[33]. - Smart terminal sales revenue increased by approximately 40.34% to RMB 18,968,604.62 from RMB 13,516,283.21 in the previous year[33]. - Service business revenue decreased by approximately 62.22% to RMB 18,377,225.17 from RMB 48,644,944.62 in the previous year[33]. Impairment Losses - The company reported a significant credit impairment loss of RMB 136,875,673.87 for the year[10]. - Credit impairment losses amounted to RMB 136,875,673.87, an increase of RMB 153,907,691.89 compared to the same period last year, mainly due to execution following a lawsuit loss[40]. - Asset impairment losses were RMB 214,720,181.52, up RMB 209,883,360.30 year-on-year, influenced by deteriorating customer credit conditions[41]. Corporate Governance - The company has complied with corporate governance codes, ensuring a balanced board structure with independent non-executive directors[72]. - The audit committee, consisting of three independent non-executive directors, has reviewed the company's audited performance during the reporting period[68]. - The company has established a comprehensive governance structure to protect the interests of shareholders and ensure effective oversight[72]. - The company approved amendments to its articles of association on June 28, 2024, to comply with the latest revisions of the Company Law of the People's Republic of China and to align its business scope with the existing business license[77]. Future Outlook and Strategy - The company is focusing on the development of smart transportation and logistics, maintaining a good market share in niche markets and professional solutions despite challenges in 2024[57]. - Looking ahead to 2025, the company plans to enhance its core competitiveness in smart transportation and logistics, focusing on customer-centric solutions and operational efficiency[62]. - The company aims to optimize marketing strategies and expand its business space in the smart transportation sector, while emphasizing standardized management and cost control[62][63]. - The company is committed to the development of "green transportation," focusing on smart highways, smart ports, and smart vehicles as part of its high-quality growth strategy[63]. - The company focuses on technology development in RFID, video recognition, IoT, big data, and AI, aiming to provide integrated IoT solutions for smart transportation and logistics[64]. Shareholder Returns - The board of directors recommended not to declare a final dividend for the year ended December 31, 2024[4]. - The board of directors decided not to recommend the payment of a final dividend for the year ending December 31, 2024, considering various uncertainties in the industry[82]. Miscellaneous - The company has maintained its continuous operation capability for at least 12 months from the reporting date, with no significant issues affecting this capability[18]. - The company has faced delays in publishing its annual results for the fiscal year ending December 31, 2023, leading to a temporary suspension of its shares on the stock exchange[74]. - The company has no commitments for any significant future investments or capital assets[79]. - No purchase, redemption, or sale of the company's listed securities occurred during the review period[81].

Financial Performance - Total revenue for the six months ended June 30, 2024, was approximately RMB 219,536,324.01, a decrease of about 25.01% compared to the same period last year[2] - Net loss attributable to shareholders for the six months ended June 30, 2024, was RMB 15,475,193.51, compared to a net profit of RMB 26,197,152.00 in the same period last year[2] - Basic loss per share for the six months ended June 30, 2024, was approximately RMB 0.020, compared to basic earnings of RMB 0.033 per share in the same period last year[2] - Total operating revenue for the six months ended June 30, 2024, was approximately RMB 219.54 million, a decrease of 25% compared to RMB 292.77 million for the same period in 2023[9] - Total operating costs for the same period were approximately RMB 235.54 million, down from RMB 271.58 million, reflecting a 13.3% reduction[9] - Net profit attributable to shareholders of the parent company for the six months ended June 30, 2024, was approximately RMB -15.53 million, compared to a profit of RMB 25.98 million in the same period of 2023[12] - Basic and diluted earnings per share for the six months ended June 30, 2024, were both RMB -0.020, compared to RMB 0.033 in the same period of 2023[15] Assets and Liabilities - Total current assets as of June 30, 2024, amounted to RMB 2,076,208,649.74, a decrease from RMB 2,140,827,616.33 as of December 31, 2023[3] - Cash and cash equivalents increased to RMB 480,375,885.16 as of June 30, 2024, compared to RMB 367,102,242.55 as of December 31, 2023[3] - Total liabilities as of June 30, 2024, were RMB 1,186,878,040.43, down from RMB 1,241,287,401.51 as of December 31, 2023[7] - Short-term borrowings decreased to RMB 511,770,000.00 as of June 30, 2024, from RMB 601,489,799.67 as of December 31, 2023[6] - Total non-current assets as of June 30, 2024, were RMB 729,906,028.15, slightly down from RMB 733,625,038.42 as of December 31, 2023[5] Equity and Dividends - The company has proposed not to declare an interim dividend for the six months ended June 30, 2024[2] - The total equity attributable to shareholders as of June 30, 2024, was RMB 792,058,500.00, unchanged from December 31, 2023[8] - Total equity attributable to shareholders reached RMB 1,633,165,253.24, reflecting a decrease of RMB 13,928,615.78[18] - The company's retained earnings amounted to RMB 539,748,081.60, with a reduction of RMB 15,475,193.51[18] - The total comprehensive income for the period was RMB 103,396,141.60, showing an increase of RMB 1,605,369.33[18] - The total equity as of June 30, 2024, was RMB 1,619,236,637.46, reflecting the overall financial position of the company[21] Expenses - Research and development expenses for the six months ended June 30, 2024, were approximately RMB 7.98 million, down from RMB 9.39 million in the same period of 2023, indicating a 15% reduction[9] - Financial expenses for the six months ended June 30, 2024, were approximately RMB 13.20 million, a decrease from RMB 16.82 million in the same period of 2023[9] - Tax expenses for the six months ended June 30, 2024, were approximately RMB 2.05 million, compared to RMB 2.45 million in the same period of 2023, reflecting a decrease of 16.4%[9] - Sales expenses were RMB 14,312,689.41, a decrease of approximately 7.41% compared to the previous year, attributed to reduced project maintenance costs[45] - Management expenses decreased by approximately 20.20% to RMB 14,528,899.85 due to the expiration of certain equipment depreciation periods[46] Cash Flow - Cash flow from operating activities for the six months ended June 30, 2024, was RMB 68.75 million, compared to a negative cash flow of RMB -116.61 million in the same period of 2023[17] - The net increase in cash and cash equivalents for the six months ended June 30, 2024, was RMB 304.26 million, compared to RMB 219.50 million in the same period of 2023[17] Staffing and Operations - The group employed 201 staff members as of June 30, 2024, compared to 225 staff members a year earlier, with employee costs amounting to RMB 19,175,297.41, down from RMB 21,239,298.36 in the same period last year[51] - As of June 30, 2024, the company's operating capital was RMB 1,001,618,985.73, slightly down from RMB 1,014,399,426.31 as of December 31, 2023[49] Market and Strategic Initiatives - The group continues to provide comprehensive smart solutions for customs and logistics sectors, responding actively to market competition and expanding its market presence[56] - The group is focused on optimizing talent structure and enhancing talent strategy planning to strengthen its foundation for industry development[57] - The group aims to enhance its market share in smart transportation and logistics, focusing on technology R&D and expanding its market coverage in other domestic regions[60] - The group plans to embrace digital transformation, integrating AI, big data, and cloud computing into smart highway applications to drive high-quality construction[60] Governance and Compliance - The company has not complied with the financial reporting rules, failing to publish its annual results for the year ending December 31, 2023, within the required timeframe[77] - The audit committee currently consists of two independent non-executive directors, which does not meet the minimum requirement of three members as per listing rules[75] - The company has maintained compliance with corporate governance codes, despite some deviations noted[76] - The company has amended its articles of association to comply with the latest revisions of Chinese corporate law and to adopt electronic communication methods for company announcements[80]

Financial Performance - The total revenue for the six months ended June 30, 2024, was approximately RMB 219,536,324.01, representing a decrease of about 25.01% compared to the same period last year[1]. - The net loss attributable to shareholders for the six months ended June 30, 2024, was RMB 15,475,193.51, compared to a net profit of RMB 26,197,152.00 in the same period last year[1]. - The basic loss per share for the six months ended June 30, 2024, was approximately RMB 0.020, compared to basic earnings of RMB 0.033 per share in the same period last year[1]. - The company has proposed not to declare an interim dividend for the six months ended June 30, 2024[1]. - Total operating revenue for the six months ended June 30, 2024, was $219.54 million, a decrease of 25% from $292.77 million in the same period of 2023[12]. - The net profit for the six months ended June 30, 2024, was a loss of $15.53 million, compared to a net profit of $25.98 million in the prior year, indicating a significant decline[8]. - The basic and diluted earnings per share for the current period were both -$0.020, compared to $0.033 in the previous year[10]. Assets and Liabilities - As of June 30, 2024, cash and cash equivalents amounted to RMB 480,375,885.16, an increase from RMB 367,102,242.55 as of December 31, 2023[2]. - Accounts receivable decreased to RMB 208,855,083.52 from RMB 256,706,725.95 as of December 31, 2023[2]. - Total current assets as of June 30, 2024, were RMB 2,076,208,649.74, down from RMB 2,140,827,616.33 as of December 31, 2023[2]. - Total liabilities as of June 30, 2024, were RMB 1,186,878,040.43, compared to RMB 1,241,287,401.51 as of December 31, 2023[5]. - The total assets as of June 30, 2024, were RMB 2,806,114,677.89, down from RMB 2,874,452,654.75 as of December 31, 2023[4]. - The company reported a total equity attributable to shareholders of RMB 1,619,236,637.46 as of June 30, 2024, compared to RMB 1,633,165,253.24 as of December 31, 2023[5]. Operating Costs and Expenses - Total operating costs for the same period were $235.54 million, down from $271.58 million, reflecting a reduction of approximately 13.3%[12]. - Research and development expenses decreased to $7.98 million from $9.39 million, a reduction of approximately 15%[12]. - Financial expenses for the period were RMB 13,196,906.89, a reduction of approximately 21.55% compared to the previous year, primarily due to optimized financing structure[26]. - Sales expenses for the period were RMB 14,312,689.41, a decrease of approximately 7.41% year-on-year due to reduced project maintenance costs[24]. - Management expenses decreased by approximately 20.20% to RMB 14,528,899.85, mainly due to the expiration of certain equipment depreciation periods[25]. Market and Business Strategy - The group has actively pursued market expansion, successfully signing multiple projects including the Jiangxi Province logistics park and the FedEx intelligent review technology service contract[32]. - The group is focused on providing comprehensive intelligent solutions for customs and logistics sectors, enhancing regulatory efficiency and reducing costs[32]. - The company aims to enhance its market share in the smart transportation and logistics sectors, leveraging national strategic opportunities despite a challenging economic environment[34]. - The company plans to integrate AI, big data, and cloud computing into smart highway applications, aiming to improve construction quality and efficiency[35]. - The company is committed to developing smart highways, smart ports, and smart vehicles, seeking to diversify its business and achieve profitability[37]. Research and Development - The company has initiated key R&D projects in collaboration with prestigious universities, focusing on the "Vehicle Warning System and Automatic Emergency Braking Equipment Integration Application Demonstration" project[33]. - The company will continue to invest in R&D, particularly in AI and big data, to drive technological and business model innovations[36]. - The company has a strong focus on intellectual property, having filed for 4 new software copyrights and received approval for 6 software products during the review period[33]. Corporate Governance and Compliance - The company is in the process of appointing a new independent non-executive director to comply with listing rules after a recent resignation[40]. - The company has not complied with the financial reporting requirements under the listing rules, failing to publish the annual results for the year ending December 31, 2023, by the deadline, which was eventually released on April 25, 2024[41]. - The board of directors includes three executive directors, one non-executive director, and two independent non-executive directors, but the composition does not currently meet the listing rules' requirements following the resignation of an independent non-executive director on May 31, 2024[41]. - The company has amended its articles of association to comply with the latest revisions of the Company Law of China and adopted electronic communication methods for company communications[42].

Smart Logistics and Technology Development - The company's smart logistics business has developed products such as "Special Supervision Zone Information System," "Customs Logistics Information Solution," "Smart Gate System," and "AI Container Number Recognition System," some of which have been applied, promoting technological progress and business expansion[8] - The company is actively exploring new business scenarios such as maritime information systems, original inspection laboratory informatization, and customs financial informatization[8] - The company emphasizes the importance of core product technology and providing value-driven solutions to maintain a competitive advantage in the complex market environment[8] - The company's smart logistics platform and related products are continuously optimized, with a focus on innovation and scenario extension[8] - The company focused on integrating AI, big data, cloud platforms, wireless communication, and edge computing into smart transportation, launching products like the highway cloud control platform and smart service area management platform[62] - The company plans to focus on developing smart highways, smart ports, and smart vehicles, aligning with China's carbon neutrality goals[123] - The company will leverage its RFID system engineering technology center and smart highway engineering research center to advance cloud computing services and intelligent applications[125] - The company plans to deepen the integration of AI, big data, cloud computing, and edge computing in the intelligent highway vehicle-road coordination industry[143] - The company aims to enhance cross-border logistics efficiency through IoT-based tracking and visual management systems[143] Financial Performance and Cost Control - Sales expenses for the year ended December 31, 2023, were RMB 37,769,640.78, a decrease of approximately 14.41% compared to the previous year, primarily due to optimized staffing, cost control, and reduced maintenance costs[59] - Fair value change income for the year ended December 31, 2023, was RMB 51,302,228.34, an increase of approximately 3,088.52% compared to the previous year, mainly due to the revaluation of investment properties[60] - The company's net profit margin increased from -62.53% in the previous year to 0.38%, primarily due to higher gross margins, reduced expenses, and an increase in the fair value of investment properties[90] - The return on equity (ROE) improved from -19.30% to 0.11%, driven by higher gross margins and reduced expenses[91] - The debt-to-asset ratio decreased from 48.02% to 43.18%, mainly due to a reduction in bank loans[93] - The company emphasized cost control measures, including strict project budget reviews and labor cost management, to improve financial performance[75] - Gross profit margin for the year ended December 31, 2023, was approximately 17.72%, an increase of 12.02% compared to the previous year's 5.70%, driven by higher-margin customs logistics orders and improved supplier management[97] - Net profit attributable to parent company shareholders for 2023 was RMB 1,994,964.77, a significant turnaround from a net loss of RMB 273,526,467.22 in the previous year, due to cost control, refined management, and increased fair value of investment properties[100] - Management expenses for the year ended December 31, 2023, decreased by 20.38% to RMB 37,130,078.64, primarily due to streamlined management, optimized staffing, and reduced depreciation of major equipment[154] - Employee compensation costs decreased to RMB 48,429,827.93 in 2023 from RMB 59,242,390.13 in 2022, with the number of employees reduced to 215 from 261[116] Asset and Liability Management - The company's other receivables increased by 135.13% to RMB 862,555,910.98, primarily due to the conversion of a RMB 450,000,000 investment in a private equity fund into receivables[82] - The value of investment properties increased by 82.44% to RMB 432,018,591.53, driven by the conversion of some self-used properties into rental properties and an increase in fair value[83] - Fixed assets decreased by 66.98% to RMB 50,520,450.88 as of December 31, 2023, primarily due to depreciation and reclassification of self-used properties to investment properties[101] - Shareholders' equity as of December 31, 2023, was RMB 1,633,165,253.24, with current assets of RMB 2,140,827,616.33, including cash and bank deposits of RMB 367,102,242.55[102] - The quick ratio improved from 0.96 to 1.40, driven by an increase in other receivables and a decrease in short-term borrowings[106] - The company's current ratio improved from 1.40 to 1.90, and the quick ratio increased from 0.96 to 1.40, indicating better liquidity[89] - The current ratio increased from 1.40 to 1.90, driven by an increase in current assets and a decrease in current liabilities[156] - The company's debt-to-equity ratio was approximately 0.21, down from 0.33 in 2022[150] Business Expansion and Market Development - The company's development is closely related to national macroeconomic conditions and industrial policies, with government policy changes potentially leading to order fluctuations[2] - The company's main business is providing comprehensive solutions based on video recognition and RFID technology for smart transportation and customs logistics applications[56] - The company successfully bid on two regional highway electromechanical projects, marking a breakthrough in new business areas[118] - The company secured new projects such as the Changtai Yangtze River Bridge and the North-South Highway Connection Electromechanical Engineering Project, and the Funing to Liyang Expressway Jianhu to Xinghua Section Electromechanical Engineering Project[139] - The company achieved a breakthrough in the Hainan market with the signing of the Wenchang City Port Upgrade and "Second-line Port" Construction Project[141] - The company plans to focus on smart transportation and smart logistics in 2024, leveraging the latest technologies to enhance efficiency in transportation and logistics industries[77] Innovation and Intellectual Property - The company passed the annual on-site supervision audit for the Intellectual Property Management System (GB/T 29490-2013) and filed 2 new invention patents and 9 software copyrights, with 2 invention patents authorized[120] - The company continued to advance the national key R&D project "Key Technologies for Driver Behavior Correction for Low Emissions" and established a provincial "High-Value Patent Cultivation Demonstration Center"[142] - The company's technical center received a "Good" rating in the 2022 provincial enterprise technical center evaluation[142] Corporate Governance and Internal Control - The company has strengthened internal control mechanisms and risk prevention awareness, ensuring compliance and governance[153] - The company has organized training for financial, securities, and asset management departments to improve internal control and monitoring capabilities[163] - The company has revised its articles of association to comply with listing rules and expand its business scope[167] - The company emphasizes employee development, providing competitive compensation, training, and career growth opportunities[183] - The Board of Directors recommended not paying a final dividend for the year ended December 31, 2023[184] - The company did not recommend paying a final dividend for the year ended December 31, 2023, due to uncertainties in the industry and the need to align with long-term development goals[73] Operational Efficiency and Strategic Focus - The company focuses on customer-centric strategies, enhancing customer stickiness through efficient and high-quality services[153] - The company plans to advance safety and environmental controls, production efficiency, and key project construction to achieve high-quality development[153] - Total operating revenue for the fiscal year 2023 was RMB 493,541,069.55, a decrease of approximately 3.73% compared to the previous year[128] - Net profit attributable to parent company shareholders was RMB 1,994,964.77, turning around from a net loss of RMB 273,526,467.22 in the same period last year[128] - The company's total asset value was RMB 462,982,791.98, with investment properties accounting for RMB 432,018,591.53, fixed assets for RMB 28,680,968.28, and intangible assets for RMB 2,283,232.17[134] - The company's total issued share capital as of December 31, 2023, was 792,058,500 shares, with a registered capital of RMB 792,058,500[196]

Financial Performance - The total operating revenue for the fiscal year 2023 was approximately ¥493.54 million, a decrease of 3.3% compared to ¥512.67 million in 2022[19]. - The total operating costs for 2023 were approximately ¥541.34 million, down 15.3% from ¥638.93 million in 2022[19]. - The total profit for 2023 was approximately ¥1.74 million, a significant recovery from a loss of ¥304.99 million in 2022[21]. - The net profit attributable to the shareholders of the parent company was RMB 1,994,964.77, compared to a net loss of RMB 273,526,467.22 in the same period last year, achieving a turnaround from loss to profit[36]. - The basic earnings per share for the fiscal year was approximately RMB 0.003, compared to a basic loss per share of RMB 0.345 in 2022[24]. - The total comprehensive income for 2023 was RMB 75,121,032.78, a recovery from a loss of RMB 293,476,978.55 in 2022[44]. - The company's net profit margin improved to 0.38% from -62.53% in the previous year, primarily due to increased gross margin, reduced expenses, and appreciation in the fair value of investment properties[114]. - The company's gross profit margin increased to approximately 17.72% in 2023 from 5.70% in 2022, an increase of about 12.02%[84]. Cost Management - The company has implemented strict cost control measures, leading to a gradual normalization of its overall financial condition[5]. - Management expenses decreased by approximately 20.38% to RMB 37,130,078.64, attributed to streamlined management and optimized personnel allocation[63]. - The sales expenses for the year were RMB 37,769,640.78, a decrease of approximately 14.41% compared to the previous year, attributed to optimized personnel allocation and strict budget management[104]. Asset and Liability Management - The non-current assets totaled approximately ¥733.63 million as of December 31, 2023, down from ¥1.14 billion in the previous year[9]. - Long-term borrowings decreased to approximately ¥78.25 million from ¥88.03 million in the previous year, reflecting improved financial management[13]. - The total current assets increased to RMB 2,140,827,616.33 from RMB 1,853,670,630.85 in the previous year, reflecting a growth in liquidity[38]. - The total current liabilities decreased to RMB 1,126,428,190.02 from RMB 1,328,025,175.21, indicating improved financial stability[40]. - The company's total liabilities decreased from RMB 564,217,147.38 in 2022 to RMB 496,699,959.85 in 2023, reflecting improved financial stability[51]. - The debt-to-equity ratio decreased to 43.18% from 48.02% in the previous year, reflecting a reduction in bank loans[117]. Market Expansion and Contracts - The company has signed new contracts for several projects, including customs supervision systems and logistics center information systems, indicating ongoing market expansion[3]. - The company successfully signed contracts for new projects, including the Lhasa to Shigatse Airport section of the highway and communication line projects in Xinjiang, marking a breakthrough in these regions[128]. - The company achieved a significant milestone by signing contracts for the upgrade of the Wenchang Port in Hainan, establishing a foundation for future market expansion in the Hainan Free Trade Zone[129]. Research and Development - The company is actively collaborating with Southeast University on key R&D projects focused on low-emission driving behavior correction technologies[4]. - The company is focusing on the development of key IoT technologies, addressing critical technology challenges in the industry[4]. - The company will strengthen its research and development capabilities by leveraging its national RFID system engineering technology center and Jiangsu province's smart highway engineering technology research center[137]. - The company has developed several products in the smart logistics field, including the "Special Supervision Area Information System" and "Customs Logistics Information Solutions," with some already in application[145]. - The company has achieved significant results in the research and development of its own products and services, launching several software products including a highway cloud control platform and a smart scheduling system[163]. Compliance and Governance - The company has revised its articles of association to ensure compliance with listing rules and expand its business scope[153]. - The company has adopted a code of conduct for securities trading, ensuring compliance with the trading standards set out in the listing rules[155]. - The board of directors does not recommend the payment of a final dividend for the year ending December 31, 2023, consistent with the previous year[172]. Employee Management - The company's total employee compensation cost was RMB 48,429,827.93, down from RMB 59,242,390.13 in the previous year, with a total of 215 employees compared to 261 in the prior year[120].

Financial Performance - For the six months ended June 30, 2023, the basic earnings per share was approximately RMB 0.033, compared to a loss of RMB 0.009 in the same period of 2022[2]. - The total operating revenue for the group was RMB 292,771,678.34, representing a decrease of approximately 44.93% compared to the same period last year[5]. - The net profit attributable to the owners of the parent company for the six months ended June 30, 2023, was RMB 26,197,152.00, compared to a net loss of RMB 7,108,515.65 in the same period last year[60]. - The operating profit for the six months ended June 30, 2023, was RMB 25,621,849.66, compared to an operating loss of RMB 11,724,337.46 for the same period last year[182]. - The total profit for the six months ended June 30, 2023, was RMB 25,608,015.29, with income tax expenses of RMB 375,710.37[182]. - Total revenue for the six months ended June 30, 2023, was approximately CNY 292.77 million, a decrease of 45% compared to CNY 531.67 million in the same period of 2022[196]. - The net profit attributable to the parent company for the six months ended June 30, 2023, was approximately CNY 26.97 million, compared to a loss of CNY 8.74 million in the same period of 2022[200]. Revenue Breakdown - The revenue from system integration was RMB 240,539,740.58, while the revenue from smart terminal sales was RMB 7,764,979.55 for the six months ended June 30, 2023[16]. - The total operating revenue for the group for the six months ended June 30, 2023, was RMB 292,771,678.34, a decrease of approximately 44.93% compared to the same period last year, primarily due to a reduction in smart terminal sales revenue[44]. Operating Costs - The total operating costs for the six months ended June 30, 2023, were RMB 273,131,551.26, down from RMB 517,271,286.11 in the same period of 2022[16]. - Total operating costs for the same period were approximately CNY 271.58 million, down from CNY 548.90 million, reflecting a reduction of 50%[196]. Cash and Assets - As of June 30, 2023, the group's bank deposits and cash amounted to RMB 222,973,162.56, down from RMB 472,877,356.21 as of December 31, 2022[50]. - The total assets of the company amounted to RMB 326,584,973.98, with significant investments in investment properties (RMB 236,803,100.00) and fixed assets (RMB 82,686,737.43)[75]. - The total assets of the group included accounts receivable of RMB 572,498,477.76 as of June 30, 2023, with a provision for bad debts of RMB 303,332,072.22[36]. - Total assets as of June 30, 2023, were approximately CNY 2.86 billion, compared to CNY 2.99 billion as of December 31, 2022[192]. Equity and Liabilities - The company’s total equity attributable to shareholders was RMB 1,558,592,307.71 as of June 30, 2023[9]. - The total equity attributable to owners was RMB 1,877,459,254.54, with a decrease of RMB 8,744,520.78[1]. - Total liabilities as of June 30, 2023, were approximately CNY 1.17 billion, down from CNY 1.33 billion as of December 31, 2022[194]. Expenses - Interest expenses for the period were RMB 17,556,583.21, compared to RMB 19,905,565.78 in the previous year[16]. - Financial expenses for the group were RMB 16,822,627.60, an increase of approximately 1.59% compared to the same period last year[49]. - Selling expenses for the period were RMB 15,457,693.65, a decrease of approximately 0.54% compared to the same period last year[46]. - Management expenses decreased by approximately 1.24% to RMB 18,206,562.63, due to effective management and organizational optimization[47]. - Research and development expenses for the six months ended June 30, 2023, amounted to RMB 9,393,466.62, a decrease of approximately 7.22% compared to the same period last year[166]. Strategic Focus and Development - The company plans to continue its focus on product development and market expansion, although specific new products or technologies were not detailed in the report[18]. - The company has been actively optimizing existing products and exploring new business scenarios, including maritime information systems and customs financial information systems[85]. - The company is collaborating with Southeast University on key R&D projects aimed at low-emission driving behavior correction technologies and high-value patent cultivation[86]. - The group plans to continue focusing on smart transportation and smart customs as core industries, aiming to enhance operational efficiency and reduce costs for clients[116]. - The company is focused on enhancing its core business while navigating complex international environments and seizing market opportunities[81]. Governance and Compliance - The company has fully complied with the corporate governance code as per the listing rules during the review period[157]. - The company has established an audit committee to oversee financial reporting and internal controls[132]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[138]. - The board of directors has undergone changes, with the chairman also taking on the role of CEO since March 3, 2023, to enhance strategic planning efficiency[133]. Shareholder Information - The company is primarily owned by Sanbao Group, which directly holds 397,821,000 domestic shares, accounting for approximately 50.22% of the total issued share capital, and indirectly holds 4,310,000 H shares, accounting for about 0.54%[144][151]. - Active Gold Holding Limited is fully owned by Jian Ying Sample High Growth Investment Fund, which holds 123,862,500 domestic shares, representing 15.64% of the company[149][151]. - The company has not declared an interim dividend for the six months ended June 30, 2023, consistent with the previous year[61]. Innovation and Technology - The group has developed several key products in the customs logistics technology service platform, including the "Special Supervision Area Information System" and "AI Container Number Recognition System," contributing to technological advancement and business expansion[88]. - The group aims to integrate new technologies such as artificial intelligence and big data into smart highway applications, enhancing the synergy between transportation intelligence and connectivity[117]. - The group has applied for and obtained two new invention patents during the review period, strengthening its intellectual property portfolio[88].

本公司的境外子公司按當地適用稅率繳納所得稅。 每股收益╱虧損是根據截至二零二三年六月三十日止六個月歸屬於母公司所有者的淨利潤人民幣26,197,152.00 元（二零二二年同期：歸屬於母公司所有者的淨虧損人民幣7,108,515.65元）及回顧期內已發行普通股加權平均數 792,058,500股（二零二二年：792,058,500股）計算。 8. 貿易及其他應收款 應付賬款按入賬日期的賬齡披露 12 本集團截至二零二三年六月三十日止六個月（「回顧期」）之營業總收入為人民幣292,771,678.34元，較 去年同期下降約44.93%。下降的主要原因是回顧期內智能終端銷售收入減少。 截至二零二三年六月三十日之銷售費用為人民幣15,457,693.65元，較去年同期下降約0.54%。 13 本集團採納嚴謹之財務管理政策，並且保持穩健之財務狀況。於二零二三年六月三十日，本集團營 運資本（即流動資產減流動負債）為人民幣567,078,872.57元（於二零二二年十二月三十一日：人民幣 525,645,455.64元）。 於二零二三年六月三十日，本集團銀行借款總額為人民幣694,560,000.00元。（於二零二二年十 ...

Financial Performance - In 2022, the company's net profit margin was -62.53%, a significant decline from -6.29% in 2021[11] - The company's total liabilities ratio was approximately 48.02% as of December 31, 2022, compared to 47.13% in 2021[11] - The company's total equity as of December 31, 2022, was RMB 1,558,592,307.71, with a net asset value per share of approximately RMB 1.96[26] - As of December 31, 2022, the company's distributable reserves amounted to RMB 536,999,877.42, a decrease from RMB 812,449,980.76 in the previous year[161] - The company did not declare any dividends during the year ended December 31, 2022[161] Assets and Liabilities - The company's total assets as of December 31, 2022, included cash and bank deposits amounting to RMB 472,877,356.21[26] - The company's fixed assets decreased by 26.73% year-on-year, totaling RMB 152,999,306.59 as of December 31, 2022, primarily due to depreciation[7] - The company's contract assets decreased by approximately 9.87% year-on-year, amounting to RMB 547,320,001.45, attributed to project delays and cancellations[24] - The company has pledged bank deposits of RMB 163,961,528.06 to support ongoing projects and bank credit[27] Expenses and Cost Management - The company's management expenses decreased by about 19.88% year-on-year, totaling RMB 46,632,855.46, due to reduced personnel costs and other expenses[23] - The company's sales expenses increased by approximately 14.49% year-on-year, totaling RMB 44,130,186.93, due to business expansion efforts[22] - Total employee compensation cost for the group was RMB 59,242,390.13, down from RMB 68,909,057.67 in the previous year, with a total of 261 employees compared to 272 in the prior year[69] Business Development and Projects - The company signed new contracts for various projects, including the JD01 section of the Lin'an to Jiande section of the Linjin Expressway and the LN-92 section of the Liyang to Ningde highway, among others[40] - The company completed several key projects, including the cross-border e-commerce supervision center in Zhenjiang and the information technology project for the cross-border e-commerce supervision center in Zibo[42] - The group successfully completed several key projects, including the operation of the Changning to Baoshan Expressway electromechanical engineering and the expansion of the Wuhu to Lin Tou section of the G5011 expressway[71] - New contracts were signed for the installation of traffic lights and monitoring systems at nine intersections for the Xiantao Public Security Bureau[72] Strategic Initiatives - In the smart customs business, the company aims to enhance regulatory efficiency and reduce costs through innovative solutions, focusing on logistics clients such as customs and ports[41] - The company plans to continue innovating and expanding its product offerings in the smart customs sector, focusing on automation and digitalization to improve customs efficiency[46] - The company is leveraging its RFID technology research center to advance research in IoT multi-modal perception, aiming to develop new intelligent identification systems and applications in smart transportation and logistics[48] - Future business development plans include enhancing project implementation and exploring new business areas such as urban transportation and smart buildings[77] Market and Economic Outlook - The company anticipates steady economic recovery in China, despite global economic growth being downgraded to 1.7% for 2023, the third lowest in nearly 30 years[45] - The group faced significant impacts from the pandemic, leading to a slowdown in the smart transportation and customs industries, with project delays and cancellations becoming more pronounced[70] Corporate Governance and Compliance - The company emphasizes compliance with laws and regulations in its operations[118] - The company has strengthened its internal governance measures to comply with the corporate governance code[178] - The independent non-executive directors confirmed their independence according to the listing rules[183] - The company adopted corporate governance principles and confirmed compliance with the corporate governance code throughout the year ended December 31, 2022[200] Shareholder Information - As of December 31, 2022, Sanbao Technology Group Limited holds 50.77% of the company's registered capital, making it the largest shareholder[105] - The company reported a significant ownership structure, with Mr. Sha holding 60.40% and Mr. Chang holding 38.96% in Jiangsu Sanbao Holdings, which in turn owns 49% of the controlling shareholder Sanbao Group[112] - Sanbao Group directly holds 397,821,000 domestic shares, accounting for approximately 50.22% of the company's issued share capital, and indirectly holds 4,310,000 H shares, accounting for about 0.54%[128] Risk Management - The company faces risks related to customer turnover, technology development, management, and accounts receivable losses, which could impact its financial performance[61] - The company is committed to establishing long-term cooperative relationships with key clients to mitigate policy risks affecting operational performance[115] Investments - The company has significant investments classified as other equity instruments, including a planned transfer of shares valued at RMB 450 million to China Overseas Development and Construction Group[65] - The company acquired a 12.00% stake in Qingdao Smart Science and Technology Venture Capital Partnership for RMB 36,401,800.00 on December 28, 2022[35] - The company acquired a 50.50% stake in Qingdao Shuke Enterprises for RMB 64,504,300 on December 28, 2022[151] Environmental and Social Responsibility - The company has integrated sustainable development concepts into its corporate strategy and operations, focusing on reducing pollution and improving resource utilization[93] - The company is committed to complying with applicable environmental protection laws and regulations, as well as industry standards[93] - The company has published its ESG report in accordance with the listing rules and uploaded it to its website[174]

Financial Performance - The total profit (loss) for the year 2022 was -304,998,524.39, compared to -54,706,617.95 in 2021, indicating a significant increase in losses [8]. - The net profit (loss) for 2022 was -300,862,226.17, compared to -55,912,187.63 in 2021, reflecting a worsening financial performance [17]. - The basic and diluted earnings per share for 2022 were both -0.35, compared to -0.07 in 2021, showing a decline in profitability per share [10]. - The total comprehensive income for 2022 was -293,476,978.55, compared to -53,874,281.52 in 2021, indicating a substantial increase in overall losses [19]. - The company's operating profit (loss) for 2022 was -307,745,303.59, compared to -54,757,098.35 in 2021, highlighting a significant deterioration in operational performance [17]. - The other comprehensive income attributable to the parent company for 2022 was -266,141,219.60, compared to -57,206,829.54 in 2021, indicating increased losses in this category [19]. - The net loss attributable to shareholders for the year ended December 31, 2022, was RMB 273,526,467.22, compared to a net loss of RMB 59,244,735.65 in the previous year [28]. - The basic loss per share for the year ended December 31, 2022, was approximately RMB 0.35, compared to RMB 0.07 in the previous year [28]. - The company reported a total loss of RMB 304,998,524.39 for the year ended December 31, 2022, compared to a loss of RMB 54,706,617.95 in the previous year [71]. Revenue and Costs - The total operating revenue for the year ended December 31, 2022, was RMB 512,665,194.01, representing a decrease of approximately 43.91% compared to the previous year [28]. - Total operating revenue for the year ended December 31, 2022, was $512.67 million, a decrease of 43.9% from $914.01 million in 2021 [36]. - Total operating costs for the same period were $638.93 million, down 32.9% from $954.71 million in 2021 [36]. - The gross profit margin for system integration was 8.0% in 2022, down from 16.7% in 2021 [56]. - The gross profit margin for the year ended December 31, 2022, was approximately 5.70%, a decline of about 12.84% from the previous year [82]. - Sales expenses for the year ended December 31, 2022, amounted to RMB 44,130,186.93, an increase of approximately 14.49% compared to the previous year [83]. Assets and Liabilities - Total current assets decreased from RMB 2,856,235,868.32 in 2021 to RMB 1,853,670,630.85 in 2022, a decline of approximately 35% [22]. - Total non-current assets increased from RMB 695,021,099.33 in 2021 to RMB 1,144,624,373.85 in 2022, an increase of approximately 64.5% [24]. - Total liabilities decreased from RMB 1,673,797,713.11 in 2021 to RMB 1,439,702,696.99 in 2022, a reduction of approximately 14% [26]. - Current liabilities decreased from RMB 1,553,357,374.41 in 2021 to RMB 1,328,025,175.21 in 2022, a decline of approximately 14.5% [25]. - The total assets as of December 31, 2022, were RMB 2,998,295,004.70, down from RMB 3,551,256,967.65 in the previous year [74]. - The net current assets decreased to RMB 525,645,455.64 in 2022 from RMB 1,302,878,493.91 in 2021 [74]. - Accounts receivable as of December 31, 2022, was RMB 240,880,565.69, a decrease of approximately 26.15% from the same period last year, mainly due to provisions for bad debts [86]. - Other receivables as of December 31, 2022, were RMB 366,840,678.68, a decrease of approximately 55.33% from the previous year, mainly due to the recovery of funds related to the termination of an investment agreement [89]. - Contract assets as of December 31, 2022, were RMB 547,320,001.45, a decrease of approximately 9.87% from the previous year, due to project delays and cancellations caused by economic pressures and the pandemic [90]. Cash Flow and Investments - Cash and cash equivalents increased from RMB 379,312,843.32 in 2021 to RMB 472,877,356.21 in 2022, an increase of approximately 24.7% [22]. - The company has no commitments for significant future investments or capital assets beyond what is disclosed in the financial statements [47]. - The company’s investment income showed a significant decline, reporting a loss of $1.19 million compared to a gain of $9.78 million in the previous year [36]. - The company agreed to acquire a 50.50% stake in Qingdao Shuhua Digital Industry Investment Development Partnership for RMB 64,504,300.00 on December 28, 2022 [113]. - The company sold a 15.1236% stake in Nanjing Information Technology Investment Holdings Co., Ltd. for RMB 41,263,200 on June 28, 2022 [115]. - The company agreed to acquire a 12.00% stake in Qingdao Smart Fund from Sanbao Digital for RMB 36,401,800.00 [155]. - The company also agreed to acquire a 50.50% stake in Qingdao Digital Technology from Qingdao Baohua for RMB 64,504,300.00 [155]. Corporate Governance and Compliance - The company has implemented changes in accounting policies effective from January 1, 2022, which may impact future financial reporting [6][7]. - The company has adopted internal governance measures to comply with the corporate governance code, ensuring transparency and shareholder interests [46]. - The company is subject to the new accounting standards as per the Ministry of Finance's announcement on November 30, 2022 [161]. - The company has established an audit committee to oversee financial reporting and risk management since August 27, 2003 [160]. Strategic Focus and Market Conditions - The company operates in the IT application services industry, focusing on providing comprehensive solutions based on video recognition and RFID technology for smart transportation and customs logistics [13]. - The company faced significant impacts from the pandemic, leading to project delays and cancellations, which contributed to the decline in revenue [81]. - The company is focusing on providing integrated intelligent solutions in smart transportation, including cloud monitoring systems and traffic management systems, to enhance operational efficiency and safety [135][137]. - The company will continue to focus on smart transportation and smart customs as its core industries, aiming to enhance management efficiency in the transportation and customs logistics sectors [139]. - In the smart customs sector, the company aims to improve regulatory efficiency and reduce costs, leveraging new policies to accelerate customs clearance speed and promote trade circulation [140]. - The company anticipates a gradual recovery in policy and demand in the smart transportation sector over the next few years, focusing on digital transformation and market expansion [150]. - The global economic growth forecast for 2023 has been downgraded to 1.7%, indicating potential challenges for domestic economic recovery [149].