Financial Performance - The company reported a consolidated net loss attributable to equity holders of approximately RMB 82 million for the fiscal year ended December 31, 2019, compared to a net loss of RMB 25 million in the previous year[8]. - Major contributors to the net loss included distribution expenses of approximately RMB 23 million, general and administrative expenses of approximately RMB 22 million, and impairment losses totaling approximately RMB 59 million[8]. - The company recorded revenue of approximately RMB 101,628,000 for the year ended December 31, 2019, a decrease of 31.8% from RMB 149,091,000 in 2018[23]. - The company reported a loss of approximately RMB 104,119,000 for the year ended December 31, 2019, compared to a loss of RMB 39,055,000 in 2018[34]. - The gross profit for the year was approximately RMB 23,325,000, with a gross margin of 23%, up from 16% in the previous year[24]. - The company did not declare a final dividend for the year ended December 31, 2019, consistent with the previous year[45]. - The total reserves available for distribution to equity holders as of December 31, 2019, amounted to approximately RMB 33,269,000, a decrease from RMB 80,420,000 in 2018[199]. - The company did not recommend the payment of a final dividend for the year ended December 31, 2019, consistent with the previous year[197]. Business Challenges and Strategies - The software business growth continued to slow down due to clients transitioning from traditional databases to next-generation non-structured databases, facing intense competition from well-funded participants[9]. - Economic uncertainties from the US-China trade war and the COVID-19 outbreak are expected to pose significant challenges to the company's software business in China in the coming year[9]. - The company aims to maintain competitiveness and expand its customer base by launching new products and services in 2020[9]. - The company plans to explore suitable business opportunities to expand into new growth areas and diversify revenue sources to enhance shareholder returns[9]. - The company remains optimistic about growth opportunities in the financial services sector and believes that integrating its IT services with financial services can broaden revenue sources and provide long-term benefits[9]. - The company anticipates significant challenges for its software business in the coming year due to economic uncertainties from the US-China trade war and the COVID-19 pandemic[48]. - The company aims to maintain competitiveness by introducing new products and services while implementing cost control measures[48]. Governance and Board Composition - Independent non-executive director Hu Jingying has over 25 years of experience in accounting and finance, serving as the chair of the audit committee and a member of the remuneration and nomination committees[13]. - Liu Jian, another independent non-executive director, has over 14 years of experience in investment banking, having held senior management positions in several investment banks[15]. - Li Weijun, also an independent non-executive director, has extensive experience in finance and investment management, currently serving as CFO of a fashion manufacturing group listed on the Hong Kong Stock Exchange[16]. - The company has appointed experienced directors with diverse backgrounds in finance, investment, and corporate governance, enhancing its strategic oversight capabilities[18]. - The board includes members with significant experience in various sectors, including investment banking, asset management, and corporate finance, which may contribute to informed decision-making[19]. - The company is focused on strengthening its governance structure by appointing independent directors with relevant industry experience[20]. - The board consists of three independent non-executive directors with significant qualifications in accounting, finance, and law, providing essential support for the board's responsibilities[71]. - The board has adopted a diversity policy to enhance its composition, considering factors such as gender, age, cultural background, and professional experience[74]. - The nomination committee will review the board's diversity policy to ensure its ongoing effectiveness[75]. Financial Position and Ratios - As of December 31, 2019, the company's cash and cash equivalents were approximately RMB 64,766,000, down from RMB 96,446,000 in 2018[35]. - The current ratio as of December 31, 2019, was approximately 3.79, compared to 4.58 in 2018[35]. - Non-current assets decreased to RMB 14,374 thousand in 2019 from RMB 41,749 thousand in 2018, representing a decline of 65.6%[54]. - Current assets decreased to RMB 173,665 thousand in 2019 from RMB 260,623 thousand in 2018, a decrease of 33.4%[54]. - Net current assets stood at RMB 127,790 thousand in 2019, down from RMB 203,697 thousand in 2018, reflecting a decline of 37.2%[54]. - Total assets less current liabilities decreased to RMB 142,164 thousand in 2019 from RMB 245,446 thousand in 2018, a drop of 42.1%[54]. - The return on equity (ROE) was -53.84% in 2019, compared to -14.60% in 2018, indicating a significant deterioration in profitability[54]. - The return on assets (ROA) was -42.46% in 2019, down from -11.83% in 2018, highlighting a decline in asset efficiency[54]. - The current ratio was 378.56% in 2019, a decrease from 457.83% in 2018, indicating a reduction in liquidity[54]. - Accounts receivable turnover days improved to 77.64 days in 2019 from 122.23 days in 2018, suggesting better collection efficiency[54]. - Inventory turnover days increased to 4.37 days in 2019 from 3.35 days in 2018, indicating a slower inventory turnover[54]. - Total equity attributable to equity holders decreased to RMB 69,628 thousand in 2019 from RMB 151,499 thousand in 2018, a decline of 54.0%[54]. Risk Management and Compliance - The group has established a risk management program to identify and manage risks, aiming to achieve strategic and financial objectives[110]. - An external consultant was hired to review the risk management and internal control systems, with no significant deficiencies found during the year[114]. - The group conducts annual risk assessments to identify existing or potential risks that may impact business objectives[111]. - The board believes that the risk management and internal control systems are reasonably effective and sufficient for the year ended December 31, 2019[114]. - The company faced risks related to macroeconomic fluctuations in China and Hong Kong, impacting business and profit growth[190]. - There were no significant legal or regulatory violations affecting the business operations during the reporting period[192]. Environmental and Social Responsibility - The environmental, social, and governance report outlines the group's performance in corporate social responsibility, focusing on significant business activities in China[118]. - The group has implemented policies to manage and monitor risks related to environmental, employment, operational practices, and community[121]. - The company aims to implement measures to record and reduce non-hazardous waste in the coming year, enhancing its waste management strategy[145]. - The company has complied with environmental regulations, with no known violations reported during the reporting period[137]. - The total greenhouse gas emissions amounted to 40.53 tons of CO2 equivalent, a decrease from 72.24 tons in 2018, representing a reduction of approximately 44%[141]. - Nitrogen oxides (NOx) emissions in 2019 were recorded at 2.09 kg, down from 2.17 kg in 2018, indicating a reduction of about 3.7%[139]. - Sulfur dioxide (SO2) emissions decreased from 0.69 kg in 2018 to 0.46 kg in 2019, reflecting a reduction of approximately 33.3%[139]. - The company reported no hazardous waste generated from its operations in 2019, focusing on minimizing environmental impact through various waste reduction measures[145]. - The intensity of greenhouse gas emissions in China was 0.025 tons of CO2 equivalent per square meter in 2019, compared to 0.051 tons in the previous year, showing a significant improvement[141]. - The company has committed to enhancing its environmental sustainability practices, despite its operations not having a significant impact on the environment[135]. - Total energy consumption in 2019 was 110.75 million kWh, a decrease from 143.44 million kWh in 2018, representing a reduction of approximately 22.7%[150]. - Water consumption in 2019 totaled 2,570.11 cubic meters, down from 2,922.72 cubic meters in 2018, indicating a decrease of about 12%[152]. - The company aims to continue reducing environmental impact through policies that minimize air pollutants and greenhouse gas emissions[153]. - The company provided reusable glass cups instead of paper cups to reduce paper waste[146]. Employee and Community Engagement - Employee turnover rate for 2019 was 42%, significantly higher than 22% in 2018, with male turnover at 38% and female turnover at 54%[163]. - The percentage of trained employees in 2019 was 28% for males and 15% for females, with an average training hours of 10 for males and 4 for females[168]. - The total number of employees at the end of the reporting period was 116, with a gender distribution of 77% male and 23% female[157]. - The company encourages employees to participate in resource conservation activities and promotes energy and water-saving measures[147]. - The company is dedicated to community investment, providing employment opportunities and promoting local economic development[176]. - The company has not recorded any work-related fatalities or lost workdays due to occupational injuries[181]. - The company has implemented measures to review recruitment practices to avoid child and forced labor[181]. - The company has a strict anti-corruption policy and has not faced any lawsuits related to corruption during the reporting period[175].

Financial Performance - The company reported a revenue of RMB 40,483,000 for the six months ended June 30, 2019, a decrease of 51.5% compared to RMB 83,480,000 in the same period of 2018[9]. - Gross profit for the same period was RMB 8,407,000, down 34.5% from RMB 12,904,000 year-on-year[9]. - The company incurred a loss of RMB 18,423,000 for the period, compared to a loss of RMB 12,110,000 in the previous year, representing a 52.5% increase in losses[9]. - Basic and diluted loss per share remained at RMB (0.02) for both periods[9]. - The company reported a total comprehensive loss of RMB 18,498,000 for the period, compared to RMB 12,908,000 in the previous year, indicating a 43.2% increase in comprehensive losses[11]. - The reported segment loss before tax for the six months ended June 30, 2019, was RMB (16,551) thousand, compared to a loss of RMB (8,944) thousand for the same period in 2018, indicating a deterioration in performance[54]. - The company reported a pre-tax loss of RMB 12,404,000 for the six months ended June 30, 2019, compared to a loss of RMB 8,321,000 for the same period in 2018[72]. - The group’s total comprehensive loss for the six months ended June 30, 2019, was RMB (18,423) thousand, compared to RMB (12,077) thousand for the same period in 2018[54]. Assets and Liabilities - Total assets decreased to RMB 233,961,000 as of June 30, 2019, from RMB 260,623,000 as of December 31, 2018, reflecting a decline of 10.2%[14]. - The company's net current assets decreased to RMB 181,260,000 from RMB 203,697,000, a reduction of 11.0%[14]. - The total equity attributable to equity holders of the company decreased to RMB 138,988,000 from RMB 151,499,000, a decline of 8.3%[16]. - Total assets decreased to RMB 281,574,000 as of June 30, 2019, from RMB 302,372,000 as of December 31, 2018, reflecting a decline of 6.9%[57]. - Total liabilities decreased to RMB 54,626,000 as of June 30, 2019, from RMB 56,926,000 as of December 31, 2018, a reduction of 4.0%[57]. - The company reported secured bank loans of RMB 13,000,000 as of June 30, 2019, down from RMB 24,000,000 as of December 31, 2018, indicating a reduction of about 45.8%[96]. - The company’s total borrowings as of June 30, 2019, amounted to RMB 17,396,000, compared to RMB 28,390,000 as of December 31, 2018, representing a decrease of approximately 38.7%[94]. Cash Flow - For the six months ended June 30, 2019, the company reported a net cash outflow from operating activities of RMB 69,653 thousand, compared to RMB 15,328 thousand for the same period in 2018, indicating a significant increase in cash usage[21]. - The company experienced a net decrease in cash and cash equivalents of RMB 83,536 thousand for the six months ended June 30, 2019, compared to a decrease of RMB 14,905 thousand in the prior year[21]. - As of June 30, 2019, the company's cash and cash equivalents stood at RMB 12,840 thousand, down from RMB 108,366 thousand at the end of June 2018[21]. - The company’s financing activities resulted in a net cash outflow of RMB 11,418 thousand for the six months ended June 30, 2019, compared to a net inflow of RMB 1,522 thousand in the same period of 2018[21]. - The company’s investment activities led to a net cash outflow of RMB 2,465 thousand for the six months ended June 30, 2019, compared to RMB 1,099 thousand in the previous year[21]. Revenue Sources - Revenue from external customers in China was RMB 39,739,000, down 52.0% from RMB 82,865,000 in the previous year[61]. - Software maintenance and other services generated revenue of RMB 38,524,000, down 50.5% from RMB 77,816,000 in the previous year[64]. - The decline in revenue was attributed to clients accelerating the transition from traditional databases to next-generation non-structured databases and intense competition in the software industry[128]. Operational Strategies - The company continues to explore new strategies for market expansion and product development to improve future performance[8]. - The company plans to improve the gross margin of its software maintenance services to enhance profitability despite the revenue decrease[130]. - The company aims to maintain competitiveness by introducing new products and services and seeking suitable opportunities for business diversification[130]. - The company is focused on expanding its customer base in China and leveraging its experienced technical team to provide timely and effective services[130]. - The company is repositioning its products to reduce sales costs and sustain long-term development and value preservation[130]. Governance and Compliance - The company has adopted the corporate governance code and has complied with all relevant provisions, except for specific deviations noted in the report[146]. - The audit committee consists of three independent non-executive directors and is responsible for reviewing and supervising financial reporting procedures[149]. - The company secretary appointed on April 2, 2019, is not an employee of the company, but a contact person has been designated to ensure compliance with relevant procedures[148]. Employee and Shareholder Information - The company employed 133 full-time employees as of June 30, 2019, compared to 134 employees as of June 30, 2018[126]. - As of June 30, 2019, major shareholders included China Taiping Insurance Holdings Company Limited, holding 38.72% of the issued shares[137]. Other Financial Information - The company has not applied any new standards, amendments, or interpretations that have not yet come into effect during the reporting period[26]. - The company has not recognized any impairment losses on goodwill as of June 30, 2019[79]. - The company had no significant investments or acquisitions during the six months ended June 30, 2019[122][123]. - There were no significant related party transactions during the reporting period[108]. - The company has not granted any stock options since the adoption of the stock option plan on May 26, 2016[142]. - During the six-month period ending June 30, 2019, the company and its subsidiaries did not purchase, sell, or redeem any of its listed securities[143].

Financial Performance - The company reported a consolidated net loss attributable to equity holders of approximately RMB 250 million for the fiscal year ended December 31, 2018, compared to a net loss of approximately RMB 1.02 billion in the previous year, representing a significant improvement[11]. - The company reported a significant increase in revenue, achieving a total of $500 million for the fiscal year, representing a 20% year-over-year growth[20]. - The company provided guidance for the next fiscal year, projecting revenue growth of 25% and aiming for $625 million[24]. - The company reported a net profit margin of 15%, up from 12% in the previous year, reflecting improved operational efficiency[24]. - The company reported a loss from continuing operations of approximately RMB 39,055,000 for the year, compared to a loss of RMB 91,880,000 in 2017[32]. - The total revenue for the year ended December 31, 2018, was RMB 149,091,000, a decrease of 50.5% from RMB 300,602,000 in 2017[52]. - The gross profit for 2018 was RMB 24,133,000, down from RMB 40,712,000 in 2017, indicating a decline of 40.6%[52]. - The net loss attributable to the company's equity holders for 2018 was RMB 25,001,000, compared to a loss of RMB 102,186,000 in 2017, showing an improvement of 75.5%[52]. Expenses and Costs - Distribution expenses amounted to approximately RMB 260 million, while general and administrative expenses were around RMB 530 million, with a gross profit of approximately RMB 240 million offsetting these costs[11]. - The gross profit for the year was approximately RMB 24,133,000, with a gross margin of 16%, down from 17% in the previous year, primarily due to increased sales costs[26]. - Distribution expenses increased to approximately RMB 26,319,000 from RMB 22,090,000 in 2017, mainly due to rising employee costs in the software business[27]. - General and administrative expenses rose significantly to approximately RMB 53,161,000 from RMB 25,374,000 in 2017, primarily due to provisions for bad debts[28]. Business Strategy and Growth - The company plans to continue seeking suitable business opportunities to expand into new growth areas and broaden revenue sources, particularly by integrating existing IT services with the financial services sector[12]. - The company remains optimistic about growth opportunities in the financial services industry and believes that the successful integration of IT services with this sector will enhance revenue sources and provide long-term benefits[12]. - The company aims to maintain competitiveness in 2019 through the launch of new products and services[11]. - The company aims to diversify its business and explore integration opportunities between its existing IT services and the financial services sector, maintaining an optimistic outlook on growth opportunities in the financial services industry[48]. - The company is investing $50 million in R&D for new technologies aimed at enhancing user experience and operational efficiency[21]. - Market expansion efforts have led to entry into three new countries, with an expected revenue contribution of $30 million in the first year[19]. - The company completed a strategic acquisition for $200 million, which is anticipated to enhance market share and operational capabilities[18]. Shareholder and Board Matters - No final dividend was recommended for the fiscal year ended December 31, 2018[11]. - The board of directors emphasized a commitment to sustainability, with plans to allocate 10% of profits towards environmental initiatives[20]. - The board consists of five directors, including two executive directors and three independent non-executive directors, ensuring a balanced structure for effective leadership[67]. - The board held five meetings during the fiscal year ending December 31, 2018, reviewing operational and financial performance[81]. - The company is in the process of selecting a suitable candidate for the CEO position following the resignation of the previous CEO[74]. - The board has delegated daily management responsibilities to the management team while retaining authority over significant operational and financial matters[65]. - The board adopted a dividend policy on March 28, 2019, stating that any future dividends will be determined at the board's discretion based on the group's overall performance and financial condition[109]. Risk Management and Internal Control - The group conducted a risk assessment at the beginning of each year to identify existing or potential risks that could impact business objectives[115]. - The internal audit function ensured the effectiveness and efficiency of the group's risk management and internal control systems for the year ending December 31, 2018[116]. - The board believes that the risk management and internal control systems were reasonably effective and sufficient for the year ending December 31, 2018[116]. - The company has established a board audit committee responsible for overseeing and reviewing the group's risk management procedures and internal control systems[113]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance report outlines the group's performance in corporate social responsibility, focusing on integrated business software solutions in China[121]. - The environmental, social, and governance report was prepared in accordance with the Hong Kong Stock Exchange's guidelines and covers the period from January 1, 2018, to December 31, 2018[122]. - The group emphasizes sustainable strategies by integrating environmental and social factors into management considerations, aiming to create value for stakeholders and the community[124]. - The group has established various policies to manage and monitor risks related to environmental, employment, operational practices, and community issues[124]. - The group recognizes the importance of stakeholder engagement and has identified key stakeholders to maintain effective communication and relationships[127]. - The group has implemented a stakeholder engagement process to understand expectations and concerns, which aids in making informed decisions[133]. - The group complies with environmental regulations and has not reported any violations during the reporting period[138]. - The group’s operations do not significantly impact the environment, but it is committed to improving sustainability practices[138]. - The company aims to continue reducing its carbon footprint through energy-saving measures and resource conservation initiatives[142]. Employee and Workforce - The company reported a 27% employee demographic aged between 41 to 50 years, with 77% of employees being male[157]. - The total number of software business employees at the end of the reporting period was 112[157]. - The company reported a gender employment composition of 77% male and 23% female in 2018, compared to 73% male and 27% female in 2017[162]. - The percentage of employees under 30 years old increased to 33% in 2018 from 32% in 2017, while the percentage of employees aged 31 to 40 decreased to 36% from 46%[162]. - The average training hours per employee were 10 hours for males and 24 hours for females, with 25% of male employees receiving training[168]. - The company maintained a zero-incident record for workplace injuries and fatalities during the reporting period[164]. - The company is committed to eliminating all forms of forced labor and strictly prohibits the employment of child labor[169]. - The company actively seeks opportunities to contribute to community development and provide employment opportunities for local residents[177].