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].