Financial Performance - Total sales revenue from continuing operations was approximately RMB 5,904.7 million, a decrease of about RMB 2,941.1 million or approximately 33.2% compared to RMB 8,845.8 million in the first half of 2023[1]. - Adjusted net loss was approximately RMB 0.7 million, compared to a loss of RMB 696.8 million in the first half of 2023[1]. - Adjusted EBITDA was approximately RMB 10.7 million, with no corresponding figure provided for the first half of 2023[1]. - Loss attributable to equity holders of the company from continuing operations was approximately RMB 55.3 million, down from RMB 696.8 million in the first half of 2023[1]. - Basic and diluted loss per share from continuing operations was RMB 0.0422, compared to RMB 0.5319 in the first half of 2023[1]. - The company reported a total comprehensive loss of RMB 65,441 million for the period, compared to RMB 911,717 million in the previous year[2]. - The company recognized an impairment loss on goodwill of RMB 719,426 million in the previous year, which was not recorded in the current period[2]. - The company reported a net loss before tax of RMB 64,089 thousand for the six months ended June 30, 2024, compared to a loss of RMB 847,867 thousand for the same period in 2023[16]. - The company incurred a goodwill impairment loss of RMB 719,426 thousand during the six months ended June 30, 2023, which significantly impacted the financial results[16]. - The company reported a net loss before tax of RMB 19,859 for the period ended February 27, 2024, significantly improved from a loss of RMB 153,137 for the six months ended June 30, 2023[19]. - The loss attributable to equity holders was approximately RMB 63.2 million, significantly lower than the loss of RMB 810.3 million in the first half of 2023, which included a goodwill impairment of RMB 719.4 million[38]. - The group reported an operating loss of RMB (13,555,000) for the six months ended June 30, 2024, compared to an operating loss of RMB (692,179,000) for the same period in 2023[65]. - The adjusted EBITDA for the six months ended June 30, 2024, was RMB 10,708,000, down from RMB 34,204,000 in the previous year[65]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 2,416,995 million, down from RMB 3,077,045 million as of December 31, 2023[4]. - Non-current assets totaled RMB 478,648 million, an increase from RMB 444,370 million as of December 31, 2023[4]. - Current assets, including cash and cash equivalents, were RMB 1,938,347 million, down from RMB 2,632,675 million as of December 31, 2023[4]. - Total equity attributable to equity holders remained stable at RMB 120,977 thousand as of June 30, 2024, unchanged from December 31, 2023[6]. - Cumulative losses increased to RMB 3,272,851 thousand as of June 30, 2024, compared to RMB 3,147,855 thousand as of December 31, 2023, reflecting a rise of approximately 3.96%[6]. - Total liabilities decreased to RMB 1,624,103 thousand as of June 30, 2024, down from RMB 1,891,769 thousand as of December 31, 2023, representing a reduction of about 14.14%[6]. - Current liabilities totaled RMB 1,615,649 thousand as of June 30, 2024, compared to RMB 1,889,979 thousand as of December 31, 2023, indicating a decrease of approximately 14.48%[6]. - Non-controlling interests decreased significantly to RMB 303,903 thousand as of June 30, 2024, from RMB 624,866 thousand as of December 31, 2023[6]. - The total equity and liabilities combined amounted to RMB 2,416,995 thousand as of June 30, 2024, down from RMB 3,077,045 thousand as of December 31, 2023, a decrease of approximately 21.5%[6]. - Accounts payable and notes payable increased to RMB 376,895,000 as of June 30, 2024, compared to RMB 292,924,000 as of December 31, 2023, representing a growth of approximately 28.6%[32]. - Total borrowings increased to RMB 447,831,000 as of June 30, 2024, from RMB 406,473,000 as of December 31, 2023[34]. - The total liabilities, including accounts payable and other payables, amounted to RMB 515,087,000 as of June 30, 2024, compared to RMB 432,122,000 as of December 31, 2023[32]. Sales and Revenue Segments - The technology retail segment generated sales revenue of RMB 125,594 thousand, while the smart industry segment contributed RMB 5,779,115 thousand, indicating a significant reliance on the latter for overall revenue[15]. - The smart industry segment's sales revenue decreased to approximately RMB 5,698 million from RMB 7,068 million in the first half of 2023, reflecting a significant decline due to weakened demand from downstream textile enterprises[37]. - The revenue for the "Mianlian" segment decreased by approximately 19.4% compared to the first half of 2023 due to external market conditions[45]. - In the first half of 2024, the company achieved operating revenue of approximately RMB 693.5 million, representing a year-on-year growth of about 13.15%[44]. - The net profit for the same period was approximately RMB 100.8 million, reflecting a year-on-year increase of about 21.12%[44]. - The digital identity technology and solutions service segment generated revenue of RMB 36,090 thousand for the six months ended June 30, 2024, compared to RMB 27,822 thousand in the same period of 2023, indicating growth in this area[16]. - The company reported other income of RMB 14,384 thousand for the six months ended June 30, 2024, compared to RMB 7,243 thousand in the same period of 2023, reflecting an increase in additional revenue streams[15]. Strategic Developments - The group announced the sale of its stake in Beijing Huicong Internet Information Technology Co., Ltd. on November 28, 2023, with completion expected by February 27, 2024[7]. - The group’s financial performance for the six months ending June 30, 2024, will include results from discontinued operations due to the sale of Huicong Internet[7]. - The group has suspended operations of its e-commerce platform Huicong.com since 2022, with a gradual closure of related entities[13]. - The company completed the sale of its entire equity interest in Huicong Interconnect for a cash consideration of RMB 5,000,000 thousand on February 27, 2024, which was classified as discontinued operations[18]. - The company has completed the sale of Huicong Internet, eliminating any equity holdings in the company post-sale[38]. - The company is in the process of listing Zhaoxin Co., Ltd. on the Beijing Stock Exchange, pending regulatory approval[58]. - The company is investing heavily in R&D, with an allocation of $50 million for the development of new technologies in the upcoming year[70]. - Market expansion efforts include entering three new international markets, expected to contribute an additional $20 million in revenue[70]. - The company has completed a strategic acquisition, enhancing its product portfolio and expected to generate $10 million in synergies over the next two years[70]. Operational Efficiency and Future Outlook - The company aims to improve operational efficiency, targeting a 10% reduction in costs through process optimization[70]. - The management highlighted a 30% increase in quarterly revenue, reaching $200 million, compared to the previous quarter[70]. - New product launches are anticipated to boost sales by 20% in the next quarter, with a focus on innovative features[70]. - The board expressed confidence in achieving the annual performance guidance, with a target of $800 million in total revenue[70]. - The company plans to enhance customer engagement through digital platforms, aiming for a 40% increase in online interactions[70]. - The company confirmed compliance with the corporate governance code during the reporting period[67]. - The company reported a significant increase in user data, with a growth rate of 25% year-over-year in active users[70].

Financial Performance - Total revenue and income for 2023 reached RMB 18,535,437, an increase of 9.8% from RMB 16,883,681 in 2022[19] - The company reported a loss attributable to equity holders of RMB 1,829,540 in 2023, compared to a loss of RMB 224,306 in 2022[19] - Basic and diluted loss per share for 2023 was RMB (1.3967), a significant decline from RMB (0.1712) in 2022[19] - The Group generated total revenue of approximately RMB18,448,063,000 in 2023, representing an increase of approximately 9.9% compared to RMB16,779,956,000 in 2022[37] - The technology-driven new retail segment recorded revenue of approximately RMB1,209,833,000 in 2023, a decrease of approximately 19.5% from RMB1,502,786,000 in 2022[38] - Revenue from the smart industries segment increased from approximately RMB15,198,337,000 in 2022 to approximately RMB17,225,282,000 in 2023, representing an increase of approximately 13.3%[38] - Revenue from the platform and corporate services segment decreased from approximately RMB78,833,000 in 2022 to approximately RMB12,948,000 in 2023[38] - Adjusted net loss for the Group was approximately RMB86,865,000 in 2023, compared to RMB137,886,000 in 2022[33] - Adjusted LBITDA for the Group was approximately RMB(19,398,000) in 2023, an improvement from RMB(32,161,000) in 2022[33] Asset and Liability Management - Net current assets decreased to RMB 742,696 in 2023 from RMB 1,213,488 in 2022, indicating a reduction in liquidity[19] - Total assets fell to RMB 3,077,045 in 2023, down from RMB 6,657,858 in 2022, reflecting a significant contraction in the company's asset base[19] - Total liabilities decreased to RMB 1,891,769 in 2023 from RMB 3,379,229 in 2022, showing improved debt management[19] - Total equity dropped to RMB 1,185,276 in 2023, down from RMB 3,278,629 in 2022, indicating a decline in shareholder value[19] Impairment and Losses - Impairment loss for goodwill and intangible assets related to the technology-driven new retail business was approximately RMB1,019.7 million in 2023, significantly up from approximately RMB26.1 million in 2022[41] - The impairment loss included losses from discontinued operations, including asset sales and the impairment of receivables and interest[43] - The loss from discontinued operations was approximately RMB774.5 million for the year, significantly higher than the RMB76 million loss in 2022[55] - Impairment loss on financial assets increased to approximately RMB401.1 million from RMB85.5 million in 2022, driven by overdue loans and macroeconomic factors[57] Strategic Focus and Business Development - The company aims to enhance user stickiness and industry influence through technology-driven new retail strategies[13] - The smart industries segment focuses on vertical development and integration of IoT solutions for digital transformation[15] - The company is committed to empowering traditional industries with internet and data solutions as part of its long-term vision[13] - The Group aims to lead the "Industrial Internet" sector in China, focusing on enhancing industrial efficiency and empowering supply chains[65] - The company aims to enhance core capabilities by pursuing the development of AIGC, optimizing APP monetization, and exploring diverse ecosystem cooperation models[75] Management and Governance - The company has a strong leadership team with diverse backgrounds in technology and management[159] - The Group's strategic focus includes expanding its presence in the TMT field, leveraging management expertise[155] - The Company is committed to maintaining high standards of corporate governance and transparency in its operations[170] - The financial department is led by experienced professionals, ensuring robust financial management and compliance with regulatory standards[186] Financing Services and Loans - The Group's financing services business contributed less than 0.1% of total revenue in the year, with a decision made to dispose of this segment due to operational challenges[95] - As of December 31, 2023, the Group's outstanding loans receivables from financing services amounted to approximately RMB1,636 million[96] - The decision to sell the financing services business was influenced by a challenging operating environment and high operational costs[99] - The Group has established mechanisms to cover credit risk in key operational phases of micro-credit financing services, including pre-lending evaluations and post-lending monitoring[116] Economic Environment and Market Challenges - The overall economic momentum is yet to fully recover post-COVID-19, impacting the Group's operational environment[140] - The emergence of AI tools has reshaped the market landscape, reducing the competitive advantage of specialized editors and creators, impacting ZOL's business outlook and potential profitability[72] - ZOL's traditional media business has been significantly impacted by the economic downturn and the rapid penetration of AI applications, leading to a drastic reduction in advertising budgets from contract customers[72]

Financial Performance - The company reported a total revenue of RMB 18,447,807 thousand for the year, with a significant loss of RMB 1,019,680 thousand attributed to goodwill and intangible asset impairment[16]. - The company reported a loss before tax of RMB 1,879,690 thousand for the year, indicating significant financial challenges[16]. - The loss attributable to equity holders of the company for the year was approximately RMB 1,829,540,000, an increase from RMB 224,306,000 in the previous year, mainly due to impairment losses related to new technology businesses and losses from discontinued operations[38]. - The company reported a total comprehensive loss for the year of RMB 1,960 million, compared to RMB 266 million in 2022[120]. - The company’s total sales revenue and income from financing services was RMB 16,779,398,558 for the year ended December 31, 2022[1]. - The company’s goodwill and intangible asset impairment losses totaled RMB 224,966,000 for the year ended December 31, 2023[1]. - The company recorded other income of approximately RMB 180,746,000 from the sale of Tianjin Guokai, which partially offset the losses incurred[189]. - The company reported a total loss from discontinued operations of RMB 955,236,000 in 2023, compared to a loss of RMB 76,437,000 in 2022[48]. Assets and Liabilities - In 2023, the total assets of the company amounted to RMB 3,077,045 thousand, a decrease of approximately 53.8% compared to RMB 6,657,858 thousand in 2022[4]. - The total liabilities decreased to RMB 1,891,769 thousand in 2023, down from RMB 3,379,229 thousand in 2022, representing a reduction of about 44%[5]. - The company’s current assets decreased to RMB 2,632,675 thousand in 2023, down from RMB 4,559,924 thousand in 2022, representing a decline of approximately 42.3%[4]. - The non-current assets totalled RMB 444,370 thousand in 2023, a decrease of about 78.8% from RMB 2,097,934 thousand in 2022[4]. - As of December 31, 2023, the total external borrowings of the group were approximately RMB 406,473,000, down from RMB 1,070,277,000 on December 31, 2022[39]. - The company’s net asset to net debt ratio was -19%, indicating a negative capital structure, with equity attributable to equity holders decreasing from approximately RMB 2,509,118,000 to RMB 560,410,000[40]. - The company’s bank borrowings stood at RMB 10,000,000 as of December 31, 2023, down from RMB 50,000,000 in the previous year[104]. Revenue Segments - The company’s revenue from the technology new retail segment was RMB 1,209,833 thousand, while the financing service income was RMB 17,225,282 thousand[16]. - The total sales revenue for the technology new retail segment was approximately RMB 1,209,833,000 in 2023, a decrease of about 19.5% from RMB 1,502,786,000 in 2022[61]. - The smart industry segment's sales revenue increased by approximately 13.3% to RMB 17,225,282,000 in 2023 from RMB 15,198,337,000 in 2022[61]. - Sales revenue for the year was derived from three main business segments: New Retail Technology (approximately 6.6%), Smart Industry (approximately 93.3%), and Platform and Enterprise Services (approximately 0.1%)[193]. Operational Changes - The company has terminated certain business operations, which have been classified as discontinued operations in the financial statements[15]. - The group has decided to refocus resources on its core business by selling or terminating certain non-profitable ventures, which aligns with its long-term strategic goals[190]. - The company plans to focus on core business segments, including ZOL, Zhao Xin Co., and Mian Lian, while balancing operational costs and risks[74]. - The company has submitted an application for the public offering and listing of Zhao Xin Co. on the Beijing Stock Exchange, which is currently under review[75]. - The group is integrating cloud computing, IoT, and AI technologies into a comprehensive digital solution for brand enterprises, enhancing supply chain agility and data-driven decision-making[196]. Management and Strategy - The company aims to become a leader in China's "industrial internet" by enhancing industry efficiency and empowering supply chains through internet-based tools and strategies[41]. - The company has established a one-stop managed service for brands, enhancing marketing capabilities and helping brands effectively reach various consumer segments[43]. - The company is closely monitoring changes in the industry landscape, particularly the impact of post-pandemic content consumption shifts and the rise of artificial intelligence[29]. - The company aims to enhance content capabilities by expanding its information pool and leveraging cross-industry resources to reach more consumer segments[195]. - The company has restructured its operations to focus on customer and transaction product resource management in response to market competition[94]. Employee and Cost Management - Total employee costs for continuing operations amounted to approximately RMB 208,612,000, a decrease from RMB 273,422,000 in 2022[79]. - The company has no dividends declared for the year, consistent with the previous year[26]. - The board of directors does not recommend the payment of any final dividend for the year[125]. Market and Industry Insights - The traditional media business has struggled to attract new clients and capitalize on post-pandemic economic recovery due to clients' cautious advertising spending[194]. - The company has expanded its market share in the cotton and polyester fiber sectors, contributing to significant revenue growth[94]. - The company’s brand influence in the cotton textile industry continues to grow, enhancing its commercial reputation[94].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 佈 全 部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 HC GROUP INC. 慧聰集團有限公司 （於 開 曼 群 島 註 冊 成 立 之 有 限 公 司） （股 份 代 號：02280） 有關二零二二年年報之 補充公佈 茲提述慧聰集團有限公司（「本公司」，連 同 其 附 屬 公 司 統 稱「本集團」）截至二零 二二年十二月三十一日止年度之年報（「該報告」）。除 非 文 義 另 有 所 指，否 則 本 公 佈 所 用 詞 彙 與 該 報 告 所 界 定 者 具 有 相 同 涵 義。 誠 如 該 報 告 所 載，截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度（「報告期間」），本 集 團 之 銷 售 收 入 來 自 於 其 三 大 業 務 板 塊，分 別 為：科 技 新 零 售 事 業 群、智 慧 產 業 事 業 群 及 平 台 與 企 業 服 務 事 業 群。於 報 告 期 間，平 ...

Financial Performance - Total sales revenue for the six months ended June 30, 2023, was approximately RMB 8,906.3 million, an increase of about RMB 2,789.4 million or approximately 45.6% compared to RMB 6,116.9 million in the same period of 2022[5]. - Adjusted net profit for the period was approximately RMB 13.4 million, a significant improvement from an adjusted net loss of approximately RMB 48.1 million in the first half of 2022[5]. - Adjusted EBITDA for the period was approximately RMB 69.4 million, compared to approximately RMB 9.9 million in the same period of 2022[5]. - The loss attributable to equity holders for continuing operations was approximately RMB 809.7 million, compared to a loss of approximately RMB 74.7 million in the same period of 2022[5]. - The company reported a net loss of RMB 843,591,000 for the six months ended June 30, 2023, compared to a net loss of RMB 74,643,000 in the prior year, indicating a significant increase in losses[52]. - The company recorded a comprehensive loss of RMB 878,426 thousand for the period, compared to a comprehensive loss of RMB 49,905 thousand in the prior year, indicating a substantial increase in losses[60]. Revenue Segments - The sales revenue from the Smart Industry segment increased to approximately RMB 7,808.5 million, up 47.8% from RMB 5,282.7 million in the first half of 2022[7]. - The Technology New Retail segment generated sales revenue of approximately RMB 1,037.4 million, a 41.6% increase from RMB 732.5 million in the same period of 2022[7]. - The "Mianlian" platform achieved a sales revenue increase of approximately 173% to about RMB 7,068 million in the first half of 2023, compared to RMB 2,591 million in the same period of 2022[17]. - Revenue from B2B product sales was RMB 8,642,541,000, up from RMB 5,824,483,000, reflecting a growth of 48.5% year-over-year[104]. Impairments and Losses - The company recorded a goodwill impairment of approximately RMB 719.4 million due to underperformance in the Technology New Retail segment[8]. - The company recognized goodwill impairment losses of RMB 719,426,000 during the reporting period, which was not present in the previous year[52]. - The financial assets impairment provision was RMB 177,253 thousand, indicating a significant impact on financial health[98]. Operating Expenses and Costs - Operating expenses decreased from approximately RMB 252.5 million in the first half of 2022 to approximately RMB 239.4 million in the current period, primarily due to reduced employee costs and commissions[7]. - The company’s administrative expenses decreased to RMB 101,312,000 from RMB 117,227,000, showing a reduction of 13.6% year-over-year[52]. - Financial costs decreased to RMB 21,892,000 from RMB 31,861,000, representing a reduction of 31.3%[108]. Cash Flow and Liquidity - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 140,655 thousand, a significant increase from RMB 7,949 thousand in the same period of 2022, representing a growth of approximately 1,669%[64]. - The company’s operating cash flow from business activities was RMB 162,058 thousand, a substantial increase from RMB 44,090 thousand in the same period of 2022, reflecting a growth of approximately 267%[64]. - The group’s cash and bank balances were approximately RMB 273.9 million, down from RMB 312.0 million as of December 31, 2022[28]. Assets and Liabilities - Total assets decreased to RMB 4,369,173 thousand as of June 30, 2023, down from RMB 6,657,858 thousand at the end of December 2022, reflecting a reduction of 34.3%[56]. - The company’s total liabilities decreased to RMB 2,011,185 thousand from RMB 3,379,229 thousand, reflecting a reduction of 40.5%[58]. - The group’s total borrowings were approximately RMB 857.9 million, a decrease from RMB 1,070.3 million as of December 31, 2022, with bank borrowings averaging an interest rate of 5.57%[28]. Strategic Initiatives - The company aims to enhance its core capabilities, marketing capabilities, and content ecosystem to improve user engagement and brand promotion[12][13]. - The company continues to focus on becoming a leading "Industrial Internet" group in China, leveraging internet tools to enhance industry efficiency and empower supply chains[9]. - The company plans to list Zhaoxin Co., Ltd. on the Beijing Stock Exchange, which commenced in the first half of this year, aiming to enhance competitiveness in the innovation sector[28]. Shareholder Information - The group has not declared any interim dividends for the six months ended June 30, 2023, consistent with the previous year[41]. - The total number of issued shares remained at 1,309,931,119 as of June 30, 2023, unchanged from December 31, 2022[167]. - The company’s weighted average number of shares outstanding was 1,309,931,000 for both the six months ended June 30, 2023, and 2022[116]. Financial Risks and Management - The group faces various financial risks including market risk, credit risk, and liquidity risk, which are consistent with those reported in the annual financial statements as of December 31, 2022[76]. - The group’s financial risk management policies have not changed since December 31, 2022, ensuring consistency in risk assessment and management practices[77]. - The group maintains a prudent treasury policy, closely monitoring liquidity to meet funding needs without using financial instruments for hedging[30].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而產生或因倚賴該等 內容而引致之任何損失承擔任何責任。 HC GROUP INC. 慧聰集團有限公司 （於開曼群島註冊成立之有限公司） （股份代號：02280） 截至二零二三年六月三十日止六個月之 中期業績公佈 摘要 持續經營業務產生總銷售收入及收入約人民幣8,906.3百萬元，由二零二二年同期所錄得約人 民幣6,116.9百萬元增加約人民幣2,789.4百萬元或約45.6%。 經調整利潤淨額*約為人民幣13.4百萬元，二零二二年上半年則為經調整虧損淨額約人民幣 48.1百萬元。 經調整EBITDA*約為人民幣69.4百萬元，二零二二年上半年則約為人民幣9.9百萬元。 ...

Financial Performance - The company reported a significant increase in revenue, achieving a total of $500 million for the fiscal year 2022, representing a 20% growth compared to the previous year[9]. - Total revenue for 2022 was RMB 16,883,681, a decrease of 3.0% compared to RMB 17,405,835 in 2021[55]. - The loss attributable to equity holders of the Company for 2022 was RMB (224,306), compared to a loss of RMB (663,110) in 2021[55]. - Basic and diluted earnings per share for 2022 were both RMB (0.1712), compared to RMB (0.5062) in 2021[55]. - Net current assets as of December 31, 2022, were RMB 1,213,488, down from RMB 1,353,484 in 2021[55]. - Total assets increased to RMB 6,657,858 in 2022 from RMB 5,629,771 in 2021[55]. - Total liabilities rose to RMB 3,379,229 in 2022, compared to RMB 2,081,376 in 2021[55]. - Total equity decreased to RMB 3,278,629 in 2022 from RMB 3,548,395 in 2021[55]. - The Group's total revenue from continuing operations for the year ended December 31, 2022, was approximately RMB 16,883,681,000, representing a decrease of approximately 2.9% compared to RMB 17,388,661,000 in 2021[64][89]. - Revenue from the technology-driven new retail segment increased by approximately 40.1% to RMB 1,502,786,000 in 2022, up from RMB 1,072,470,000 in 2021[62][92]. - Revenue from the smart industries segment decreased by approximately 5.5% to RMB 15,198,337,000 in 2022, down from RMB 16,083,099,000 in 2021[62][92]. - Revenue from the platform and corporate services segment decreased by approximately 21.7% to RMB 182,558,000 in 2022, compared to RMB 233,092,000 in 2021[62][92]. - The net impairment loss on financial assets was approximately RMB 105,772,000 in 2022, compared to a net reversal of RMB 25,088,000 in 2021[63][93]. - The Group's operating expenses decreased from approximately RMB 653,373,000 in 2021 to approximately RMB 617,703,000 in 2022, primarily due to reduced marketing expenses and amortization of intangible assets[65][90]. - The Group does not recommend the payment of any final dividend for the year ended December 31, 2022[69]. - In 2022, the Group reported a loss attributable to equity holders of approximately RMB 224.3 million, a significant improvement from a loss of approximately RMB 663.1 million in the previous year[97]. Strategic Initiatives - The company provided an optimistic outlook for the next fiscal year, projecting a revenue growth of 25% to $625 million[9]. - New product launches are expected to contribute an additional $50 million in revenue, with a focus on innovative technology solutions[9]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[9]. - A strategic acquisition of a smaller tech firm was completed, which is anticipated to enhance the company's service offerings and increase market competitiveness[9]. - The Group's strategic focus includes developing a technology-driven new retail ecosystem and enhancing user engagement through professional content[43]. - The Group aims to transform by lowering its gearing ratio, optimizing resources, discontinuing loss-making businesses, and focusing on core business development[70][96]. - ZOL, the principal entity of the technology-driven new retail segment, aims to enhance user loyalty and industry influence through professional content and data-driven decision-making[72][79]. - The Group's strategic focus includes leveraging internet thinking to enhance industrial efficiency and empower supply chains[98]. - The Group's focus on digital transformation aims to overcome growth obstacles and align with market trends[198]. Regulatory Compliance - The management highlighted the importance of compliance with PRC regulations, which may impact future operational strategies[10]. - The company is closely monitoring regulatory changes that could affect its business model, particularly regarding variable interest entity structures[13]. - Orange Beijing may face significant adverse effects on its financial performance if Beijing Zhixing Ruijing breaches the BZR Structured Contracts, as timely remedies may not be obtainable[17]. - The BZR Structured Contracts are governed by PRC law, and any disputes will be submitted to CIETAC for arbitration, which may not effectively protect Orange Beijing's interests[19]. - The Group does not have insurance covering risks related to the BZR Structured Contracts, which could adversely affect operational results if risks arise in the future[19]. - Beijing Zhixing Ruijing is required to provide monthly management accounts and key operating data to Orange Beijing, ensuring transparency in operations[21]. Marketing and User Engagement - The company plans to implement a new marketing strategy aimed at increasing brand awareness, with a budget allocation of $10 million for the upcoming year[9]. - ZOL strategically upgraded its brand and enhanced its product R&D, aiming to become a leading shopping guide platform for living technology products[99]. - ZOL connected with over 50,000 small businesses in the home appliances and 3C industry through SaaS, facilitating new retail transformation and improving cost efficiency[114]. - The ZOL Huimaimai platform collaborates with over 200 brands and serves over 50,000 active retailers across 19 provinces in China[119]. - The launch of the new marketing extension product "Win with Code" aims to help corporations reduce costs and improve efficiency through enhanced interactive marketing[142]. Challenges and Risks - The Group faced significant challenges in 2022, including the impacts of COVID-19, global supply chain pressures, and rising costs, but sees opportunities in the digital economy[196]. - The pandemic and macroeconomic conditions led to a significant decline in trading revenue for ibuychem.com compared to 2021 due to reduced transaction frequency and volume[157]. - Approximately RMB 236.2 million of outstanding loans are currently subject to legal proceedings, indicating potential recovery challenges[194]. - The Group's proactive reduction in transaction frequency and volume in response to price volatility in chemical and plastic products led to a significant decline in transaction income compared to the same period in 2021[158]. Innovation and Technology - Research and development expenses increased by 30% to $75 million, reflecting the company's commitment to innovation and new technology[9]. - PanPass obtained 21 new patents and software copyrights, bringing the total to over 120 intellectual property rights, demonstrating strong technological innovation[141]. - The "Retinal Anticounterfeiting Label" designed by PanPass won the second prize in a prestigious packaging competition, further establishing its innovative capabilities[142]. - ZOL's self-developed professional product database ranks top in the industry for internet coverage, providing comprehensive product analysis and price comparison services[105]. - The Group has established a comprehensive technology service framework, including server maintenance and application software development, to support Huicong Construction's internet content provider business[133]. Financial Services and Loans - The Group's finance lease receivables were approximately RMB 285,531,000 as of December 31, 2022, down from RMB 301,822,000 in 2021, representing a decrease of about 5.4%[164]. - The Group's micro-credit loan business involves thorough vetting of applicants, including assessments of creditworthiness and financial conditions, to mitigate credit risk[161]. - The Group has established a loan credit risk classification system based on collateral type and credit period, categorizing loans into five risk categories[190]. - The normal category of loans accounted for 84.97% of total loans, while the loss category increased significantly to 10.81% from 2.99% in the previous year[193]. - The Group has established post-loan management procedures to monitor and enforce loan repayments, including legal actions for overdue loans[194].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全 部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 HC GROUP INC. 慧 聰 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：02280） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 全 年 業 績 公 佈 摘要 (cid:129) 持續經營業務產生總銷售收入及收入由二零二一年錄得之人民幣16,883.7 百萬元減少2.9%至人民幣17,388.7百萬元。 (cid:129) 於二零二二年，持續經營業務產生本公司權益持有人應佔虧損為人民幣 224.3百萬元，而二零二一年持續經營業務產生本公司股東應佔虧損則錄 得人民幣638.1百萬元。 (cid:129) 經調整虧損淨額* 約為人民幣128.8百萬元，上一年則為人民幣83.4百萬 元。 (cid:129) 經調整EBITDA*約為人民幣11.7百萬元，上一年則為人民幣58.8百萬元。 ...

Financial Performance - Total sales revenue from continuing operations decreased by approximately RMB 947.6 million or 13.4% to approximately RMB 6,116.9 million compared to RMB 7,064.5 million in the same period last year[3]. - Adjusted net loss decreased from approximately RMB 116.2 million in the first half of 2021 to approximately RMB 48.1 million in the first half of 2022[4]. - EBITDA improved from a loss of approximately RMB 12.1 million in the first half of 2021 to a positive EBITDA of approximately RMB 9.9 million in the first half of 2022[4]. - The company incurred a loss attributable to equity holders of approximately RMB 74.7 million in the first half of 2022, compared to a loss of approximately RMB 103.5 million in the same period last year[8]. - The group recorded a revenue of RMB 6,064,214 thousand for the six months ended June 30, 2022, a decrease of 13.3% compared to RMB 6,999,829 thousand in the same period of 2021[83]. - The cost of sales for the same period was RMB 6,116,947 thousand, resulting in a gross loss of RMB 52,733 thousand, compared to a gross profit of RMB 64,710 thousand in the previous year[83]. - The group incurred a total comprehensive loss of RMB 49,813 thousand for the period, compared to a loss of RMB 108,122 thousand in the same period last year[87]. - The loss attributable to equity holders of the company was RMB 74,735 thousand, compared to RMB 103,468 thousand in the previous year, indicating a 27.8% improvement[87]. - The basic and diluted loss per share for the ongoing business was RMB 0.0571, compared to RMB 0.0615 in the previous year[87]. Revenue Segmentation - Sales revenue from the technology new retail segment increased by approximately 44.9% to approximately RMB 732.5 million compared to RMB 505.5 million in the same period last year[8]. - Sales revenue from the smart industry segment decreased by approximately 17.9% to approximately RMB 5,282.7 million compared to RMB 6,436.8 million in the same period last year[8]. - Approximately 12.0% of total revenue in the first half of 2022 came from the technology new retail segment, while approximately 86.3% came from the smart industry segment[11]. - Revenue from the B2B trading platform was RMB 5,824,483,000, down from RMB 6,756,950,000 in the previous year, indicating a decrease of about 13.8%[153]. Operational Efficiency and Strategy - The company has focused on integrating resources to enhance operational efficiency and empower the supply chain[11]. - The strategic upgrade of ZOL aims to become the leading platform for lifestyle technology products through professional content and product research and development[12]. - The company has invested significantly in R&D to enhance user purchasing decisions and build competitive barriers through data asset accumulation[12]. - The company launched new marketing products to enhance customer engagement and improve operational efficiency[23]. - The group aims to become a "small and medium-sized enterprise service platform" to enhance business efficiency for SMEs, focusing on B2B e-commerce and financial services[27]. - The group is shifting resources towards more sustainable business prospects due to the challenges faced by the B2B e-commerce platform[32]. Financial Position and Assets - As of June 30, 2022, total assets amounted to RMB 5,544,238,000, a decrease from RMB 5,629,771,000 as of December 31, 2021, representing a decline of approximately 1.5%[89]. - Non-current assets totaled RMB 2,600,232,000, down from RMB 2,781,164,000, indicating a decrease of about 6.5%[89]. - Current assets increased to RMB 2,944,006,000 from RMB 2,848,607,000, reflecting an increase of approximately 3.4%[89]. - Total liabilities were RMB 2,052,327,000, slightly down from RMB 2,081,376,000, showing a decrease of around 1.4%[92]. - The group's equity attributable to shareholders decreased from approximately RMB 2.866 billion to RMB 2.820 billion by June 30, 2022[39]. - Cash and cash equivalents stood at RMB 304,821,000, compared to RMB 333,812,000, indicating a decline of approximately 8.6%[89]. Credit and Risk Management - The group has established mechanisms to cover key operational stages of credit risk in its micro-loan financing services[57]. - The group does not face significant foreign exchange risk as most of its assets and liabilities are denominated in RMB[51]. - The group has established a credit risk classification system based on the type of collateral and credit term, categorizing loans into five categories: normal, watch, substandard, doubtful, and loss[66]. - The provision for loan impairment increased from RMB 149,786,000 as of December 31, 2021, to RMB 187,315,000 as of June 30, 2022, due to a decline in GDP growth in China[70]. - The percentage of normal loans decreased from 86.7% to 83.8% from December 31, 2021, to June 30, 2022[69]. Employee and Operational Metrics - The group employed 1,295 employees as of June 30, 2022, with compensation aligned with market trends and industry standards[46]. - The company’s employee benefits expenses, including directors' remuneration, totaled RMB 135,138,000 for the six months ended June 30, 2022, compared to RMB 150,479,000 in the same period of 2021, a reduction of about 10.2%[37]. Discontinued Operations - The company has terminated operations in property leasing and online garment services, which may impact future revenue streams[110]. - The company classified assets and liabilities related to the discontinued operations of Tianjin Guokai, totaling RMB 132,397,000, as held for sale as of June 30, 2022[169]. - The company reported a loss from discontinued operations of RMB (36,847,000) for the six months ended June 30, 2021, indicating challenges in the divested business segments[172]. Tax and Financial Costs - The company recognized a tax credit of RMB 7,309,000 for the six months ended June 30, 2022, compared to a tax expense of RMB (21,499,000) for the same period in 2021, marking a significant improvement[162]. - The financial cost net amount was RMB (26,950,000) for the six months ended June 30, 2022, down from RMB (35,007,000) in the same period of 2021, reflecting a reduction of about 23.5%[37]. Legal and Compliance - The group has initiated arbitration proceedings regarding claims from Beijing Xiaoxijiao, which may impact the financial position, but management believes the claims lack sufficient basis[74]. - The group has engaged legal counsel to contest the arbitration claims, indicating proactive management of potential liabilities[74].

Business Expansion and Strategy - As of December 31, 2021, HC Group Inc. expanded its business to over 100 cities nationwide, with a service team of 1,468 individuals[12]. - The Group's mission is to empower traditional industries with the Internet and data, aiming to become a leading industrial internet group in China[13]. - HC Group Inc. has established three business segments: platform and corporate services, technology-driven new retail, and smart industries[13]. - The Group's strategic vision includes creating value for customers and promoting the transformation and upgrade of SMEs[14]. - As part of its growth strategy, HC Group Inc. aims to build an efficient business closing loop for corporate customers[14]. - The company aims to enhance user stickiness and improve industry influence through data-driven marketing solutions for corporate customers[21]. - The company aims to empower the industrial chain through a combination of data, products, platforms, and technology, enhancing enterprise competitiveness and facilitating digital transformation[53]. - The company is actively exploring new business models based on the industrial internet, upgrading its business capabilities and digital technology capabilities[53]. Financial Performance - Total revenue for 2021 reached RMB 17,405,835, an increase of 19.8% compared to RMB 14,544,074 in 2020[25]. - The company reported a loss attributable to equity holders of RMB (663,110) in 2021, compared to a loss of RMB (745,537) in 2020, showing an improvement[25]. - Basic and diluted loss per share for 2021 was RMB (0.5062), an improvement from RMB (0.6018) in 2020[25][28]. - Net current assets increased to RMB 1,353,484 in 2021 from RMB 649,878 in 2020, indicating improved liquidity[25]. - Total assets decreased to RMB 5,629,771 in 2021 from RMB 6,636,737 in 2020, reflecting a reduction in asset base[25]. - Total liabilities decreased to RMB 2,081,376 in 2021 from RMB 2,610,958 in 2020, indicating a reduction in debt[25]. - The adjusted net loss for 2021 was RMB 83.4 million, a significant increase from RMB 12.7 million in 2020[37]. - The adjusted EBITDA for 2021 was RMB 58.8 million, down from RMB 104.4 million in 2020[37]. - Operating expenses decreased from approximately RMB 779.1 million in 2020 to approximately RMB 653.4 million in 2021, mainly due to reduced marketing and consultancy expenses[41]. - The net financial cost decreased significantly from approximately RMB 123.7 million in 2020 to approximately RMB 38.1 million in 2021[41]. Segment Performance - The technology-driven new retail segment generated revenue of RMB 16,083,099 in 2021, a 22.2% increase from RMB 13,164,243 in 2020[31]. - The smart industries segment reported revenue of RMB 233,092 in 2021, a decrease of 29.0% from RMB 328,240 in 2020[31]. - The company has restructured its technology-driven new retail segment into four divisions: "wise marketing," "smart retail," "smart enterprise procurement," and "self-owned brand" segments[22][24]. - Revenue from the technology-driven new retail segment was approximately RMB 1,072.5 million in 2021, an increase of approximately 4.9% from RMB 1,022.8 million in 2020[41]. - Revenue from the smart industries segment increased by approximately 22.2% to RMB 16,083.1 million in 2021 from RMB 13,164.2 million in 2020[41]. Corporate Governance and Leadership - The company has a diverse board with members having backgrounds in finance, law, and technology, contributing to its strategic direction[173]. - The Group's leadership includes individuals with significant experience in both public and private sectors, enhancing its governance and operational effectiveness[173]. - The board's composition reflects a commitment to strong corporate governance and oversight, essential for maintaining investor confidence[173]. Market and Product Development - In 2021, hc360.com launched strategic cooperation with industry associations to create integrated marketing service solutions for SMEs[15]. - The company launched its official English website to enhance its brand image and business value in international markets, particularly in anti-counterfeiting and digital upgrades[88]. - The company is considering strategic acquisitions to enhance its market position, with a budget of $100 million allocated for potential deals[175]. - A new marketing strategy has been implemented, aiming to increase brand awareness by 30% over the next year[175]. Challenges and Future Outlook - The current economic environment presents challenges for SMEs, including high operating costs and insufficient market demand, which the Group aims to address[141]. - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to 12%[175]. - New product launches are expected to contribute an additional $200 million in revenue next year[175].