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].

Financial Performance - For the six months ended June 30, 2021, the company reported total sales revenue of approximately RMB 7,066.4 million, an increase of approximately RMB 2,020.5 million or 40.0% compared to RMB 5,045.9 million for the same period in 2020[3]. - The adjusted net loss for the group decreased from approximately RMB 136.4 million in the first half of 2020 to approximately RMB 84.6 million in the first half of 2021, a reduction of approximately 37.9%[4]. - The loss attributable to equity holders of the company was approximately RMB 110.2 million for the first half of 2021, compared to a loss of approximately RMB 179.0 million for the same period in 2020[5]. - The EBITDA improved from approximately RMB (44.5) million in the first half of 2020 to approximately RMB 13.9 million in the first half of 2021, marking a significant turnaround[6]. - The company reported a total comprehensive loss of RMB 108,122 thousand for the first half of 2021, compared to a loss of RMB 251,299 thousand in the same period of 2020, reflecting a significant reduction of 57.1%[70]. - The company reported a net loss attributable to equity holders of RMB 93,738 thousand for the first half of 2021, compared to a loss of RMB 266,989 thousand in the same period of 2020, indicating a 64.9% improvement[72]. Revenue Segments - Sales revenue from the technology new retail segment was approximately RMB 505.5 million, a 32.1% increase from RMB 382.8 million in the same period of 2020[8]. - The smart industry segment saw sales revenue rise by 42.4% to approximately RMB 6,438.6 million, up from RMB 4,520.4 million in the previous year[8]. - The platform and enterprise services segment generated sales revenue of approximately RMB 122.3 million, a decrease of approximately 14.3% from RMB 142.7 million in the same period of 2020[8]. - Revenue from financial services for the six months ended June 30, 2021, was RMB 7,001,702 thousand, an increase from RMB 4,977,603 thousand in 2020, representing a growth of approximately 40.6%[70]. - Revenue from B2B product sales amounted to RMB 6,756,950, up from RMB 4,697,627 in the previous year, indicating a growth of about 43.7%[130]. Operational Efficiency - Operating expenses for the continuing operations decreased from approximately RMB 336.7 million in 2020 to approximately RMB 319.9 million in 2021, primarily due to a reduction in amortization of intangible assets and share-based payments[8]. - The core strategy of the platform and enterprise services segment is to provide a service platform for small and medium-sized enterprises, enhancing their operational efficiency and creating value for customers[12]. - The company aims to enhance brand professionalism and customer service systems over the next three years following its relocation to a new office[33]. Investments and Strategic Initiatives - The company aims to become a leading "industrial internet" group in China, focusing on enhancing industry efficiency and empowering supply chains[11]. - The group has received significant investments, including RMB 150 million from the Huizhou Daya Bay Government Investment Fund for its subsidiary, Mianlian, in August 2021[39]. - MiaoXin Technology's strategic transformation aims to position it as a leading player in the industrial internet sector in China[33]. - The company plans to leverage AI algorithms to match buyers and sellers on Huicong Network, enhancing business efficiency for SMEs[39]. Cash Flow and Financial Position - As of June 30, 2021, the group's cash and bank balances were approximately RMB 265.2 million, an increase from RMB 254.3 million as of December 31, 2020[43]. - The group's total borrowings as of June 30, 2021, were approximately RMB 1,002.1 million, down from RMB 1,236.3 million as of December 31, 2020[43]. - The group's net assets decreased from approximately RMB 3,518.8 million as of December 31, 2020, to approximately RMB 3,430.3 million as of June 30, 2021, a reduction of about RMB 88.5 million[43]. - The group maintains a capital debt ratio of 17% as of June 30, 2021, down from 20% as of December 31, 2020[43]. - The company’s cash and cash equivalents increased to RMB 265,221 thousand as of June 30, 2021, compared to RMB 254,301 thousand at the end of 2020[75]. Discontinued Operations - The group has decided to terminate the operations of its integrated marketing and advertising services and O2O business exhibition center, reclassifying related comparative amounts as discontinued operations[96]. - The group has also terminated the leasing service business operated by Tianjin Guokai Ruitou Education Technology Co., Ltd., which is classified as discontinued operations[96]. - The profit from discontinued operations for the six months ended June 30, 2021, was RMB 6,745, compared to a loss of RMB (86,472) in the same period of 2020, indicating a significant turnaround[41]. Financial Risks and Management - The group faces various financial risks including market risk (foreign exchange, interest rate, and price risks), credit risk, and liquidity risk[105]. - The capital risk management policy has not changed since the year ended December 31, 2020, focusing on maintaining optimal capital structure to reduce capital costs[108]. - The group aims to ensure its ability to continue as a going concern while providing returns to shareholders and benefits to other stakeholders[107]. Awards and Recognition - MiaoXin Technology received the "Most Commercially Valuable SaaS Product" award in June 2021, highlighting its market recognition[27]. - The ZOL app won the "Dandelion Annual Best Information Application" award, highlighting its role in creating a private traffic platform[17]. - MiaoXin Technology has received multiple awards for user satisfaction and service quality, reflecting its commitment to customer service excellence[27].

Business Expansion and Strategy - As of December 31, 2020, HC Group had expanded its business to over 100 cities nationwide, with a service team of approximately 1,658 individuals[12]. - The Group initiated its layout towards industrial internet on January 17, 2018, aiming to become a leading industrial internet group in China[13]. - In 2019, HC Group established three business segments: platform and corporate services, technology-driven new retail, and smart industries[13]. - The platform and corporate services segment focuses on enhancing industrial efficiency for SMEs by providing value-added services such as financial services, data marketing, and SaaS[14]. - In July 2020, HC Group launched the "excellent merchants and products" strategy to improve content quality and business opportunity audits[15]. - The technology-driven new retail segment aims to connect retailers through SaaS tools and supply chain services, enhancing customer acquisition and operational efficiency[20]. - The smart industries segment includes key platforms such as PanPass, Union Cotton, and ibuychem.com, focusing on vertical integration and digital transformation[23]. - The company aims to leverage its 28 years of accumulated resources to rapidly incubate vertical runways in the smart industries segment[25]. - The technology-driven new retail segment has evolved from traditional media to encompass smart marketing and retail solutions[24]. Financial Performance - The revenue for 2020 was RMB 14,544,074, a decrease of 1.9% compared to RMB 14,832,832 in 2019[26]. - The net loss attributable to equity holders for 2020 was RMB (745,537), compared to a loss of RMB (376,490) in 2019[26]. - Basic and diluted earnings per share for 2020 were both RMB (0.6018), down from RMB (0.3360) in 2019[26]. - Total assets decreased to RMB 6,636,737 in 2020 from RMB 8,426,473 in 2019, representing a decline of 21.1%[26]. - Total liabilities were RMB 2,610,958 in 2020, down from RMB 3,696,761 in 2019[26]. - The adjusted EBITDA for 2020 was RMB 69,457, a decrease from RMB 122,797 in 2019[40]. - For the year ended 31 December 2020, the Group generated total revenue of approximately RMB14,531,321,000, representing a decrease of approximately 1.5% compared to RMB14,748,415,000 in 2019[43]. - Revenue from the technology-driven new retail segment increased by approximately 21.1% to RMB1,022,760,000 in 2020, up from RMB844,493,000 in 2019[43]. - Revenue from the smart industries segment increased by approximately 0.9% to RMB13,168,532,000 in 2020, compared to RMB13,050,827,000 in 2019[43]. - Revenue from the platform and corporate services segment decreased by approximately 60.1% to RMB340,029,000 in 2020, down from RMB853,095,000 in 2019[43]. - The loss attributable to equity holders of the Company was approximately RMB745.5 million for the year, compared to a loss of approximately RMB376.5 million in 2019[45]. - Impairment for goodwill and intangible assets amounted to approximately RMB578.3 million from continuing operations and RMB47.2 million from discontinued operations[45]. - The Group's operating expenses for continuing operations decreased to approximately RMB805,093,000 in 2020 from RMB967,793,000 in 2019[43]. Segment Performance - Approximately 7.0% of the Group's revenue was generated from the technology-driven new retail segment in 2020[50]. - Approximately 90.5% of the Group's revenue was derived from the smart industries segment in 2020[50]. - In 2020, approximately 7.0% of the group's revenue came from the technology-driven new retail segment, while about 90.5% came from the smart industry segment, and around 2.4% from the platform and corporate services segment[52]. - The platform and corporate services segment aims to empower SMEs by providing value-added services such as financial services, data marketing, and SaaS, enhancing their operational efficiency and facilitating economic development in China[54]. - The smart retail business, including ZOL cloud store, provides comprehensive solutions for supply chain connection and customer acquisition challenges faced by merchants[71]. - The smart enterprise procurement segment, ZOL, has developed six functional platforms, providing efficient one-stop, customized cloud procurement solutions for government and corporate customers[73][76]. Product and Service Innovations - In March 2020, the company launched a new product "Huishengyi," a one-stop multi-contact platform designed to help customers automatically seize business opportunities, reducing manual communication costs for enterprises[56]. - The new homepage of hc360.com was launched in September 2020, improving user experience and attracting over 10,000 enterprises to join the platform, generating more than 3,000 buyer inquiries per month[62]. - In November 2020, hc360.com launched a new B2B information aggregation platform, b2b.so.com, which is expected to become an independent entrance for B2B vertical crowds in the next three years[63]. - The technology-driven new retail segment was restructured in 2020 into four segments: "wise marketing," "smart retail," "smart enterprise procurement," and "self-owned brand segment," to enhance operational efficiency[67]. - The company established a strategic partnership with Tencent Qidian to create "Huicaigou," a procurement platform that leverages big data and information services to improve user connection efficiency[57]. Market Position and Recognition - PanPass, an IoT solutions provider, has served over 40,000 enterprises, including top 500 global companies, with its anti-counterfeiting traceability solutions[82][83]. - In February 2020, PanPass provided 50,000 to 100,000 anti-counterfeit labels free of charge to qualified brand enterprises recognized by China, supporting anti-pandemic efforts[84][85]. - PanPass has deepened strategic cooperation with leading customers such as Langjiu and Luzhoulaojiao, focusing on upgrading digital operations and construction projects[88]. - In 2020, Union Cotton's cumulative trading revenue exceeded 10 billion RMB, establishing it as a leading integrated service provider in the cotton textile industry[97]. - In December 2020, Union Cotton achieved a single-month turnover receivable exceeding 1 billion RMB[97]. - ibuychem.com was ranked 55th in the "2020 Top 100 Companies in China's Industrial Internet," marking its 11th consecutive appearance on the list since 2005[103]. - In 2020, PanPass was recognized with multiple awards, including "Top 100 Small and Medium-sized Private Enterprises in Beijing" and "Top 10 Reputable Brands in the software and information industry" in China[92]. - PanPass successfully obtained "double soft certification," becoming one of the few companies in the industry to achieve this status[92]. Leadership and Governance - The Company has a diverse board with members having extensive experience in finance, law, and technology[138]. - The management team is committed to strategic growth and market expansion through experienced oversight[139]. - The Group has a strong leadership team with diverse backgrounds in finance, management, and legal affairs, enhancing its operational capabilities[26]. - The Group's leadership structure supports its strategic objectives and positions it for future growth and market expansion[26]. Financial Management and Investments - As of December 31, 2020, the Group's cash and cash equivalents decreased by approximately RMB77,592,000 to approximately RMB254,301,000, with about 88.03% denominated in RMB[163]. - Total borrowings as of December 31, 2020, were RMB1,236,267,000, down from RMB2,304,401,000 as of December 31, 2019, with bank borrowings averaging a fixed interest rate of 7.00% per annum[163]. - The Group's gearing ratio was 20%, calculated as net debt, including lease liabilities, divided by total capital[163]. - Capital and reserves attributable to equity holders decreased by approximately RMB504.4 million from RMB4,023.2 million as of December 31, 2019, to approximately RMB3,518.8 million as of December 31, 2020[163]. - The Board does not recommend the payment of any final dividend for the year ended December 31, 2020[163]. - The Group had no significant investments or material acquisitions or disposals for the year ended December 31, 2020[169]. Related Party Transactions - The Group relies on HC Contractual Arrangements for its online services, which have not undergone any material changes during the reporting period[169]. - The financial statements of Huicong Construction have been included in the Group's consolidated financial statements since September 15, 2014[169]. - The Group entered into new agreements with Huicong Construction on February 14, 2019, due to a change in one of the registered shareholders[169]. - The independent non-executive Directors confirmed that all transactions during the financial year ended December 31, 2020, were conducted in accordance with the HC Contractual Arrangements[181].

Financial Performance - Sales revenue for the six months ended June 30, 2020, was approximately RMB 5,062.6 million, a decrease of about RMB 1,901.3 million or 27.3% compared to RMB 6,963.9 million in the same period of 2019[6]. - EBITDA for the first half of 2020 was approximately RMB (91.9) million, a decrease of about RMB 176.7 million from RMB 84.8 million in the first half of 2019[7]. - Loss attributable to equity holders was approximately RMB 248.6 million for the first half of 2020, compared to a loss of RMB 164.0 million in the same period of 2019, representing an increase of 52%[22]. - The company reported a significant decline in transaction revenue due to reduced orders from clients amid the COVID-19 pandemic[24]. - The company reported a total loss before tax of RMB 281,331,000 for the six months ended June 30, 2020[130]. - The net loss for the period was RMB 266,989 thousand, which is a 57.7% increase from RMB 169,195 thousand in the same period of 2019[86]. - Basic loss per share was RMB 0.2132, compared to RMB 0.1463 in the previous year[87]. - Total comprehensive loss for the period amounted to RMB 251,299 thousand, compared to RMB 172,030 thousand in the same period of 2019[87]. Operational Initiatives - The company launched a new product "HuiShengYi," a one-stop multi-touchpoint platform aimed at helping clients automatically manage business opportunities and reduce communication costs[25]. - The company implemented nine initiatives under the "Support Business Action" to assist SMEs in expanding their operations during the pandemic, helping over 10,000 enterprises open online sales channels[25]. - The Smart Retail Division successfully held 14 B2B live streaming events with major brands, involving over 10,000 retailers and generating more than 300,000 orders, with over 1 million products sold during the first half of 2020[28]. - The "618" promotional event achieved a transaction value exceeding 200 million, representing a year-on-year growth of 272%, with participation from 4,500 retailers[28]. - The Smart Industry Group reported a transaction revenue of 2 billion in the first half of 2020, with total platform transaction revenue surpassing 10 billion, maintaining profitability for nine consecutive quarters since April 2018[32]. Financial Position - As of June 30, 2020, the company's cash and bank balances were approximately RMB 385.9 million, an increase from RMB 331.9 million as of December 31, 2019[46]. - The company's total borrowings as of June 30, 2020, were RMB 2,239.48 million, a decrease from RMB 2,304.40 million as of December 31, 2019[46]. - The company's capital debt ratio was 25% as of June 30, 2020, down from 28% as of December 31, 2019[47]. - The company's equity attributable to shareholders decreased from approximately RMB 4,023.2 million as of December 31, 2019, to approximately RMB 4,009.5 million as of June 30, 2020[48]. - Total assets as of June 30, 2020, amounted to RMB 8,649,233,000, an increase from RMB 8,426,473,000 as of December 31, 2019, representing a growth of approximately 2.65%[92]. - Total liabilities reached RMB 3,956,616,000 as of June 30, 2020, up from RMB 3,696,761,000 at the end of 2019, marking an increase of about 7.04%[92]. Shareholder Information - The company issued 288,000 shares under the share option plan during the period[55]. - As of June 30, 2020, the total number of issued shares was 1,320,840,210, with 73,393,500 share options unexercised[56]. - The company raised approximately RMB 218.43 million from the issuance of 200,000,000 new shares at a price of HKD 1.2 per share on May 20, 2020[197]. - The placement price was HKD 1.20 per share, which was approximately 9.09% lower than the closing price of HKD 1.32 on the date of the agreement[67]. - 80% of the net proceeds from the placement is intended for repaying part of the group's existing debts, while 20% is allocated for R&D and general working capital[71]. Strategic Focus - The company’s strategic focus remains on becoming a leading "Industrial Internet" group in China, leveraging the internet and data to empower traditional industries[24]. - The company aims to provide integrated marketing solutions for enterprise clients through data analysis and channel data collected from small businesses[27]. - The company plans to enhance its digital operations in the liquor industry through a digital management platform, focusing on seven key modules[38]. - The company aims to leverage AI algorithms on its platform to match buyers and sellers, addressing the rigid demand for suitable pricing in the B2B market[42]. - The company will focus on a dual-driven model of "Huicong Network + Zhongguancun Online" to meet the needs of small and medium-sized enterprises[43]. Cost Management - Operating expenses decreased from approximately RMB 532.1 million in the first half of 2019 to approximately RMB 371.7 million in the same period of 2020, primarily due to tightened control over marketing and employee costs[22]. - As of June 30, 2020, the total employee cost was approximately RMB 179,438,000, a decrease from RMB 261,487,000 for the six months ended June 30, 2019[54]. - The company incurred an operating loss of RMB 167,426 thousand, compared to an operating loss of RMB 86,023 thousand in the previous year[86]. Investments and Acquisitions - The company has not made any significant investments or acquisitions during the reporting period[50]. - The company did not acquire any subsidiaries during the reporting period, contrasting with a cash outflow of RMB 35,742 thousand for acquisitions in the same period last year[102]. - The company holds a 29.6% stake in Zhejiang Huicong Investment Co., which engages in real estate investment and management[178]. Risk Management - The management has indicated that there are no significant changes in risk management policies since the end of the last fiscal year[114]. - The group does not face significant foreign exchange risk as most of its assets and liabilities are denominated in RMB[59].

Business Expansion and Revenue Model - As of December 31, 2019, HC Group Inc. expanded its business to over 100 cities nationwide, with a service team of approximately 2,043 individuals[13] - The Group's revenue model includes three business groups: platform and corporate services, technology-driven new retail, and smart industries, aiming to create a comprehensive industrial internet ecosystem[15] - The platform and corporate services group focuses on SMEs, enhancing customer engagement through internet tools and AI, thereby closing the business loop[16] - The technology-driven new retail group is transitioning from a tech media company to a technology-based industrial internet company, with strategic upgrades including a content matrix and a comprehensive ecosystem for Baidu Mini Program[19] - The smart industries group integrates several vertical platforms, such as "Union Cotton" and "ibuychem.com," utilizing an "investment + incubation" approach to enhance industry expertise and resources[21] Financial Performance - The company's revenue for 2019 reached RMB 14,832,832, a 40.2% increase from RMB 10,583,111 in 2018[24] - EBITDA for 2019 was RMB 88,783, a significant decrease from RMB 641,212 in 2018[24] - The company reported a loss attributable to equity holders of RMB (376,490) in 2019, compared to a profit of RMB 275,610 in 2018[24] - Basic and diluted earnings per share for 2019 were both RMB (0.3360), down from RMB 0.2462 in 2018[24] - Total assets decreased to RMB 8,426,473 in 2019 from RMB 8,767,955 in 2018[24] - Total liabilities increased to RMB 3,696,761 in 2019 from RMB 3,546,331 in 2018[24] - The net current assets were RMB 716,935 in 2019, down from RMB 1,233,990 in 2018[24] Revenue Breakdown by Segment - The revenue analysis shows a significant contribution from the Technology-Driven New Retail segment, which generated RMB 13,050,827 in 2019[28] - Revenue from the technology-driven new retail segment was approximately RMB844,493,000 in 2019, an increase of approximately 51.4% from RMB557,875,000 in 2018[34] - Revenue from the smart industries segment increased from approximately RMB9,211,537,000 in 2018 to approximately RMB13,050,827,000 in 2019, representing an increase of approximately 41.7%[34] - Revenue from platform and corporate services was approximately RMB916,805,000 in 2019, an increase of approximately 26.0% from RMB727,563,000 in 2018[34] - The O2O business exhibition center revenue decreased by approximately 76.0% to RMB20,707,000 in 2019 from RMB86,136,000 in 2018 due to a decline in property sales[34] Strategic Initiatives and Partnerships - The Group's strategy focuses on developing industrial internet business platforms to empower SMEs with value-added services such as financial services and data marketing[38] - hc360.com launched new products like "Huijingcai" and "Huiqitong" in collaboration with major partners to enhance customer experience and operational efficiency[42] - The strategic cooperation with Baidu led to the introduction of over 1,000 brick-and-mortar retailers into the Baidu Smart Mini Program ecosystem[57] - The smart retail segment aims to empower thousands of SMEs and distributors, utilizing SaaS to enhance operational efficiency in the smartphone and home appliance industries[50] - The annual transaction size of the Union Cotton platform exceeds RMB 5 billion, positioning it as a leading B2B e-business service in the cotton industry[64] Management and Governance - As of December 31, 2019, the board comprised several executive directors, including Liu Jun and Zhang Yonghong, with Liu Jun serving as chairman since March 2018[101] - Liu Xiaodong was appointed as an executive director and president of the company effective June 1, 2018, and has over 20 years of experience in media operation and management in the TMT field[105] - The company completed the full acquisition of zol.com.cn in July 2015, enhancing its digital media presence[105] - The company operates subsidiaries listed on the National Equities Exchange and Quotations System, expanding its market reach[103] - The management team is committed to driving innovation and exploring new market opportunities to sustain growth[106] Financial Position and Debt Management - As of December 31, 2019, the Group's cash and cash equivalents decreased by approximately RMB139.8 million from RMB471.7 million in 2018 to RMB331.9 million[135] - Total borrowings increased to RMB2,304.4 million as of December 31, 2019, up from RMB2,127.3 million in 2018, with bank borrowings rising to RMB1,591.1 million[136] - The average interest rate on bank borrowings rose to 6.69% per annum in 2019 from 6.17% in 2018[136] - The Group's capital and reserves attributable to equity holders decreased by approximately RMB314.5 million from RMB4,337.7 million in 2018 to RMB4,023.2 million in 2019[137] - The Group's gearing ratio is 28%, calculated as net debt divided by total capital[136] Regulatory and Compliance Matters - The Group relies on HC Contractual Arrangements with Huicong Construction for its online services due to PRC regulations restricting foreign investment in internet content services[198] - PRC legal advisers confirmed that there is currently no prohibition against using contractual arrangements or variable interest entities in service businesses[198] - The legality of the HC Contractual Arrangements has not been challenged, but there is no guarantee that future regulations will not affect compliance[199] - Potential risks include the PRC government imposing restrictions on business operations or requiring reorganization if the HC Contractual Arrangements are deemed non-compliant[199]