Corporate Governance - The board of directors has delegated daily management and operational responsibilities to senior management, establishing three committees for oversight, including the audit committee, compensation committee, and nomination committee [9]. - The company has complied with the requirement that independent non-executive directors must account for at least one-third of the board members since the listing date [16]. - The board consists of four executive directors, two non-executive directors, and three independent non-executive directors, ensuring a high level of independence [17]. - The board is responsible for ensuring diversity among its members and actively seeks suitable candidates, including women, for board positions [22]. - The company has adopted a nomination policy to ensure a balanced board in terms of skills, experience, knowledge, and diversity [56]. - The nomination committee has evaluated the independence of independent non-executive directors and reviewed the board's structure and diversity [37]. - The company has established a diversity policy for the board to enhance its effective operation and maintain high corporate governance standards [34]. - The board of directors confirmed their responsibility for preparing financial statements that fairly reflect the group's performance and cash flows as of December 31, 2022 [88]. - The company has arranged appropriate insurance coverage for directors against liabilities arising from legal actions [10]. - The company has not experienced any changes in its directors, supervisors, or senior management since the listing date [18]. - The board will continue to fulfill its supervisory role to protect the interests of all shareholders and the company in the new year [1]. Financial Performance - Total revenue for 2022 was RMB 6,204,473 thousand, a decrease of 1.48% compared to 2021's RMB 6,297,250 thousand [197]. - Gross profit for 2022 was RMB 341,767 thousand, down from RMB 399,861 thousand in 2021, reflecting a decline of approximately 14.6% [197]. - The company reported a net profit of RMB 1,393 thousand for 2022, a significant decrease from RMB 50,744 thousand in 2021 [197]. - Adjusted net profit for 2022 was RMB 45,109 thousand, compared to RMB 87,309 thousand in 2021, indicating a decline of about 48.3% [197]. - Total assets as of December 31, 2022, were RMB 2,172,985 thousand, down from RMB 2,663,102 thousand in 2021 [197]. - Total liabilities decreased to RMB 1,618,492 thousand in 2022 from RMB 2,127,667 thousand in 2021, showing a reduction of approximately 23.9% [197]. - Total equity increased to RMB 554,493 thousand in 2022, up from RMB 535,435 thousand in 2021, reflecting a growth of about 3.5% [197]. Risk Management and Compliance - The board has confirmed its responsibility for risk management and internal control systems, continuously improving these systems [43]. - The audit committee is responsible for ongoing review and supervision of the company's financial reporting procedures and internal control systems [69]. - The company has implemented various measures to identify, monitor, and audit transactions with potential conflicts of interest [70]. - The company has engaged a compliance advisor to ensure adherence to listing rules and provide timely support regarding regulatory requirements [71]. - The company maintains a two-way communication policy with shareholders to enhance engagement and transparency [79]. - The company has adopted various policies to ensure compliance with the Listing Rules, including risk management and information disclosure [97]. - The company provides regular anti-corruption and anti-bribery compliance training to enhance knowledge and adherence to applicable laws and regulations [98]. - The company must disclose any insider information or situations that may create a false market as soon as reasonably practicable [101]. - The company consults with legal advisors on relevant Chinese laws and regulations to enhance compliance awareness and stay informed about regulatory developments [99]. Capital Management - The company's capital management aims to ensure sustainable operations and maintain a stable capital ratio to support business development and maximize shareholder value [3]. - The company may adjust dividends, return capital to shareholders, or issue new shares to maintain or adjust its capital structure based on economic conditions and asset risk characteristics [3]. - As of December 31, 2022, the group had no assets mortgaged as collateral for bank loans or other financing activities, compared to RMB 857 million as of December 31, 2021 [58]. - The group’s capital expenditure during the reporting period was approximately RMB 91 million, primarily for the purchase of properties, plants, equipment, and intangible assets [175]. - The group received government subsidies related to the digital freight business amounting to RMB 1,711 million for the year ended December 31, 2022 [139]. - As of December 31, 2022, the group's other borrowings were approximately RMB 0.5 million, with a capital debt ratio of about 0.4% [155]. Employee Management and Training - The group employed 1,020 full-time employees, with compensation based on market conditions and individual performance [181]. - The group is committed to employee training programs to ensure staff acquire necessary skills and professional ethics [160]. - The company collaborates closely with its human resources team to provide information security training to employees [94]. - The group has participated in mandatory employee social security plans as required by Chinese law [160]. Strategic Initiatives - The company emphasized the importance of adapting to changing market conditions, highlighting the keyword "transformation" in its strategy moving forward [200]. - The company is focusing on new product development and market expansion as part of its strategic initiatives for future growth [200]. - The management indicated plans for potential mergers and acquisitions to enhance market presence and operational capabilities [200].

Financial Performance - The company reported a pre-tax profit of RMB 12,000 for the year ended December 31, 2022, compared to RMB 57,918,000 in 2021, indicating a significant decline[39]. - The company incurred a tax expense of RMB 3,000 based on the statutory tax rate of 25% for the year ended December 31, 2022, down from RMB 14,480,000 in 2021[39]. - The company reported a loss attributable to the equity holders of RMB 366,000 for the year ended December 31, 2022, compared to a loss of RMB 194,000 in 2021[39]. - The company's profit attributable to ordinary equity holders was RMB 1,393 thousand in 2022, a significant decrease from RMB 50,744 thousand in 2021, representing a decline of approximately 97.3%[43]. - For the year ended December 31, 2022, the company reported revenue of RMB 6,204,473 thousand, a decrease of 1.47% compared to RMB 6,297,250 thousand in 2021[63]. - The company's gross profit for 2022 was RMB 341,767 thousand, reflecting a decline of 14.53% from RMB 399,861 thousand in the previous year[63]. - Net profit for the year was RMB 1,393 thousand, a significant drop of 97.25% compared to RMB 50,744 thousand in 2021[63]. - The adjusted net profit, not in accordance with International Financial Reporting Standards, was RMB 45,109 thousand, down 48.33% from RMB 87,309 thousand in 2021[63]. Revenue and Costs - Revenue from freight services was RMB 5,880.15 million, accounting for 94.8% of total revenue, while revenue from freight platform services was RMB 303.584 million, representing 4.9% of total revenue[131]. - The company's operating costs for the reporting period were approximately RMB 5,862.7 million, remaining stable compared to RMB 5,897.4 million in 2021[132]. - Gross profit decreased from approximately RMB 399.9 million in 2021 to about RMB 341.8 million in 2022, a reduction of approximately RMB 58.1 million (or about 14.5%) with a gross margin decline from 6.4% to 5.5%[134]. Assets and Liabilities - As of December 31, 2022, current assets amounted to RMB 2,069.7 million, a decrease of RMB 489.4 million (or 19.1%) from RMB 2,559.1 million on December 31, 2021, mainly due to reductions in trade receivables and other assets[152]. - Current liabilities decreased to RMB 1,617.9 million as of December 31, 2022, down RMB 509.1 million (or 23.9%) from RMB 2,127.0 million in 2021, primarily due to a reduction in other payables and borrowings[152]. - The current ratio improved to 1.28 as of December 31, 2022, compared to 1.20 on December 31, 2021, indicating better short-term financial health[152]. - Cash and cash equivalents were approximately RMB 520.7 million as of December 31, 2022, primarily from net cash inflows from operating activities[158]. Customer Engagement and Market Position - The company has maintained its top position in the network freight platform rankings for three consecutive years, as published by the China Logistics and Purchasing Federation[67]. - The annual retention rate for major shippers was 92.1% in 2022, indicating strong customer loyalty[75]. - Active customer numbers increased by 11.2% to 3,911 in 2022, demonstrating growth in customer engagement[86]. Digital Transformation and Innovation - The company aims to leverage its SaaS model to improve software delivery and data management capabilities[27]. - The company has accelerated its business plan by adding seven digital logistics scenarios to enhance customer service and optimize internal structures[66]. - The digital freight platform aims to improve collaboration among ecosystem participants, enhancing transparency and synergy within the logistics industry[85]. - The company is focusing on enhancing the resilience of the supply chain through digital solutions to address industry challenges[68]. Regulatory and Industry Trends - The logistics industry is transitioning from a phase of rapid growth to a more regulated development phase, with increasing government oversight and a focus on the digital value of services[65][73]. - The company is actively promoting the establishment of a new regulatory system for digital freight, collaborating with government regulatory bodies and industry associations[85]. Employee and Operational Metrics - The group has 1,020 full-time employees as of December 31, 2022, with most located in China[174]. - Employee benefits expenses, excluding directors and senior management, rose to RMB 151,746,000 in 2022 from RMB 142,537,000 in 2021, marking an increase of approximately 6.5%[164]. Future Outlook - The company anticipates significant economic expansion in China in 2023, expecting to regain growth momentum[112]. - The implementation of the "Digital China Construction Overall Layout Plan" is expected to support the company's future growth and customer value creation[69].