Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of RMB 551.062 million, a decrease of 9.5% compared to RMB 609.301 million in 2023[7]. - The operating profit for 2024 was RMB 38.828 million, down 55.2% from RMB 86.692 million in 2023[7]. - The net profit for the year was RMB 9.709 million, a significant decline of 85.8% from RMB 68.671 million in 2023[7]. - The company's revenue decreased from RMB 609.3 million in 2023 to RMB 551.1 million in 2024, a reduction of RMB 58.2 million, primarily due to a decline in digital solution services revenue by RMB 67.5 million[22]. - Gross profit decreased from RMB 149.3 million in 2023 to RMB 106.2 million in 2024, a decline of RMB 43.1 million, aligning with the decrease in revenue[25]. - The gross margin fell by 5.2 percentage points from 24.5% in 2023 to 19.3% in 2024, mainly due to a significant drop in revenue and gross profit from digital solution services[26]. - Administrative expenses increased from RMB 38.5 million in 2023 to RMB 45.4 million in 2024, an increase of RMB 6.9 million, primarily due to higher expected credit loss provisions[29]. - The company's pre-tax profit decreased from RMB 70.0 million in 2023 to RMB 23.5 million in 2024, a reduction of RMB 46.5 million, mainly attributed to the decline in digital solution services revenue[32]. - The group's annual profit decreased from RMB 68.7 million to RMB 9.7 million, a reduction of approximately 85.8% due to a decline in revenue from digital solution services and an increase in income tax expenses[34]. Market Expansion and Development - The company successfully expanded its market presence by entering five new provinces in China, bringing its total coverage to 28 provinces, municipalities, and autonomous regions[9]. - The company increased its R&D investment in areas such as 5G network optimization, IoT, big data, and artificial intelligence, focusing on developing proprietary digital solutions[11]. - The company plans to focus on 6G communication technology and computing power infrastructure development to enhance its market competitiveness in the future[13]. IPO and Financial Position - The net proceeds from the IPO, amounting to approximately HKD 141.9 million, are expected to support the company's business development and competitive advantages[8]. - The total assets as of December 31, 2024, were RMB 1,401.560 million, compared to RMB 1,161.354 million in 2023, indicating a growth in asset base[7]. - The company reported a significant increase in current assets, reaching RMB 1,309.068 million in 2024, up from RMB 1,067.437 million in 2023[7]. - The group's net cash used in investing activities was approximately RMB 144.9 million, mainly due to cash outflows of RMB 139.8 million for settling amounts payable to shareholders and RMB 5.6 million for the purchase of property, plant, and equipment[35]. - The net cash generated from financing activities was approximately RMB 301.3 million, driven by bank borrowings of RMB 373.0 million and shareholder contributions of RMB 127.7 million[36]. - The group's cash and cash equivalents increased to RMB 135.0 million as of December 31, 2024, up from RMB 81.5 million, attributed to shareholder contributions and proceeds from the IPO[38]. Governance and Management - The company aims to optimize its governance structure and improve operational efficiency to ensure effective use of funds and higher returns for shareholders[13]. - The company has undergone changes in its board of directors, with several resignations effective March 21, 2025[68]. - The company appointed new independent non-executive directors in June 2024, enhancing its governance structure[64]. - The company has established a stock option plan effective from June 17, 2024, valid for a period of 10 years, with approximately 9 years and 3 months remaining as of the report date[112]. - The purpose of the stock option plan is to attract and retain top talent, providing additional incentives for eligible participants to contribute to the company's success[113]. - The board consists of nine directors, including six executive directors and three independent non-executive directors, ensuring a balance of skills and experience[162]. - The company has adopted a corporate governance code post-listing to ensure compliance and transparency in operations[154]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[154]. Employee and Leadership - As of December 31, 2024, the group employed 218 employees, with total employee costs amounting to RMB 26.7 million, a decrease from RMB 28.3 million in the previous year[51]. - Liu Haoqiong serves as the chairman and executive director, with over 20 years of experience in the telecommunications infrastructure industry[53]. - The company is focused on expanding its market presence and enhancing its operational strategies through experienced leadership[53][54][56][60][62]. - The management team comprises individuals with extensive backgrounds in telecommunications, finance, and corporate governance, ensuring robust oversight and strategic direction[53][54][56][60][62]. Compliance and Risk Management - The company has not identified suitable acquisition opportunities in the digital solution service sector and plans to take a cautious approach in utilizing the net proceeds[87][89]. - There were no significant violations of applicable laws and regulations during the reporting period[81]. - The company has maintained the public float required by listing rules since its listing date[141]. - The audit committee has reviewed the financial statements for the year ended December 31, 2024, and confirmed compliance with applicable accounting standards and regulations[148]. - The company has implemented strict internal procedures regarding anti-bribery, anti-corruption, and anti-fraud to enhance long-term sustainable performance[155]. Shareholder Information - The top five customers accounted for 97.1% of total revenue, with the largest customer contributing 60.4%[83]. - The top five suppliers represented 72.0% of total procurement costs, with the largest supplier accounting for 21.3%[83]. - The company has no distributable reserves available for dividend payments as of December 31, 2024[94]. - The board does not recommend the payment of any final dividend for the year ending December 31, 2024, consistent with 2023[75].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 551,062,000, a decrease of 9.5% from RMB 609,301,000 in 2023[2] - Gross profit for the same period was RMB 106,227,000, down 29.0% from RMB 149,319,000 in 2023[2] - Operating profit decreased to RMB 38,828,000, a decline of 55.2% compared to RMB 86,692,000 in 2023[3] - Net profit for the year was RMB 9,709,000, a significant drop of 85.9% from RMB 68,671,000 in 2023[3] - Basic and diluted earnings per share were RMB 0.02, down from RMB 0.14 in 2023[3] - Pre-tax profit for the year ended December 31, 2024, is RMB 23,503,000, a decrease of 66.5% from RMB 70,010,000 in 2023[23] - Basic earnings per share for the year ended December 31, 2024, is RMB 9,709,000, significantly lower than RMB 68,592,000 in 2023[25] - The company's total revenue decreased from RMB 609.3 million in 2023 to RMB 551.1 million in 2024, a reduction of RMB 58.2 million, primarily due to a decline in revenue from digital solution services[50] - Revenue from digital solution services dropped significantly from RMB 107.9 million in 2023 to RMB 40.4 million in 2024, a decrease of RMB 67.5 million, mainly due to a reduction in the number of integrated solution and software solution projects[52] - The gross profit decreased from RMB 149.3 million in 2023 to RMB 106.2 million in 2024, a decline of RMB 43.1 million, consistent with the revenue decrease[55] - The overall gross margin fell from 24.5% in 2023 to 19.3% in 2024, a decrease of 5.2 percentage points, primarily due to reduced revenue and gross profit from higher-margin digital solution services[55] - Net profit for the year dropped from RMB 68.7 million to RMB 9.7 million, mainly due to reduced revenue from digital solution services and increased tax expenses[63] Cash Flow and Assets - Cash and cash equivalents increased to RMB 134,963,000 from RMB 81,540,000 in 2023, representing a growth of 65.5%[4] - Cash used in operating activities was approximately RMB 103.1 million, attributed to pre-tax profit adjustments and changes in working capital[64] - Cash generated from financing activities amounted to approximately RMB 301.3 million, driven by bank loans and shareholder contributions[65] - Current assets increased to RMB 333.2 million from RMB 36.3 million, mainly due to an increase in contract assets of RMB 234.9 million[66] Contract Assets and Liabilities - The company reported a significant increase in contract assets to RMB 961,682,000, up 32.3% from RMB 726,829,000 in 2023[4] - The total expected revenue from existing digital solution service contracts as of December 31, 2024, is RMB 872,000, down from RMB 1,274,000 in 2023[18] - Contract assets related to telecommunications infrastructure services increased to RMB 961,271,000 in 2024 from RMB 726,435,000 in 2023, a growth of 32.3%[29] - The contract liabilities related to performance obligations increased to RMB 6,905,000 in 2024 from RMB 4,795,000 in 2023, a growth of 44.1%[33] Expenses and Costs - The company’s employee costs for the year ended December 31, 2024, are RMB 26,744,000, slightly down from RMB 27,084,000 in 2023[20] - Administrative expenses rose from RMB 38.5 million to RMB 45.4 million, mainly due to an increase in expected credit loss provisions of RMB 7.5 million[58] - The company incurred a tax expense of RMB 13,794,000 for the year ended December 31, 2024, compared to RMB 1,339,000 in 2023, indicating a significant increase in tax liabilities[22] Investments and Financing - The fair value of investment properties as of December 31, 2024, is RMB 38,712,000, compared to RMB 26,407,000 in 2023, reflecting a 46.5% increase[27] - Interest income from bank deposits for the year ended December 31, 2024, is RMB 441,000, up from RMB 180,000 in 2023, representing a 145% increase[19] - As of December 31, 2024, the company had total bank borrowings of RMB 373.5 million, an increase from RMB 347.5 million in 2023[41] - Bank borrowings due within one year amounted to RMB 373,476,000 as of December 31, 2024, compared to RMB 347,458,000 in 2023, indicating a 7.2% increase[40] - The company has violated its loan covenants based on its balance sheet ratios as of December 31, 2024[43] Corporate Governance and Compliance - The company has adopted the Corporate Governance Code as its own governance code post-listing, ensuring high standards of corporate governance to protect shareholder interests[81] - The company has confirmed compliance with the standard code of conduct for securities trading by directors from the listing date to December 31, 2024[83] - The audit committee, consisting of three independent non-executive directors, has reviewed the annual performance for the year ending December 31, 2024, ensuring compliance with relevant accounting standards and regulations[89] - The group's auditor, KPMG, has confirmed that the financial figures in the performance announcement for the year ending December 31, 2024, are consistent with the final consolidated financial statements[90] Strategic Plans and Future Outlook - The company plans to use part of the funds raised from the IPO for acquisitions or investments in companies providing digital solution services to expand its business scale and market share[77] - The net proceeds from the listing are planned to be utilized as follows: 63.0% for strategic acquisitions (RMB 89.4 million), 15.5% for preliminary costs of service projects (RMB 22.0 million), and 17.3% for enhancing R&D capabilities (RMB 24.6 million)[85] - The company has actively explored various strategic acquisition opportunities since the listing date but has not yet identified suitable service providers for digital solutions[85] - The expected timeline for utilizing the remaining net proceeds has been updated to 2025 due to unforeseen circumstances and delays in smart city developments[85] - The board believes that extending the timeline for utilizing the net proceeds will not significantly adversely affect the group's existing business and operations[87] Employee and Shareholder Information - As of December 31, 2024, the group employed 218 employees, down from 257 employees as of December 31, 2023, with total employee costs amounting to RMB 26.7 million, a decrease from RMB 28.3 million in 2023[78] - The company did not declare or pay any dividends for the year ending December 31, 2024[44] - The board does not recommend the distribution of any final dividend for the year ending December 31, 2024[80] - The company has adopted a stock option plan on June 17, 2024, to attract and retain suitable personnel as a long-term incentive, but no options have been granted or agreed to be granted as of the announcement date[79]

Company Listing and Market Position - Zhonggan Communication successfully listed on the Hong Kong Stock Exchange on July 3, 2024, enhancing its market reputation and brand awareness[17]. - The company emphasizes the importance of its listing in enhancing customer perception and increasing trading liquidity of its shares[21]. - The board believes that the listing will further strengthen the company's credibility among potential business partners and the public[21]. - The company maintained a sufficient public float, with at least 25% of its issued share capital held by the public since the listing date[61]. - The company has adopted a share option scheme effective from June 17, 2024, with a maximum of 64,000,000 shares available for issuance, representing 10% of the total issued shares[58]. - The company did not purchase, redeem, or sell any of its listed securities from the listing date to the report date[62]. - The group has adopted the corporate governance code as part of its governance practices, although it was not applicable until the shares were listed on June 30, 2024[49]. Financial Performance - The group's revenue decreased by 2.5% from RMB 243.3 million for the six months ended June 30, 2023, to RMB 237.3 million for the six months ended June 30, 2024, primarily due to a 43.3% decline in revenue from digital solutions services[23]. - Revenue for the six months ended June 30, 2024, was RMB 237,283,000, a decrease of 2.08% from RMB 243,288,000 in the same period of 2023[65]. - Gross profit for the period was RMB 51,332,000, down 13.9% from RMB 59,638,000 year-on-year[65]. - Operating profit decreased to RMB 25,917,000, a decline of 15.5% compared to RMB 30,477,000 in the previous year[65]. - Profit before tax was RMB 18,234,000, down 15.8% from RMB 21,510,000 in the same period last year[65]. - Total comprehensive income for the period was RMB 18,590,000, a decrease of 14.9% from RMB 21,808,000 in 2023[65]. - Basic and diluted earnings per share were RMB 0.04, compared to RMB 0.05 in the same period of 2023[65]. - The company reported a profit of RMB 18,590 thousand for the six months ended June 30, 2024, compared to a profit of RMB 68,592 thousand for the same period in 2023[68]. Revenue Breakdown - Revenue from telecommunications infrastructure services increased by 5.1% from RMB 205.4 million to RMB 215.8 million, driven by a slight increase in work orders for infrastructure construction services[24]. - Revenue from telecommunications infrastructure services amounted to RMB 215,799,000, with construction services contributing RMB 195,125,000 and maintenance services contributing RMB 20,674,000[79]. - Revenue from digital solutions services totaled RMB 41,484,000, with integrated solutions services generating RMB 272,000 and software solutions services generating RMB 20,961,000[79]. Cash Flow and Liquidity - Operating cash flow for the six months ended June 30, 2024, was a net cash outflow of RMB 43.8 million, influenced by an increase in contract assets and inventory[35]. - Cash and cash equivalents decreased by approximately 91.9% to RMB 6.6 million as of June 30, 2024, primarily due to the settlement of shareholder payables[36]. - Net cash used in operating activities for the six months ended June 30, 2024, was RMB (43,776) thousand, compared to RMB 31,474 thousand generated in the same period of 2023[71]. - Cash and cash equivalents on hand decreased significantly to RMB 6,618,000 as of June 30, 2024, down from RMB 81,540,000 as of December 31, 2023, representing a decline of approximately 91.9%[102]. Assets and Liabilities - As of June 30, 2024, total assets increased to RMB 1,186,771 thousand, up from RMB 1,161,354 thousand as of December 31, 2023, representing a growth of approximately 2.2%[66]. - Total liabilities decreased to RMB 912,241 thousand from RMB 1,033,132 thousand, a reduction of about 11.7%[67]. - The group's debt-to-equity ratio improved to 1.2 times as of June 30, 2024, down from 2.7 times, mainly due to a capital contribution of RMB 127.7 million from the controlling shareholder[37]. - The company’s total liabilities decreased from RMB 1,000,000,000 to RMB 900,000,000 over the reporting period, indicating a reduction of 10%[108]. Research and Development - The board aims to strengthen research and development capabilities to improve digital solution services, focusing on strategic partnerships and acquisition opportunities[21]. - Research and development expenses remained stable, decreasing slightly from RMB 6.0 million to RMB 5.9 million[31]. Future Outlook and Strategy - The company plans to accelerate its telecommunications infrastructure services across China, with successful project expansion into the Xinjiang Uygur Autonomous Region as of June 30, 2024[21]. - The company is actively seeking new large-scale digital solution projects to enhance its financial capabilities and liquidity[21]. - Future outlook includes potential growth in digital solutions and ongoing investments in technology development[78]. - The group plans to use part of the net proceeds from the listing for acquisitions or investments in companies providing digital solution services to expand its business scale and market share[44]. Employee and Management Information - The total employee cost for the six months ended June 30, 2024, was RMB 13.0 million, a decrease from RMB 13.8 million in 2023[47]. - As of June 30, 2024, the group employed 229 employees, down from 252 employees a year earlier[47]. - The company’s management compensation for the first half of 2024 was RMB 1,808,000, slightly down from RMB 1,848,000 in the same period of 2023, a decrease of about 2.2%[113]. Related Party Transactions - The total amount received from related parties for repayments and advances was RMB 134.73 million for the six months ended June 30, 2024, compared to RMB 27.02 million for the same period in 2023, reflecting a substantial increase[114]. - The total amount payable to related parties as of June 30, 2024, was RMB 13.20 million, a decrease from RMB 152.21 million as of December 31, 2023, mainly due to payments made by Jiangxi Zhongge Communication Co., Ltd. for equity transfer[116]. - As of June 30, 2024, the non-recurring transactions with related parties increased significantly, primarily due to a donation of approximately RMB 127.72 million from Mr. Liu Haoqiong for equity transfer payments[114].

Financial Performance - For the six months ended June 30, 2024, the revenue was approximately RMB 237.3 million, a decrease of 2.5% compared to RMB 243.3 million for the same period in 2023[1][2]. - Gross profit for the same period was RMB 51.3 million, down 13.9% from RMB 59.6 million in the previous year[1][2]. - Profit attributable to equity shareholders was RMB 18.6 million, representing a decrease of 14.8% from RMB 21.7 million for the six months ended June 30, 2023[1][2]. - Operating profit for the period was RMB 25.9 million, compared to RMB 30.5 million for the same period in 2023[2]. - Total other income decreased to RMB 2,381,000 in the six months ended June 30, 2024, from RMB 2,937,000 in the same period of 2023, representing a decline of approximately 18.9%[10]. - Interest income from bank loans decreased to RMB 7,678,000 in the first half of 2024, down from RMB 8,952,000 in 2023, a reduction of about 14.3%[11]. - Basic earnings per share decreased to RMB 18,590,000 for the six months ended June 30, 2024, compared to RMB 21,808,000 for the same period in 2023, reflecting a decline of about 14.3%[16]. - Net profit fell by 14.8% from RMB 21.8 million to RMB 18.6 million due to the aforementioned factors[44]. Revenue Breakdown - Revenue from telecommunications infrastructure services amounted to RMB 195.1 million, an increase from RMB 189.1 million in the previous year[9]. - Revenue from digital solutions services was RMB 20.9 million, down from RMB 25.9 million in the same period last year[9]. - Revenue from telecommunications infrastructure services accounted for 90.9% of total revenue, amounting to RMB 215,799,000, compared to 84.4% or RMB 205,409,000 in 2023[33]. - Revenue from digital solutions services was RMB 21,484,000, representing 9.1% of total revenue, down from 15.6% or RMB 37,879,000 in 2023[33]. - The group's revenue decreased by 2.5% from RMB 243.3 million for the six months ended June 30, 2023, to RMB 237.3 million for the six months ending June 30, 2024, primarily due to a 43.3% decline in digital solution services revenue[34]. - Revenue from telecommunications infrastructure services increased by 5.1% from RMB 205.4 million to RMB 215.8 million, attributed to a slight increase in work orders for infrastructure construction services and a rise in revenue from maintenance services[34]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 1,186.8 million, an increase from RMB 1,161.4 million as of December 31, 2023[6]. - Total liabilities decreased to RMB 912.2 million from RMB 1,033.1 million as of December 31, 2023[6]. - The net asset value increased to RMB 274.5 million from RMB 128.2 million as of December 31, 2023[6]. - Trade receivables as of June 30, 2024, amounted to RMB 237,393,000, a decrease from RMB 247,109,000 as of December 31, 2023, indicating a reduction of approximately 3.5%[18]. - Total liabilities for trade and other payables decreased to RMB 553,263,000 as of June 30, 2024, from RMB 677,514,000 as of December 31, 2023, representing a decline of about 18.4%[21]. - As of June 30, 2024, trade payables amounted to RMB 440,783,000, slightly up from RMB 438,053,000 as of December 31, 2023[22]. - Short-term borrowings were RMB 339,402,000 as of June 30, 2024, a decrease from RMB 347,458,000 as of December 31, 2023[23]. Expenses and Costs - Total employee costs for the six months ended June 30, 2024, amounted to RMB 12,995,000, down from RMB 13,757,000 in 2023, reflecting a decrease of approximately 5.5%[11]. - Research and development costs (excluding employee costs) decreased to RMB 143,000 in the first half of 2024 from RMB 236,000 in 2023, a decline of about 39.4%[12]. - Administrative expenses decreased by 15.6% from RMB 24.3 million to RMB 20.5 million, attributed to reduced provisions for credit impairment losses and controlled entertainment expenses[40]. - Research and development expenses remained stable, decreasing slightly from RMB 6.0 million to RMB 5.9 million[41]. Dividends and Shareholder Information - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024[1]. - The company did not declare or propose any dividends for the six months ended June 30, 2024, and 2023[26]. - The board does not recommend the payment of an interim dividend for the six months ending June 30, 2024[58]. Strategic Initiatives - The company has successfully expanded its telecommunications infrastructure services into the Xinjiang Uygur Autonomous Region as of June 30, 2024[31]. - The company plans to enhance its research and development capabilities to improve digital solution services[31]. - The group plans to use part of the net proceeds from the listing to acquire or invest in companies providing digital solutions, as part of its strategy to expand business scale and market share[52]. - The company aims to strengthen its brand reputation and market presence following its successful listing on the Hong Kong Stock Exchange on July 3, 2024[32]. Listing Information - On July 3, 2024, the company's ordinary shares were listed on the main board of the Stock Exchange, issuing 160,000,000 shares at a price of HKD 1.25 per share, raising a total cash consideration of HKD 200,000,000[60]. - The audit committee, consisting of three independent non-executive directors, reviewed the interim results for the six months ending June 30, 2024, and found them to comply with applicable accounting standards and regulations[59].