Core Viewpoint - ESG has evolved from a supplementary aspect of corporate social responsibility to a critical requirement for high-quality development of listed companies, influencing long-term competitiveness, market valuation, financing capabilities, brand credibility, business resilience, and sustainable growth potential [1][6] Group 1: ESG Awards and Recognition - Silver盛数惠 (3773.HK) received two awards at the "格隆汇中期策略峰会2025": the "ESG卓越领袖" award for CEO Guan Heng and the "ESG卓越项目" award for its 数惠聚采商城 [1][5] - The "ESG卓越领袖" award recognizes entrepreneurs who integrate ESG principles into core strategic decisions, driving comprehensive organizational transformation and setting industry benchmarks [3][5] - The "ESG卓越项目" award focuses on projects with significant social benefits and commercial sustainability, highlighting Silver盛数惠's ability to balance commercial and social value [5][8] Group 2: Business Strategy and Performance - In 2023, Silver盛数惠 initiated a strategic transformation under CEO Guan Heng, leveraging experience in communication, payment, and investment to expand its digital marketing business and implement a "platform + technology + ecosystem" strategy [7][8] - The company reported a revenue growth of 41.3% and a net profit increase of 94.5% for 2024, with digital marketing revenue soaring by 265.2%, solidifying its leading position in the digital rights sector [8][9] Group 3: Digital Rights Ecosystem and ESG Implementation - The 数惠聚采商城 serves as a comprehensive procurement platform, utilizing a "smart procurement" model to facilitate standardized transaction management [10][11] - The platform's digital, automated, and intelligent management reduces energy consumption and enhances resource efficiency, aligning with ESG principles [11] - By lowering barriers for small and medium enterprises in complex supply chains, the platform promotes inclusive growth and competitive market participation [11][12] Group 4: Strategic Vision and Future Outlook - The management's strategic foresight and robust operational foundation are essential for navigating market demands and delivering value [13] - Silver盛数惠's recognition in the ESG domain exemplifies its role as a model for industry development in the digital rights trading sector [13]

Financial Performance - For the year ended December 31, 2024, the Group's revenue was approximately RMB128.6 million, an increase of approximately 41.3% compared to RMB91.0 million for the year ended December 31, 2023[19]. - Gross profit for the year ended December 31, 2024, was approximately RMB102.1 million, reflecting an increase of approximately 38.3% from RMB73.8 million for the year ended December 31, 2023[19]. - Profit attributable to owners of the Company for the year ended December 31, 2024, was approximately RMB31.9 million, a significant increase of approximately 94.5% compared to RMB16.4 million for the year ended December 31, 2023[19]. - The digital marketing services business achieved revenue of approximately RMB 24.1 million in 2024, a significant increase from approximately RMB 6.6 million in the same period in 2023, accounting for approximately 18.7% of the Group's total revenue[25][36]. - Revenue from mobile charges and mobile data usage top-up services increased from approximately RMB 84.4 million for the year ended December 31, 2023, to approximately RMB 104.5 million for the year ended December 31, 2024[24][27]. - Cost of revenue increased by approximately 42.4% to approximately RMB 23.5 million for the year ended December 31, 2024, from approximately RMB 16.5 million for the year ended December 31, 2023[37][39]. - Distribution and selling expenses rose by approximately 65.0% to approximately RMB 16.5 million for the year ended December 31, 2024, compared to approximately RMB 10.0 million for the year ended December 31, 2023[42]. - Other income (net) decreased by approximately 1.4% to approximately RMB 7.1 million for the year ended December 31, 2024, from approximately RMB 7.2 million for the year ended December 31, 2023[41]. - The overall gross profit margin slightly decreased to approximately 79.4% for the year ended December 31, 2024, from approximately 81.1% for the year ended December 31, 2023[40]. - Research and development expenses rose by approximately 58.2% to approximately RMB12.5 million for the year ended 31 December 2024, up from approximately RMB7.9 million for the year ended 31 December 2023[49]. - Finance costs increased by approximately 45.5% to approximately RMB3.2 million for the year ended December 31, 2024, compared to approximately RMB2.2 million for the year ended December 31, 2023[50]. Operational Efficiency and Strategy - The management optimized the cost structure and adopted more precise marketing strategies, contributing to the increase in overall gross profit[19]. - The transaction amount of digital marketing services increased significantly compared to the previous year, driving revenue growth[19]. - The Group continues to solidify its strengths in core business and deploy diversified digital equity business to drive revenue growth[18]. - The Group is implementing measures to enhance operational efficiency and maintain profitability amid a complex market environment[18]. - The overall macroeconomic recovery was slower than expected, yet the digital marketing services business showed strong growth[18]. - The Group's strategy includes reducing costs and enhancing efficiency to cope with market volatility[18]. - The Group expects the proportion of new businesses to continue increasing in the coming years as new customer projects are launched in 2025[26]. - The launch of the DeepSeek model in January 2025 is anticipated to enhance AI application popularity and drive business growth through strengthened technical solution capabilities[29][31]. Cash Flow and Financial Position - Net cash used in operating activities was approximately RMB123.7 million for the year ended December 31, 2024, compared to net cash from operating activities of approximately RMB117.1 million for the year ended December 31, 2023[62]. - As at 31 December 2024, cash and cash equivalents were approximately RMB50.8 million, down from approximately RMB89.8 million as at 31 December 2023[59]. - Total borrowings increased to approximately RMB122.0 million as at 31 December 2024, compared to approximately RMB30.0 million as at 31 December 2023[63]. - The current ratio was approximately 2.3 as at 31 December 2024, down from approximately 3.3 as at 31 December 2023[59]. - Net current assets increased to approximately RMB313.6 million as at 31 December 2024, compared to approximately RMB281.6 million as at 31 December 2023[59]. - Trade receivables from mobile top-up service decreased from approximately RMB132.8 million for the year ended 31 December 2023 to approximately RMB113.8 million for the year ended 31 December 2024, a decrease of about 14.3%[67]. - Trade receivables turnover days increased to 5.96 days for the year ended 31 December 2024 from 5.77 days for the year ended 31 December 2023[68]. - The amount of impairment loss recognized for trade receivables increased from approximately RMB66,000 for the year ended 31 December 2023 to approximately RMB1.3 million for the year ended 31 December 2024[69]. - The gearing ratio increased to approximately 39.5% as at 31 December 2024 from approximately 10.7% as at 31 December 2023 due to increased borrowings[74]. - Capital expenditures remained stable at approximately RMB1.5 million for the years ended 31 December 2023 and 2024[75]. - The Group did not have any significant capital commitments or material investments as at 31 December 2024[83][89]. Human Resources and Corporate Governance - The Group had a total of 156 full-time employees as of December 31, 2024, an increase from 124 employees as of December 31, 2023[98]. - Total staff costs, including Directors' remuneration, were approximately RMB 51.8 million for the year ended December 31, 2024, compared to approximately RMB 36.6 million for the year ended December 31, 2023, representing an increase of 41.5%[98]. - The Directors did not recommend the payment or declaration of a final dividend for the year ended December 31, 2024, consistent with the previous year[97]. - The Group emphasizes competitive remuneration and has been actively recruiting and promoting employees based on merit and development potential[98]. - Training opportunities are provided to employees to enhance their qualifications and equip them with necessary skills[98]. - The Group's strategic planning and management are overseen by its honorary chairman, who has over 18 years of experience in information technology-related industries[107]. - The Group's executive team includes individuals with extensive backgrounds in telecommunications and finance, contributing to its strategic direction[101][102]. - The Group has been focusing on performance-based remuneration packages, including share options for eligible participants[98]. - The Group's management believes that employees are one of its most important assets, highlighting the importance of human capital in its operations[98]. Board and Governance Structure - The Company has complied with all applicable code provisions of the Corporate Governance Code for the year ended December 31, 2024[136]. - The Board emphasizes the importance of good corporate governance to safeguard shareholder interests and enhance accountability[135]. - All directors confirmed compliance with the Model Code for Securities Transactions during the year ended December 31, 2024[137]. - The Board currently comprises eight Directors, including three executive Directors, two non-executive Directors, and three independent non-executive Directors[143]. - The roles of Chairman and Chief Executive Officer are separated, with Mr. Zhou Jinhuang as Chairman and Mr. Guan Heng as CEO, ensuring clear division of responsibilities[148]. - The Company has complied with the Listing Rules regarding the appointment of independent non-executive Directors, maintaining at least three such Directors on the Board[153]. - The Board is responsible for the leadership and control of the Company, overseeing strategic decisions and performance, while delegating day-to-day management to the CEO and senior management[155]. - The Company adheres to high standards of corporate governance, continuously optimizing its governance structure to enhance its governance level[140]. - The Company actively fulfills its social responsibilities, aiming for high-quality and sustainable development to create value for shareholders, customers, employees, and society[142]. - The Board has established various committees to delegate responsibilities and ensure effective governance[155]. - The Company has received written annual confirmations of independence from all independent non-executive Directors, affirming their compliance with independence guidelines[154]. - The Company emphasizes the importance of corporate culture as a support for long-term development and good corporate governance[138]. - The Board comprises eight Directors, ensuring a diverse mix of gender, age, background, knowledge, and skills[168]. - As of December 31, 2024, the Board consists of seven male directors and one female director, reflecting a commitment to gender diversity[171]. - The Group's workforce gender ratio is 50% male and 50% female as of December 31, 2024, indicating a balanced approach to diversity[172]. - The Company has adopted a Board Diversity Policy to enhance diversity through various measurable factors, including gender, age, and professional qualifications[165]. - The Nomination Committee will review the Board diversity policy annually to ensure its effectiveness[167]. - The Board meets at least four times a year, with advance notice of at least 14 days for regular meetings to ensure all Directors can attend[174]. - Directors have access to all Company information and can seek independent professional advice at the Company's expense[161]. - The Company has arranged appropriate insurance cover for Directors' liabilities in respect of legal actions against them[163]. - Minutes of board meetings are kept in detail, including decisions made and concerns raised by Directors[176]. - The Articles of Association require Directors to abstain from voting on transactions in which they have a material interest[177]. - The Company held an annual general meeting and an extraordinary general meeting during the year ended 31 December 2024[183]. - All Directors attended training sessions on duties and obligations of directors of companies listed on the Stock Exchange in 2024[187]. - Each executive Director has a service contract with a specific term of three years, subject to termination with three months' notice[195]. - The Chairman met with non-executive Directors and independent non-executive Directors without executive Directors present to discuss pertinent issues[184]. - All Directors are subject to retirement by rotation at least once every three years[196]. - The Nomination Committee is responsible for reviewing Board composition and monitoring the appointment and succession planning of Directors[197].

Core Viewpoint - The digital economy is catalyzing a transformation in the consumer market, shifting from single physical consumption to diverse digital rights experiences, with companies leveraging AI and big data to establish competitive advantages in this new era of digital consumption [1] Financial Performance - In 2024, the company achieved a revenue of 128.6 million, a significant increase of 41.3% year-on-year, with gross profit reaching 102.1 million, up 38.3% [2] - Shareholder profit surged from 16.4 million in 2023 to 31.9 million, marking a year-on-year growth of 94.5% [2] - The digital marketing segment saw revenues of approximately 24.1 million, a remarkable increase of 265.2%, accounting for 18.7% of total revenue, making it the fastest-growing business segment [2] Strategic Initiatives - The company has actively embraced AIGC technology, providing customized digital rights solutions to banks, telecom operators, and internet companies, enhancing operational efficiency and user engagement [3][4] - The company has established partnerships with major banks across various levels, including state-owned and regional banks, creating a comprehensive service capability [4] - The government’s recent policy initiatives aimed at boosting consumer spending further enhance market opportunities for the company’s digital rights solutions [4] Internet Ecosystem Integration - The company has developed deep partnerships with major platforms like Alipay, JD.com, and Tmall, creating a diverse digital marketing product system that helps merchants effectively reach end consumers [5] - The brand partnerships span various consumer sectors, providing tailored online and offline marketing services to leading brands [5] Expansion into New Verticals - The company is extending its digital marketing capabilities into emerging sectors such as health, digital tourism, and education, while also engaging with new media platforms to enhance user experience [6] Competitive Advantage - The company’s multi-channel digital empowerment strategy is establishing a unique competitive barrier, with expectations of significant performance growth as new projects are launched [7] - The dual-driven model of "digital rights + digital marketing," supported by AIGC technology, is creating a synergistic effect that maximizes profits and lays a solid foundation for long-term value growth [7]

Financial Performance - The total revenue for the year ended December 31, 2024, was RMB 128,627,000, representing a 41.2% increase from RMB 91,030,000 in the previous year[3] - Gross profit for the same period was RMB 102,101,000, up 38.3% from RMB 73,825,000 in 2023[3] - The net profit attributable to the owners of the company increased to RMB 31,943,000, compared to RMB 16,353,000 in the prior year, marking a growth of 95.9%[3] - Basic and diluted earnings per share rose to RMB 7.70, up from RMB 3.94 in the previous year, reflecting a 95.9% increase[3] - The company reported a pre-tax profit of RMB 38,390,000, up from RMB 24,779,000, which is an increase of 54.8%[16] - The company reported a net profit attributable to owners of approximately RMB 31.9 million for the year ending December 31, 2024, compared to RMB 16.4 million for the previous year, driven by new business development[47] Revenue Segments - Revenue from mobile phone top-up and data services was RMB 104,232,000, up from RMB 83,854,000, reflecting a growth of 24.3%[12] - The digital marketing services segment generated RMB 21,217,000 in commission income, a significant increase from RMB 2,454,000, marking a growth of 765.5%[12] - The company's digital marketing services revenue reached approximately RMB 24.1 million in 2024, significantly up from RMB 6.6 million in 2023, accounting for about 18.7% of total revenue[35] - The total transaction value for mobile phone recharge services increased from approximately RMB 84.4 million in 2023 to about RMB 104.5 million in 2024[34] Expenses - Research and development expenses increased to RMB 12,529,000, compared to RMB 7,914,000 in 2023, indicating a 58.5% rise[3] - The company reported a significant increase in distribution and selling expenses, which rose to RMB 16,531,000 from RMB 9,976,000, a 65.5% increase[3] - Cost of revenue increased by approximately 42.4% to about RMB 23.5 million for the year ending December 31, 2024, primarily due to rising costs associated with digital marketing services[39] - Distribution and selling expenses increased by approximately 65.0% to about RMB 16.5 million, attributed to restructuring of the marketing team in response to business expansion[42] - Research and development expenses rose by approximately 58.2% to about RMB 12.5 million, primarily due to increased employee costs[44] Assets and Liabilities - Trade receivables increased significantly to RMB 284,437,000 from RMB 179,453,000, a growth of 58.5%[4] - Current assets totaled RMB 555,764,000, up from RMB 404,015,000, representing a 37.5% increase[4] - The company's total equity increased to RMB 308,643,000 from RMB 279,302,000, a rise of 10.5%[4] - Trade payables as of December 31, 2024, were RMB 42.41 million, compared to RMB 25.17 million in 2023[31] - The debt ratio rose significantly from approximately 10.7% to 39.5% due to increased borrowings during the reporting period[53] Corporate Governance and Future Plans - The company has established a financial risk management policy to ensure that all payables do not exceed the credit period of approximately 90 days[30] - The company has no plans to declare dividends for the fiscal year 2023[24] - The company did not declare a final dividend for the fiscal year ending December 31, 2024[63] - There were no significant investments or acquisitions planned for the fiscal year ending December 31, 2024[60] - The company has adopted a new share option plan and a new share incentive plan as of October 30, 2024, replacing the previous plans[65] Government Support and Subsidies - Government subsidies received amounted to RMB 8,159,000, compared to RMB 2,980,000 in the previous year, reflecting a growth of 174.5%[19] Audit and Compliance - The audit committee has reviewed the annual performance for the year ending December 31, 2024, and agreed with the accounting principles adopted by the group[73] - The company has adhered to all applicable corporate governance codes throughout the year[72] Miscellaneous - The company has made a capital commitment of RMB 5.1 million related to the establishment of Shenzhen Yingsheng Huitang Technology Co., Ltd.[56] - The net proceeds from the IPO amounted to approximately HKD 52.0 million, with a detailed allocation plan outlined in the prospectus[66] - As of December 31, 2024, the unutilized balance of the net proceeds is approximately HKD 2.4 million, intended for potential acquisitions of complementary businesses and assets[66] - The total amount allocated for internet marketing activities and online advertising is HKD 15.7 million, with HKD 10.4 million utilized to date[66] - Funds for hardware and network infrastructure upgrades also total HKD 15.7 million, with HKD 10.4 million already spent[66] - Software and R&D expenditures are budgeted at HKD 11.8 million, with HKD 7.8 million utilized so far[66] - There have been no significant events affecting the group since December 31, 2024[68]

Financial Performance - The company reported a significant increase in revenue, achieving a total of $150 million for the first half of 2024, representing a 25% growth compared to the same period last year[1]. - The Group's revenue for the six months ended June 30, 2024, was approximately RMB 61.3 million, representing an increase of approximately 99.0% compared to RMB 30.8 million for the same period in 2023[6]. - Gross profit increased by approximately 96.3% from approximately RMB 24.5 million for the six months ended June 30, 2023, to approximately RMB 48.1 million for the same period in 2024[6]. - Profit attributable to owners of the Company for the six months ended June 30, 2024, was approximately RMB 21.3 million, a significant increase of approximately 2,266.7% compared to RMB 0.9 million for the same period in 2023[6]. - Profit before income tax increased significantly to RMB 28,897,000, compared to RMB 1,936,000 in the previous year, marking a growth of 1,392.5%[62]. - The total comprehensive income for the period ended June 30, 2024, was RMB 300,123,000, up from RMB 263,820,000 in the same period of 2023, reflecting an increase of approximately 13.8%[65]. - The profit before income tax for the six months ended June 30, 2024, was RMB 28,897,000, a significant increase from RMB 1,936,000 in the same period of 2023, representing a growth of approximately 1,394%[66]. - The profit attributable to owners for the six months ended June 30, 2024, was RMB 21,315,000, compared to RMB 871,000 for the same period in 2023, indicating significant growth[96]. User Growth and Market Expansion - User data showed a 30% increase in active users, reaching 1.2 million by the end of June 2024[1]. - The company is planning to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2025[1]. - The company provided an optimistic outlook, projecting a revenue growth of 20% for the full year 2024, driven by new product launches and market expansion efforts[1]. Research and Development - Investment in R&D increased by 15%, focusing on developing innovative technologies and enhancing existing product lines[1]. - The Group will continue to invest in research and development, focusing on integration strategy and customer value creation to foster continuous business growth[10]. - Research and development expenses for the six months ended June 30, 2024, were RMB 5,333,000, compared to RMB 3,743,000 in 2023, reflecting a 42.5% increase[62]. Digital Marketing Performance - The Group's digital marketing business achieved revenue of approximately RMB 7.7 million in the first half of 2024, a significant increase from approximately RMB 0.5 million in the corresponding period last year[7]. - Income from the digital marketing business accounted for approximately 12.6% of the Group's total income for the six months ended June 30, 2024[7]. - The Group's digital marketing service generated commission income of RMB 7,684,000 for marketing campaign services, a significant increase from RMB 504,000 in the same period of 2023[77]. Cost Management and Profitability - The gross profit margin improved to 45%, up from 40% in the previous year, indicating better cost management and pricing strategies[1]. - The Group's overall gross profit margin decreased to approximately 78.5% for the six months ended June 30, 2024, from approximately 79.6% for the same period in 2023[11]. - Distribution and selling expenses increased by approximately 43.5% to approximately RMB 6.6 million for the six months ended June 30, 2024, from approximately RMB 4.6 million for the same period in 2023[11]. - Administration expenses decreased by approximately 12.2% to approximately RMB13.7 million for the six months ended 30 June 2024 from approximately RMB15.6 million for the six months ended 30 June 2023[12]. Cash Flow and Financial Position - As at 30 June 2024, cash and cash equivalents were approximately RMB63.6 million, down from approximately RMB89.8 million as at 31 December 2023[13]. - Net current assets were approximately RMB303.3 million as at 30 June 2024, compared to approximately RMB281.6 million as at 31 December 2023[13]. - The net cash used in operating activities for the six months ended June 30, 2024, was RMB 84,266,000, contrasting with a net cash generated of RMB 48,127,000 in 2023[66]. - The cash and cash equivalents at the end of the period on June 30, 2024, were RMB 63,611,000, down from RMB 91,922,000 at the end of June 30, 2023, indicating a decrease of approximately 30.8%[67]. Share Capital and Corporate Governance - The total issued share capital of the company as of June 30, 2024, is 415,000,000 shares[25]. - The company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance by all directors for the six months ended June 30, 2024[18]. - The company complied with all applicable code provisions of the Corporate Governance Code for the six months ended June 30, 2024[19]. - The Group did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[16]. Debt and Borrowings - Bank borrowings were RMB90.5 million as at 30 June 2024, up from RMB30.0 million as at 31 December 2023[13]. - The gearing ratio as at 30 June 2024 was 30.2%, up from 10.7% as at 31 December 2023[14]. - New bank borrowings raised during the six months ended June 30, 2024, totaled RMB 844,710,000, compared to RMB 496,893,000 in 2023, marking an increase of about 70%[67]. Trade Receivables and Financial Risk - Trade receivables increased from approximately RMB182.4 million as at 31 December 2023 to approximately RMB294.4 million as at 30 June 2024[13]. - The aged analysis of trade receivables showed that amounts overdue for more than 60 days rose to RMB 78,915,000 as of June 30, 2024, compared to RMB 14,382,000 as of December 31, 2023[113]. - The Group's financial risk management policies ensure that all payables are managed within the credit timeframe of approximately 90 days[118].

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 61,312,000, a 99.0% increase from RMB 30,799,000 in the same period of 2023[2] - Gross profit for the same period was RMB 48,130,000, compared to RMB 24,521,000 in 2023, reflecting a gross margin improvement[2] - The net profit attributable to the owners of the company reached RMB 21,315,000, significantly up from RMB 871,000 in the prior year[2] - Basic and diluted earnings per share increased to RMB 5.14, compared to RMB 0.21 in the previous year[2] - Revenue from mobile phone top-up services reached RMB 52,229,000 for the six months ended June 30, 2024, compared to RMB 29,085,000 in the same period of 2023, representing an increase of 79.5%[8] - The company's pre-tax profit for the six months ended June 30, 2024, was RMB 21,315,000, a significant increase from RMB 871,000 in the same period of 2023[15] - The digital marketing business achieved revenue of approximately RMB 77 million for the six months ended June 30, 2024, compared to RMB 5 million for the same period in 2023, representing substantial growth[29] - Other income and gains increased by approximately 145.2% to about RMB 76 million for the six months ended June 30, 2024, compared to RMB 31 million for the same period in 2023[33] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 483,668,000, up from RMB 404,015,000 at the end of 2023[3] - The company's cash and cash equivalents decreased to RMB 63,611,000 from RMB 89,782,000 at the end of 2023[3] - The net asset value increased to RMB 300,123,000 from RMB 279,302,000 at the end of 2023[3] - As of June 30, 2024, trade receivables amounted to RMB 294,373,000, a significant increase from RMB 182,386,000 as of December 31, 2023, representing a growth of approximately 61.2%[19] - Bank borrowings as of June 30, 2024, were approximately RMB 70,520,000, significantly higher than RMB 30,000,000 as of December 31, 2023, marking an increase of 135.1%[22] - The company's debt ratio increased to 30.2% as of June 30, 2024, compared to 10.7% as of December 31, 2023[42] Expenses and Costs - Total employee costs for the six months ended June 30, 2024, amounted to RMB 19,312,000, compared to RMB 15,700,000 in the same period of 2023, reflecting a rise of 22.4%[11] - Distribution and selling expenses rose by approximately 43.5% to about RMB 66 million for the six months ended June 30, 2024, compared to RMB 46 million for the same period in 2023[34] - Research and development expenses increased by approximately 43.2% to about RMB 53 million for the six months ended June 30, 2024, compared to RMB 37 million for the same period in 2023[36] Operational Highlights - The company continues to provide mobile top-up services and digital marketing services to mobile users in China[4] - The company has established a series of contractual arrangements to maintain control over Shenzhen Nian Nian Card Network Technology Co., Ltd., ensuring it receives the majority of the economic benefits[5] - The company has successfully secured projects with major state-owned banks and well-known internet brands, which is expected to increase the proportion of new business in future years[27] Compliance and Governance - The financial statements are prepared in accordance with Hong Kong Accounting Standards, reflecting the company's compliance with local regulations[5] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the six months ending June 30, 2024[53] - The company has established an audit committee to oversee financial reporting, risk management, and internal control systems[53] Future Plans and Commitments - The company plans to continue investing in R&D and strengthen strategic partnerships to enhance competitiveness in the digital marketing services industry[28] - The company plans to fully utilize the net proceeds by the end of 2024[54] - The company has allocated HKD 15.7 million for enhancing internet marketing activities and online advertising[54] - HKD 11.8 million is designated for software and research and development work[54]

Financial Performance - For the year ended December 31, 2023, the Group's revenue amounted to approximately RMB91.0 million, representing an increase of approximately 5.0% compared to RMB86.7 million for the year ended December 31, 2022[136]. - Gross profit for the year ended December 31, 2023, increased by approximately 1.8% to approximately RMB73.8 million from approximately RMB72.5 million for the year ended December 31, 2022[136]. - Profit attributable to owners of the Company for the year ended December 31, 2023, was approximately RMB16.4 million, representing a decrease of approximately 39.9% compared to RMB27.3 million for the year ended December 31, 2022[136]. - The Group's digital marketing business achieved revenue of approximately RMB5.9 million in 2023, a significant increase compared to approximately RMB0.02 million in the same period last year[137]. - The overall gross margin decreased slightly to approximately 81.1% for the year ended December 31, 2023, down from approximately 83.6% for the year ended December 31, 2022[158]. - Cost of revenue increased by approximately 18.7% to approximately RMB16.5 million for the year ended December 31, 2023, up from approximately RMB13.9 million for the year ended December 31, 2022[146]. - Distribution and selling expenses increased by approximately 33.3% to approximately RMB10.0 million for the year ended December 31, 2023, up from approximately RMB7.5 million for the year ended December 31, 2022[158]. - Administration expenses increased by approximately 19.9% to approximately RMB36.2 million for the year ended December 31, 2023, compared to approximately RMB30.2 million for the year ended December 31, 2022[158]. Operational Highlights - The Group's electricity consumption was 162,905 kWh, a decrease of 88,693 kWh from 251,598 kWh in 2022, primarily due to office relocation[2]. - The electricity consumption intensity improved to 88.77 kWh/square meter in 2023 from 179 kWh/square meter in 2022[2]. - The employee turnover rate increased to 31.64% in 2023, up by 8.51% from 23.13% in 2022, mainly due to departmental restructuring[11]. - The Group established a 24-hour real-time monitoring mechanism to enhance service quality and promptly address network issues[31]. - The Group's commitment to employee training included various courses and seminars throughout 2023 to enhance staff skills and cohesion[24]. - The Group's operations may be adversely affected by the policies of PRC telecommunication operators regarding mobile top-up services[39]. - The Group has ceased operations in the Dealership business and Telecommunications Equipment Business in 2023 due to market competition and changes in profit models[137]. Strategic Initiatives - The Group has developed a reliable and scalable platform, "007ka", for mobile top-up services, ensuring real-time monitoring of transactions[31]. - The strategic expansion in digitalization and artificial intelligence aims to enhance the digital ecological value and create more commercial value for shareholders and partners[106]. - The Group launched the Digifavor Master digital and intelligent equity product system in the second half of 2023 to enhance B2B and B2C services[151]. - A joint venture was established with Shenzhen Yuanshi Shuzhi Technology Co., Ltd. for the creation of a platform for chronic disease management, with equity interests of 51.0% and 49.0% respectively[152]. - The Group plans to enhance competitiveness and user base in the digital marketing service industry through awarded cooperation projects with large state-owned banks and well-known internet brands[137]. Financial Management - The Group adopts a conservative policy in cash and financial management, regularly reviewing liquidity and financing arrangements[142]. - The management aims to enhance refined management and cost control to mitigate potential impacts from the post-COVID-19 era[180]. - The Group's cash flow for the year is presented in the Consolidated Statement of Cash Flows[37]. - Net cash from operating activities was approximately RMB117.1 million for the year ended December 31, 2023, compared to net cash used in operating activities of approximately RMB33.5 million for the year ended December 31, 2022[163]. - The net cash used in financing activities was approximately RMB123.1 million for the year ended December 31, 2023, compared to net cash from financing activities of approximately RMB57.5 million for the year ended December 31, 2022[163]. Shareholder Information - The Group did not recommend payment of a final dividend for the year ended December 31, 2023[37]. - The maximum number of shares that may be granted under the share option scheme is capped at 10% of the total shares issued, approximately 40,000,000 shares, as of January 7, 2016[55]. - The share option scheme was adopted on December 14, 2015, to recognize contributions and motivate higher performance levels[62]. - Directors' remuneration is subject to shareholder approval at general meetings[68]. - No director waived any emoluments during the year ended December 31, 2023[68]. Market and Competition - The Group faces competition from other mobile top-up services and e-commerce platforms, which could lead to a decrease in market share and financial condition[50]. - The Group's profit margin may be adversely affected by potential declines in discounts offered by PRC telecommunication operators and distributors[49]. - The Group's business relies on maintaining relationships with PRC banks, and any failure to do so may impact business expansion[38]. Environmental and Social Responsibility - The Group's environmental initiatives led to significant reductions in energy consumption, reflecting a commitment to sustainability[2]. - The Group emphasizes equal employment opportunities and strictly prohibits discrimination based on personal characteristics[22]. - The Group donated RMB5,000 to a local charitable organization in Shenzhen during the reporting period[36]. - The Group emphasizes the importance of customer privacy and has complied with relevant laws regarding personal data protection[45].

Revenue and Profitability - For the year ended December 31, 2023, total revenue reached RMB 91,030 thousand, an increase of 5.3% from RMB 86,655 thousand in 2022[10] - Mobile phone recharge service revenue was RMB 83,793 thousand, slightly down by 0.2% from RMB 83,951 thousand in the previous year[10] - Digital marketing service revenue, particularly from live streaming services, generated RMB 3,491 thousand, marking a new revenue stream for the company[10] - The company reported a pre-tax profit of RMB 2,204 thousand, up from RMB 1,095 thousand in the previous year, indicating a significant improvement in profitability[30] - The profit attributable to the company's owners decreased by approximately 39.9% to about RMB 16.4 million for the year ended December 31, 2023, down from RMB 27.3 million for the year ended December 31, 2022[79] - The company's revenue for the year ended December 31, 2023, was approximately RMB 91.0 million, an increase of about 5.0% compared to RMB 86.7 million for the year ended December 31, 2022[68] Digital Marketing Services - The company plans to expand its digital marketing services, leveraging new technologies to enhance service offerings and customer engagement[10] - The digital marketing business achieved revenue of approximately RMB 5.9 million in 2023, a significant increase compared to RMB 0.02 million in the same period last year[41] - The company has secured multiple digital marketing projects with major state-owned banks and well-known internet brands, enhancing its competitiveness and user base in the digital marketing services industry[41] - The company aims to mitigate risks associated with its previous reliance on mobile phone recharge services by diversifying into digital marketing services[41] Financial Position and Cash Flow - As of December 31, 2023, bank borrowings amounted to RMB 30 million, down from RMB 85 million in 2022, indicating a reduction in leverage[65] - Operating cash flow for the year ended December 31, 2023, was approximately RMB 117.1 million, compared to a cash outflow of approximately RMB 33.5 million for the year ended December 31, 2022[80] - The company's cash and cash equivalents as of December 31, 2023, were approximately RMB 89.8 million, down from RMB 96.2 million as of December 31, 2022[79] - The company's debt ratio decreased from approximately 57.0% as of December 31, 2022, to approximately 10.7% as of December 31, 2023, due to a reduction in bank borrowings during the reporting period[103] Expenses and Costs - The total employee costs increased to RMB 36.6 million in 2023 from RMB 27.9 million in 2022, reflecting a growth of approximately 31%[54] - Administrative expenses increased by approximately 19.9% from RMB 30.2 million for the year ended December 31, 2022, to approximately RMB 36.2 million for the year ended December 31, 2023, primarily due to increased employee costs in response to business expansion[91] - R&D expenses rose by approximately 8.2% from RMB 7.3 million for the year ended December 31, 2022, to approximately RMB 7.9 million for the year ended December 31, 2023, mainly attributed to increased employee costs during the reporting period[92] - Financial costs increased by approximately 100.0% to about RMB 2.2 million for the year ended December 31, 2023, due to increased funding needs for new digital marketing projects[78] Strategic Initiatives - A joint venture, Shenzhen Yingsheng Huitang Technology Co., Ltd., was established with a strategic partner, focusing on chronic disease management services and related big data and AI models[43] - The company plans to launch a digital intelligent equity product system called "Shuhui Master" in the second half of 2023 to connect upstream brands and downstream consumer scenarios[85] - The company has established a new digital human division focused on AI digital marketing services in Changsha, Hunan Province, aiming to innovate applications in the financial insurance sector[70] Government Support and Subsidies - The company has received government subsidies related to its industry, which are recognized in profit or loss in the year they are receivable[14] - Government subsidies increased from RMB 2,010 thousand in 2022 to RMB 2,980 thousand in 2023, reflecting a growth of approximately 48.1%[174] Employee and Operational Metrics - The total number of full-time employees decreased from 134 as of December 31, 2022, to 124 as of December 31, 2023, with total employee costs amounting to approximately RMB 36.6 million for the year ended December 31, 2023, compared to approximately RMB 27.9 million for the previous year[114] - The trade receivables turnover days increased to 5.77 days for the year ended December 31, 2023, compared to 4.96 days for the year ended December 31, 2022, indicating a need for closer monitoring of settlements due to longer credit terms[102] Asset and Liability Management - The company's total assets decreased from RMB 491,555 thousand in 2022 to RMB 404,016 thousand in 2023, representing a decline of approximately 17.8%[165] - The company’s total liabilities increased from RMB 259,394 thousand in 2022 to RMB 281,583 thousand in 2023, an increase of approximately 8.6%[165] Miscellaneous - The company did not declare or propose any dividends for the year 2023, consistent with the previous year[60] - The company has no potential dilutive ordinary shares, maintaining the same earnings per share as the previous year[33] - The company has not reported any revenue contribution exceeding 10% from a single customer in both reporting years[50] - The company has no significant investment or acquisition plans as of December 31, 2023[99] - The company has approximately HKD 7.8 million of unutilized funds as of December 31, 2023, intended for potential acquisitions and strategic alliances[125]

Financial Performance - The Group reported unaudited consolidated interim results for the six months ended June 30, 2023, with comparative figures for the same period in 2022[8]. - The interim report does not provide specific financial figures or performance metrics for the period[8]. - The profit attributable to shareholders decreased by approximately 94.4% in the first half of 2023 compared to the same period in 2022[20]. - The profit before tax for the six months ended June 30, 2023, was RMB 1,936,000, a significant decrease of 90.5% compared to RMB 20,469,000 for the same period in 2022[96]. - The company reported a profit attributable to owners of the Company of RMB 871,000, a decrease of 94.4% from RMB 15,507,000 in the prior year[195]. - Revenue for the six months ended June 30, 2023, was RMB 30,799,000, a decrease of 25.7% compared to RMB 41,402,000 for the same period in 2022[195]. - Gross profit for the same period was RMB 24,521,000, down 28.8% from RMB 34,419,000 year-over-year[195]. - Cash generated from operations for the first half of 2023 was RMB 49,937,000, down 48.9% from RMB 97,586,000 in the same period last year[96]. - The net cash from operating activities for the six months ended June 30, 2023, was RMB 48,127,000, compared to RMB 94,404,000 for the same period in 2022, indicating a decline of 49.1%[96]. Revenue and Transaction Values - The mobile top-up service income decreased to RMB 29,085,000 in the first half of 2023 from RMB 41,281,000 in the same period of 2022[65]. - The gross transaction value via electronic banking systems decreased by approximately 15.5% to approximately RMB 6,570.0 million for the six months ended 30 June 2023[20]. - Overall gross transaction value with mobile users decreased by approximately 10.5% to approximately RMB 7,013.7 million for the six months ended June 30, 2023[20]. - For the six months ended June 30, 2023, the Group recorded a revenue of approximately RMB 30.8 million, representing a decrease of approximately 25.6% compared to RMB 41.4 million for the same period in 2022[119]. - The total transaction value through electronic banking systems decreased by approximately 15.5%, from RMB 7,772.3 million in the first half of 2022 to RMB 6,570.0 million in the first half of 2023[103]. - The overall transaction value for mobile users decreased by approximately 10.5%, from RMB 7,833.1 million in the first half of 2022 to RMB 7,013.7 million in the first half of 2023[103]. Expenses and Costs - Distribution and selling expenses increased by approximately 35.3% to approximately RMB 4.6 million for the six months ended June 30, 2023, from approximately RMB 3.4 million for the same period in 2022[115]. - Administrative expenses increased by approximately 41.8% to approximately RMB 15.6 million for the six months ended June 30, 2023, from approximately RMB 11.0 million for the same period in 2022[130]. - Research and development expenses increased by approximately 15.6% to approximately RMB 3.7 million for the six months ended June 30, 2023, from approximately RMB 3.2 million for the same period in 2022[131]. - Cost of revenue decreased by approximately 11.6% to approximately RMB 6.1 million for the six months ended June 30, 2023, from approximately RMB 6.9 million for the same period in 2022[112]. - Finance costs increased by approximately 325.0% to approximately RMB 1.7 million for the six months ended June 30, 2023, from approximately RMB 0.4 million for the same period in 2022[131]. Assets and Liabilities - Total current assets decreased to RMB 441,657,000 from RMB 491,555,000, a decline of about 10.1%[88]. - Trade receivables increased to RMB 256,886,000 from RMB 234,383,000, reflecting a growth of approximately 9.6%[88]. - Total liabilities decreased from RMB 232,161,000 to RMB 177,848,000, a reduction of approximately 23.3%[88]. - Net assets increased slightly to RMB 263,820,000 from RMB 262,949,000, showing a marginal growth of about 0.3%[91]. - The Group's cash and cash equivalents were approximately RMB 91.9 million as at June 30, 2023, compared to approximately RMB 96.2 million as at December 31, 2022[131]. - The current ratio was approximately 2.5 as at June 30, 2023, compared to approximately 2.1 as at December 31, 2022[131]. Corporate Governance and Compliance - The company is committed to maintaining compliance with regulatory requirements in both the Cayman Islands and Hong Kong[7]. - The Group's financial performance is assessed as a whole, with no separate segment information prepared, indicating a unified operational strategy[70]. - The Board did not recommend the payment of any interim dividend for the six months ended June 30, 2023, consistent with the previous year[161]. - The Company has complied with all applicable code provisions as set out in the Corporate Governance Code for the six months ended June 30, 2023[183]. - The Board will continue to review and enhance corporate governance practices to ensure compliance with the Corporate Governance Code[183]. Strategic Initiatives - The company aims to enhance its market presence through strategic partnerships and technological advancements in mobile services[9]. - The Group launched a new business segment of digital marketing services, which is currently in the early stage of development[21]. - The cooperation with Tencent Computer marks a strategic step for the Group to expand into the artificial intelligence and gaming industries, providing growth opportunities[104]. - The Group is actively seeking new business integration and expansion opportunities to maintain competitiveness in the mobile top-up industry[104]. Shareholder Information - Substantial shareholders include Spring Harbour Development Limited with 119,400,000 shares, representing 28.77% of issued share capital[169]. - Fun Charge Technology holds 64,500,000 shares, accounting for 15.54% of the issued share capital[169]. - As of June 30, 2023, the total issued share capital of the Company is 415,000,000 Shares[186]. - The maximum number of Shares for options under the share option scheme is capped at 10% of the total number of Shares issued, which is 40,000,000 Shares, representing approximately 9.64% of the Company's issued share capital[171].

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 30,799,000, a decrease of 25.8% compared to RMB 41,402,000 for the same period in 2022[2] - Gross profit for the same period was RMB 24,521,000, down 28.8% from RMB 34,419,000 in 2022[2] - The company incurred a net loss attributable to shareholders of RMB 871,000, a significant decline from a profit of RMB 15,507,000 in the previous year[2] - Basic and diluted earnings per share were RMB 0.21, compared to RMB 3.74 in the same period last year, reflecting a decrease of 94.4%[2] - Total revenue from mobile top-up services decreased to RMB 29,085,000 in the first half of 2023, down 29.5% from RMB 41,281,000 in the same period of 2022[31] - The company's gross profit decreased by approximately 28.8% from RMB 34.4 million for the six months ended June 30, 2022, to RMB 24.5 million for the six months ended June 30, 2023[80] - The overall gross profit margin decreased from approximately 83.1% for the six months ended June 30, 2022, to about 79.6% for the same period in 2023, primarily due to rising costs in mobile phone recharge services[60] - The company reported a profit of approximately RMB 0.9 million for the six months ended June 30, 2023, down from RMB 15.5 million for the same period in 2022[87] Assets and Liabilities - Total current assets as of June 30, 2023, were RMB 263,809,000, slightly up from RMB 259,394,000 at the end of 2022[4] - The company reported total liabilities of RMB 441,657,000, with current liabilities amounting to RMB 177,848,000[6] - Trade receivables as of June 30, 2023, amounted to RMB 262,255,000, an increase of 7.7% from RMB 243,430,000 as of December 31, 2022[41] - The company's net cash and cash equivalents were approximately RMB 91.9 million as of June 30, 2023, compared to RMB 96.2 million as of December 31, 2022[88] - The company's debt ratio decreased to 37.9% as of June 30, 2023, from 57.0% as of December 31, 2022[91] Expenses - Total employee costs increased to RMB 15,700,000 in the first half of 2023, up 37.5% from RMB 11,458,000 in the same period of 2022[23] - Administrative expenses increased by approximately 41.8% from RMB 11.0 million for the six months ended June 30, 2022, to RMB 15.6 million for the six months ended June 30, 2023[74] - Interest expenses on bank loans rose significantly to RMB 1,660,000 in the first half of 2023, compared to RMB 350,000 in the same period of 2022, marking a 376.4% increase[23] - Financial costs rose by approximately 325.0% from RMB 0.4 million for the six months ended June 30, 2022, to RMB 1.7 million for the six months ended June 30, 2023[75] - Research and development expenses for the six months were RMB 3,743,000, an increase from RMB 3,249,000 in the previous year[2] - Research and development expenses increased by approximately 15.6% from RMB 3.2 million for the six months ended June 30, 2022, to RMB 3.7 million for the six months ended June 30, 2023[83] Business Operations - The company is focused on providing mobile phone recharge services to users in China, which remains its primary business[7] - The company has maintained its control over Shenzhen Nian Nian Card through a series of contractual agreements, despite not holding any equity in the company[15] - The company launched a new business segment focused on local life digital marketing services, which is currently in its startup phase and has limited profit contribution[67] - The company entered into a cooperation agreement with Tencent Computer to market and sell Tencent's cloud products, marking a strategic expansion into the AI and gaming industries[54] - The company is actively seeking new business integration and expansion opportunities to maintain competitiveness amid industry instability[68] Compliance and Governance - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with applicable regulations[8] - The company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2023[116] - The audit committee reviewed the unaudited consolidated interim results for the six months ended June 30, 2023, and agreed with the accounting principles adopted by the company[117] - The company has adopted the Listing Rules and the Standard Code for securities transactions by directors, confirming compliance by all directors for the six months ended June 30, 2023[115] Dividends and Investments - The company has not declared any dividends for the first half of 2023, consistent with the same period in 2022[36] - The company did not recommend any interim dividend for the six months ended June 30, 2023, consistent with the previous year[113] - As of June 30, 2023, the company had no significant investments or capital asset plans[111] - There were no major acquisitions or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2023[112] Other Financial Information - The company has not reported any significant tax liabilities in Hong Kong due to the absence of taxable profits[25] - The company has not recognized any impairment losses on trade receivables for the first half of 2023, compared to a loss of RMB 53,000 in the same period of 2022[23] - The company did not make any provisions for credit losses for the six months ended June 30, 2023, compared to RMB 53,000 for the same period in 2022[49] - Other income and losses decreased by approximately 24.4% from RMB 4.1 million for the six months ended June 30, 2022, to RMB 3.1 million for the six months ended June 30, 2023[81]