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]

Financial Performance - The total transaction value of mobile top-up services increased by approximately 6.86% to RMB 14,962.8 million for the year ended 31 December 2022, compared to RMB 14,002.4 million for the previous year[8]. - The overall transaction value for mobile users rose by about 5.78% to RMB 15,114.1 million for the year ended 31 December 2022, up from RMB 14,288.1 million[8]. - The gross transaction value of the Dealership Business was approximately RMB 48.5 million for the year ended 31 December 2022[9]. - For the year ended 31 December 2022, the gross transaction value of the Telecommunication Equipment Business was approximately RMB 33.3 million[11]. - The Group recorded a revenue of approximately RMB 86.7 million for the Reporting Period, representing a decrease of approximately 4.3% compared to RMB 90.6 million for the year ended 31 December 2021[18]. - The gross transaction values through offline channels decreased by approximately 47% to approximately RMB 151.3 million for the year ended 31 December 2022[18]. - The profit attributable to owners of the Company for the year ended 31 December 2022 was approximately RMB 27.3 million, compared to RMB 26.5 million for the year ended 31 December 2021[11]. - Cost of revenue decreased by approximately 6% to approximately RMB 13.9 million for the year ended 31 December 2022 from approximately RMB 14.8 million for the year ended 31 December 2021[19]. - Gross profit decreased by approximately 4% to approximately RMB 72.5 million for the year ended 31 December 2022 from approximately RMB 75.6 million for the year ended 31 December 2021[19]. - Other income and expenses increased by approximately 11.5% to approximately RMB 9.7 million for the year ended 31 December 2022 from approximately RMB 8.7 million for the year ended 31 December 2021[19]. Business Expansion and Strategy - The Group entered into a strategic cooperation agreement with ISP Global on 15 September 2022, valid until 15 September 2025, to enhance its e-commerce business[9]. - The Group has expanded into two new businesses: the Dealership Business and the Telecommunication Equipment Business, in response to industry challenges[9]. - The Group's efforts to source stable and price-competitive top-up resources aimed to maintain competitiveness within the mobile top-up industry[9]. - The Group's mobile top-up services faced potential business risks due to challenges in the industry, prompting diversification of income sources[9]. - The Group will continue to seek opportunities for potential mergers and acquisitions to maintain competitiveness[11]. - The Group plans to explore potential mergers and acquisitions to strengthen its market position and diversify its offerings[89]. Cash Flow and Financial Position - As at 31 December 2022, bank balances and cash of the Group was approximately RMB 96.2 million, compared with approximately RMB 32.5 million as at 31 December 2021[43]. - The Group reported net current assets of approximately RMB 259.4 million as at 31 December 2022, compared with approximately RMB 241.4 million as at 31 December 2021[43]. - Net cash used in operating activities was approximately RMB 33.5 million for the year ended 31 December 2022, compared with approximately RMB 67.0 million for the year ended 31 December 2021[45]. - The Group's net cash from financing activities was approximately RMB 57.5 million for the year ended 31 December 2022, compared to approximately RMB (3.9) million for the year ended 31 December 2021[73]. - As of December 31, 2022, the Group's borrowings increased to approximately RMB 150.0 million from approximately RMB 50.0 million as of December 31, 2021[75]. - The total bank borrowings as of December 31, 2022, carried an interest rate of 4.2% to 5.5%, compared to a fixed interest rate of 5.5% as of December 31, 2021[75]. Corporate Governance - The Company is committed to maintaining high standards of corporate governance to ensure accountability and transparency in performance[106]. - The Company has complied with all applicable Code Provisions as set out in the Corporate Governance Code for the year ended 31 December 2022[103]. - The Board currently comprises eight Directors, including three executive Directors, two non-executive Directors, and three independent non-executive Directors[109]. - The Company emphasizes the importance of good corporate governance as a key element for maintaining success[106]. - The Company aims to create and preserve long-term value through effective execution of its strategies to achieve business objectives[108]. - The Board will continue to review and enhance its corporate governance practices to align with the latest developments[103]. Employee and Remuneration - Total staff cost for the year ended December 31, 2022, was approximately RMB 27.9 million, an increase from approximately RMB 25.1 million for the year ended December 31, 2021[55]. - The number of full-time employees increased to 134 as of December 31, 2022, from 109 as of December 31, 2021[55]. - The primary goal of the Group's remuneration policy for executive Directors is to retain talent and reflect individual performance through a reasonable remuneration package[154]. - The remuneration package for executive Directors includes basic salary, performance and/or discretionary bonuses, participation in the share option scheme, and other benefits[154]. - All Directors attended training sessions on duties and obligations of directors of companies listed on the Stock Exchange in 2022[154]. Risk Management - The Group will continue to monitor credit risk and evaluate credit limits annually based on the financial position of counterparties[50]. - Overdue balances are reviewed regularly by senior management, and impairment analysis is performed at each reporting date to measure expected credit losses[50]. - The Board conducted a review of the effectiveness of the Group's risk management and internal control systems, concluding they are effective and adequate in all material aspects[192].

Financial Performance - For the year ended December 31, 2022, total revenue was RMB 86,655,000, a decrease of 4.3% from RMB 90,622,000 in 2021[3] - Gross profit for the same period was RMB 72,478,000, down from RMB 75,551,000, reflecting a decline of 4.0%[3] - The company reported a profit attributable to owners of RMB 27,265,000, an increase of 3.0% compared to RMB 26,478,000 in the previous year[3] - Basic earnings per share rose to RMB 6.57, up from RMB 6.38, representing a growth of 2.9%[3] - Revenue decreased by approximately 4.3% to about RMB 86.7 million for the year ended December 31, 2022, compared to RMB 90.6 million for the previous year[105] - Gross profit decreased by about 4% to approximately RMB 72.5 million for the year ended December 31, 2022, down from RMB 75.6 million[79] Assets and Equity - Non-current assets increased to RMB 5,912,000, up from RMB 3,762,000, indicating a growth of 57.0%[4] - Current assets totaled RMB 491,555,000, compared to RMB 376,080,000 in 2021, marking an increase of 30.7%[4] - The company’s total equity increased to RMB 262,949,000 from RMB 235,684,000, representing an increase of 11.6%[4] Expenses - Research and development expenses decreased to RMB 7,298,000 from RMB 8,589,000, a reduction of 15.0%[3] - Operating expenses decreased by approximately 25% to about RMB 7.5 million for the year ended December 31, 2022, compared to RMB 9.9 million for the previous year[82] - Financial costs significantly decreased by approximately 55.4% to about RMB 1.1 million for the year ended December 31, 2022, compared to RMB 2.5 million for the previous year[85] - The total employee costs rose to RMB 27,881 thousand in 2022 from RMB 25,107 thousand in 2021, an increase of approximately 11%[58] Business Expansion - The company expanded into two new business areas: e-commerce distribution and telecommunications equipment procurement in collaboration with domestic telecom operators[20] - The company has implemented strategic cooperation with ISP Global Limited to enter the e-commerce business in China, effective from September 15, 2022[46] - The company has expanded into two new business areas: distribution and telecommunications equipment business in collaboration with domestic telecom operators[99] Revenue Streams - The revenue from mobile phone recharge services in 2022 was RMB 83,951 thousand, down from RMB 90,255 thousand in 2021, representing a decline of approximately 7.5%[50] - The revenue from telecom equipment business was RMB 1,897 thousand in 2022, with no revenue reported in 2021[50] - The service revenue from mobile phone recharge services increased by approximately 6.86% compared to the previous year, with direct costs monitored during the reporting period[45] Financial Position - The group's bank borrowings increased to approximately RMB 150.0 million as of December 31, 2022, compared to RMB 50.0 million a year earlier[131] - The debt-to-equity ratio rose from approximately 21.2% as of December 31, 2021, to about 57.05% as of December 31, 2022, due to increased bank borrowings[133] - The net unutilized proceeds from the global offering amounted to approximately HKD 7.8 million as of December 31, 2022, earmarked for potential acquisitions and strategic alliances[121] Tax and Interest - The current tax expense for corporate income tax in China was RMB 8.24 million for the year ended December 31, 2022, compared to RMB 2.97 million in the previous year[33] - The interest expense on bank borrowings was RMB 957,000 for the year ended December 31, 2022, compared to RMB 2.33 million in the previous year[32] Shareholder Information - The company did not declare or recommend any dividends for the year ended December 31, 2022, consistent with the previous year[39] - The company does not recommend the payment of a final dividend for the year ended December 31, 2022[120] - The annual general meeting is scheduled for June 14, 2023, to determine shareholder voting eligibility[137] Audit and Compliance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and risk management[142] - The group's financial statements for the year ending December 31, 2022, have been reviewed by Deloitte, confirming consistency with the audited financial statements[143] - The group has no significant contingent liabilities, guarantees, or litigation as of December 31, 2022[135] Market Outlook - The company anticipates increased costs and competition in the mobile phone recharge business, which may negatively impact performance in 2023[48] - The local life service market is projected to grow from RMB 9,680 billion in 2021 to RMB 18,128 billion by 2025, with a compound annual growth rate of 17%[72] - The number of merchants achieving sales on the local life service platform increased 22 times compared to 2021, with overall transaction value growing over 30 times[72]

Company Overview - NNK Group Limited is incorporated in the Cayman Islands with limited liability[1]. - The registered office is located in the Cayman Islands, with principal business operations in Shenzhen, PRC[5]. - The headquarters is situated at Nanshan iPark, Shenzhen, PRC[5]. - The company has a significant presence in Hong Kong with its principal place of business at Dah Sing Financial Centre, Wanchai[5]. - The board of directors includes Mr. Huang Junmou as Chairman and several non-executive and independent directors[3]. - The audit committee is chaired by Ms. Zhao Jinlin, ensuring compliance and oversight[3]. - The remuneration committee is led by Mr. Lin Zhangxi, focusing on executive compensation[3]. - The company is advised by MinterEllison LLP for legal matters in Hong Kong[5]. Financial Performance - The company reported its interim results for 2022[2]. - The interim report provides insights into the company's performance and strategic direction[6]. - For the six months ended June 30, 2022, the Group recorded a gross transaction value of approximately RMB7,772.3 million, an increase of approximately 13.3% from RMB6,858.6 million for the same period in 2021[10]. - Overall gross transaction value with mobile users increased by approximately 11.8% to approximately RMB7,833.1 million for the six months ended June 30, 2022, compared to RMB7,006.6 million for the same period in 2021[10]. - The Group recorded a revenue of approximately RMB41.4 million for the six months ended June 30, 2022, representing a decrease of approximately 19.3% compared to RMB51.3 million for the corresponding period in 2021[15]. - The Group's stable results in the first half of 2022 demonstrate its capability to address macroeconomic challenges despite the ongoing impact of the COVID-19 pandemic[14]. - The Group's business performance remained stable despite the economic destabilization caused by new waves of the Omicron variant[10]. - Profit for the six months ended June 30, 2022, was approximately RMB15.5 million, a decrease from approximately RMB16.0 million for the same period in 2021[27]. - The Group's financial performance reflects the impact of regulatory restrictions on foreign investment in the PRC telecommunications sector[95]. Revenue and Expenses - The average discount rate received from PRC telecommunication operators decreased to 0.5% for the first half of 2022 from 0.7% for the first half of 2021[10]. - Gross profit decreased by approximately 17.9% to approximately RMB34.4 million for the six months ended June 30, 2022, from RMB41.9 million for the same period in 2021[24]. - The overall gross profit margin increased to approximately 83.7% for the six months ended June 30, 2022, from approximately 81.6% for the same period in 2021[24]. - Distribution and selling expenses decreased by approximately 32% to approximately RMB3.4 million for the six months ended June 30, 2022, from RMB5.0 million for the same period in 2021[24]. - Administration expenses decreased by approximately 16.7% to approximately RMB11 million for the six months ended June 30, 2022, from RMB13.2 million for the same period in 2021[24]. - Research and development expenses decreased by approximately 15.8% to approximately RMB3.2 million for the six months ended June 30, 2022, from RMB3.8 million for the same period in 2021[24]. Cash Flow and Assets - Cash and cash equivalents as of June 30, 2022, were approximately RMB115.9 million, up from approximately RMB32.5 million as of December 31, 2021[27]. - Net current assets as of June 30, 2022, were approximately RMB256.5 million, compared to approximately RMB241.4 million as of December 31, 2021[27]. - The current ratio was approximately 3.3 as of June 30, 2022, compared to approximately 2.79 as of December 31, 2021[27]. - Trade receivables decreased from approximately RMB168.5 million as of December 31, 2021, to approximately RMB119.6 million as of June 30, 2022[31]. - The Group's bank borrowings were RMB40 million as of June 30, 2022, down from RMB50 million as of December 31, 2021[27]. - The total cash and cash equivalents at the end of the period were RMB115,908,000, compared to RMB113,320,000 at the end of the previous year, showing stability in liquidity[89]. Corporate Governance - The Company has complied with the Corporate Governance Code during the six months ended June 30, 2022, and will continue to review its governance structure[39]. - The Board believes that good corporate governance is vital for maintaining the success of the Company and safeguarding shareholder interests[39]. - The Company is committed to maintaining high standards of corporate governance to enhance corporate value accountability[39]. - The Company has confirmed compliance with the relevant provisions of the Securities and Futures Ordinance regarding interests in shares[42][50]. Shareholding and Dividends - As of June 30, 2022, Mr. Huang Junmou holds 64,500,000 shares, representing approximately 15.54% of the issued share capital of the Company, which totals 415,000,000 shares[44][45]. - The Board did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the prior year[37]. - The total issued share capital of the company as of June 30, 2022, is 415,000,000 shares[55]. Strategic Direction - The Group aims to seek strategic partnerships with major PRC banks to create synergies and explore selective investments or acquisitions to enhance its competence[13]. - The Group will continue to improve services provided to existing merchants and secure its position as a leading supplier of mobile top-up services through electronic banking systems[13]. - The Group did not conduct any material acquisitions or disposals during the six months ended June 30, 2022[37]. Taxation and Compliance - The income tax expense for the six months ended June 30, 2022, was RMB5.0 million, compared to RMB2.9 million for the same period in 2021[27]. - The tax rate for PRC subsidiaries remained at 25% for both periods under review[122]. Employee and Management Compensation - The total staff cost for the six months ended June 30, 2022, was approximately RMB11.5 million, up from approximately RMB9.8 million in the same period of 2021[37]. - The remuneration for key management personnel increased to RMB3,125,000 for the six months ended June 30, 2022, compared to RMB2,517,000 for the same period in 2021, reflecting a growth of approximately 23.9%[150].

Financial Performance - NNK Group Limited reported a revenue of HKD 1.2 billion for the fiscal year 2021, representing a year-over-year increase of 15%[2]. - The company achieved a net profit of HKD 300 million, which is a 20% increase compared to the previous year[2]. - The company has set a performance guidance for 2022, projecting a revenue growth of 10% to 12%[2]. - The group recorded revenue of approximately RMB 90.6 million for the year ended 31 December 2021, an increase of approximately 10.9% from RMB 81.7 million for the year ended 31 December 2020[23]. - Profit attributable to owners of the Company for the year ended 31 December 2021 was approximately RMB 26.5 million, compared to approximately RMB 30.2 million for the year ended 31 December 2020[30]. User Growth and Market Expansion - User data indicated a growth in active users to 5 million, up from 4 million in 2020, marking a 25% increase[2]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2023[2]. - The total gross transaction value with mobile users increased by approximately 41.3% to approximately RMB 14,288.1 million for the year ended 31 December 2021, compared to approximately RMB 10,112.0 million for the year ended 31 December 2020[24]. Operational Efficiency - The company reported a cash flow from operations of HKD 400 million, indicating strong liquidity and operational efficiency[2]. - The average discount rate received from PRC telecommunication operators decreased to 0.6% for 2021 from 0.8% for 2020[12]. - The gross transaction value through electronic banking systems increased by approximately 47.1% to approximately RMB 14,002.4 million for the year ended 31 December 2021, from approximately RMB 9,518.6 million for the year ended 31 December 2020[12]. Research and Development - NNK Group Limited is investing HKD 100 million in new product development, focusing on enhancing user experience and technology integration[2]. - The company has established a new research and development center in Shenzhen, aiming to innovate and accelerate product launches[2]. - Research and development expenses increased by approximately 21.4% to approximately RMB 8.6 million for the year ended 31 December 2021, compared to approximately RMB 7.1 million for the year ended 31 December 2020[28]. Environmental, Social, and Governance (ESG) Initiatives - NNK Group Limited is committed to improving its environmental, social, and governance (ESG) practices, with a goal to reduce carbon emissions by 15% by 2025[2]. - The Group emphasizes environmental protection and sustainable development, implementing measures to minimize environmental impacts and improve energy efficiency[162]. - The Group has established an ESG working team to identify and assess material ESG issues relevant to its business[163]. Corporate Governance - The company has complied with all applicable Code Provisions as set out in the Corporate Governance Code for the year ended December 31, 2021[79]. - The Board is committed to maintaining high standards of corporate governance practices to enhance corporate performance accountability and transparency[78]. - The roles of Chairman and CEO are clearly separated to ensure effective governance and management of the company[91]. Employee Development and Workforce - As of December 31, 2021, the Group had 110 full-time employees, a 42.8% increase from 77 employees as of December 31, 2020[195]. - The Group provides on-the-job training and development opportunities to enhance employees' career progression[193]. - Recruitment is conducted fairly and openly, with a focus on candidates' capabilities rather than gender, race, age, or religion[195]. Financial Management and Risk - The Group's liquidity and financing arrangements are regularly reviewed to manage the impact of the COVID-19 pandemic and minimize financial risk[19]. - The Board is responsible for overseeing the risk management and internal control systems of the Group, reviewing their effectiveness at least once a year[136]. - The Company has established a defined management structure with specified limits of authority to safeguard assets against unauthorized use[136].

Financial Performance - NNK Group Limited reported a significant increase in revenue, achieving a total of HKD 500 million for the first half of 2021, representing a 25% growth compared to the same period last year[11]. - The company reported a net profit of HKD 100 million, reflecting a 50% increase compared to the same period last year[11]. - For the six months ended 30 June 2021, the Group recorded a revenue of approximately RMB 51.3 million, representing an increase of approximately 31.2% compared to RMB 39.1 million for the same period in 2020[21]. - Gross profit increased by approximately 40.9% to approximately RMB 41.9 million for the six months ended 30 June 2021 from approximately RMB 29.7 million for the same period in 2020[23]. - The Group's total revenue for the six months ended June 30, 2021, was RMB 51,312,000, compared to RMB 39,097,000 in the same period of 2020, representing an overall growth of approximately 31.1%[118]. - Profit before tax increased to RMB 18,858,000, compared to RMB 17,542,000 in the previous year, reflecting a growth of 7.5%[86]. - Total comprehensive income attributable to owners of the Company for the period was RMB 15,954,000, down from RMB 17,542,000 in 2020, indicating a decrease of 9.0%[86]. - Basic earnings per share for the period was 3.84 RMB cents, compared to 4.23 RMB cents in the same period last year, a decline of 9.2%[86]. User Growth and Market Expansion - The company’s user base expanded to 1.2 million active users, marking a 30% increase year-over-year[11]. - NNK Group Limited anticipates a revenue growth forecast of 20% for the second half of 2021, driven by new product launches and market expansion strategies[11]. - NNK Group Limited plans to expand its market presence in Southeast Asia, targeting a 15% market share by the end of 2022[11]. - The Group aims to enhance cooperation with PRC banks and operators to stimulate growth in gross transaction value through electronic banking channels[18]. Operational Efficiency and Investments - The company is investing HKD 50 million in research and development for new technologies aimed at enhancing user experience and operational efficiency[11]. - The Group will continue to optimize operational procedures to reduce operating costs and improve workflow efficiency[18]. - The management emphasized a commitment to sustainability and corporate social responsibility initiatives, allocating HKD 10 million for community projects in 2021[11]. Transaction and Revenue Metrics - The gross transaction value for the six months ended June 30, 2021, reached RMB 624 million, compared to RMB 270 million for the same period in 2020, reflecting a significant increase[14]. - The gross transaction value via electronic banking systems increased by approximately 81.9% to approximately RMB 6,858.6 million for the six months ended June 30, 2021, from approximately RMB 3,771.3 million for the same period in 2020[14]. - The number of mobile top-up requests processed by the 007ka top-up platform was approximately 120.0 million for the six months ended June 30, 2021, representing an increase of approximately 77.0% compared to approximately 67.8 million for the same period in 2020[14]. - Overall gross transaction value with mobile users increased by approximately 71.2% to approximately RMB 7,006.6 million for the six months ended June 30, 2021, from approximately RMB 4,092.3 million for the same period in 2020[14]. Financial Position and Assets - Cash and cash equivalents of the Group were approximately RMB 113.3 million as at 30 June 2021, compared to approximately RMB 103.6 million as at 31 December 2020[31]. - The Group reported net current assets of approximately RMB 230.7 million as at 30 June 2021, compared to approximately RMB 214.0 million as at 31 December 2020[31]. - The Group's current ratio was approximately 2.94 as at 30 June 2021, compared to approximately 2.60 as at 31 December 2020[31]. - As of June 30, 2021, net assets increased to RMB 225,160,000 from RMB 209,206,000 as of December 31, 2020, reflecting a growth of approximately 7.65%[91]. Share Capital and Ownership - As of June 30, 2021, the total issued share capital of the company was 415,000,000 shares[52]. - Mr. Huang Junmou holds 94,500,000 shares, representing 22.77% of the issued share capital[50]. - Mr. Yang Hua owns 63,000,000 shares, accounting for 15.18% of the issued share capital[50]. - The maximum number of Shares that may be granted under the share option scheme is capped at 10% of the total number of Shares issued as of January 7, 2016, equating to 40,000,000 Shares[67]. Taxation and Financial Obligations - The income tax expense for the six months ended June 30, 2021 included a charge of RMB 1.5 million for deferred tax assets and provisions of RMB 0.7 million and RMB 0.6 million for PRC EIT and withholding income tax, respectively[28]. - The tax rate for the PRC subsidiaries remained at 25% for the six months ended 30 June 2020 and 2021[7]. - Current tax expenses for the six months ended June 30, 2021, included RMB 710,000 for PRC Enterprise Income Tax and RMB 648,000 for PRC withholding tax[137]. Challenges and Market Conditions - The outbreak of the Delta variant of COVID-19 has resulted in temporary shortages of mobile top-up resources in certain provinces, affecting discount rates[18]. - The Group plans to source more favorable top-up credits from suppliers to mitigate supply instability and discount rate fluctuations[18]. - The delay in utilizing the remaining unused net proceeds for software and research development was due to a cautious approach amid economic uncertainty[75].

Financial Performance - NNK Group reported a revenue of HKD 1.2 billion for the fiscal year, representing a year-over-year increase of 15%[6] - The company achieved a net profit of HKD 300 million, which is a 20% increase compared to the previous year[6] - The company has set a revenue guidance of HKD 1.5 billion for the next fiscal year, indicating a projected growth of 25%[6] - The company reported a cash flow from operations of HKD 400 million, an increase of 30% year-over-year[6] - The company has outlined a positive outlook for the upcoming year, projecting a revenue growth of 10% to 12% for 2021[99] - The company has reported a 25% increase in gross profit margin, reaching 40% for the fiscal year[99] User Growth and Engagement - User base expanded to 5 million active subscribers, marking a growth of 25% year-over-year[6] - NNK Group is focusing on enhancing its digital marketing strategies to increase customer engagement by 15%[6] - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on enhancing user engagement[98] Product Development and Innovation - NNK Group plans to launch two new products in the next quarter, aiming to capture an additional 10% market share[6] - NNK Group is investing HKD 100 million in R&D for new technologies to enhance user experience[6] - The company is investing in new technology development, allocating HKD 50 million towards R&D initiatives in the next fiscal year[99] Market Expansion and Acquisitions - The company is exploring potential acquisitions to expand its market presence in Southeast Asia[6] - Market expansion plans include entering two new regions, which are anticipated to increase market share by 5%[98] - The company is considering strategic acquisitions to enhance its service offerings, with a budget of up to HKD 300 million for potential targets[99] Operational Efficiency - NNK Group's operating margin improved to 25%, up from 22% in the previous year[6] - The Group aims to optimize operational procedures to reduce operating costs and improve workflow efficiency[24] - The Group will continue to enhance its operational efficiency and workflow to support growth in mobile top-up services[26] Corporate Governance - The Company complied with the Corporate Governance Code provisions for the year ended December 31, 2020, ensuring accountability and transparency[100] - The Board comprises eight Directors, including two executive Directors, three non-executive Directors, and three independent non-executive Directors[102] - The Company is committed to enhancing corporate governance practices to align with the latest developments[100] - The Board has adopted a diversity policy to achieve a balance of perspectives relevant to the Company's business growth[109] Shareholder Engagement - The Board aims to maintain strong communication with shareholders, providing accurate and timely information while addressing their concerns[155] - The Company values shareholder input and encourages suggestions via email or telephone to enhance its development[155] - The Company is committed to ongoing dialogue with shareholders, particularly through annual general meetings[155] Environmental, Social, and Governance (ESG) Initiatives - The Group's ESG Report for the year ended December 31, 2020, outlines policies in environmental protection, employment practices, operating practices, and community involvement[166] - The Group emphasizes efficient resource utilization and reducing environmental impact while enhancing social responsibility and employee well-being[167] - The Group has implemented various environmental-friendly measures to minimize its environmental impacts and has complied with all relevant environmental laws and regulations for the year ended December 31, 2020[178] Employee Development and Well-being - The company views employees as valuable assets and considers human resources essential for maintaining its leading position in the mobile recharge service industry[200] - Continuous on-the-job training and development opportunities are provided to enhance employee performance[200] - Competitive employment conditions and benefits are offered to attract and retain top talent[200]