Group 1 - The core business of Shenghua Land involves providing smart city solutions, hardware sales, system integration solutions, and telecom value-added services, with close cooperation with major domestic telecom operators and well-known computer hardware and software suppliers [4] - Shenghua Land was established in 1996 by a team from Zhejiang University and became the first domestic large-scale communication software supplier listed on the Hong Kong Stock Exchange in 2002 [4] - The company has expanded its services across more than 60 cities in China, offering planning, design, consulting, system development, application integration, engineering implementation, operation outsourcing, and joint operation services [4] Group 2 - As of December 31, 2024, Shenghua Land reported total revenue of 185 million yuan, a year-on-year increase of 88.65%, and a net profit attributable to shareholders of -6.506 million yuan, a year-on-year increase of 84.79% [2] - The gross profit margin stands at 11.26%, and the debt-to-asset ratio is 56.66% [2] - The company's current price-to-earnings ratio is -5.41, ranking 120th in the software services industry, which has an average P/E ratio of -4.42 [3]

Financial Performance - The group recorded revenue of approximately RMB 185,043,000 for the year ended December 31, 2024, compared to RMB 98,089,000 in 2023, representing an increase of 88.6%[9]. - The group reported a loss of approximately RMB 6,506,000 for the year, a significant improvement from a loss of RMB 42,773,000 in 2023[9]. - The group's revenue for the year ended December 31, 2024, was approximately RMB 185,043,000, representing an increase of about 88.65% compared to RMB 98,089,000 in 2023[20]. - Revenue from hardware and software sales was approximately RMB 165,296,000, a significant increase of about 92.51% from RMB 85,863,000 in the previous year[19]. - Revenue from smart city solutions was approximately RMB 19,747,000, reflecting a growth of about 61.52% compared to RMB 12,226,000 in 2023[19]. - The overall gross margin for the year was approximately 11.26%, slightly down from 11.74% in 2023[22]. - The gross margin for hardware and software sales was approximately 8.73%, up from 7.18% in the previous year[21]. - The gross margin for smart city solutions was approximately 32.41%, down from 43.74% in 2023, indicating volatility due to project-specific factors[21]. - The group recorded a segment profit of approximately RMB 8,824,000 from hardware and software sales, a significant increase from RMB 187,000 in 2023[23]. - The segment loss for smart city solutions was approximately RMB 9,637,000, a substantial reduction from RMB 30,749,000 in the previous year[23]. - For the fiscal year ending December 31, 2024, the company recorded a net loss of approximately RMB 6,506,000, compared to a net loss of RMB 42,773,000 in 2023, resulting in a loss per share of RMB 1.28, down from RMB 8.44 in the previous year[25]. - The company's total assets were approximately RMB 110,144,000, up from RMB 87,145,000 in 2023, indicating a growth of 26.4%[40]. - The company's total liabilities as of December 31, 2024, were approximately RMB 62,409,000, an increase from RMB 32,904,000 in 2023, resulting in a liability-to-asset ratio of 56.66%[40]. - The company's accounts receivable and notes receivable increased significantly to approximately RMB 78,344,000 as of December 31, 2024, compared to RMB 39,860,000 in 2023, reflecting a growth of 96.5%[36]. Business Strategy and Development - The company is focusing on providing smart city solutions, leveraging domestic market opportunities and enhancing marketing systems to capture service contract orders[12]. - The group aims to stabilize its business fundamentals while seeking new development opportunities through strategic adjustments and market expansion[11]. - The company is actively seeking capital operation opportunities within the industry chain to achieve effective breakthroughs in business development[13]. - The company aims to leverage AI technology to enhance smart city applications and improve operational efficiency, targeting effective business breakthroughs[18]. - The company is focusing on expanding its hardware and software sales business and has established good cooperation with local city clients for smart city solutions, although new customer order volumes were not ideal during the reporting year[41]. - The company aims to integrate artificial intelligence technology into its existing business to explore new application scenarios and seek new business opportunities[42]. - The company is committed to integrating resources and strengthening business development in line with the "14th Five-Year Plan," while also seeking new acquisition opportunities to drive business growth[45]. - The company aims to diversify its business to reduce reliance on a single business segment or product, focusing on developing new competitive products and services[30]. Operational Efficiency and Cost Management - Budget management and cost control measures have been strengthened, alongside performance assessment management to effectively implement cost reduction and efficiency improvement[14]. - The company aims to reduce operational costs by 10% through efficiency improvements in the next year[53]. - The company plans to implement new operational strategies aimed at improving efficiency by 15% over the next fiscal year[61]. Corporate Governance and Compliance - The company has maintained compliance with all relevant laws and regulations throughout the year and has obtained all necessary licenses and permits for its operations[35]. - The board emphasizes high standards of corporate governance to enhance business performance and shareholder value[64]. - The company has complied with corporate governance codes, with a commitment to regular reviews and adherence to best practices[65]. - The board is responsible for overseeing the group's environmental, social, and governance matters and related risks[111]. - The company has adopted a code of conduct for securities trading, confirming compliance with the relevant regulations throughout the year ending December 31, 2024[79]. - The board has established a risk management and internal control system to identify, assess, and manage significant risks, ensuring the adequacy of risk mitigation plans[81]. - The board conducted a comprehensive review of the risk management and internal control system during the reporting year, confirming its effectiveness and adequacy[82]. Environmental, Social, and Governance (ESG) Initiatives - The group has no direct emissions of waste gases, greenhouse gases, or other pollutants due to the nature of its business[114]. - The group reported no significant violations of environmental laws and regulations in China during the year[114]. - Scope 2 greenhouse gas emissions decreased significantly from 52.56 tons of CO2 equivalent in 2023 to 40.71 tons in 2024, reflecting a reduction of approximately 22.5%[117]. - Total greenhouse gas emissions also fell from 52.56 tons of CO2 equivalent in 2023 to 40.71 tons in 2024, marking a reduction of about 22.5%[117]. - The company has implemented multiple measures to reduce electricity consumption and minimize the environmental impact of Scope 2 greenhouse gas emissions[120]. - The company has maintained a zero-tolerance policy towards any form of discrimination in the workplace[132]. - The company has complied with all relevant labor and employment laws and regulations in China during the reporting period[133]. - The company has not generated any significant hazardous or non-hazardous waste in both 2023 and 2024[118][119]. - The company is actively monitoring climate-related risks and has taken measures to mitigate potential physical and transitional risks[131]. Shareholder and Stakeholder Engagement - The company has implemented a shareholder communication policy to ensure timely and effective communication with shareholders and potential investors[92]. - The board has the authority to declare dividends based on financial performance, cash flow, and other relevant factors[95]. - Shareholders holding 10% or more of the voting shares can request an extraordinary general meeting[99]. - The company has adopted a dividend policy to maintain sufficient cash reserves to meet operational needs and future business growth[94]. - The board will review the dividend policy periodically and does not guarantee any specific amount of dividend in the future[98]. Employee and Workplace Practices - The total employee count decreased to 83 as of December 31, 2024, down from 119 in 2023, with total employee costs amounting to approximately RMB 20,716,000, compared to RMB 28,340,000 in the previous year[32]. - Employee turnover rate increased significantly, with male turnover rising to 40.52% from 26.72% and female turnover increasing to 24.49% from 7.63%[136]. - The average training hours per employee decreased slightly, with male employees receiving an average of 14.22 hours in 2024 compared to 15.02 hours in 2023[143]. - The company provided free health check-ups and insurance for employees, emphasizing workplace safety and health[140]. - The company maintained a zero record for work-related fatalities and serious injuries over the past three years[138]. Market Position and Competitive Landscape - The company reported that its top five customers accounted for approximately 74.03% of total revenue for the year, up from 68.99% in the previous year, with the largest customer contributing about 50.94% of total revenue[177]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[51]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share within the next two years[61].

Financial Performance - For the year ended December 31, 2024, the company achieved revenue of approximately RMB 185,043,000, an increase of about 88.65% compared to the revenue of RMB 98,089,000 for the year ended December 31, 2023[4] - The company incurred a loss of approximately RMB 6,506,000 for the year ended December 31, 2024, a significant reduction from the loss of RMB 42,773,000 in the previous year[4] - The gross profit for the year ended December 31, 2024, was RMB 20,834,000, compared to RMB 11,515,000 for the year ended December 31, 2023, indicating improved profitability[5] - The company reported a basic and diluted loss per share of RMB 1.28 for the year ended December 31, 2024, compared to RMB 8.44 for the previous year[5] - The group reported a pre-tax loss of RMB 6,164,000 in 2024, a substantial improvement from a loss of RMB 42,092,000 in 2023[14] - The group's loss for the year ending December 31, 2024, was approximately RMB 6,506,000, a substantial improvement compared to a loss of RMB 42,773,000 in 2023[52] Assets and Liabilities - The company's total assets less current liabilities amounted to RMB 47,735,000 as of December 31, 2024, down from RMB 54,241,000 as of December 31, 2023[6] - The total current assets increased to RMB 107,933,000 as of December 31, 2024, from RMB 82,632,000 as of December 31, 2023[6] - The total assets of the group increased to RMB 110,144,000 in 2024 from RMB 87,145,000 in 2023, indicating a growth of 26.4%[18] - The total liabilities rose to RMB 62,409,000 in 2024, compared to RMB 32,904,000 in 2023, which is an increase of 89.7%[18] - The total accounts receivable and notes receivable as of December 31, 2024, amounted to RMB 88,614,000, an increase of approximately 66.3% from RMB 53,286,000 in 2023[26] - The total accounts payable as of December 31, 2024, was RMB 25,962,000, an increase of approximately 67.1% from RMB 15,537,000 in 2023[27] Revenue Breakdown - For the fiscal year ending December 31, 2024, the total revenue from smart city solutions was RMB 19,747,000, an increase from RMB 12,226,000 in 2023, representing a growth of 61.5%[14] - The revenue from hardware and software sales reached RMB 165,296,000 in 2024, up from RMB 85,863,000 in 2023, marking a significant increase of 92.5%[14] - The total revenue for the group was RMB 185,043,000 in 2024, compared to RMB 98,089,000 in 2023, reflecting an overall growth of 88.6%[14] - The hardware and software sales segment generated revenue of approximately RMB 165,296,000, a significant increase of about 92.51% from RMB 85,863,000 in the previous year[31] - The smart city solutions segment recorded revenue of approximately RMB 19,747,000, reflecting a growth of about 61.52% from RMB 12,226,000 in 2023[31] Cost Management and Expenses - The company’s research and development expenses decreased to RMB 4,446,000 in 2024 from RMB 13,187,000 in 2023, reflecting a focus on cost management[5] - The group incurred a total employee cost of RMB 20,716,000 in 2024, down from RMB 28,340,000 in 2023, showing a reduction of 26.8%[23] - The net unallocated expenses for the year were approximately RMB 5,351,000, a decrease from RMB 11,294,000 in 2023[35] Dividends and Shareholder Returns - The company did not recommend the payment of a final dividend for the year ended December 31, 2024[4] - No dividends were declared or proposed for the fiscal year ending December 31, 2024, consistent with the previous year[24] - The company did not purchase, sell, or redeem any of its listed securities during the year ending December 31, 2024[64] Business Strategy and Development - The company is actively seeking new business opportunities in the e-commerce operations segment, which has currently ceased its traditional operations[31] - The company has actively expanded its system integration services business, achieving significant growth and focusing on high-margin end customer sales[38] - The company has identified eight key product directions for smart city solutions, leveraging AI and big data technologies to innovate and explore new applications[39] - The company has suspended its traditional e-commerce supply chain services and is seeking new revenue-generating opportunities, although results have been less than ideal[39] - The company aims to enhance urban management services by promoting digital information services, which include information dissemination, collection, traceability, and behavior management, to improve social governance and urban management solutions[60] - The company plans to continue developing operational services, particularly in smart union services, while enhancing value-added service capabilities for union organizations and members[60] - The company will actively adjust market strategies and sales structures in hardware and software sales, aiming to capture opportunities in the innovative industry and expand system integration services[60] Governance and Compliance - The company has adopted and complied with the GEM Listing Rules Corporate Governance Code, with a noted deviation regarding the separation of the roles of Chairman and CEO[65] - The Chairman and CEO, Mr. Wang Feng, believes that holding both positions enhances operational efficiency and strategy execution[66] - The board acknowledges the uncertainties and potential growing pains in the company's transformation process but believes in leveraging new technologies and markets for future growth[61] Financial Stability - The company has maintained stable financial conditions despite less than ideal financial performance for the year ending December 31, 2024[37] - The company has not made any investments in financial products since the second half of 2023, with no outstanding principal balance as of December 31, 2024[42] - The company continues to seek suitable investment or business cooperation opportunities but has not made substantial progress in this area during the reporting year[40] Employee Development - The company emphasizes employee development and provides various training opportunities to enhance skills and meet job requirements[46]

Financial Performance - For the six months ended June 30, 2024, the company achieved revenue of approximately RMB 78,986,000, representing an increase of about 114.28% compared to RMB 36,861,000 for the same period in 2023[2] - The company reported a loss of approximately RMB 7,920,000 for the six months ended June 30, 2024, an improvement from a loss of RMB 12,132,000 in the same period of 2023[3] - The gross profit for the six months ended June 30, 2024, was RMB 7,314,000, compared to RMB 3,527,000 in the same period of 2023, indicating a significant improvement in profitability[6] - The basic and diluted loss per share for the six months ended June 30, 2024, was RMB 1.56, an improvement from RMB 2.40 in the same period of 2023[6] - The company recorded a loss before tax of RMB 7,862,000 for the six months ended June 30, 2024, compared to a loss of RMB 12,254,000 for the same period in 2023, indicating an improvement in performance[15] - The net loss for the six months ended June 30, 2024, was approximately RMB 7,920,000, an improvement from a net loss of RMB 12,132,000 in 2023[49] - The loss per share for the six months ended June 30, 2024, was approximately RMB 1.56, compared to RMB 2.40 in 2023, indicating a reduction in losses[49] Revenue Breakdown - Revenue from hardware and software sales amounted to RMB 71,666,000, while revenue from smart city solutions was RMB 28,290,000 for the six months ended June 30, 2024[15] - The hardware and software sales segment generated revenue of approximately RMB 71,666,000, representing a significant increase of about 153.33% year-on-year[37] Dividend and Shareholder Information - The board of directors does not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with no dividend declared in 2023[4] - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[27] - Zhejiang Shenghua Holdings Group Co., Ltd. holds a significant stake of 61.38% in the company, with 193,316,930 domestic shares and 117,600,000 H shares[68] - The actual equity held by Mr. Chen Ping, the Vice Chairman, was 27,294,240 shares, accounting for 5.39% of the company's total equity[65] Assets and Liabilities - The company's total assets decreased to RMB 70,410,000 as of June 30, 2024, from RMB 82,632,000 as of December 31, 2023[8] - Total assets as of June 30, 2024, were RMB 74,519,000, down from RMB 87,145,000 as of December 31, 2023[16] - Current liabilities decreased to RMB 28,198,000 as of June 30, 2024, from RMB 32,904,000 as of December 31, 2023, indicating improved liquidity management[8] - Total liabilities as of June 30, 2024, were RMB 28,198,000, a decrease from RMB 32,904,000 as of December 31, 2023[16] Cash Flow and Financial Management - The net cash inflow from operating activities for the six months ended June 30, 2024, was RMB 440,000, a significant recovery from a net outflow of RMB 9,111,000 in the same period of 2023[13] - The company’s cash and cash equivalents increased to RMB 15,587,000 as of June 30, 2024, compared to RMB 23,523,000 as of June 30, 2023, showing a positive cash flow trend[13] - The group's bank balances and cash amounted to RMB 15,587,000, an increase from RMB 15,308,000 as of December 31, 2023, with a total asset ratio of 20.92% compared to 17.57%[50] - The group's liquidity ratio as of June 30, 2024, was approximately 2.50, slightly down from 2.51 as of December 31, 2023[52] Research and Development - Research and development expenses for the six months ended June 30, 2024, were RMB 3,421,000, down from RMB 4,305,000 in the same period of 2023, reflecting a focus on cost management[6] - The company is leveraging new technologies such as AIoT and big data to innovate and provide new smart city solutions, identifying eight suitable product directions for expansion[43] Corporate Governance - The roles of the Chairman and CEO are currently held by the same individual, Mr. Wang Feng, which the board believes enhances operational efficiency and strategy execution[78] - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced power structure[78] - The board will continue to review the effectiveness of the corporate governance structure to assess the need for separating the roles of Chairman and CEO[78] - The company has adopted and complied with all provisions of the GEM Listing Rules Appendix C1 "Corporate Governance Code" except for a deviation from code provision C.2.1[76] Business Operations and Strategy - The company actively expanded its system integration services business, achieving relatively good results while maintaining existing major customer relationships and exploring new terminal customers[42] - The company has suspended its e-commerce operation solutions business and is seeking other suitable opportunities[35] - The group aims to enhance its operational services, particularly in smart union services, to provide personalized value-added services to union organizations and members[58] - The group is actively seeking new business opportunities and product innovations while ensuring a cautious approach to manage risks amid increasing market pressures[56] - The group plans to continue its transformation and development by optimizing resources and strengthening business expansion, while also seeking acquisition opportunities for new projects[60] Audit and Compliance - The audit committee reviewed the interim financial statements for the six months ending June 30, 2024, although they were not audited by the company's auditors[73] - The company confirmed compliance with the trading code for directors during the six months ending June 30, 2024[75] - There were no financial assistance or receivables provided to entities as of June 30, 2024, that required disclosure under GEM listing rules[64] - The company has not reported any competitive interests held by directors or management that could pose a conflict with the group's business[72]

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of approximately RMB 78,986,000, an increase of about 114.28% compared to RMB 36,861,000 for the same period in 2023[2]. - The net loss for the six months ended June 30, 2024, was approximately RMB 7,920,000, a decrease from a net loss of RMB 12,132,000 for the same period in 2023[3]. - Gross profit for the six months ended June 30, 2024, was RMB 7,314,000, compared to RMB 3,527,000 for the same period in 2023[5]. - Revenue from hardware and software sales reached RMB 71,666,000 in the first half of 2024, up from RMB 28,290,000 in the same period of 2023, representing a growth of 153%[12]. - The total revenue for the group in the first half of 2024 was RMB 78,986,000, compared to RMB 36,861,000 in the first half of 2023, indicating a year-over-year increase of 114%[12]. - The group reported a pre-tax loss of RMB 7,862,000 for the first half of 2024, an improvement from a loss of RMB 12,254,000 in the same period of 2023[12]. - The basic and diluted loss per share for the six months ended June 30, 2024, was RMB 1.56, an improvement from RMB 2.40 for the same period in 2023[5]. - The gross margin for the hardware and software sales segment improved to approximately 7.88% from 4.51% in the previous year, driven by a shift towards higher-margin products[30]. - The gross profit margin for the six months ended June 30, 2024, was approximately 9.26%, slightly down from 9.57% in 2023[37]. - The net loss for the six months ended June 30, 2024, was approximately RMB 7,920,000, an improvement from a loss of RMB 12,132,000 in 2023[37]. Dividends and Shareholder Information - The board of directors does not recommend the payment of an interim dividend for the six months ended June 30, 2024[4]. - The group did not declare an interim dividend for the first half of 2024, consistent with the previous year[19]. - Major shareholder Zhejiang Shenghua Holdings Group Co., Ltd. holds 61.38% of the company's equity, comprising 193,316,930 domestic shares and 117,600,000 H shares[49]. - The company holds a 5.39% equity interest in the company, represented by 27,294,240 shares held by Mr. Chen Ping, the director and vice chairman[46]. Cash Flow and Assets - Cash and cash equivalents at the end of June 30, 2024, were RMB 15,587,000, compared to RMB 15,308,000 at the end of December 31, 2023[8]. - The company experienced a net cash inflow from operating activities of RMB 440,000 for the six months ended June 30, 2024, compared to a net outflow of RMB 9,111,000 for the same period in 2023[8]. - The total assets of the group as of June 30, 2024, were RMB 74,519,000, down from RMB 87,145,000 as of December 31, 2023[14]. - The accounts receivable, net of impairment losses, amounted to RMB 36,972,000 as of June 30, 2024, down from RMB 39,860,000 as of December 31, 2023[24]. - The company's inventory as of June 30, 2024, was approximately RMB 8,623,000, a decrease from RMB 17,105,000 as of December 31, 2023[38]. - The company's cash and bank balances as of June 30, 2024, were approximately RMB 15,587,000, compared to RMB 15,308,000 as of December 31, 2023[38]. - The total assets as of June 30, 2024, were approximately RMB 74,519,000, down from RMB 87,145,000 as of December 31, 2023[38]. Liabilities and Equity - The total equity as of June 30, 2024, was RMB 46,321,000, a decrease from RMB 54,241,000 as of December 31, 2023[6]. - The group’s liabilities decreased to RMB 28,198,000 as of June 30, 2024, compared to RMB 32,904,000 as of December 31, 2023[14]. - As of June 30, 2024, the group's current liabilities were approximately RMB 28,198,000, down from RMB 32,904,000 as of December 31, 2023[39]. - As of June 30, 2024, the total equity of the group was approximately RMB 46,321,000, compared to RMB 54,241,000 as of December 31, 2023[39]. - The group's debt-to-asset ratio was approximately 37.84% as of June 30, 2024, slightly up from 37.76% as of December 31, 2023[39]. - The current ratio was approximately 2.50 as of June 30, 2024, compared to 2.51 as of December 31, 2023[39]. Operational Changes and Future Plans - The company has suspended its e-commerce operation solutions segment and is actively seeking new business opportunities to support its smart city solutions[29]. - The company has identified eight potential product directions for smart city solutions, including smart parks and smart communities, leveraging new technologies like AIoT and big data[33]. - The company aims to enhance its hardware and software sales by focusing on system integration services and developing new customer relationships, leading to significant order growth[41]. - The group is actively pursuing new business opportunities in smart city solutions, with ongoing projects in multiple cities, although new customer order volumes have not yet met expectations[42]. - The company plans to innovate and develop new products and services, particularly in digital governance and smart city applications, to align with national digital initiatives[43]. - The group is committed to optimizing internal resources and enhancing collaboration across business units to drive growth and explore new market opportunities[44]. - The board recognizes the challenges of transformation and aims to leverage effective measures to establish a sustainable business ecosystem and enhance profitability in the mobile internet service sector[44]. Governance and Compliance - The company has established an audit committee in November 2001, consisting of two independent non-executive directors and one non-executive director, with the chairperson being Ms. Huang Hsuan-Chen[52]. - The company has adopted a code of conduct for directors' securities transactions, complying with GEM Listing Rules, confirming adherence by all directors for the six months ending June 30, 2024[54]. - The company has adopted and complied with all provisions of the Corporate Governance Code, except for a deviation regarding the separation of roles between the chairman and the CEO[55]. - Mr. Wang Feng serves as both the chairman and CEO, which the board believes enhances operational efficiency and strategy execution[56]. - No stock options were granted to directors or executives during the six months ending June 30, 2024[47]. - The company has no competitive interests held by directors or management shareholders that could compete with its business[51]. - The company has no financial assistance or receivables to disclose under GEM listing rules as of June 30, 2024[45].

Financial Performance - Revenue for the year 2023 was RMB 98,089 thousand, a decrease of 27.4% compared to RMB 135,024 thousand in 2022[23] - Gross profit for 2023 was RMB 11,515 thousand, down 27.1% from RMB 15,747 thousand in 2022[23] - The company reported a loss before tax of RMB 42,092 thousand, which is a significant increase of 119.5% from RMB 19,177 thousand in the previous year[23] - Total comprehensive loss attributable to owners for 2023 was RMB 42,773 thousand, compared to RMB 19,005 thousand in 2022, reflecting a 125.3% increase[26] - Basic and diluted loss per share for 2023 was RMB 8.44, compared to RMB 3.19 in 2022, indicating a 164.5% increase in loss per share[26] - The net loss attributable to owners from continuing operations was approximately RMB 42.77 million, compared to a net loss of RMB 19.01 million in 2022, indicating an increase in losses[51] - For the year ended December 31, 2023, the company recorded a net loss attributable to owners from continuing operations of approximately RMB 42,773,000, compared to a loss of RMB 16,168,000 in 2022, resulting in a loss per share of RMB 8.44, up from RMB 3.19 in the previous year[61] Assets and Liabilities - The group reported accounts receivable and notes receivable of approximately RMB 39,860,000 and contract assets of RMB 4,800,000 as of December 31, 2023, with impairment losses of RMB 13,426,000 for accounts receivable[8] - The company's total equity as of December 31, 2023, was RMB 54,241 thousand, down from RMB 97,014 thousand in 2022, reflecting a decrease of 44.5%[29] - Total assets less current liabilities decreased to RMB 54,241 thousand in 2023 from RMB 97,014 thousand in 2022, a decline of 44.5%[29] - As of December 31, 2023, total assets amounted to approximately RMB 87,145,000, down from RMB 124,318,000 in 2022[71] - The total liabilities of the group amounted to RMB 32,904,000, an increase from RMB 27,304,000 in 2022[127] Impairment and Receivables - The company adopted an expected credit loss model based on credit risk assessment for estimating the impairment losses on receivables[13] - The audit identified the impairment assessment of receivables as a key audit matter due to significant management estimates involved[13] - The impairment loss provision for receivables was approximately RMB 9,406,000 for the year ended December 31, 2023, compared to RMB 4,151,000 in 2022, indicating a significant increase in credit risk[61] Inventory and Cash Flow - Inventory increased to RMB 17,105 thousand in 2023 from RMB 7,295 thousand in 2022, representing a 134.0% rise[29] - Cash and cash equivalents decreased to RMB 15,308 thousand in 2023 from RMB 23,022 thousand in 2022, a drop of 33.6%[29] - The current ratio (current assets to current liabilities) as of December 31, 2023, was approximately 2.51, compared to 4.09 in 2022[71] Business Strategy and Development - The company aims to strengthen its traditional business market while optimizing internal resources and seeking external collaborations to ensure stable and healthy business development[44] - The company is actively expanding its smart city solutions business, leveraging opportunities in domestic smart city construction and mobile internet industry development[44] - The company plans to enhance its internal management and risk control measures, focusing on reducing costs and improving efficiency[45] - The company is exploring market opportunities in provinces outside its current operations, including Shanxi, Hebei, Shandong, and Jiangxi, through strategic partnerships[44] - The company aims to enhance revenue and profitability while ensuring long-term total returns for stakeholders[1] Corporate Governance - The board of directors has approved a new dividend policy, with a proposed payout ratio of 30% of net income starting in Q1 2024[109] - The board has adopted a diversity policy for its members, focusing on various factors including gender, age, and professional experience[115] - The company has established a robust risk management and internal control system to identify and manage significant risks[123] - The board conducted a comprehensive review of the effectiveness of the risk management and internal control systems during the reporting year[123] Environmental and Social Responsibility - The company emphasizes environmental protection by encouraging resource conservation and has complied with all relevant laws and regulations during the year[7] - The total electricity consumption for the year 2023 was 102 MWh, a decrease from 227 MWh in 2022, representing a reduction of approximately 55%[194] - The total paper consumption for 2023 was 57,000 sheets, down from 101,000 sheets in 2022, indicating a reduction of about 43.5%[194] - The greenhouse gas emissions for 2023 were recorded at 80.79 tons of CO2 equivalent, compared to 179.8 tons in 2022, reflecting a decrease of approximately 55.2%[193] Employee and Talent Management - The total employee cost for the year was approximately RMB 28,340,000, down from RMB 30,371,000 in 2022, with a total employee count of 119 as of December 31, 2023, compared to 143 in 2022[5] - The company has established various recruitment channels and incentive mechanisms to attract and develop talent, linking performance assessments to compensation management[5] - The overall employee gender diversity increased to 22.69% as of December 31, 2023, compared to 20.28% in the previous year[125]

Financial Performance - For the year ended December 31, 2023, the revenue from continuing operations was approximately RMB 98,089,000, a decrease of about 27.35% compared to RMB 135,024,000 in 2022[5] - The net loss attributable to owners from continuing operations for the year was approximately RMB 42,773,000, compared to a net loss of RMB 19,005,000 in 2022[5] - The total comprehensive loss for the year, including both continuing and discontinued operations, was approximately RMB 42,773,000, compared to RMB 16,168,000 in 2022[5] - The company did not declare a final dividend for the year ended December 31, 2023[5] - The basic and diluted loss per share from continuing operations was RMB 8.44, compared to RMB 3.75 in 2022[8] - For the year ended December 31, 2023, the company reported a significant loss of approximately RMB 42,773,000[15] - The group recorded a net loss attributable to owners from continuing operations of approximately RMB 42,773,000, compared to RMB 19,005,000 in 2022, resulting in a loss per share of RMB 8.44, up from RMB 3.75 in 2022[51] Revenue Breakdown - Revenue from smart city solutions was RMB 12,226,000, a decrease of 43% from RMB 21,445,000 in 2022[22] - Revenue from hardware and software sales was RMB 85,863,000, down 24% from RMB 113,147,000 in 2022[22] - The smart city solutions business generated revenue of approximately RMB 12,226,000, a decrease of 42.99% from RMB 21,445,000 in 2022[44] - The hardware and software sales generated revenue of approximately RMB 85,863,000, down 24.11% from RMB 113,147,000 in the previous year[44] Assets and Liabilities - The total assets less current liabilities amounted to RMB 54,241,000, down from RMB 97,014,000 in 2022[10] - The total assets of the company as of December 31, 2023, amounted to RMB 87,145,000, a decrease from RMB 124,318,000 in 2022[24] - The total liabilities increased to RMB 32,904,000 from RMB 27,304,000 in 2022[24] - The group's total liabilities as of December 31, 2023, were RMB 32,904,000, compared to RMB 27,304,000 in 2022, resulting in a debt-to-asset ratio of 37.76%[79] Impairment and Provisions - The company recognized impairment losses on accounts receivable amounting to RMB 11,461,000 in 2023, compared to RMB 1,285,000 in 2022, representing a substantial increase in impairment[4] - The group recognized an impairment loss provision for receivables of approximately RMB 9,406,000, significantly increased from RMB 4,151,000 in 2022, due to a substantial rise in credit risk since initial recognition[50] Research and Development - Research and development expenses for the year were RMB 13,187,000, an increase from RMB 9,833,000 in 2022[6] Inventory and Employee Costs - The company reported a significant increase in inventory, which rose to RMB 17,105,000 from RMB 7,295,000 in 2022[10] - Total employee costs, including salaries and benefits, decreased to RMB 28,340,000 in 2023 from RMB 30,371,000 in 2022, reflecting a reduction of approximately 6.7%[28] Corporate Governance - The company has adopted and complied with all code provisions of the GEM Listing Rules Appendix C1, except for a deviation regarding the separation of roles between the Chairman and CEO[88] - The board believes that having the same person serve as both Chairman and CEO helps execute the company's business strategy and improve operational efficiency[90] - The board will continue to review the effectiveness of the corporate governance structure to assess the need for separating the roles of Chairman and CEO[90] Future Outlook and Strategy - The company expects to continue as a going concern for at least the next twelve months due to financial support from its major shareholder[15] - The group is actively seeking new business opportunities to support the operation of smart city solutions[44] - The group aims to diversify its business into mobile internet applications and services to reduce reliance on a single business segment[63] - The company aims to create a business ecosystem in the mobile internet service sector, covering technology to services, products to platforms, and B-end to C-end[83] - The company will actively and steadily advance its work according to the newly revised "14th Five-Year" development strategy, integrating and optimizing resources, and enhancing business development[83]

Financial Performance - For the nine months ended September 30, 2023, the revenue from continuing operations was approximately RMB 67,614,000, a decrease of about 28.25% compared to RMB 94,235,000 for the same period in 2022[3]. - The net loss attributable to owners from continuing operations for the nine months ended September 30, 2023, was approximately RMB 16,872,000, compared to a net loss of RMB 12,056,000 for the same period in 2022[6]. - For the three months ended September 30, 2023, the revenue from continuing operations was approximately RMB 30,753,000, an increase of about 7.26% compared to RMB 28,671,000 for the same period in 2022[6]. - The total net loss attributable to owners for the nine months ended September 30, 2023, was approximately RMB 16,872,000, compared to RMB 20,380,000 for the same period in 2022[7]. - The gross profit for the nine months ended September 30, 2023, was approximately RMB 6,803,000, compared to RMB 8,514,000 for the same period in 2022[9]. - The basic and diluted loss per share from continuing operations for the nine months ended September 30, 2023, was RMB 3.33 cents, compared to RMB 2.38 cents for the same period in 2022[11]. - The total sales cost for the nine months ended September 30, 2023, was approximately RMB 60,811,000, compared to RMB 85,721,000 for the same period in 2022[9]. - The company reported a net loss attributable to owners of RMB 16,872,000 for the nine months ended September 30, 2023, compared to a loss of RMB 20,380,000 for the same period in 2022, representing a 17.3% improvement[23]. - The basic and diluted loss per share for the nine months ended September 30, 2023, was RMB 0.0333, compared to RMB 0.0402 for the same period in 2022[25]. - The company reported a net loss of approximately RMB 12,132,000 for the nine months ended September 30, 2023, compared to a net loss of RMB 15,362,000 for the same period in 2022[28]. Revenue Breakdown - Revenue from hardware and software sales for the nine months ended September 30, 2023, was RMB 56,019,000, a decrease of 30.8% compared to RMB 80,799,000 for the same period in 2022[14]. - Revenue from smart city solutions for the three months ended September 30, 2023, was RMB 3,024,000, down 30.4% from RMB 4,350,000 in the same quarter of 2022[14]. - The revenue from the smart city solutions business for the nine months ended September 30, 2023, was approximately RMB 11,595,000, a decrease of about 10.84% from RMB 13,004,000 in 2022[36]. - The revenue from e-commerce operation solutions was approximately RMB 432,000 for the nine months ended September 30, 2023, down from previous operations[36]. Operational Changes - The company completed the sale of its 41% stake in Zhejiang Dianshi Technology Co., Ltd. on October 10, 2022, leading to the termination of its mother and baby community marketing services[21]. - The company has suspended its traditional e-commerce operations and is currently seeking other suitable business opportunities[36]. - The company has suspended its traditional e-commerce operations and is seeking new revenue opportunities in the e-commerce operation solutions segment[51]. - The company has decided to terminate the smart security campus service project to focus resources on existing market segments[59]. - The company is actively seeking new business opportunities to increase revenue following the completion of the e-commerce operation solution service sale in Q4 2022[59]. Financial Position - The company had cash and cash equivalents totaling approximately RMB 21,126,000 as of September 30, 2023, down from RMB 31,075,000 as of June 30, 2023, reflecting a decrease of 32.1%[48]. - The company’s bank balances and cash represented approximately 19.08% of total assets as of September 30, 2023, down from 27.90% as of June 30, 2023[48]. - As of September 30, 2023, the company has a receivable loan amounting to RMB 6,849,000, which constitutes approximately 6.19% of the total assets[67]. - The company has a debt of RMB 11,000,000 owed by Zhejiang Dianshi, with a 5% annual interest rate, due by December 31, 2025[66]. Strategic Initiatives - The company plans to leverage new technologies such as AIoT and big data to innovate and provide new smart city solutions and other niche services[51]. - The company aims to expand its market presence in provinces such as Shanxi, Hebei, Shandong, and Jiangxi, focusing on strategic partnerships to secure service contracts[51]. - The company is committed to optimizing resource integration and innovation development of new businesses and products to build a sustainable business ecosystem[61]. - The company aims to actively and steadily advance its work according to the newly revised "14th Five-Year" development strategy, focusing on resource optimization and business expansion[64]. - The company plans to seek new business acquisitions and investments to achieve effective breakthroughs in business development through capital expansion[64]. Shareholder Information - Major shareholder Zhejiang Shenghua Holdings Group holds 61.38% of the company's shares, comprising 193,316,930 domestic shares and 117,600,000 H shares[72]. - The company reported a total of 21,000,000 shares held by Mr. Wu Menggen, representing 6.67% of the equity[78]. - Ms. Dai Jihong, spouse of Mr. Wu, also holds 21,000,000 shares, equivalent to 6.67% of the equity[78]. - Mr. Fang Ke holds 13,135,000 shares, accounting for 2.59% of the equity[78]. Governance and Compliance - The audit committee, consisting of two independent non-executive directors and one non-executive director, reviewed the third-quarter results[82]. - The company’s audit committee was established in November 2001 in accordance with GEM listing rules[82]. - There are no business interests that compete or may compete with the group's business held by directors or management shareholders[80]. - The financial results for the nine months ending September 30, 2022, have been restated to align with the current reporting format[81].

浙江升華蘭德科技股份有限公司 SHENGHUA LANDE SCITECH LIMITED* （在中華人民共和國註冊成立的股份有限公司） （股份代號：8106） 第三季度業績公告 截至二零二三年九月三十日止九個月 香港聯合交易所有限公司（「聯交所」）GEM（「GEM」）的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司比起其他在聯交所上市的公司帶有較 高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作 出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣之證券承受較 大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本公告之內容概不負責，對其準確性或完整性亦不發表任何 聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失 承擔任何責任。 本公告的資料乃遵照GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關浙江升華蘭德科 技股份有限公司（「本公司」）的資料。本公司董事（「董事」）願就本公告的資料共同及個別承擔全部責 任。董事在 ...

Financial Performance - For the six months ended June 30, 2023, the revenue from continuing operations was approximately RMB 36,861,000, a decrease of about 43.78% compared to RMB 65,564,000 for the same period in 2022[3]. - The net loss attributable to owners from continuing operations for the six months ended June 30, 2023, was approximately RMB 12,132,000, compared to a net loss of RMB 9,393,000 for the same period in 2022[3]. - The total net loss attributable to owners from both continuing and discontinued operations for the six months ended June 30, 2023, was approximately RMB 12,132,000, down from RMB 15,362,000 in the same period of 2022[3]. - The gross profit for the six months ended June 30, 2023, was RMB 3,527,000, compared to RMB 5,648,000 for the same period in 2022[9]. - The basic and diluted loss per share from continuing operations for the six months ended June 30, 2023, was RMB 2.40, compared to RMB 1.85 for the same period in 2022[10]. - The total comprehensive loss for the six months ended June 30, 2023, was RMB 12,132,000, compared to RMB 28,797,000 for the same period in 2022[10]. - The company experienced a significant decline in revenue and increased losses, indicating challenges in its operational performance during the reporting period[3]. - The company recorded a total loss of RMB (9,663) thousand for the first half of 2023, compared to a loss of RMB (11,538) thousand in the same period of 2022, reflecting a reduction in losses of approximately 16.2%[15]. - The net loss attributable to shareholders for the three months ended June 30, 2023, was approximately RMB 2,469,000, compared to a loss of RMB 708,000 in the same period of 2022[62]. Revenue and Sales - Total revenue from hardware and software sales was RMB 28,290 thousand for the six months ended June 30, 2023, down from RMB 56,478 thousand in 2022, a decrease of about 50%[25]. - Revenue from hardware and software sales for the six months ended June 30, 2023, was approximately RMB 28,290,000, a decrease of about 49.91% compared to RMB 56,478,000 in the same period of 2022[54]. - Revenue for the three months ended June 30, 2023, from hardware and software sales was approximately RMB 15,656,000, down 51.89% from RMB 32,543,000 in 2022[54]. - The gross profit margin for the hardware and software sales business was approximately 4.51% for the six months ended June 30, 2023, down from 7.26% in 2022, indicating increased market competition[58]. - The gross profit margin for the smart city solutions business improved to approximately 26.26% for the six months ended June 30, 2023, compared to 17.90% in 2022[58]. Assets and Liabilities - As of June 30, 2023, non-current assets increased to RMB 13,065 thousand from RMB 12,696 thousand in December 31, 2022, representing a growth of approximately 2.9%[11]. - Current assets decreased to RMB 98,320 thousand from RMB 111,622 thousand, a decline of about 11.9%[11]. - The company’s total liabilities decreased to RMB 26,503 thousand from RMB 27,304 thousand, a reduction of approximately 2.9%[13]. - The net assets attributable to the owners of the company decreased to RMB 84,882 thousand from RMB 97,014 thousand, a decline of about 12.5%[13]. - The company’s total assets decreased from RMB 124,318,000 in December 2022 to RMB 111,385,000 as of June 30, 2023[28]. - The group maintained a current ratio of approximately 3.71 as of June 30, 2023, down from 4.09 as of December 31, 2022[87]. Cash Flow and Investments - The company reported a net cash outflow from operating activities of RMB (9,111) thousand for the six months ended June 30, 2023, compared to RMB (33,750) thousand for the same period in 2022, indicating an improvement of approximately 73%[17]. - Cash and cash equivalents increased to RMB 23,523 thousand as of June 30, 2023, from RMB 23,022 thousand at the beginning of the period, a rise of about 2.2%[17]. - The company’s investment activities generated a net cash inflow of RMB 9,842 thousand for the first half of 2023, compared to RMB 1,462 thousand in the same period of 2022, an increase of approximately 573%[17]. - The group’s cash and cash equivalents, along with financial assets at fair value through profit or loss, totaled approximately RMB 31,075,000 as of June 30, 2023, a decrease of 24.2% from RMB 41,057,000 as of December 31, 2022[85]. Corporate Governance - The board of directors has adopted a code of conduct for securities trading, compliant with GEM listing rules, confirming adherence by all directors during the reporting period[110]. - The company has established an audit committee consisting of two independent non-executive directors and one non-executive director to oversee financial reporting[108]. - The company has complied with all provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[112]. - The company will continue to review its corporate governance structure to assess the need for separating the roles of Chairman and CEO[112]. - The company is committed to maintaining a balanced power structure within the board to protect the interests of shareholders[112]. Employee and Operational Strategies - The group’s employee costs for the reporting period amounted to approximately RMB 16,934,000, a decrease from RMB 20,153,000 in the previous year, primarily due to a reduction in employee numbers and bonuses[78]. - The group had 134 employees as of June 30, 2023, down from 143 at the end of 2022[78]. - The group emphasizes employee development and provides various training opportunities to enhance skills and align with job requirements[79]. - The group continues to seek suitable investment and business cooperation opportunities but has not made substantial progress in this area during the reporting period[71]. - The group is actively pursuing the transformation of other business segments, including adjusting sales strategies for hardware and software sales, and expanding system integration services[92]. Business Transformation and Future Outlook - The group continues to push for business transformation, focusing on new business opportunities and product innovation to build a sustainable business ecosystem[90]. - The group aims to enhance digital solutions for smart cities, leveraging existing technology advantages and customer resources to provide services like "Digital Citizen and Citizen Card Service Platform" and "Digital RMB"[90]. - The group is seeking acquisition opportunities to achieve effective business development through capital expansion[94]. - The board acknowledges the uncertainties in the transformation process but believes that effective measures can lead to breakthroughs and sustainable profitability in the mobile internet service sector[94]. - The company is currently seeking other suitable business opportunities following the termination of its e-commerce supply chain services[51].