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） 中期業績公告 截至二零二三年六月三十日止六個月 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在聯交所主板買賣之證券承受較 大市場波動風險，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」）願就本公告所戴資料共同及個別承擔全部 責任。董事在作出一 ...

Financial Performance - For the first quarter ended March 31, 2023, the company reported revenue from continuing operations of approximately RMB 15,630,000, a decrease of about 43.39% compared to RMB 27,610,000 in the same period of 2022[4]. - The net loss attributable to the owners from continuing operations for the first quarter was approximately RMB 9,663,000, compared to a net loss of RMB 8,685,000 in the same period of 2022[4]. - The total net loss attributable to the owners from both continuing and discontinued operations for the first quarter was approximately RMB 9,663,000, down from RMB 11,538,000 in the same period of 2022[4]. - The gross profit for the first quarter was RMB 1,049,000, compared to RMB 1,798,000 in the same period of 2022, reflecting a decline in profitability[8]. - The company’s basic and diluted loss per share from continuing operations was RMB 1.91, compared to RMB 1.71 in the same period of 2022[10]. - The cumulative losses increased to RMB 78,407,000 as of March 31, 2023, from RMB 64,114,000 as of March 31, 2022[26]. - The company reported a net loss attributable to shareholders of approximately RMB 9,663,000 for the three months ended March 31, 2023, compared to a loss of RMB 11,538,000 for the same period in 2022, representing a decrease of about 16.2%[21]. Revenue Breakdown - The sales revenue from hardware and software sales was RMB 12,634,000, down from RMB 23,935,000 in the same period of 2022[13]. - The revenue from providing smart city solutions was RMB 2,996,000, compared to RMB 3,243,000 in the same period of 2022[13]. - Revenue from hardware and software sales for the three months ended March 31, 2023, was approximately RMB 12,634,000, a decrease of about 47.22% compared to RMB 23,935,000 in the same period last year[34]. - Total revenue from continuing operations for the three months ended March 31, 2023, was approximately RMB 15,630,000, down approximately 43.39% from RMB 27,610,000 in the same period last year[35]. Operational Changes - The company has ceased operations in the maternal and infant community marketing services and its self-developed e-commerce platform, with no revenue recorded from discontinued operations for the current period[19]. - The company is currently seeking other suitable business opportunities following the termination of its previous e-commerce operations[29]. - The company has paused its traditional e-commerce supply chain services and is seeking new business opportunities in the e-commerce operation solution services sector[46]. Taxation and Financial Management - The company did not record any taxable profits during the reporting period, resulting in no corporate income tax provision, consistent with the previous year[18]. - The corporate income tax rate for the reporting period was 25%, consistent with the previous year, while one subsidiary qualified for a reduced rate of 15% as a high-tech enterprise[18]. - The company recognized a tax credit of approximately RMB 158,000 for the current period, attributed to deferred tax items, compared to no tax credits in the same period last year[18]. Cash and Investments - The total cash and cash equivalents, along with financial assets at fair value through profit or loss, amounted to approximately RMB 39,105,000 as of March 31, 2023, down from RMB 41,057,000 as of December 31, 2022[43]. - As of March 31, 2023, the total principal amount of investments in wealth management products was approximately RMB 18,060,000, accounting for about 16.03% of total assets[53]. - The group achieved a return of approximately RMB 90,000 from wealth management products during the three months ended March 31, 2023, compared to RMB 132,000 in the previous year[53]. Strategic Initiatives - The company aims to enhance its product development by focusing on new technologies such as AIoT and big data to provide innovative smart city solutions[46]. - The group aims to enhance its digital city solution offerings, including "Digital Citizen and Citizen Card Service Platform" and "One Code for the City," while responding to national policies in various provinces[56]. - The group is actively promoting smart safety campus services in Anhui Province to increase the proportion of system integration service contract revenue[54]. - The group continues to seek suitable investment opportunities and business collaborations, but there has been no substantial progress to date[48]. Shareholder Information - Major shareholder Zhejiang Shenghua Holdings Group owns 168,846,930 shares, representing 51.72% of the company's equity[67]. - The company reported a total of 20,320,000 shares held by Ms. He Yan, representing 8.02% of equity[71]. - Mr. Wu Menggen holds 21,000,000 shares, accounting for 6.67% of equity, along with 12,800,000 H shares[71]. - Ms. Dai Jihong also holds 21,000,000 shares, which is 6.67% of equity, plus 12,800,000 H shares[71]. - Mr. Fang Ke possesses 15,265,000 H shares, representing 3.01% of equity[71]. Governance and Compliance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting[77]. - The first quarter results for 2023 have not been audited or reviewed by the company's auditors but have been reviewed by the audit committee[77]. - The company has reclassified certain items related to discontinued operations to align with the current reporting format[75]. - The company has no business interests that compete or may compete with its operations[73].

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） 第一季度業績公告 截至二零二三年三月三十一日止三個月 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在聯交所主板買賣之證券承受較 大市場波動風險，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」）願就本公告所載資料共同及個別承擔全部 責任。董事在 ...

Financial Performance - The company recorded revenue from continuing operations of approximately RMB 135,024,000 for the year ended December 31, 2022, a decrease of 34.5% compared to RMB 206,049,000 in 2021[10]. - The net loss attributable to owners from continuing operations was approximately RMB 19,005,000, compared to a profit of RMB 7,548,000 in 2021, indicating a significant downturn[10]. - The overall gross margin for the year was approximately 11.66%, down from 19.67% in 2021, primarily due to a significant decrease in revenue from high-margin smart city solutions[26]. - The gross margin for hardware and software sales was approximately 7.30%, slightly down from 7.76% in the previous year[25]. - The gross margin for smart city solutions was approximately 34.94%, down from 56.46% in 2021, reflecting project-based revenue fluctuations[25]. - The group's net loss attributable to owners from continuing operations was approximately RMB 19,005,000, compared to a profit of RMB 7,548,000 in the previous year, resulting in a loss per share of RMB 3.75[30]. - The total net loss attributable to owners from both continuing and discontinued operations was approximately RMB 16,168,000, compared to a profit of RMB 655,000 in the previous year, with a loss per share of RMB 3.19[32]. - The hardware and software sales segment recorded a profit of approximately RMB 1,712,000, a significant decrease from RMB 5,906,000 in the previous year[28]. - The smart city solutions segment reported a loss of approximately RMB 10,886,000, compared to a profit of RMB 9,653,000 in the previous year, primarily due to the impact of the COVID-19 pandemic[28]. - The e-commerce operation solutions segment incurred a loss of approximately RMB 536,000, down from a profit of RMB 191,000 in the previous year, as traditional e-commerce supply chain services were suspended[28]. Business Strategy and Development - The company plans to enhance its traditional business market while integrating internal resources and seeking external support to ensure stable business development[13]. - The company is revising its "14th Five-Year" development strategy to align with its growth needs and is actively seeking new acquisition opportunities for capital expansion[14]. - The overall business strategy focuses on optimizing sales structures and developing high-margin new customers to stabilize the business foundation[13]. - The company aims to maintain good customer relationships while expanding into markets outside of Zhejiang Province, including Shanxi, Hebei, Shandong, and Jiangxi[13]. - The company is actively seeking new business opportunities in the e-commerce operation solutions sector to generate revenue[23]. - The company has terminated its maternal and infant community marketing service business due to the dual impact of the pandemic and the integration of domestic cross-border e-commerce platforms, and is seeking other development directions[37]. - The company is actively transforming other business segments, including hardware and software sales, and expanding system integration services[67]. - The company aims to establish a unique business ecosystem that covers technology, services, products, and platforms, enhancing its profitability in the mobile internet service sector[68]. Impact of COVID-19 - The ongoing COVID-19 pandemic has negatively impacted various business segments, including project development and acceptance in the smart city solutions sector[12]. - The impact of the COVID-19 pandemic has led to significant challenges in project market development and implementation, contributing to revenue declines[23]. - The group faced significant negative impacts on its business segments due to the ongoing COVID-19 pandemic, affecting project development and market expansion[34]. Environmental, Social, and Governance (ESG) - The group reported a total greenhouse gas emissions of 179.8 tons of CO2 equivalent for the year ending December 31, 2022, compared to 122.78 tons in 2021, representing an increase of approximately 46.4%[156]. - The energy indirect greenhouse gas emissions (Scope 2) increased from 122.78 tons to 179.8 tons, indicating a rise in electricity consumption due to larger office space and abnormal high temperatures[154]. - The group did not generate any significant hazardous or non-hazardous waste during the reporting period, consistent with the previous year[157][158]. - The board is committed to continuously reviewing and monitoring the group's progress in environmental, social, and governance matters to enhance sustainability[151]. - The company has implemented multiple measures to minimize electricity consumption, aiming to reduce Scope 2 greenhouse gas emissions impact[159]. - The company has not reported any significant violations of environmental laws and regulations related to emissions or waste disposal in China[170]. Corporate Governance - The board of directors recognizes the importance of high standards of corporate governance to meet the needs of the business and enhance shareholder value[96]. - The company has complied with all provisions of the corporate governance code, except for a deviation from code provision C.2.1 regarding the roles of the chairman and CEO[94]. - The board consists of 6 male directors and 1 female director, with a female representation of approximately 14.29%[122]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience[102]. - The board has established a risk management and internal control system to identify, assess, and manage significant risks, ensuring compliance with relevant laws and regulations[116]. - The audit committee consists of three independent non-executive directors, with Mr. Shen Haiying as the chairman, responsible for reviewing the annual report and audited consolidated financial statements[109]. Employee Development and Training - The group emphasizes employee development and provides various training opportunities to enhance skills and meet job requirements[54]. - Average training hours per employee increased in 2022: male employees received 12.56 hours (up from 11.07), and female employees received 11.54 hours (up from 7.34)[183]. - The company provided training to all employees to enhance their knowledge and skills, with a percentage of trained employees reported[182]. Shareholder Communication and Dividends - The company has established a dividend policy to maintain sufficient cash reserves to meet operational needs and future business growth[131]. - The board will periodically review the dividend policy and does not guarantee any specific amount of dividends in the future[136]. - The company has a shareholder communication policy to ensure timely access to information for shareholders and potential investors[129].

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） 週年業績公告 截至二零二二年十二月三十一日止年度 香港聯合交易所有限公司（「聯交所」）GEM（「GEM」）之特色 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在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」）願就本公告所載資料共同及個別承擔全部 責任。董事在作 ...

Financial Performance - For the nine months ended September 30, 2022, the company achieved revenue of approximately RMB 145,128,000, an increase of about 12.32% compared to RMB 129,204,000 for the same period in 2021[5]. - The net loss attributable to the owners of the company for the nine months ended September 30, 2022, was approximately RMB 20,380,000, compared to a net loss of RMB 13,485,000 for the same period in 2021[5]. - For the three months ended September 30, 2022, the company reported revenue of approximately RMB 46,111,000, an increase of about 3.24% from RMB 44,664,000 in the same quarter of 2021[7]. - The gross profit for the nine months ended September 30, 2022, was RMB 11,354,000, down from RMB 13,730,000 in the same period of 2021[9]. - The basic and diluted loss per share for the nine months ended September 30, 2022, was RMB 4.02 cents, compared to RMB 2.66 cents for the same period in 2021[9]. - The company reported a pre-tax loss of RMB 38,709,000 for the nine months ended September 30, 2022, compared to RMB 19,606,000 for the same period in 2021[9]. - The company's total revenue for the nine months ended September 30, 2022, was approximately RMB 145,128,000, an increase of about 12.32% compared to RMB 129,204,000 in the same period of 2021[27]. - The company recorded a net loss attributable to shareholders of approximately RMB 20,380,000 for the nine months ended September 30, 2022, compared to RMB 13,485,000 in 2021, resulting in a loss per share of RMB 4.02[32]. Revenue Breakdown - Revenue from hardware and software sales decreased by approximately 9.02% to RMB 80,799,000 for the nine months ended September 30, 2022, compared to RMB 88,812,000 in 2021[25]. - Revenue from smart city solutions decreased by approximately 30.55% to RMB 13,004,000 for the nine months ended September 30, 2022, compared to RMB 18,725,000 in 2021[25]. - Revenue from e-commerce operation solutions increased significantly by approximately 136.88% to RMB 51,325,000 for the nine months ended September 30, 2022, compared to RMB 21,667,000 in 2021[25]. Profit Margins - The gross margin for hardware and software sales was approximately 7.02% for the nine months ended September 30, 2022, down from 8.46% in 2021[28]. - The gross margin for smart city solutions was approximately 21.86% for the nine months ended September 30, 2022, down from 25.86% in 2021[28]. - The gross profit margin for the e-commerce operation solutions business was approximately 5.53% for the nine months ended September 30, 2022, down from 6.34% in 2021[29]. - The gross profit margin for the hardware and software sales business decreased to approximately RMB 1,196,000 for the nine months ended September 30, 2022, compared to RMB 3,684,000 in 2021[30]. - The group's gross profit margin decreased to approximately 7.82% for the nine months ended September 30, 2022, down from 10.63% in 2021[29]. Expenses and Costs - Research and development expenses for the nine months ended September 30, 2022, were RMB 7,867,000, compared to RMB 6,268,000 for the same period in 2021[9]. - The financing costs for the nine months ended September 30, 2022, were RMB 470,000, compared to RMB 266,000 for the same period in 2021[9]. Dividends and Grants - The company did not recommend the payment of an interim dividend for the nine months ended September 30, 2022[5]. - The company received government grants of RMB 2,162,000 for the nine months ended September 30, 2022, compared to RMB 1,605,000 for the same period in 2021[13]. - The company did not declare an interim dividend for the nine months ended September 30, 2022, compared to none in 2021[21]. Business Adjustments and Strategies - The company has terminated its e-commerce operation solutions business after the reporting period due to adjustments in major client operations[27]. - The company has terminated the traditional e-commerce supply chain service business and is focusing on new business segments, including smart city solutions and e-commerce operation solutions[31]. - The company is actively expanding its operational services to enhance stable profitability and is leveraging new technologies such as AIoT and big data for innovative smart city solutions[37]. - The company is focusing on maintaining good customer relationships and exploring new project development orders in the smart city solutions sector[37]. - The group is adjusting its sales strategies and structures in hardware and software sales, focusing on system integration services and expanding into markets in Anhui, Jiangsu, and Fujian provinces[56]. - The group aims to enhance its operational services by seeking new breakthroughs, particularly in smart unions and personalized value-added services for union organizations and members[53]. Investments and Financial Assets - The company held investments in wealth management products with an expected annualized return of approximately 2.15% to 3.93% from Bank of China products[46]. - The total unpaid principal amount of investments in wealth management products was approximately RMB 19,110,000, accounting for about 13.43% of total assets as of September 30, 2022[49]. - The company achieved income from wealth management products of approximately RMB 346,000 for the nine months ended September 30, 2022[49]. - The company is actively seeking suitable investment opportunities and business cooperation to expand existing operations and explore new potential opportunities[41]. Shareholding Structure - As of September 30, 2022, Director Chen Ping holds 27,294,240 shares, representing 5.39% of the company's equity[60]. - Zhejiang Shenghua Holdings Group holds 168,846,930 shares, representing 51.72% of the company's equity[63]. - Shengyang Limited owns 93,130,000 H shares, accounting for 18.39% of the company's equity[63]. - Deqing Huisheng Investment Limited also holds 168,846,930 shares, equivalent to 51.72% of the company's equity[65]. - The total number of shares held by major shareholders includes 93,130,000 H shares and 168,846,930 domestic shares[66]. - The ownership structure indicates significant control by a few major shareholders, with over 51% held by Zhejiang Shenghua and its affiliates[70]. Audit and Competitors - The audit committee, consisting of three independent non-executive directors, reviewed the third-quarter results[69]. - The company has no known competitors in its business sector as per the disclosures[68]. - The company’s financial results for the third quarter have not been audited or reviewed by external auditors[69]. - The company has not disclosed any new product developments or market expansions in the recent reports[64].

Financial Performance - The company's unaudited revenue for the six months ended June 30, 2022, was approximately RMB 99,017,000, an increase of about RMB 14,477,000 or 17.12% compared to RMB 84,540,000 for the same period in 2021[5]. - The net loss attributable to the owners of the company for the six months ended June 30, 2022, was approximately RMB 15,362,000, compared to RMB 9,844,000 for the same period in 2021[5]. - The gross profit for the six months ended June 30, 2022, was RMB 7,271,000, down from RMB 7,960,000 in the same period of 2021[8]. - Total revenue for the six months ended June 30, 2022, was RMB 99,017,000, representing a 17.1% increase from RMB 84,540,000 in the same period of 2021[21]. - The basic and diluted loss per share for the six months ended June 30, 2022, was RMB 3.03, compared to RMB 1.94 for the same period in 2021[8]. - For the six months ended June 30, 2022, the company reported a net loss of RMB 11,538,000, increasing the cumulative loss to RMB 67,938,000[12]. - The overall gross margin for the group decreased to approximately 7.34% for the six months ended June 30, 2022, down from 9.42% year-over-year[48]. - The company's basic loss per share for the six months ended June 30, 2022, was RMB 15,362,000, compared to RMB 9,844,000 for the same period in 2021, indicating a 55.5% increase in losses[33]. Assets and Liabilities - The total assets less current liabilities as of June 30, 2022, were RMB 81,612,000, down from RMB 110,187,000 as of December 31, 2021[11]. - The company's cash and cash equivalents as of June 30, 2022, were RMB 28,911,000, a decrease from RMB 41,812,000 as of December 31, 2021[9]. - The company's total liabilities as of June 30, 2022, were RMB 76,679,000, down from RMB 105,476,000 as of December 31, 2021[11]. - The total assets as of June 30, 2022, amounted to RMB 151,964,000, a decrease from RMB 175,470,000 as of December 31, 2021[24]. - The total liabilities as of June 30, 2022, were RMB 75,285,000, compared to RMB 69,994,000 at the end of the previous year[24]. - The group's asset-liability ratio as of June 30, 2022, was approximately 49.54%, up from 39.89% as of December 31, 2021[77]. - The group had cash and cash equivalents totaling approximately RMB 50,391,000 as of June 30, 2022, down from RMB 69,423,000 as of December 31, 2021[75]. - The group had bank borrowings of RMB 10,000,000 as of June 30, 2022, compared to none as of December 31, 2021, indicating new borrowings to support normal business operations[75]. Revenue Segmentation - The hardware and software sales segment generated revenue of RMB 56,475,000, up from RMB 53,410,000 in the same period last year[21]. - The smart city solutions segment reported a revenue decrease to RMB 8,654,000 from RMB 12,365,000 year-over-year[21]. - The e-commerce operation solutions segment saw revenue growth to RMB 33,888,000, compared to RMB 18,765,000 in the previous year[21]. - Hardware and software sales generated approximately RMB 56,475,000 and RMB 32,540,000 for the six and three months ended June 30, 2022, representing increases of about 5.74% and 16.14% year-over-year, respectively[43]. - Revenue from smart city solutions decreased to approximately RMB 8,654,000 and RMB 5,411,000, down about 30.01% and 42.99% year-over-year, respectively[43]. - E-commerce operation solutions revenue increased significantly to approximately RMB 33,888,000 and RMB 17,141,000, reflecting growth of about 80.59% and 77.24% year-over-year, respectively[44]. Expenses and Losses - Research and development expenses for the six months ended June 30, 2022, were RMB 5,104,000, compared to RMB 3,471,000 for the same period in 2021[8]. - The company recorded a net loss attributable to shareholders of approximately RMB 15,362,000 for the six months ended June 30, 2022, compared to RMB 9,844,000 in the previous year[53]. - The smart city solutions segment reported a loss of approximately RMB 7,659,000 for the six months ended June 30, 2022, compared to a loss of RMB 6,870,000 in the previous year[50]. - The e-commerce operation solutions segment incurred a loss of approximately RMB 19,298,000 for the six months ended June 30, 2022, compared to a loss of RMB 3,635,000 in the previous year[50]. - The company reported a net loss of RMB 3,342,000 for the six months ended June 30, 2022, compared to a net loss of RMB 1,932,000 for the same period in 2021, indicating an increase in losses[26]. Strategic Initiatives - The company aims to increase the proportion of system integration service contract revenue to improve business income structure and profitability[78]. - The company is focusing on community marketing services as part of its e-commerce operational solutions, having terminated cooperation with traditional cross-border e-commerce supply chain clients[80]. - The company plans to enhance its smart city solution offerings, including digital citizen services and smart community applications, leveraging existing technical advantages and customer resources[83]. - The company is adjusting its sales strategy in hardware and software sales to expand system integration services, particularly in smart campus services across provinces like Anhui and Jiangsu[84]. - The company is committed to building a sustainable business ecosystem while managing innovation risks and analyzing the growth potential of new businesses[80]. - The company is enhancing its operational service capabilities for smart unions, aiming to provide personalized value-added services to union organizations and members[81]. - The company is focused on optimizing resource integration, strengthening business development, and improving management processes under the leadership of the new chairman and CEO[86]. Shareholder and Governance - Zhejiang Shenghua holds 168,846,930 domestic shares, representing 51.72% of the company's equity[92]. - Zhejiang Shenghua also holds 93,130,000 H shares, contributing to its overall equity position[92]. - The company has a significant shareholder structure, with Deqing Huisheng Investment holding 51.72% of domestic shares[94]. - The company has adopted a code of conduct for securities trading by directors, in compliance with GEM listing rules[101]. - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial statements for the six months ending June 30, 2022[99]. - The company has complied with the corporate governance code, with a noted deviation regarding the roles of the chairman and CEO[102]. - The chairman and CEO roles are held by the same individual, Wang Feng, to enhance operational efficiency[104]. Market and Operational Challenges - The ongoing impact of the COVID-19 pandemic has negatively affected various business segments, particularly supply chain activities and project development[54]. - The number of registered users on the Kiddol and Addol APPs has surpassed 200,000, although effective user growth and GMV have not met expectations due to pandemic-related challenges[58]. - The group incurred a loss of approximately RMB 68,000 from Muye Brand Management during the reporting period, with no significant performance recorded due to the pandemic[60]. - The company has not recognized any significant taxable profits for its Hong Kong subsidiary during the reporting period, resulting in no provisions for Hong Kong profits tax[28].

Financial Performance - The company's revenue for the first quarter ended March 31, 2022, was approximately RMB 43,925,000, an increase of about RMB 6,567,000 or 17.58% compared to RMB 37,358,000 in the same period of 2021[4] - The net loss attributable to the company's owners for the first quarter was approximately RMB 11,538,000, compared to RMB 8,288,000 in the same period of 2021[5] - The gross profit for the first quarter was RMB 2,295,000, down from RMB 2,850,000 in the same period of 2021[6] - The company reported a basic and diluted loss per share of RMB 2.28, compared to RMB 1.64 in the same period of 2021[11] - The overall gross margin for the group was approximately 5.22%, down from 7.63% in the previous year[20] - The gross margin for hardware and software sales was approximately 5.34%, down from 7.75% year-on-year[20] - The smart city solutions gross margin was approximately 16.10%, down from 17.19% year-on-year[20] - The e-commerce operation solutions gross margin was approximately 2.96%, down from 4.27% year-on-year[20] - The group recorded a net loss attributable to shareholders of approximately RMB 11,538,000, compared to a loss of RMB 8,288,000 in the previous year[23] Revenue Breakdown - Revenue from hardware and software sales was RMB 23,935,000, down from RMB 25,391,000 in the same period of 2021[8] - Revenue from providing e-commerce operation solutions increased to RMB 16,747,000 from RMB 9,094,000 in the same period of 2021[8] - The smart city solutions business generated revenue of approximately RMB 3,243,000, an increase of about 12.88% from RMB 2,873,000 year-on-year[17] - E-commerce operation solutions revenue was approximately RMB 16,747,000, an increase of about 84.15% from RMB 9,094,000 year-on-year[17] Expenses and Investments - Research and development expenses for the first quarter were RMB 2,309,000, compared to RMB 1,462,000 in the same period of 2021[6] - The company’s operating expenses increased significantly, with distribution and selling expenses rising to RMB 6,216,000 from RMB 853,000 in the same period of 2021[6] - The company’s income tax expense for the quarter was approximately RMB 2,000, down from RMB 30,000 in the same period of 2021[10] - The investment in the joint venture, Muye Brand Management, is valued at approximately RMB 4.6 million, representing about 2.77% of its total assets[31] - The total amount of outstanding principal for wealth management products is approximately RMB 12.61 million, accounting for about 7.59% of total assets[37] Strategic Focus and Developments - The hardware and software sales business has adjusted sales strategies to maintain a high gross margin, focusing on key customer groups and expanding system integration services[28] - The company is actively developing new smart city solutions leveraging AIoT and big data technologies, with successful applications in Zhejiang Province[28] - The company continues to seek suitable investment and business cooperation opportunities but has not made substantial progress to date[38] - The company has maintained good cooperative relationships with hardware and software manufacturers, municipal card management companies, e-commerce platforms, and other business partners[38] - The company has established development agreements with seven schools for smart security campus services, with six already in pilot implementation[40] - The company aims to enhance its operational services in smart unions, providing personalized value-added services to union organizations and members[43] - The company is leveraging its technological advantages in smart city solutions to innovate and expand application scenarios, including smart communities and digital rural services[45] - The company is committed to building a sustainable business ecosystem by integrating resources and seeking new business opportunities across its three major business segments[42] Shareholder Information - Zhejiang Shenghua Holdings Group holds 168,846,930 shares, representing 51.72% of the company's equity[54] - Shengyang Limited owns 93,130,000 H-shares, accounting for 18.39% of the company's equity[54] - Deqing Huisheng Investment Limited also holds 168,846,930 shares, equivalent to 51.72% of the company's equity[56] - The total number of H-shares held by Shengyang Limited is 93,130,000, which is fully owned by Zhejiang Shenghua[63] - There are no significant changes in major shareholders' equity interests as of March 31, 2022[54] - The company is controlled by a series of entities, with significant ownership by Mr. Xia Shilin and his family[63] Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the first quarter results for the period ending March 31, 2022[62] - The company has no competitive business interests among its directors or management shareholders[61] - The company did not purchase, sell, or redeem any listed securities during the three months ending March 31, 2022[64] User Engagement and Market Position - The registered users of the Kiddol and Addol APPs have surpassed 100,000, enhancing the social e-commerce platform's functionality and service[30] - The user base of the Kiddol platform has successfully surpassed 100,000, aiming to reach 200,000[40] - The company has ceased cooperation with major clients in traditional cross-border e-commerce supply chain services, focusing on the subsidiary Zhejiang Dianshi Technology Co., Ltd. established in late 2020[28] - The company plans to terminate cooperation with traditional cross-border e-commerce supply chain clients to focus on community marketing services[43] - The company has not recorded any significant performance from Muye Brand Management due to the impact of the pandemic and its current team-building phase[31] - The company has not disclosed any new product or technology developments in the provided documents[60]

Financial Performance - The company recorded revenue from continuing operations of approximately RMB 218.37 million for the year ended December 31, 2021, a decrease of 8.06% compared to RMB 237.63 million in 2020[11]. - Net profit attributable to owners from continuing operations was approximately RMB 0.67 million, down 88.73% from RMB 5.92 million in 2020[11]. - The group generated revenue of approximately RMB 218,368,000 for the year ended December 31, 2021, a decrease of about 8.11% compared to RMB 237,630,000 in 2020[25]. - Revenue from hardware and software sales was approximately RMB 132,308,000, an increase of about 10.23% from RMB 120,025,000 in the previous year[24]. - Revenue from smart city solutions reached approximately RMB 50,911,000, reflecting a growth of about 20.51% compared to RMB 42,245,000 in 2020[24]. - Revenue from e-commerce operation solutions decreased significantly by approximately 53.36%, totaling RMB 35,149,000 compared to RMB 75,360,000 in the previous year[24]. - The overall gross margin for the group was approximately 18.21%, an increase from 17.03% in 2020[27]. - The gross margin for hardware and software sales was approximately 7.76%, down from 8.04% in the previous year[26]. - The gross margin for smart city solutions was approximately 56.46%, a decrease from 63.91% in 2020[26]. - The gross margin for e-commerce operation solutions was approximately 2.11%, down from 5.07% in the previous year[26]. - The company recorded a profit attributable to owners of approximately RMB 6,650,000 for the year ended December 31, 2021, down from RMB 5,919,000 in 2020, representing a decrease of about 11.4%[30]. - The hardware and software sales business achieved a segment profit of approximately RMB 5,906,000, compared to RMB 5,696,000 in 2020, indicating a slight increase of about 3.7%[29]. - The smart city solutions business generated a segment profit of approximately RMB 9,653,000, up from RMB 8,568,000 in 2020, reflecting an increase of about 12.7%[29]. - The e-commerce operation solutions business reported a loss of approximately RMB 19,169,000, a significant decline from a profit of RMB 44,000 in 2020, marking a downturn of over 43,500%[29]. Strategic Initiatives - The company focused on optimizing its sales strategies and structures, increasing the proportion of high-margin terminal customer sales revenue[14]. - The company successfully expanded its smart city solution business, achieving full coverage of municipal clients in Zhejiang Province and securing project development orders in Hebei and Yunnan provinces[14]. - The company launched its social e-commerce platform in the fourth quarter, with the Kiddol and Addol apps and mini-programs going live by the end of the third quarter[15]. - The company emphasized business innovation and the cultivation of new projects to achieve transformative development[15]. - The company actively sought external resources and partnerships to enhance its market expansion efforts[14]. - The company maintained a stable development of its hardware and software sales while managing inventory and receivables risks[14]. - The company’s strategic focus includes leveraging digital governance and local government collaborations to enhance service offerings[14]. - The company is actively expanding its smart city solutions by leveraging external resources and enhancing internal collaboration, achieving full coverage of city clients in Zhejiang Province[35]. - The company is considering strategic acquisitions to bolster its technology portfolio, with potential targets identified in the biotech sector[82]. - The company aims to improve operational efficiency, targeting a reduction in costs by 15% through process optimization initiatives[82]. Corporate Governance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15 and has complied throughout the year ending December 31, 2021[93]. - The board of directors has confirmed that all directors adhered to the trading code for securities transactions during the year ending December 31, 2021[94]. - The executive board consists of Mr. Qi Jinsong, Mr. Guan Zilong, and Mr. Xu Jianfeng, ensuring a strong leadership team[95]. - The board of directors has adopted a diversity policy to enhance board member diversity, considering factors such as gender, age, cultural background, and professional experience[99]. - The board consists of three committees: Audit Committee, Remuneration Committee, and Nomination Committee, ensuring high standards of corporate governance[105][106][107]. - The Audit Committee reviewed the audited consolidated financial statements for the year ending December 31, 2021, and provided recommendations to the board[105]. - The Remuneration Committee is responsible for reviewing and approving the remuneration policies for directors and senior management, ensuring no director participates in setting their own remuneration[106]. - The Nomination Committee evaluates the board's structure and diversity, and recommends suitable candidates for directorships[107]. - The company secretary maintains records of board meetings and decisions, ensuring transparency and accountability[101]. - The board has established a risk management and internal control system to identify, assess, and manage significant risks, ensuring adequate supervision and compliance with relevant laws and regulations[110]. Environmental, Social, and Governance (ESG) Efforts - The company reported a total greenhouse gas emissions of 122.78 tons of CO2 equivalent for the year ended December 31, 2021, down from 182.18 tons in 2020, representing a reduction of approximately 32.7%[145]. - The greenhouse gas emissions density per employee decreased to 0.59 tons of CO2 equivalent in 2021 from 1.17 tons in 2020, indicating improved efficiency despite an increase in employee numbers[145]. - The company has implemented multiple measures to minimize electricity consumption, thereby reducing the impact of scope 2 greenhouse gas emissions[148]. - The company has maintained a commitment to minimizing waste generation over the years, aiming to reduce environmental impact[149]. - The company has adhered to the mandatory disclosure requirements of the Environmental, Social, and Governance (ESG) reporting guidelines for the year ended December 31, 2021[135]. - The board is responsible for overseeing the company's ESG matters and has established a governance framework to manage related risks and opportunities[138]. - The company has engaged with stakeholders to identify significant ESG aspects and prioritize them based on feedback received[137]. - The company has adopted international standards and emission factors for calculating key performance indicators related to ESG reporting[132]. Employee and Community Engagement - The total number of employees increased to approximately 263 as of December 31, 2021, compared to 152 in 2020, with total employee costs rising to RMB 44,124,000 from RMB 29,291,000[50]. - Employee turnover rate for males decreased from 21.22% in 2020 to 19.76% in 2021, while for females it dropped from 10.29% to 4.82%[164]. - The company provided free health check-ups and purchased accident and health insurance for employees[169]. - The company actively participated in community affairs and volunteer activities, promoting corporate social responsibility[193]. - The company continues to support impoverished families and students in mountainous areas through volunteer activities and donations, contributing to community service[194].

Financial Performance - For the nine months ended September 30, 2021, the revenue from continuing operations was approximately RMB 129,204,000, a decrease of about 21.50% compared to RMB 164,584,000 for the same period in 2020[2] - The net loss attributable to owners from continuing operations for the nine months ended September 30, 2021, was approximately RMB 13,485,000, compared to a net loss of RMB 6,435,000 for the same period in 2020[2] - For the three months ended September 30, 2021, the revenue from continuing operations was approximately RMB 44,664,000, a decrease of about 1.50% compared to RMB 45,346,000 for the same period in 2020[5] - The gross profit for the nine months ended September 30, 2021, was approximately RMB 13,730,000, down from RMB 17,466,000 for the same period in 2020[8] - The total loss attributable to owners from both continuing and discontinued operations for the nine months ended September 30, 2021, was approximately RMB 13,485,000, compared to RMB 7,090,000 for the same period in 2020[6] - The company reported a pre-tax loss of approximately RMB 19,606,000 for the nine months ended September 30, 2021, compared to a pre-tax loss of RMB 6,342,000 for the same period in 2020[8] - For the nine months ended September 30, 2021, the company reported a loss attributable to owners of the company from continuing operations of RMB 13,485,000, compared to a loss of RMB 6,435,000 for the same period in 2020, representing an increase in loss of approximately 109.5%[9] - The basic and diluted loss per share from continuing operations for the nine months ended September 30, 2021, was RMB (2.66) compared to RMB (1.40) for the same period in 2020, indicating a worsening of the loss per share[21] Revenue Breakdown - Revenue from hardware and software sales for the nine months ended September 30, 2021, was RMB 88,812,000, a decrease of 4.7% from RMB 92,539,000 in the same period of 2020[12] - The company generated RMB 18,725,000 from smart city solutions for the nine months ended September 30, 2021, an increase of 21.1% compared to RMB 15,401,000 in the same period of 2020[12] - Revenue from e-commerce supply chain services decreased significantly to RMB 21,667,000 for the nine months ended September 30, 2021, down 61.8% from RMB 56,644,000 in the same period of 2020[12] - The company reported total revenue from continuing operations of RMB 129,204,000 for the nine months ended September 30, 2021, a decrease of 21.5% compared to RMB 164,584,000 in the same period of 2020[12] Operating Expenses - The total operating expenses for the nine months ended September 30, 2021, included general and administrative expenses of RMB 24,156,000, up from RMB 14,841,000 for the same period in 2020[8] - Research and development expenses for the nine months ended September 30, 2021, were approximately RMB 6,268,000, compared to RMB 5,060,000 for the same period in 2020[8] Cash and Financial Products - As of September 30, 2021, the total cash and cash equivalents amounted to approximately RMB 73,490,000, significantly up from RMB 34,375,000 as of June 30, 2021[46] - The ratio of cash and cash equivalents to total assets increased to 41.50% as of September 30, 2021, compared to 26.08% as of June 30, 2021[46] - The expected annualized return rate for Bank of China wealth management products is approximately 2.25% to 2.84%, while for Hangzhou Bank products, it is about 2.71% to 3.65%[60] - As of September 30, 2021, the total unredeemed principal amount of financial products was approximately RMB 8,550,000, accounting for about 4.83% of total assets[64] - The group achieved unaudited income from financial products of approximately RMB 503,000 for the nine months ended September 30, 2021, compared to RMB 359,000 for the same period in 2020, representing a growth of approximately 40%[64] Business Strategy and Development - The company is actively seeking business orders and transformation opportunities in the post-pandemic market environment[47] - The company is actively expanding its operational services to enhance the stability of revenue from smart city solutions[32] - The hardware and software sales business continued to adjust sales strategies and structures to increase the proportion of high-margin end-user sales revenue, while expanding system integration services[49] - The company is committed to building a sustainable business ecosystem by integrating existing business and technological advantages to seek greater commercial development opportunities[69] - The company is exploring beneficial opportunities in the sales services of other products, particularly in the smart city solutions market[73] Losses and Dividends - The company did not record any results from discontinued operations for the nine months ended September 30, 2021, while it recorded a loss of RMB 655,000 for the same period in 2020[6] - The board of directors does not recommend the payment of an interim dividend for the nine months ended September 30, 2021[2] - The company reported a loss from discontinued operations of RMB 771,000 for the nine months ended September 30, 2021, compared to a loss of RMB 285,000 in the same period of 2020[20] Market and Competitive Position - The group is actively exploring smart security services in Anhui Province, with pilot implementations in two schools, aiming to improve revenue structure and profitability[67] - The e-commerce supply chain service business has formed partnerships with several well-known e-commerce platforms and brands, while strategically reducing traditional cross-border e-commerce services due to market competition[67] - The group plans to enhance its digital governance capabilities by leveraging its smart city solutions and customer resources to provide innovative digital services[70] Corporate Governance - The audit committee was established in November 2001 according to GEM listing rules, consisting of three independent non-executive directors[89] - The company has not disclosed any competitive business interests held by its directors or management that could pose a conflict with its operations[87] - As of September 30, 2021, the company did not purchase, sell, or redeem any listed securities during the nine months[91]