Financial Performance - The company achieved revenue of approximately RMB 217,107,000 for the fiscal year ending December 31, 2018, with a net profit attributable to shareholders of approximately RMB 8,393,000[8]. - For the year ended December 31, 2018, total revenue was approximately RMB 217,107,000, an increase of about 25.44% compared to RMB 173,076,000 in 2017[16]. - The net profit attributable to owners for the year was approximately RMB 8,393,000, compared to a loss of RMB 4,392,000 in 2017[20]. - Earnings per share for the year were approximately RMB 1.66, a significant improvement from a loss of RMB 0.87 per share in 2017[20]. - The overall gross profit margin for the group increased to approximately 17.41%, up from 7.81% in 2017, driven by the contribution from the smart city solutions business[18]. - Gross profit for 2018 was RMB 37,802 thousand, compared to RMB 13,520 thousand in 2017, reflecting a significant improvement[189]. - Operating cash flow for 2018 generated RMB 7,114 thousand, a significant recovery from a cash outflow of RMB 137 thousand in 2017[198]. Business Operations - The telecommunications solution business has not yet gained traction, while hardware and software sales maintained scale and improved gross profit margin, leading to enhanced profitability[10]. - The telecommunications value-added services business experienced a slight decline in revenue but achieved profitability through improved management and cost control[10]. - The smart city solution business performed as expected, with ongoing implementation of contracts and discussions for additional cooperation orders[10]. - The company completed the acquisition of Zhejiang Chuangjian Technology Co., Ltd. to enhance its existing business operations[11]. - The company aims to diversify its business to reduce reliance on a single business segment or product, addressing potential risks from market competition and economic fluctuations[28]. - The company plans to continue its transformation towards mobile internet services and optimize its business structure in response to market changes in 2019[11]. Employee and Management - As of December 31, 2018, the company had approximately 173 employees, a significant increase from 44 employees at the end of 2017, primarily due to the acquisition and expansion of the sales team[30]. - The total employee cost for the year was approximately RMB 27,492,000, up from RMB 5,152,000 in the previous year, reflecting the increase in workforce and operational expansion[30]. - The company has established various recruitment channels and mechanisms to attract talent, linking performance assessments with salary systems to effectively motivate employees[30]. - The company has a diverse management team with significant experience in finance, technology, and operations, enhancing its strategic capabilities[62][63][66][67]. Corporate Governance - The company has adopted the corporate governance code as per GEM listing rules, ensuring compliance with high standards of corporate governance throughout the year ending December 31, 2018[69]. - The board consists of four executive directors and three independent non-executive directors, ensuring a diverse range of industry knowledge and experience[72]. - The audit committee, composed of three independent non-executive directors, is responsible for reviewing the company's annual report and financial statements, ensuring compliance with financial reporting procedures[81]. - The company has a strong commitment to corporate governance, regularly reviewing and taking appropriate actions to comply with governance codes[69]. Investments and Acquisitions - The company completed the acquisition of 100% equity in Chuangjian Technology for RMB 25,200,000, enhancing its smart city solution offerings[24]. - The company is actively exploring new investment opportunities and business collaborations, including the establishment of a wholly-owned subsidiary, Chuangjian Zhigong, to participate in smart union construction and operation services in Hangzhou[24]. - The company has approximately RMB 10 million allocated for future investments, which is currently unutilized[50]. Environmental and Social Responsibility - The group encourages employees to reduce paper and energy consumption, reflecting its commitment to environmental sustainability[107]. - The group has actively participated in community affairs and volunteer activities as part of its corporate responsibility commitment[118]. - The group has established long-term, mutually beneficial relationships with suppliers to ensure quality products and timely delivery[115]. Risk Management - The board is responsible for maintaining a sound risk management and internal control system, ensuring compliance with relevant laws and regulations[86]. - The company has established measures to identify, assess, and manage significant risks effectively[86]. - The board conducted a comprehensive review of the risk management and internal control systems, finding them effective and sufficient[87].