Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 11,777,000, a decrease of 20.4% compared to RMB 14,806,000 for the same period in 2022[4] - The gross profit for the same period was RMB 718,000, down 70.0% from RMB 2,396,000 in 2022[4] - The company incurred a loss before tax of RMB 2,590,000, compared to a loss of RMB 2,212,000 in the prior year, representing an increase in loss of 17.1%[4] - The basic loss per share for the six months was RMB 0.52, compared to RMB 0.45 for the same period in 2022[4] - The group recorded a net loss of approximately RMB 2,590,000 for the period[14] - The group experienced a pre-tax loss of RMB 2,590,000 for the six months ended June 30, 2023, compared to a pre-tax loss of RMB 2,212,000 in the same period of 2022[21] - Pre-tax loss for the six months ended June 30, 2023, was RMB 2,590,000, compared to a loss of RMB 2,238,000 in the same period of 2022, indicating an increase in losses of approximately 15.7%[36] - The company reported a loss attributable to shareholders of approximately RMB 2,590,000, an increase of about RMB 352,000 from RMB 2,238,000 in the same period last year[49] Cash Flow and Liquidity - As of June 30, 2023, the company's cash and cash equivalents decreased to RMB 6,459,000 from RMB 14,661,000 at the end of 2022, a decline of 56.0%[6] - The company reported a net cash outflow from operating activities of RMB 1,203,000 for the six months ended June 30, 2023, compared to a net inflow of RMB 788,000 in the same period of 2022[9] - The company has a total equity of RMB (51,223,000) as of June 30, 2023, compared to RMB (48,633,000) at the end of 2022, indicating a further decline in equity[7] - As of June 30, 2023, the company's current liabilities net amount was approximately RMB 51,395,000, compared to RMB 48,834,000 as of December 31, 2022[52] Assets and Liabilities - The total current liabilities increased to RMB 60,032,000 from RMB 66,462,000 at the end of 2022, indicating a reduction of 9.6%[6] - The company's net debt stood at RMB 51,223,000 as of June 30, 2023, compared to RMB 48,633,000 at the end of 2022, reflecting an increase of 3.9%[6] - The group reported a total asset value of RMB 8,809,000 as of June 30, 2023, compared to RMB 8,460,000 as of the end of 2022[23] - Total liabilities increased to RMB 60,032,000 as of June 30, 2023, from RMB 54,699,000 at the end of 2022[23] Revenue Breakdown - Revenue from the sale of electronic equipment and components was RMB 8,798,000 for the six months ended June 30, 2023, a decrease of 33.5% from RMB 13,140,000 in the same period of 2022[18] - Revenue from the sale of CNC machine tool optical products increased to RMB 2,979,000 for the six months ended June 30, 2023, compared to RMB 1,666,000 in the same period of 2022[18] - Revenue from major customers contributing over 10% to total revenue was RMB 9,634,000 in 2023, down from RMB 11,702,000 in 2022, representing a decrease of approximately 17.7%[29] Operational Measures - The group plans to enhance measures to increase operating capital and cash flow, including closely monitoring administrative expenses and operating costs[15] - A major shareholder and a director have confirmed financial support to ensure the group can continue operations for at least the next twelve months[15] Shareholder Information - As of June 30, 2023, Mr. He holds 370,000,000 domestic shares, representing 100.00% of the controlled corporation's interest and 74.00% of the registered capital[67] - Ms. Zou holds 4,225,000 H shares, representing 3.25% of the beneficial ownership and 0.845% of the registered capital[67] - The total issued shares as of June 30, 2023, is 500,000,000, with 370,000,000 domestic shares held by major shareholders, accounting for 74%[71] - Major shareholders include Zhejiang Ruiyuan Robot, which holds 370,000,000 domestic shares, representing 100.00% of the controlled corporation's interest[71] Corporate Governance - The company has complied with all corporate governance codes as per GEM Listing Rules, except for the absence of a CEO position, with daily operations managed by executive directors and senior management[79] - The Audit Committee, consisting of three independent non-executive directors, has reviewed the accounting standards and internal controls, discussing financial reporting matters for the six months ending June 30, 2023[81] - There were no reported violations of the trading compliance standards by employees during the reporting period[77] Other Information - No dividends were declared for the six months ended June 30, 2023, consistent with the previous year[34] - The company has not recognized any income tax expenses for the six months ended June 30, 2023, due to no taxable profits generated in Hong Kong[32] - The company has not made any provisions for potential liabilities related to ongoing legal proceedings as of the report date[41] - The company has no significant contingent liabilities as of the reporting date[43] - The company has no arrangements that would cause directors to hold any interests in the company's shares or related securities during the six months ending June 30, 2023[69] - The company has not established any arrangements that would allow directors to benefit from purchasing shares or bonds of the company or its affiliates[69] - The company has no direct or indirect interests in any competing businesses during the reporting period[76]

香港交易及結算所有限公司及香港聯合交易所有限公司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。 Zhejiang RuiYuan Intelligent Control Technology Company Limited* 浙 江 瑞 遠 智 控 科 技 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：8249） 截至二零二三年六月三十日止六個月之 中期業績公告 浙江瑞遠智控科技股份有限公司（「本公司」）之董事（「董事」）會（「董事會」）謹此 宣佈本公司及其附屬公司截至二零二三年六月三十日止六個月的未經審核中 期業績。本公告列載本公司二零二三年中期報告全文，並符合《香港聯合交易 所有限公司的GEM證券上市規則》（「GEM上市規則」）中有關中期業績初步公告 附載的相關內容之要求。本公司二零二三年中期報告將於適當時候寄發予本 公 司H股 股 份 持 有 人，屆 時 亦 可 在 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）網 站 www.hkexnews ...

Financial Performance - For the first quarter of 2023, Zhejiang Ruiyuan Intelligent Control Technology Co., Ltd. reported revenue of RMB 6,815,000, a decrease of 19.6% compared to RMB 8,475,000 in the same period of 2022[4] - The gross profit for the first quarter of 2023 was RMB 403,000, down from RMB 512,000 in the first quarter of 2022, reflecting a decline in gross margin[4] - The company recorded a pre-tax loss of RMB 2,125,000 for the first quarter of 2023, compared to a pre-tax loss of RMB 1,785,000 in the same period of 2022, indicating a worsening financial performance[4] - Basic loss per share for the first quarter of 2023 was RMB 0.43, compared to RMB 0.36 in the first quarter of 2022[4] - The company reported a loss attributable to shareholders of approximately RMB 2,125,000 for the three months ended March 31, 2023, an increase of about RMB 338,000 from RMB 1,787,000 for the same period in 2022, primarily due to increased financing costs[26] - Financing costs for the three months ended March 31, 2023, were approximately RMB 1,945,000, up from RMB 1,613,000 for the same period in 2022, mainly arising from estimated interest on loans from a major shareholder[16] - The gross profit margin for the three months ended March 31, 2023, was 5.9%, slightly down from 6.0% for the same period in 2022, attributed to lower sales costs[26] Current Financial Position - As of March 31, 2023, the company had a net current liability of approximately RMB 48,834,000 and a capital deficit of approximately RMB 48,633,000, raising significant doubts about the company's ability to continue as a going concern[11] - The financial statements are prepared on a going concern basis, contingent on the successful implementation of financing plans and support from major shareholders[12] Shareholder Support and Governance - A major shareholder and a director have confirmed their intention to provide sufficient financial support to ensure the company can continue operating for at least the next twelve months[11] - The company has complied with the GEM listing rules regarding corporate governance, except for the absence of a CEO position[48] - The board of directors consists of experienced individuals ensuring operational oversight despite the lack of a CEO[48] - The company has not disclosed any conflicts of interest among its directors and management during the reporting period[46] Operational Strategies - The board of directors plans to implement measures to enhance the company's working capital and cash flow, including close monitoring of administrative expenses and operating costs[11] - The company has signed letters of intent with multiple trading agents, primarily in the metal casting and precision machinery sectors, to expand its market presence[23] - The company plans to continue purchasing a series of processing equipment to develop new products and enhance its product innovation and market expansion[23] - The company emphasizes the importance of product innovation and quality for future sales growth, actively expanding its product and sales markets through strategic partnerships[30] - The company is committed to improving operational processes and advancing towards realistic goals[30] Market and Product Information - The company primarily engages in the sale of electronic devices and components, as well as the manufacturing and sale of CNC machine tools and optical products in China[8] - The company has been actively engaged in the industrial electronic intelligent control equipment and CNC systems business, aiming to enhance its competitiveness in the market[22] - The company’s products, including industrial electronic intelligent control systems and CNC machine tools, are gradually gaining market recognition[30] Dividends and Taxation - No dividends were declared for the three months ended March 31, 2023, consistent with the previous year[20] - The company has not generated any taxable profits in Hong Kong during the reporting period, thus no provisions for Hong Kong profits tax were made[18] - No dividends were declared during the reporting period, and the board does not recommend any dividend payment for the three months ending March 31, 2023[31] Audit and Compliance - The audit committee has reviewed the financial statements for the three months ending March 31, 2023[51] - There were no significant contingent liabilities disclosed apart from those mentioned[29] - The company has not reported any significant events after the reporting period[32] - The company did not repurchase any shares during the reporting period[45] - There were no purchases or sales of the company's shares by any subsidiary during the reporting period[45]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容 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。 Zhejiang RuiYuan Intelligent Control Technology Company Limited* 浙 江 瑞 遠 智 控 科 技 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：8249） 截 至 二 零 二 三 年 三 月 三 十 一 日 止 三 個 月 之 第 一 季 度 業 績 公 告 浙江瑞遠智控科技股份有限公司（「本公司」）之董事（「董事」）會（「董事會」） 欣然宣佈本公司及其附屬公司截至二零二三年三月三十一日止三個月的 未經審核第一季度業績。本公告列載本公司二零二三年第一季度業績報 告全文，並符合《香港聯合交易所有限公司的GEM證券上市規則》（「GEM 上 市 規 則」）中 有 關 第 一 季 度 業 績 初 步 公 告 附 載 的 相 關 內 容 之 要 求。 本 公 司 二 零 二 三 年 第 一 季 度 業 績 報 告 將 ...

Financial Performance - For the year ended December 31, 2022, the Group recorded revenue of approximately RMB 32,213,000, a decrease of approximately RMB 4,327,000 compared to RMB 36,540,000 in 2021, representing a decline of about 11.85%[15] - For the year ended December 31, 2022, the Group recorded revenue of approximately RMB 32,213,000, a decrease of approximately RMB 4,327,000 compared to 2021's revenue of RMB 36,540,000[32] - Loss attributable to shareholders for the year was approximately RMB 4,632,000, an increase of approximately RMB 598,000 from the previous year's loss of RMB 4,034,000[41] - The gross profit margin increased to 14.93% in 2022 from 6.39% in 2021, attributed to reduced cost of sales[39] - The Group recorded other income of approximately RMB 23,000 in 2022, up from RMB 3,000 in 2021[39] Economic and Market Conditions - The overall economic growth rate in China is expected to continue slowing down, presenting challenges for the Group in 2023[21] - Competition and production costs are anticipated to increase, further impacting the Group's operations[21] Business Strategy and Development - The Group aims to explore business opportunities in intelligent control systems for industrial uses, leveraging over 15 years of experience in industrial automation[25] - The Group plans to launch a variety of high-end CNC machine tool and optical machine products to enhance product innovation and market expansion[33] - The marketing team will continue to expand business in multiple cities including Hangzhou, Jiaxing, and Shanghai, aiming to increase new sales customers[34] - The group has established strategic partnerships and is actively expanding its product and sales markets, focusing on intelligent control systems and related products[55] Assets and Liabilities - Current assets decreased to approximately RMB 17,628,000 in 2022 from RMB 18,338,000 in 2021, primarily due to a decrease in trade and bill receivables[46] - Current liabilities increased significantly to approximately RMB 66,462,000 in 2022 from RMB 31,328,000 in 2021, mainly due to an increase in loans from a major shareholder[47] - The Group had net liabilities of approximately RMB 48,633,000 as of December 31, 2022, compared to RMB 44,001,000 in 2021[48] - As of December 31, 2022, the group's current assets were approximately RMB 17,628,000, a decrease of about RMB 710,000 from RMB 18,338,000 in 2021[51] - The group's current liabilities increased to approximately RMB 66,462,000, up by about RMB 35,134,000 from RMB 31,328,000 in 2021, primarily due to an increase in loans from a major shareholder of approximately RMB 37,720,000[51] - The group's net debt as of December 31, 2022, was approximately RMB 48,633,000, compared to RMB 44,001,000 in 2021[52] - As of December 31, 2022, the Group had net current liabilities of approximately RMB 48,834,000[125] Corporate Governance and Management - The board of directors does not recommend the payment of a final dividend for the year ended December 31, 2022[77] - The Company has undergone management changes with key personnel transitioning from RuiYuan Machine Tool to RuiYuan Machine Tool Group in May 2019[89] - The company emphasizes the importance of corporate governance with a diverse board composition[92] - The Board consists of seven directors, including four executive directors and three independent non-executive directors[88] - The Directors and Supervisors have service contracts with a term of three years, subject to termination with one month's notice[156] Shareholder Information - The controlling shareholder, Zhejiang RuiYuan Intelligent Robot Company Limited, pledged 322,675,000 domestic shares, representing approximately 64.535% of the total issued share capital[167] - As of December 31, 2022, Mr. He Keng holds 370,000,000 Domestic Shares, which accounts for 74.00% of the total issued share capital[173] - The company has no arrangements enabling Directors, Chief Executives, and Supervisors to hold interests or short positions in the shares or debentures of the company during the year ended December 31, 2022[174] - The interests of substantial shareholders in the company are required to be notified under the Securities and Futures Ordinance, with RuiYuan Robot being a beneficial owner of 370,000,000 Domestic Shares[176] - The company has maintained compliance with the GEM listing rules regarding the pledging of shares by major shareholders[170] Customer and Supplier Concentration - The largest customer accounted for 47% of the Group's sales during the reporting period[197] - The combined sales from the five largest customers reached 99% of total sales[197] - The largest supplier represented 70% of the Group's purchases[197] - The combined purchases from the five largest suppliers constituted 100% of total purchases[197] - No directors or significant shareholders have interests in the major customers and suppliers mentioned[197]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容 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。 Zhejiang RuiYuan Intelligent Control Technology Company Limited* 浙 江 瑞 遠 智 控 科 技 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：8249） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 全 年 業 績 公 告 浙江瑞遠智控科技股份有限公司（「本公司」）之董事（「董事」）會（「董事會」） 欣然宣佈本公司及其附屬公司截至二零二二年十二月三十一日止年度之 經審核全年業績。本公告列載本公司二零二二年年度報告全文，並符合《香 港聯合交易所有限公司的GEM證券上市規則》（「GEM上市規則」）中有關全 年業績初步公告附載的相關內容之要求。本公司二零二二年年度報告將 於 適 當 時 候 寄 發 予 本 公 司H股 股 份 持 有 人，屆 時 亦 可 在 香 港 聯 合 交 易 所 ...

Financial Performance - For the nine months ended September 30, 2022, the company reported total revenue of RMB 29,686,000, an increase of 52.1% compared to RMB 19,513,000 for the same period in 2021[4] - The gross profit for the nine months ended September 30, 2022, was RMB 1,650,000, a decrease of 52.2% from RMB 3,447,000 in the same period of 2021[4] - The net loss for the nine months ended September 30, 2022, was RMB 3,818,000, compared to a net loss of RMB 3,372,000 for the same period in 2021, indicating a 13.2% increase in losses[4] - The company reported a basic loss per share of RMB 0.76 for the nine months ended September 30, 2022, compared to RMB 0.67 for the same period in 2021[4] - The net loss attributable to shareholders for the nine months ended September 30, 2022, was approximately RMB 3,372,000, a decrease of about RMB 446,000 from RMB 3,818,000 in the same period of 2021[30] - The gross profit margin for the nine months ended September 30, 2022, was 17.7%, an increase from 5.6% in the same period of 2021, primarily due to reduced sales costs[30] - Financing costs for the nine months ended September 30, 2022, were approximately RMB 4,838,000, compared to RMB 4,011,000 for the same period in 2021[18] - Administrative expenses for the nine months ended September 30, 2022, were approximately RMB 1,665,000, an increase of about RMB 389,000 compared to the previous year[30] Operational Challenges - The company experienced significant operational declines due to COVID-19 pandemic-related logistics disruptions[28] - The impact of the COVID-19 pandemic on the company's operations remains significant, and the company is monitoring the situation closely[38] Shareholder Support and Financial Stability - A major shareholder and a director have confirmed their intention to provide sufficient financial support to ensure the company can continue operations for at least the next twelve months[12] - As of September 30, 2022, the company's net current liabilities were approximately RMB 47,588,000, and it had accumulated losses of RMB 454,318,000[12] - As of September 30, 2022, the major shareholder, Zhejiang Ruiyuan Intelligent Robot Co., Ltd., has pledged 322,675,000 shares, representing approximately 64.535% of the company's issued share capital[41] Business Expansion and Product Development - The company plans to continue expanding its business in various cities including Hangzhou, Jiaxing, Shanghai, and Nanjing, aiming to increase its customer base[27] - The company is actively developing new products, including high-end CNC machine products, to enhance product innovation and market expansion[27] - The company is actively expanding its product and sales markets through strategic partnerships, focusing on electronic components and industrial electronic intelligent control systems[35] Corporate Governance - The company has complied with all corporate governance codes as per GEM listing rules, except for the absence of a CEO position[55] - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[56] - The board of directors is composed of experienced individuals, ensuring effective management despite the lack of a CEO[55] - The company has confirmed compliance with trading standards and codes of conduct by all directors and supervisors[54] Dividends and Shareholder Structure - The company did not declare any dividends for the nine months ended September 30, 2022, consistent with the previous year[24] - Major shareholders include Ruiyuan Robotics holding 370,000,000 domestic shares, representing 74.00% of the registered capital[47] - Other significant shareholders include Hangzhou Qindie and Zhuji Jinfeng, each also holding 370,000,000 domestic shares, equating to 74.00% of the registered capital[47] - Shaoxing Qinyuan holds 47,325,000 domestic shares, representing 12.79% of the total shares[47] - The company has a significant concentration of ownership, with major shareholders controlling 100% of the voting rights in their respective categories[47] Legal and Compliance Matters - The company has not reported any significant events after the reporting period[39] - The company continues to assess the adequacy of its provisions related to ongoing legal claims[33] - The company has not granted any rights to directors or senior management to purchase shares during the reporting period[40] - The company has not made any arrangements that would allow directors or senior management to benefit from purchasing shares or bonds of the company[45] - The company has not purchased, redeemed, or sold any of its listed securities during the reporting period[52] - The company has not adopted new accounting standards that have been issued but are not yet effective as of September 30, 2022[13]

Financial Performance - For the six months ended June 30, 2022, the company's revenue was RMB 14,806,000, a decrease of 35.4% compared to RMB 22,894,000 for the same period in 2021[4] - The gross profit for the same period was RMB 2,396,000, representing a 98.8% increase from RMB 1,205,000 in 2021[4] - The company reported a loss before tax of RMB 2,212,000, a slight improvement from a loss of RMB 2,356,000 in the previous year[4] - The net loss for the six months was RMB 2,238,000, compared to RMB 2,376,000 in the same period last year, indicating a 5.8% improvement[4] - Revenue from the sale of electronic equipment and components was RMB 13,140,000 for the six months ended June 30, 2022, down from RMB 22,894,000 in the same period of 2021, representing a decrease of approximately 42.5%[19] - The group recorded a net loss of approximately RMB 2,238,000 during the period[14] - The group reported a loss attributable to shareholders of approximately RMB 2,238,000, a decrease of about 138,000 from RMB 2,376,000 in the previous year[51] - The gross profit margin increased to 16.18% for the six months ended June 30, 2022, compared to 5.26% for the same period in 2021, primarily due to lower sales costs[51] Cash Flow and Financial Position - Cash and cash equivalents decreased to RMB 1,017,000 from RMB 10,703,000 at the end of 2021, reflecting a significant cash outflow[6] - The company's total liabilities as of June 30, 2022, were RMB 20,205,000, down from RMB 31,328,000 at the end of 2021[6] - The net debt increased to RMB 46,239,000 from RMB 44,001,000 year-over-year, indicating a growing financial burden[6] - Operating cash flow for the six months was RMB 788,000, down from RMB 1,577,000 in the previous year, showing a decline in operational efficiency[9] - As of June 30, 2022, the group's net current liabilities amounted to approximately RMB 11,974,000 and capital deficiency was approximately RMB 46,239,000, indicating significant uncertainty regarding the ability to continue as a going concern[14] - Total assets as of June 30, 2022, were RMB 8,460,000, down from RMB 11,108,000 as of the same date in 2021[24] - Total liabilities increased to RMB 54,699,000 as of June 30, 2022, compared to RMB 53,451,000 in the previous year[24] - The group plans to enhance measures to increase operating funds and cash flow, including closely monitoring administrative expenses and operating costs[14] Shareholder Support and Financing - The board believes that with the financing plans and financial support from major shareholders, the group will have sufficient working capital to meet its current needs for at least the next twelve months[15] - A major shareholder has confirmed financial support to ensure the group can continue operations for at least twelve months from the report date[14] - For the six months ended June 30, 2022, the financing cost was approximately RMB 3,225,000, an increase of 20.6% compared to RMB 2,674,000 for the same period in 2021[31] - The company’s major shareholder provided an unsecured, interest-free loan with an effective interest rate of 20.63%[40] Operational Developments - The company has not reported any new product launches or significant market expansions during this period[11] - The group is actively expanding its product offerings, including high-end CNC machine tool optical products, to enhance product innovation and market expansion[48] - The group has signed cooperation letters of intent and purchase contracts with multiple trading agents, focusing on metal casting and precision machinery companies[48] - The group plans to continue strict cost control measures in response to increasing competition in the controller system market due to China's economic slowdown[58] - There were no significant acquisitions or disposals during the six months ended June 30, 2022[59] Employee and Governance - Total employee costs for the six months ended June 30, 2022, amounted to RMB 343,000, significantly higher than RMB 57,000 for the same period in 2021[32] - The group has maintained a stable workforce of 11 employees as of June 30, 2022, with compensation based on market terms and individual performance[60] - The company has complied with all corporate governance codes as per GEM Listing Rules, with a noted deviation from code C.2.1[81] - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[83] - The company does not have a CEO; daily operations are managed by executive directors and senior management[82] Market Conditions and Future Outlook - Future outlook remains cautious due to ongoing market volatility and the company's current financial position[11] - The COVID-19 pandemic has severely disrupted many business operations, leading to a sharp global economic slowdown, with ongoing monitoring and strategy formulation in response[65] - There were no significant events reported after the reporting period[66] Shareholding Structure - As of June 30, 2022, Mr. He Kang held 370,000,000 domestic shares, representing approximately 74.00% of the total issued shares[70] - Major shareholder Mr. He Yanggen holds 370,000,000 domestic shares, representing 74% of the total issued shares as of June 30, 2022[75] - Martin Currie China Hedge Fund Limited and Martin Currie Investment Management Limited each hold 14,245,000 H-shares, accounting for 10.96% of the total shares[75] - The major shareholder, Zhejiang Ruiyuan Intelligent Robot Co., Ltd., pledged a total of 322,675,000 shares, representing approximately 64.535% of the issued share capital as of December 29, 2017[69] Compliance and Reporting - The company has not disclosed any changes in the information of directors and supervisors as required by GEM Listing Rules[80] - There were no reported violations of trading rules by employees during the reporting period[79] - As of June 30, 2022, there were no known interests or short positions in the company's shares by directors or senior management[76] - The company did not purchase, redeem, or sell any of its listed securities during the reporting period[77]

Financial Performance - For the first quarter of 2022, the company's revenue was RMB 8,475,000, a decrease of 19.2% compared to RMB 10,487,000 in the same period of 2021[4] - The gross profit for the first quarter of 2022 was RMB 512,000, representing a significant increase from RMB 266,000 in the first quarter of 2021, indicating improved cost management[4] - The company reported a pre-tax loss of RMB 1,785,000 for the first quarter of 2022, compared to a pre-tax loss of RMB 1,564,000 in the first quarter of 2021, reflecting ongoing financial challenges[4] - The total comprehensive loss for the first quarter of 2022 was RMB 1,787,000, compared to RMB 1,564,000 in the same period of 2021, indicating a worsening financial position[4] - Basic loss per share for the first quarter of 2022 was RMB 0.36, compared to RMB 0.31 in the first quarter of 2021, showing a decline in shareholder value[4] - The loss attributable to shareholders for the three months ended March 31, 2022, was approximately RMB 1,787,000, an increase of about RMB 223,000 from RMB 1,564,000 in the previous year[26] - The gross profit margin for the three months ended March 31, 2022, was 6%, up from 2.5% in the same period last year, primarily due to reduced sales costs[26] Financing and Costs - The financing costs for the first quarter of 2022 were RMB 1,613,000, up from RMB 1,337,000 in the same period of 2021, primarily due to estimated interest from loans from a major shareholder[14] - Financing costs for the three months ended March 31, 2022, were approximately RMB 1,613,000, an increase from RMB 1,337,000 in the previous year[27] Equity and Shareholding - The company’s total equity attributable to owners decreased to RMB (45,788,000) as of March 31, 2022, from RMB (41,531,000) as of March 31, 2021, indicating a deterioration in financial health[6] - As of March 31, 2022, Mr. He Keng holds 370,000,000 domestic shares, accounting for 74.00% of the company's total issued shares[38] - The major shareholder, Ruiyuan Robot, holds 370,000,000 domestic shares, representing 74.00% of the registered capital[41] - The company has a total of 1,000 H shares held by Mr. He Keng, representing 0.0008% of the total issued shares[43] - The company has pledged 322,675,000 domestic shares, representing 64.535% of the total issued share capital, to an independent third party[3] - The company has no significant changes in the shareholding structure of major shareholders during the reporting period[42] Business Operations - The company’s main business involves selling electronic devices and components, as well as manufacturing CNC machine tools, which are critical for future revenue generation[8] - The company is actively expanding its business in industrial electronic control equipment and CNC systems, with plans to launch various high-end CNC machine products[22] - The company plans to explore business opportunities in intelligent control systems for heavy industries, such as industrial robotics applications[34] - The company has signed cooperation letters of intent with multiple agents, focusing on metal casting and precision machinery companies[22] - The company has experienced significant operational declines due to COVID-19-related logistics disruptions, impacting its performance[23] Corporate Governance - The report confirms that the financial results are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance and transparency[9] - The company has complied with the GEM Listing Rules regarding corporate governance, with a deviation from the code provision C.2.1 due to the absence of a CEO position[4] - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting standards and internal controls for the three months ending March 31, 2022[5] Dividends and Developments - The company has not declared any dividends for the reporting period, consistent with the previous year[19] - The company has not disclosed any new product or technology developments in the recent earnings report[42] - There are no significant mergers or acquisitions reported in the recent financial disclosures[42]

Financial Performance - For the year ended December 31, 2021, the Group recorded revenue of approximately RMB 36,540,000, representing an increase of approximately RMB 682,000 or 1.9% compared to RMB 35,858,000 in 2020[15] - The Group's newly launched CNC machine tool optical mechanical products have not yet entered large-scale production, contributing to the modest revenue increase[15] - The gross profit margin improved to 6.39% in 2021, up from 1.3% in 2020, primarily due to reduced cost of sales[34] - The loss attributable to shareholders for the year was approximately RMB 4,034,000, a decrease of approximately RMB 4,462,000 compared to the loss of RMB 8,496,000 in 2020[41] - Current assets increased to approximately RMB 18,338,000 as of December 31, 2021, up by approximately RMB 2,866,000 from RMB 15,472,000 in 2020[42] - Current liabilities rose to approximately RMB 31,328,000, an increase of approximately RMB 1,679,000 from RMB 29,649,000 in 2020[43] - As of December 31, 2021, the Group had net liabilities of approximately RMB 44,001,000, compared to RMB 39,967,000 in 2020[44] - The Group's bank balances and cash amounted to approximately RMB 10,703,000 as of December 31, 2021, compared to RMB 10,147,000 in 2020[44] Market Conditions - The overall economic growth rate in China is expected to continue slowing down, presenting challenges for the Group[21] - Competition and production costs are anticipated to increase, further complicating the market landscape for the Group[21] - The Group aims to explore business opportunities in intelligent control systems for industrial uses despite the challenging market conditions in 2022[25] Corporate Governance - The Board consists of 7 Directors, including 4 executive Directors and 3 independent non-executive Directors[80] - The remuneration policies for Directors are determined by the Remuneration Committee and require shareholder approval[63] - The Board did not recommend the payment of a final dividend for the year ended December 31, 2021, similar to 2020[73] - The Company did not enter into any arrangements enabling Directors, Chief Executives, and Supervisors to hold interests in shares or debentures of the Company during the year[171] Employee Information - As of December 31, 2021, the Group had 11 employees, an increase from 10 employees in 2020[54] - The headcount analysis shows a total of 11 employees in 2021, with 3 in sales and marketing, 2 in production, 5 in finance and administration, and 1 in procurement[62] Risk Management - As of December 31, 2021, the Group faced liquidity risk with net current liabilities of approximately RMB 12,990,000[122] - The Group's maximum exposure to credit risk as of December 31, 2021, is based on the carrying amount of recognized financial assets[111] - The Group reviews the recoverable amount of trade and other debtors at each reporting period to ensure adequate impairment losses are made for irrecoverable amounts[112] - The Group's credit risk has significantly decreased due to adequate impairment losses recognized on receivables[118] Shareholding Structure - As of December 31, 2021, Mr. He Keng holds 370,000,000 Domestic Shares, representing approximately 74% of the total issued share capital of the Company[168] - The total number of Domestic Shares held by substantial shareholders is 1,110,000,000, which constitutes a significant portion of the company's shareholding structure[178] - RuiYuan Robot acquired a total of 370,000,000 Domestic Shares, representing 74% of the entire issued share capital of the Company as of December 31, 2021[187] Business Operations - The Group's major business includes the design, manufacture, and sales of CNC machine tools, optical and mechanical products, and sales of controller systems for electronic equipment[107] - The largest customer accounted for 50% of sales, while the five largest customers combined represented 99% of total sales[192] - The largest supplier contributed to 70% of purchases, with the five largest suppliers combined accounting for 100% of total purchases[192] Compliance and Regulations - The Group complied with all applicable laws and regulations during the year ended December 31, 2021[71] - There are no specific environmental standards or requirements for conducting the Group's business according to the relevant laws of the PRC/Hong Kong[200]