Financial Performance - Revenue for the first quarter of 2021 reached RMB 10,487,000, an increase of 29.2% compared to RMB 8,117,000 in the same period of 2020[4] - Gross profit for the first quarter of 2021 was RMB 266,000, up from RMB 131,000 in the first quarter of 2020, representing a 103.8% increase[4] - Operating loss for the first quarter of 2021 was RMB 227,000, improved from a loss of RMB 650,000 in the same period of 2020[4] - The total comprehensive loss for the first quarter of 2021 was RMB 1,564,000, slightly higher than RMB 1,547,000 in the same period of 2020[4] - Basic loss per share remained at RMB 0.31 for both the first quarter of 2021 and 2020[4] - The loss attributable to shareholders for the three months ended March 31, 2021, was approximately RMB 1,564,000, an increase of approximately RMB 17,000 from RMB 1,547,000 in the same period of 2020[26] Costs and Expenses - Financing costs increased to RMB 1,337,000 in the first quarter of 2021, compared to RMB 897,000 in the first quarter of 2020, reflecting higher estimated interest from a major shareholder's loan[13] - Administrative expenses decreased to RMB 428,000 in the first quarter of 2021 from RMB 739,000 in the first quarter of 2020, indicating improved cost management[4] - Administrative expenses decreased by approximately RMB 311,000 compared to the previous period, attributed to reduced expenses in market expansion[26] - The company did not recognize any government grants in the first quarter of 2021, compared to RMB 4,000 in the same period of 2020[12] - The company reported no other income in the first quarter of 2021, down from RMB 5,000 in the same period of 2020[12] Shareholder Information - The total equity attributable to owners of the company decreased to RMB (41,531,000) as of March 31, 2021, from RMB (39,967,000) as of January 1, 2021[6] - As of March 31, 2021, the major shareholder Zhejiang Ruiyuan Intelligent Robot Co., Ltd. pledged a total of 322,675,000 shares, representing approximately 64.54% of the company's issued share capital[37] - Mr. He Keng holds 370,000,000 domestic shares, accounting for 74.00% of the company's total issued shares as of March 31, 2021[38] - The major shareholders, including Ruiyuan Robot, hold 370,000,000 domestic shares, representing 74.00% of the total issued shares[41] - 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 H 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] Corporate Governance - The company has complied with the GEM Listing Rules regarding corporate governance, with a deviation from the code provision A.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, 2021[5] Future Plans and Strategies - The company plans to continue purchasing a series of processing equipment to develop new products and enhance market competitiveness[22] - The company has signed cooperation letters of intent with several trading agents, primarily in the metal casting and precision machinery sectors[22] - The company aims to explore business opportunities in intelligent control systems for heavy industries, such as industrial robot applications, in 2021[34] - The company will continue to implement strict cost control measures in response to increasing competition in the controller systems market[34] - The company did not declare any dividends for the reporting period, consistent with the previous year[19]

Financial Performance - For the year ended December 31, 2020, the Group recorded revenue of approximately RMB 35,858,000, representing a decrease of approximately RMB 30,700,000 (about 46%) compared to RMB 66,558,000 in 2019[17]. - The decline in revenue was primarily due to the impact of the COVID-19 outbreak, the obsolescence of 3G electronic modules, and a challenging economic environment[17]. - The gross profit margin decreased to 1.3% in 2020 from 3.2% in 2019, attributed to increased product costs and decreased selling prices[35]. - Loss attributable to shareholders for the year was approximately RMB 8,496,000, representing an increase of loss of approximately RMB 1,652,000 over the previous year[41]. - Current assets decreased to approximately RMB 15,472,000 in 2020 from RMB 23,403,000 in 2019, a decrease of approximately RMB 7,931,000[42]. - Current liabilities decreased to approximately RMB 29,649,000 in 2020 from RMB 72,280,000 in 2019, a decrease of approximately RMB 42,631,000[43]. - The Group had net liabilities of approximately RMB 39,967,000 as of December 31, 2020, down from RMB 48,684,000 in 2019[44]. Business Operations - The Group's major business includes sales of controller systems for electronic equipment and electronic components for electronic appliances[16]. - The Group's principal activities include the sales of intelligent controller systems for electronic equipment and electronic components for electronic appliances[108]. - The Group's performance analysis by geographical segments is detailed in Note 6 of the consolidated financial statements[115]. - The Group's business review includes discussions on future business development and principal risks and uncertainties[109]. Market Outlook - The market for 2021 remains uncertain, but there are trends that present both challenges and opportunities for the Group[19]. - The Chairman expressed confidence in the future market of intelligent control systems for industrial uses, backed by over 13 years of experience in industrial automation[19]. Cost Control and Employee Management - The Group will continue to implement stringent cost control measures in 2021 due to increased competition in the controllers systems market[51]. - As of December 31, 2020, the Group had 10 employees, down from 18 employees in 2019[54]. - The employee headcount in sales and marketing decreased from 7 in 2019 to 3 in 2020, a reduction of approximately 57.1%[63]. - The group plans to continue strict cost control measures in 2021 due to increasing competition in the controller systems market[57]. Financial Position and Risks - The Group faced liquidity risk as of December 31, 2020, with net current liabilities of approximately RMB 14,177,000[122]. - The Group's financial assets due within one year were less than its financial liabilities due within one year, indicating potential liquidity challenges[126]. - The Group reported no exposure to foreign currency risk as most transactions are denominated in RMB[123]. - The Group's credit risk has significantly decreased due to adequate impairment losses recognized on trade and other receivables[118]. Shareholder Information - The board of Directors does not recommend the payment of a final dividend for the year under review, consistent with 2019[74]. - The Group has no reserves available for distribution to shareholders as of December 31, 2020[138]. - The total number of shares held by substantial shareholders indicates a concentrated ownership structure[177]. - As of December 31, 2020, Mr. He Keng held 370,000,000 Domestic Shares, representing approximately 74% of the entire issued share capital of the Company[167]. Compliance and Governance - The Group complied with all applicable laws and regulations during the year ended December 31, 2020[72]. - No significant transactions or contracts involving directors or their associates were reported during the year ended December 31, 2020[155]. - No directors or their associates engaged in any competing business during the year ended December 31, 2020[156].

Financial Performance - For the third quarter of 2020, Zhejiang Ruiyuan Intelligent Control Technology Co., Ltd. reported revenue of RMB 8,851,000, a decrease of 49.3% compared to RMB 17,460,000 in the same period of 2019[6] - The gross profit for the third quarter was RMB 59,000, down 92.8% from RMB 816,000 year-on-year[6] - The company recorded a loss before tax of RMB 2,781,000, compared to a loss of RMB 1,306,000 in the third quarter of 2019, representing a 113.8% increase in losses[6] - The net loss for the nine months ended September 30, 2020, was RMB 5,896,000, compared to a loss of RMB 3,379,000 for the same period in 2019, indicating a 74.5% increase in losses[6] - Basic loss per share for the third quarter was RMB 0.56, compared to RMB 0.26 in the same quarter of 2019[6] - Total comprehensive loss for the nine months ended September 30, 2020, was RMB 5,896,000, compared to RMB 3,379,000 for the same period in 2019[6] - For the nine months ended September 30, 2020, the company recorded a revenue of approximately RMB 25,345,000, a decrease of about RMB 26,381,000 compared to RMB 51,726,000 for the same period in 2019[25] - The loss attributable to shareholders for the nine months ended September 30, 2020, was approximately RMB 5,896,000, an increase of about RMB 2,517,000 from RMB 3,379,000 for the same period in 2019[25] - The gross profit margin for the nine months ended September 30, 2020, was 1.3%, down from 4.3% for the same period in 2019, primarily due to rising sales costs[27] Expenses and Costs - The total sales cost for the third quarter was RMB 8,792,000, a decrease of 47.3% from RMB 16,644,000 in the same quarter of 2019[6] - Administrative expenses increased to RMB 1,895,000 in the third quarter of 2020, compared to RMB 1,254,000 in the same period of 2019, reflecting a 51.1% increase[6] - The financing cost for the nine months ended September 30, 2020, was approximately RMB 2,655,000, compared to RMB 2,493,000 for the same period in 2019[5] Shareholder Information - The company’s total equity attributable to owners decreased to RMB 42,133,000 as of September 30, 2020, from RMB 45,219,000 at the end of the previous year[8] - As of September 30, 2020, the major shareholder, Zhejiang Ruiyuan Intelligent Robot Co., Ltd., pledged a total of 322,675,000 shares, representing approximately 64.54% of the issued share capital[39] - As of September 30, 2020, the company’s director, He Keng, holds 370,000,000 domestic shares, representing 74.00% of the total issued shares[40] - Major shareholder Mr. He Yanggen holds 370,000,000 domestic shares, representing 74% of the total issued shares as of September 30, 2020[45] - 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 H-shares and 2.85% of the total issued shares[45] - The major shareholders, including He Keng and others, collectively own 370,000,000 domestic shares, accounting for 74.00% of the total issued shares[44] Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules, with a deviation regarding the absence of a CEO position[50] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the nine months ended September 30, 2020[51] - The company has not granted any rights to purchase shares to directors, senior management, or supervisors during the nine months ended September 30, 2020[38] - No arrangements were made during the nine months ended September 30, 2020, that would allow directors or senior management to benefit from purchasing shares or bonds of the company[42] Strategic Initiatives - The company has expanded its marketing efforts to multiple cities including Hangzhou, Changsha, Shanghai, Fuzhou, Wuhan, Hefei, Ningbo, Shenzhen, and Xiamen[24] - The company is actively seeking strategic partnerships to enhance its product and sales market, focusing on electronic components, communication equipment, and industrial electronic control systems[33] - The company plans to continue implementing cost control measures to mitigate the impact of intense price competition in the electronics industry[27] - The company is awaiting favorable market conditions to expand its existing business scale and leverage its production capacity advantages[24] Impact of COVID-19 - The COVID-19 pandemic has significantly disrupted business operations and led to a sharp global economic slowdown, with ongoing monitoring and strategy formulation in response[35] - The company continues to observe the impact of COVID-19 and is developing appropriate strategies to address the situation[35] Personnel Changes - The company has terminated some employees from a subsidiary due to the decline in performance of its 3G electronic module products, which accounted for about 1% of total revenue during the reporting period[25] - The company has appointed a new supervisor, Guo Fangqiang, effective November 4, 2020, following the resignation of Shi Huanmiao[36] Dividends - The company did not declare any dividends for the nine months ended September 30, 2020, consistent with the previous year[21] - No dividends were declared for the nine months ended September 30, 2020, consistent with the previous year[34] Securities Transactions - The company has not purchased, redeemed, or sold any of its listed securities during the reporting period[47]

Financial Performance - For the six months ended June 30, 2020, the company's revenue was RMB 16,494,000, a decrease of 52.1% compared to RMB 34,266,000 for the same period in 2019[4] - The gross profit for the same period was RMB 271,000, down 80.0% from RMB 1,420,000 in 2019[4] - The company reported a loss before tax of RMB 3,133,000, compared to a loss of RMB 2,070,000 in the previous year, representing an increase in loss of 51.4%[4] - The net loss for the six months was RMB 3,115,000, compared to a net loss of RMB 2,069,000 in 2019, indicating a 50.6% increase in loss[4] - The company's basic loss per share for the six months was RMB 0.62, compared to RMB 0.41 for the same period in 2019[4] - Major customers contributed RMB 16,279,000 to total revenue for the six months ended June 30, 2020, down 46.7% from RMB 30,552,000 in the same period of 2019[19] - Financing costs for the six months ended June 30, 2020, were approximately RMB 1,743,000, an increase of 4.9% from RMB 1,662,000 for the same period in 2019[20] - The loss attributable to shareholders was approximately RMB 3,115,000, an increase of about RMB 1,046,000 from RMB 2,069,000 for the same period in 2019, driven by increased sales costs and rising selling expenses[45] - The gross profit margin for the six months ended June 30, 2020, was 1.64%, down from 4.1% for the same period in 2019, indicating a significant decline in profitability[45] Cash Flow and Assets - Cash and cash equivalents decreased significantly to RMB 125,000 from RMB 10,979,000 at the beginning of the period, reflecting a decline of 98.9%[9] - The company’s total assets decreased to RMB 4,937,000 from RMB 23,403,000, a decline of 78.9%[6] - Current assets were approximately RMB 4,937,000, down from RMB 23,403,000 as of December 31, 2019, with cash and bank balances at approximately RMB 125,000 compared to RMB 10,979,000 previously[50] - As of June 30, 2020, the group's net current liabilities were approximately RMB 11,361,000, a decrease from RMB 48,877,000 as of December 31, 2019[50] Liabilities and Shareholder Information - The company's total liabilities as of June 30, 2020, were RMB 16,298,000, down 77.5% from RMB 72,280,000 at the end of 2019[6] - The group had no bank borrowings as of June 30, 2020, consistent with the situation as of December 31, 2019[51] - The group had a loan from a major shareholder amounting to approximately RMB 28,161,000, down from RMB 44,864,000 as of December 31, 2019[51] - Major shareholder Zhejiang Ruiyuan Intelligent Robot Co., Ltd. pledged 322,675,000 shares, representing approximately 64.535% of the company's issued share capital[63] - Major shareholders include Ruiyuan Robotics holding 370,000,000 domestic shares, representing 74.00% of the registered capital[68] - Other major shareholders include Hangzhou Qindie and Zhuji Jinfeng, each also holding 370,000,000 domestic shares, accounting for 74.00% of the registered capital[68] - Shaoxing Qinyuan holds 47,325,000 domestic shares, representing 12.79% of the class of shares and 9.47% of the registered capital[68] Operational Changes and Strategies - The company’s inventory decreased to RMB 63,000 from RMB 241,000, a reduction of 73.8%[6] - The company has expanded its marketing efforts to multiple cities including Hangzhou, Changsha, Shanghai, Fuzhou, Wuhan, Wuxi, Hefei, Ningbo, Shenzhen, and Xiamen, actively seeking to penetrate more markets[44] - The company has established strategic partnerships with multiple firms to expand its product and sales markets, focusing on stabilizing its smart control systems trade business[48] - The company continues to enhance its operational processes and product innovation capabilities, which are deemed critical for future sales growth[48] - The group plans to continue strict cost control measures in 2020 due to increased competition in the controller systems market[54] Employee and Administrative Information - Employee costs for the six months ended June 30, 2020, totaled RMB 668,000, a decrease of 26.0% from RMB 903,000 for the same period in 2019[22] - The group had 18 employees as of June 30, 2020, unchanged from December 31, 2019[56] Dividends and Compliance - No dividends were declared for the six months ended June 30, 2020, consistent with the same period in 2019[25] - The company has not proposed any new products or technologies during this reporting period[18] - The company has confirmed compliance with trading standards and codes of conduct by all directors and supervisors as of June 30, 2020[76] - The company has complied with the corporate governance code as per GEM listing rules, with a deviation regarding the absence of a CEO position[78] - The audit committee, consisting of three independent non-executive directors, reviewed the group's accounting standards and internal controls[80] Impact of COVID-19 - The COVID-19 pandemic has severely disrupted business operations, making it difficult to estimate the overall impact on the group's business[61]

Financial Performance - The revenue for the first quarter of 2020 was RMB 8,117,000, a decrease of 51.4% compared to RMB 16,690,000 in the same period of 2019[4] - The gross profit for the first quarter of 2020 was RMB 131,000, down 86.1% from RMB 942,000 in the first quarter of 2019[4] - The operating loss for the first quarter of 2020 was RMB 650,000, compared to a loss of RMB 166,000 in the same period of 2019[4] - The net loss for the first quarter of 2020 was RMB 1,547,000, compared to a loss of RMB 996,000 in the same period of 2019[4] - The basic loss per share for the first quarter of 2020 was RMB 0.31, compared to RMB 0.20 in the first quarter of 2019[4] - The total comprehensive loss for the first quarter of 2020 was RMB 1,547,000, compared to RMB 996,000 in the same period of 2019[4] - The gross profit margin for the three months ended March 31, 2020, was 1.6%, down from 5.6% in 2019, primarily due to increased sales costs[21] Financing and Costs - The financing costs for the first quarter of 2020 were RMB 897,000, an increase of 7.9% from RMB 831,000 in the first quarter of 2019[12] - Financing costs for the three months ended March 31, 2020, were approximately RMB 897,000, compared to RMB 831,000 in 2019, mainly from estimated interest on loans from a major shareholder[24] - Administrative expenses decreased by approximately RMB 370,000 compared to the previous period, attributed to reduced expenses in market expansion[23] Business Operations - The company’s main business involves selling electronic equipment and components in China[8] - The company is actively expanding its business into various cities in China, including Shanghai, Hangzhou, and Nanjing, and is exploring more market opportunities[20] - The company is focusing on developing intelligent control systems for heavy industry applications, such as industrial robotics[33] - The company plans to continue strict cost control measures in 2020 due to increasing competition in the controller systems market[33] Shareholder Information - The company reported a total equity attributable to owners of the company of RMB (50,231,000) as of March 31, 2020[6] - As of March 31, 2020, Mr. He Kang holds 370,000,000 domestic shares, representing 74.00% of the company's total issued shares[38] - The major shareholder, Zhejiang Ruiyuan Intelligent Robot Co., Ltd., pledged a total of 322,675,000 shares, accounting for approximately 64.535% of the company's issued share capital as of December 29, 2017[36] - Other major shareholders include Shaoxing Qinyuan Electronic Technology Co., Ltd., holding 47,325,000 domestic shares, which is 12.79% of the total[43] - Martin Currie China Hedge Fund Limited and Martin Currie Investment Management Limited each hold 14,245,000 H shares, representing 10.96% of the total[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] Corporate Governance - The company has complied with the GEM Listing Rules regarding corporate governance, with a deviation from the code provision A.2.1 due to the absence of a CEO position[4] - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[5] - The company has not purchased, redeemed, or sold any of its listed securities during the reporting period[6] Dividends and Events - No dividends were declared for the period, and the board does not recommend any dividend payments for the three months ended March 31, 2020[34] - The company has no significant post-reporting period events as of the report date[32]

Financial Performance - For the year ended December 31, 2019, the Group recorded revenue of approximately RMB 66,558,000, representing an increase of approximately RMB 4,852,000 or 7.85% over the previous year[16]. - For the year ended December 31, 2019, the Group recorded revenue of approximately RMB66,558,000, representing an increase of approximately RMB4,852,000 compared to 2018's revenue of RMB61,706,000[29]. - The gross profit margin decreased to 3.2% in 2019 from 6.5% in 2018, attributed to increased product costs and decreased selling prices[31]. - Loss attributable to shareholders for the year ended December 31, 2019, was approximately RMB6,844,000, an increase of approximately RMB5,711,000 compared to the previous year's loss of RMB1,133,000[37]. - The Group's financial performance and comprehensive income for the year ended December 31, 2019, are detailed on page 52 of the annual report[112]. Business Operations - The Company’s major business included sales of controller systems for electronic equipment and electronic components for electronic appliances[15]. - The increase in revenue was mainly attributed to the expansion of the sales staff and enhanced marketing efforts during the year[16]. - The Group's principal activities include the sales of intelligent controller systems for electronic equipment and electronic components for electronic appliances[103]. - The Group aims to explore business opportunities in intelligence control systems for heavy industrial uses, such as applications for industrial robotics[46]. - The Group is exploring business opportunities in intelligent control systems for heavy industries, such as industrial robotics applications, in 2020[51]. Economic Environment - The overall economic environment in the PRC in 2019 was challenging for private enterprises, prompting the Company to simplify its operation structure and control costs[15]. - The market outlook for 2020 remains uncertain, but the Company sees potential opportunities in the intelligent control system for industrial uses[18]. - The Group will continue to implement stringent cost control measures in 2020 to address the challenges posed by the slowing economic growth and increasing competition in the market[46]. Assets and Liabilities - Current assets decreased to approximately RMB23,403,000 as of December 31, 2019, down from RMB26,126,000 in 2018, primarily due to a decrease in paid advances[38]. - Current liabilities increased significantly to approximately RMB72,280,000 as of December 31, 2019, from RMB26,460,000 in 2018, due to loans from a major shareholder being classified as current liabilities[39]. - The Group had net liabilities of approximately RMB48,684,000 as of December 31, 2019, compared to RMB41,840,000 in 2018[43]. - The Group reported a net current liability of approximately RMB 48,877,000 as of December 31, 2019, indicating liquidity risk due to financial assets being less than financial liabilities due within one year[118]. Shareholder Information - As of December 31, 2019, Mr. He Keng held 370,000,000 Domestic Shares, representing 74.00% of the registered capital[163]. - The substantial shareholders include RuiYuan Robot, Hangzhou Qindie, Zhuji Jinfu, and others, all holding 370,000,000 Domestic Shares, representing 74% of the registered capital[174]. - The interests of substantial shareholders are required to be notified to the Company and the Stock Exchange under the SFO[172]. - The Company is not aware of any other persons holding interests or short positions in the shares as of December 31, 2019, apart from those disclosed[176]. Governance and Compliance - The Group complied with all applicable laws and regulations during the year ended December 31, 2019[66]. - The remuneration policies for directors are subject to shareholders' approval at general meetings[58]. - The independent non-executive directors bring diverse expertise, including corporate governance and financial management, enhancing the Group's strategic direction[85][88]. - The management team is responsible for daily operations and strategic planning, ensuring effective governance and operational efficiency[94]. Employee Information - The Group had 18 employees as of December 31, 2019, a decrease from 19 employees in 2018[55]. - The headcount in sales and marketing decreased from 8 in 2018 to 7 in 2019[57]. - The Group ensures reasonable remuneration for all employees and maintains good relationships with them[195]. Dividends and Investments - The Board does not recommend the payment of a final dividend for the year under review (2018: Nil)[68]. - The Group did not have any significant investments or acquisitions during the year ended December 31, 2019[47]. - The Group has no specific plans for material investments or capital assets as of December 31, 2019[64]. - The Company did not recommend a payment of final dividend for the year ended December 31, 2019[183].

Financial Performance - For the three months ended September 30, 2019, the revenue was RMB 17,460,000, an increase of 19.9% compared to RMB 14,624,000 for the same period in 2018[4] - The gross profit for the nine months ended September 30, 2019, was RMB 2,236,000, representing a 31.9% increase from RMB 1,696,000 in the same period of 2018[4] - The total revenue for the nine months ended September 30, 2019, was RMB 51,726,000, an increase of 24.5% from RMB 41,555,000 in the same period of 2018[4] - The gross profit margin for the nine months ended September 30, 2019, was 4.3%, compared to 4.1% for the same period in 2018[23] - The company reported a loss attributable to shareholders of approximately RMB 3,379,000 for the nine months ended September 30, 2019, an increase in loss of approximately RMB 1,695,000 compared to a loss of RMB 1,684,000 for the same period in 2018[21] - The net loss for the three months ended September 30, 2019, was RMB 1,310,000, compared to a profit of RMB 1,555,000 in the same period of 2018[4] - The company reported a basic loss per share of RMB 0.26 for the three months ended September 30, 2019, compared to earnings of RMB 0.31 per share in the same period of 2018[4] - The total comprehensive loss for the nine months ended September 30, 2019, was RMB 3,379,000, compared to a loss of RMB 1,684,000 for the same period in 2018[5] Expenses - The selling expenses for the three months ended September 30, 2019, were RMB 39,000, significantly higher than RMB 1,000 in the same period of 2018[4] - The administrative expenses for the nine months ended September 30, 2019, were RMB 3,044,000, a decrease from RMB 3,375,000 in the same period of 2018[4] - Financing costs for the nine months ended September 30, 2019, were approximately RMB 2,493,000, compared to RMB 2,308,000 for the same period in 2018[15] - The company is focusing on cost control to mitigate losses and reduce expenses, with administrative expenses decreasing by approximately RMB 331,000 compared to the previous year[23] Market and Business Development - The company primarily engages in the sales of electronic equipment and components in China[6] - The marketing team has expanded its business to multiple cities including Hangzhou, Changsha, Shanghai, and others, actively seeking to explore more markets[20] - The company is awaiting favorable market conditions to expand its existing business scale while leveraging its production capacity advantages[20] - The company is actively expanding its product and sales markets through strategic partnerships, focusing on electronic components, communication equipment, and industrial electronic intelligent control systems[34] - The company’s market and development prospects are considered optimistic due to the integration of industrial electronic intelligent control systems and smart robots into the market[34] Legal and Compliance - The company has made a provision of approximately RMB 86,000 (equivalent to about HKD 96,000) for claims related to ongoing legal cases as of December 31, 2016[30] - The company continues to monitor the progress of legal cases and will assess the adequacy of provisions and financial impacts as necessary[30] - The company has not been informed of any further actions from the Labor Department regarding ongoing legal cases as of the report date[28][29] - The company has acknowledged and paid fines totaling HKD 2,500 and additional fees of HKD 226.2 related to employee compensation regulations[27][28] Shareholder Information - The company’s major shareholder has pledged 322,675,000 shares, representing approximately 64.535% of the total issued share capital as of December 29, 2017[38] - Major shareholders include Ruiyuan Robotics, which holds 370,000,000 domestic shares, accounting for 74% of the registered capital[43] - The company holds 370,000,000 domestic shares, representing 74% of the total issued shares as of September 30, 2019[42] - The company has not granted any rights to directors or key executives to purchase shares during the nine months ended September 30, 2019[37] - The company has pledged 322,675,000 domestic shares, representing 64.535% of the total issued share capital, to independent third parties[46] - The company received valid acceptances for 1,000 H shares after the mandatory cash offer, indicating a minor stake in H shares[51] - Martin Currie China Hedge Fund Limited holds 14,245,000 H shares, accounting for 10.96% of the H shares[45] Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules, with a deviation regarding the absence of a CEO position[52] - The audit committee was established on June 1, 2003, consisting of three independent non-executive directors[53] - The committee reviewed the accounting standards and practices adopted by the group, discussing internal controls and financial reporting matters[53] - The unaudited consolidated financial statements for the nine months ended September 30, 2019, were reviewed by the committee[53] Accounting Standards - The company has not adopted new accounting standards that have been issued but are not yet effective as of September 30, 2019[7] - The company has adopted HKFRS 16, which requires lessees to recognize most leases on the balance sheet, reflecting the right-of-use assets and corresponding lease liabilities[10] Dividends - The company did not declare any dividends for the nine months ended September 30, 2019, consistent with the same period in 2018[18] - The company has not declared any dividends for the nine months ended September 30, 2019, consistent with the previous year[35]

Financial Performance - For the six months ended June 30, 2019, the company reported revenue of RMB 34,266,000, an increase of 27.1% compared to RMB 26,931,000 for the same period in 2018[4] - The gross profit for the same period was RMB 1,420,000, compared to RMB 356,000 in 2018, indicating a significant improvement in profitability[4] - The company incurred a loss before tax of RMB 2,070,000, which is a reduction of 35.4% from a loss of RMB 3,212,000 in the previous year[4] - The net loss for the six months was RMB 2,069,000, compared to RMB 3,239,000 in the same period last year, reflecting a 36.2% improvement[4] - The company’s basic loss per share improved to RMB 0.41 from RMB 0.63 in the previous year, indicating a reduction in losses on a per-share basis[4] - The group reported a loss attributable to shareholders of approximately RMB 2,069,000, a decrease of about RMB 1,170,000 from RMB 3,239,000 in the same period of 2018, indicating a gradual reduction in losses[44] - The gross profit margin for the six months ended June 30, 2019, was 4.1%, up from 1.3% for the same period in 2018, reflecting ongoing cost control measures[44] Assets and Liabilities - As of June 30, 2019, the company's total current assets were RMB 16,185,000, down from RMB 26,126,000 at the end of 2018[5] - The company's cash and cash equivalents decreased to RMB 1,124,000 from RMB 10,558,000 at the end of 2018, representing a decline of 89.4%[8] - The total liabilities increased to RMB 60,311,000 from RMB 26,460,000, reflecting a substantial rise in financial obligations[5] - As of June 30, 2019, the group's current liabilities net amount was approximately RMB 44,126,000, compared to RMB 334,000 as of December 31, 2018[47] - The company has a loan from a major shareholder amounting to RMB 9,483,000, classified as a current liability due to its remaining term being less than 12 months[31] Revenue Sources - The company is primarily engaged in the sales of electronic equipment and components, focusing on controller systems and electronic parts in China[10] - For the six months ended June 30, 2019, the revenue from the sale of electronic equipment and components was RMB 34,266,000, an increase of 27.1% compared to RMB 26,931,000 for the same period in 2018[18] - Major customers contributed over 10% of total revenue, with Customer A generating RMB 14,485,000 and Customer B RMB 11,286,000 during the six months ended June 30, 2019[21] Costs and Expenses - The financing costs for the six months ended June 30, 2019, were approximately RMB 1,662,000, compared to RMB 1,539,000 for the same period in 2018, reflecting an increase of 8%[22] - The total employee costs for the six months ended June 30, 2019, amounted to RMB 903,000, up from RMB 723,000 in the same period of 2018, representing a rise of 24.9%[24] - The pre-tax loss for the six months ended June 30, 2019, included inventory costs recognized as expenses amounting to RMB 32,846,000, compared to RMB 26,575,000 for the same period in 2018, an increase of 23.6%[24] Shareholder Information - The company has a registered capital of RMB 0.10 per share for domestic shares and is listed on GEM for H-shares, which are traded in HKD[63] - As of June 30, 2019, the company had a total of 370,000,000 domestic shares held by Ruiyuan Robot, representing 74% of the total issued shares[64] - Major shareholders include Ruiyuan Robot, which holds 370,000,000 domestic shares (100% beneficial ownership) and accounts for approximately 74% of the registered capital[66] - Martin Currie China Hedge Fund Limited holds 14,245,000 H-shares, representing 10.96% of the H-share class and 2.85% of the registered capital[66] Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules, with a noted deviation from A.2.1[72] - No arrangements were made for directors or major executives to hold any interests in the company's shares or related securities during the reporting period[68] - The company has not established any arrangements that would allow directors to gain benefits from purchasing shares or bonds of the company[68] - The company has adopted the trading standards as per GEM Listing Rules for its directors and supervisors[71] - There were no known interests or conflicts of interest among directors, supervisors, and management in any business directly or indirectly competing with the company[70] Management and Operations - The company does not have a CEO title, but daily operations are managed by executive directors and senior management[73] - The audit committee was established on June 1, 2003, and consists of three independent non-executive directors[76] - The company reviewed its accounting standards and practices with senior management, discussing internal controls and financial reporting matters[76] - The board of directors includes executive directors He Keng (Chairman), Wu Shan-hong, Chen Wei-qiang, and Ding Cheng[77] - Changes in the board include He Keng leaving Zhejiang Ruiyuan Machine Tool Co., Ltd. and joining Zhejiang Zhuji Ruiyuan Machine Tool Group Co., Ltd. as Chairman[74] - Wu Shan-hong left her position as Chief Financial Officer at Ruiyuan Machine Tool and became the CFO at Ruiyuan Machine Tool Group[74] - Chen Wei-qiang and Ding Cheng transitioned from Ruiyuan Machine Tool to Ruiyuan Machine Tool Group, taking on roles as Marketing Manager and Sales Manager respectively[74] Legal and Compliance - The company has made a provision of approximately RMB 86,000 for potential liabilities related to ongoing legal cases as of June 30, 2019[38] - There were no significant capital commitments as of June 30, 2019, consistent with the previous year[40] - The company did not declare any dividends for the six months ended June 30, 2019, consistent with the same period in 2018[26] - The group did not declare any dividends for the period, consistent with the previous year[46] - There were no significant acquisitions or disposals during the six months ended June 30, 2019[52]

Financial Performance - Revenue for the first quarter of 2019 reached RMB 16,690,000, an increase of 51.2% compared to RMB 11,058,000 in the same period of 2018[4] - Gross profit for the first quarter of 2019 was RMB 942,000, up from RMB 372,000 in the first quarter of 2018, representing a growth of 153.2%[4] - Operating loss decreased to RMB 166,000 in Q1 2019 from RMB 340,000 in Q1 2018, showing an improvement of 51.2%[4] - Net loss for the first quarter of 2019 was RMB 996,000, a reduction from RMB 1,129,000 in the same quarter of 2018, indicating a decrease of 11.8%[14] - Basic loss per share improved to RMB 0.20 in Q1 2019 from RMB 0.23 in Q1 2018[14] - The total comprehensive loss for the first quarter of 2019 was RMB 996,000, compared to RMB 1,044,000 in Q1 2018[4] Financing and Costs - Financing costs increased to RMB 831,000 in Q1 2019 from RMB 769,000 in Q1 2018, reflecting a rise of 8.1%[11] - Financing costs for the three months ended March 31, 2019, were approximately RMB 831,000, compared to RMB 769,000 in 2018, primarily due to estimated interest from loans by a major shareholder[22] - Administrative expenses increased by approximately RMB 386,000 due to costs associated with market expansion, with ongoing cost management efforts to mitigate related expenses[20] Business Operations - The company’s main business involves selling electronic equipment and components in China[18] - For the three months ended March 31, 2019, the company recorded revenue of approximately RMB 16,690,000, an increase of about RMB 5,632,000 compared to RMB 11,058,000 in the same period of 2018, primarily due to the launch of new products and market expansion[20] - The gross profit margin for the three months ended March 31, 2019, was 5.6%, up from 3.4% in 2018, with ongoing cost control measures to mitigate the impact of intense price competition in the electronics industry[20] - The marketing team has expanded its business to cover multiple cities including Shanghai, Hangzhou, Nanjing, and Wuxi, actively seeking to explore more markets[20] - The company is focused on product innovation and quality, recognizing their importance for future sales growth, and has established strategic partnerships to expand product and sales markets[31] - The company is waiting for favorable conditions to expand its existing business scale and leverage its production capacity advantages in the current market environment[20] - The company has gradually integrated industrial electronic intelligent control systems and robotics into the market, enhancing its market and development prospects[31] Shareholder Information - As of March 31, 2019, Mr. He holds 370,000,000 domestic shares, representing 100% of the controlled corporation's equity and approximately 74.00% of the registered capital[36] - The company acquired a total of 370,000,000 domestic shares, which constitutes about 74% of the total issued shares as of March 31, 2019[37] - The company has 1,000 H shares held by Mr. He, representing 0.0008% of the H shares and 0.0002% of the registered capital[36] - Major shareholders include Zhejiang Ruiyuan with 370,000,000 domestic shares, representing 100% of the equity and approximately 74.00% of the registered capital[40] - Hangzhou Qindie and Zhuji Jinfeng also hold 370,000,000 domestic shares, each representing 100% of the equity and approximately 74.00% of the registered capital[42] - Shaoxing Qinyuan holds 47,325,000 domestic shares, representing 12.79% of the equity and approximately 9.47% of the registered capital[42] - Martin Currie China Hedge Fund Limited and Martin Currie Investment Management Limited each hold 14,245,000 H shares, representing 10.96% of the equity and approximately 2.85% of the registered capital[42] Corporate Governance - The company has complied with the GEM Listing Rules regarding corporate governance, with a noted deviation from Rule A.2.1 due to the absence of a CEO position[48] - The audit committee, established on June 1, 2003, consists of three independent non-executive directors and has reviewed the accounting standards and practices adopted by the group[49] - The company has confirmed compliance with the trading standards and code of conduct for directors and supervisors for the three months ending March 31, 2019[47] - The board of directors is composed of experienced individuals who ensure a balance of responsibilities despite the lack of a CEO[48] - The audit committee has discussed internal controls and financial reporting matters, including the review of the unaudited consolidated financial statements for the three months ending March 31, 2019[51] - The company has not reported any direct or indirect interests in competing businesses by its directors, supervisors, or major shareholders[46] - The board of directors includes both executive and independent non-executive members, ensuring diverse oversight[53] - The company has maintained its operational management through executive directors and senior management[48] - The audit committee has updated its terms of reference in accordance with the recommendations of the Hong Kong Institute of Certified Public Accountants[49] Dividends - No dividends were declared for the first quarter of 2019, consistent with the same period in 2018[16] - The company has not declared any dividends for the period, consistent with the previous year[32]

Revenue and Financial Performance - For the year ended December 31, 2018, the Group recorded revenue of approximately RMB 61,706,000, representing an increase of approximately RMB 17,177,000 or 38.6% compared to RMB 44,529,000 in 2017[17]. - The increase in revenue was primarily due to the expansion of the sales staff and enhanced marketing efforts during the year[17]. - The Group's gross profit margin improved to 6.5% in 2018 from 1.4% in 2017, attributed to the launch of new products and expansion into new markets[32]. - The Group incurred a loss of approximately RMB 1,133,000 in 2018, a significant improvement from a loss of RMB 7,175,000 in 2017[38]. - Current assets decreased to approximately RMB 26,126,000 in 2018 from RMB 28,904,000 in 2017, primarily due to a decrease in trade and bills receivables[39]. - Current liabilities decreased to approximately RMB 26,460,000 in 2018 from RMB 31,159,000 in 2017, mainly due to repayments to a director and other borrowings[40]. - As of December 31, 2018, the Group had net liabilities of approximately RMB 41,840,000, compared to RMB 40,655,000 in 2017[44]. - The Group's bank balances and cash increased to approximately RMB 10,558,000 in 2018 from RMB 5,265,000 in 2017, with no bank borrowings[44]. - Capital commitments as of December 31, 2018, amounted to RMB 5,275,000, down from RMB 6,000,000 in 2017[48]. - As of December 31, 2018, the Group had net current liabilities of approximately RMB 334,000, indicating liquidity risk due to financial assets being less than financial liabilities due within one year[122]. Business Strategy and Market Outlook - The Group aims to explore business opportunities in intelligent control systems for industrial uses despite the uncertain market conditions in 2019[19]. - The Chairman expressed confidence in the future market for intelligent control systems, leveraging over 11 years of experience in industrial automation[19]. - The Group's strategic focus includes strengthening its marketing and expanding its business reach[17]. - The trends observed in the market present both challenges and opportunities for the Group moving forward[19]. - The Group plans to explore business opportunities in intelligence control systems for heavy industrial uses, such as applications for industrial robotics, in 2019[47]. - The business review discusses the Group's future business development and principal risks and uncertainties in the "Management Discussion and Analysis" section[108]. - The Group's strategic focus includes expanding its market presence and enhancing product offerings in the intelligent control technology sector[107]. Operational Structure and Management - The Group simplified its operational structure and controlled costs to navigate the harsh economic environment[21]. - The Group had 19 employees as of December 31, 2018, a decrease from 22 employees in 2017, with a focus on performance-based remuneration[58]. - The Group's employee headcount in sales and marketing decreased from 10 in 2017 to 8 in 2018[60]. - The Group's finance and administration department maintained a stable headcount of 8 employees from 2017 to 2018[60]. - The Remuneration Committee was established to formulate remuneration policies for directors, with no director involved in deciding their own remuneration[61]. - The Group has significant experience in project management, with key personnel having extensive backgrounds in their respective fields[94][95]. - The Group's management team includes individuals with advanced degrees in business administration and finance, enhancing operational effectiveness[98][100]. Compliance and Governance - The Group complied with all applicable laws and regulations during the year ended December 31, 2018[69]. - The Corporate Governance Report is detailed on pages 28 to 45 of the annual report[189]. - The Company has arranged for appropriate insurance cover for Directors' and officers' liabilities arising from corporate activities[188]. - There were no management contracts concerning the administration of the Company's business during the year[197]. Shareholder Information and Dividends - The Board does not recommend the payment of a final dividend for the year under review, consistent with 2017[71]. - The Directors do not recommend the payment of any dividend for the year ended December 31, 2018[117]. - The largest customer accounted for 48% of the Group's sales, while the five largest customers combined represented 94% of total sales[199]. - The largest supplier contributed to 50% of the Group's purchases, and the five largest suppliers combined accounted for 96% of total purchases[199]. - The Company maintained a sufficient public float as required under the GEM Listing Rules during the year ended December 31, 2018[191]. - No significant contracts involving Directors or Supervisors were reported during the year ended December 31, 2018[161]. - No significant arrangements were made to enable Directors to acquire benefits through share purchases during the year[175]. Risks and Financial Exposure - The Group was exposed to cash flow interest rate risk related to variable rate bank balances, but management considered the effect to be minimal[121]. - The Group's foreign currency exposure includes certain bank balances and cash denominated in currencies other than RMB and USD, primarily in HKD[123]. - The Group does not currently have a foreign currency hedging policy but monitors foreign exchange exposure for potential hedging opportunities[129]. - The Group's maximum exposure to credit risk as of December 31, 2018, is based on the carrying amount of recognized financial assets[110]. - 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[111]. Miscellaneous - The Group had no material acquisitions during the year ended December 31, 2018, but disposed of its 100% equity interest in Hong Kong Wan Li Enterprise Company Limited for HK$1[66]. - There were no specific plans for material investments or capital assets as of December 31, 2018[67]. - No significant events occurred after the balance sheet date up to the date of the annual report[70]. - There are no specific environmental standards or requirements for conducting the Group's business according to its nature and relevant laws[200].