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]

Financial Performance - For the three months ended September 30, 2021, the revenue was RMB 6,792,000, a decrease of 23.2% compared to RMB 8,851,000 for the same period in 2020[4] - For the nine months ended September 30, 2021, the revenue was RMB 29,686,000, an increase of 17.5% compared to RMB 25,345,000 for the same period in 2020[4] - The gross profit for the three months ended September 30, 2021, was RMB 445,000, compared to RMB 59,000 for the same period in 2020, representing a significant increase[4] - The net loss for the three months ended September 30, 2021, was RMB 1,442,000, a decrease in loss compared to RMB 2,781,000 for the same period in 2020[4] - The basic loss per share for the nine months ended September 30, 2021, was RMB 0.76, an improvement from RMB 1.18 for the same period in 2020[4] - The total comprehensive loss for the nine months ended September 30, 2021, was RMB 3,818,000, compared to RMB 5,896,000 for the same period in 2020[4] - The gross profit margin for the nine months ended September 30, 2021, was 5.6%, up from 1.3% for the same period in 2020, showing significant improvement in product performance and cost control[26] Expenses and Costs - The financing costs for the nine months ended September 30, 2021, were RMB 4,011,000, an increase from RMB 2,655,000 for the same period in 2020[4] - The administrative expenses for the three months ended September 30, 2021, were RMB 498,000, a decrease from RMB 1,895,000 for the same period in 2020[4] - Administrative expenses decreased by approximately RMB 2,206,000 compared to the previous period, reflecting ongoing cost control measures[26] - The financing cost for the nine months ended September 30, 2021, was approximately RMB 4,011,000, compared to RMB 2,655,000 for the same period in 2020, primarily due to estimated interest from loans from a major shareholder[15] Market and Product Development - The company primarily engages in the sale of electronic equipment and components, indicating a focus on the electronics market[9] - The company has actively developed industrial electronic control equipment and CNC systems, and has launched new CNC machine products, currently in small-scale production[23] - The company plans to continue purchasing a series of processing equipment to develop new products and enhance market competitiveness[23] - The company emphasizes the importance of product innovation and quality for future sales growth, continuously improving operational processes and expanding strategic partnerships[32] - The company has established strategic partnerships with multiple firms to enhance its product and sales market, focusing on electronic components, communication equipment, industrial electronic control systems, and AC servo motors[32] - The company is actively pursuing market expansion and new product development to strengthen its trading business in intelligent control systems[32] Shareholder Information - Major shareholder Zhejiang Ruiyuan Intelligent Robot Co., Ltd. pledged 322,675,000 shares, representing approximately 64.54% of the company's issued share capital[37] - As of September 30, 2021, the company's major shareholders include Ruiyuan Robot, holding 370,000,000 domestic shares, which accounts for 74% of the total issued shares[43] - Major shareholders include Zhao Zhongxin and He Yanggen, each holding 370,000,000 domestic shares, representing 74% of the total issued shares as of September 30, 2021[46] - 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 and 2.85% of the registered capital[45] Compliance and Governance - The company has complied with the GEM Listing Rules regarding corporate governance, with a deviation from the requirement of having a CEO[52] - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[53] - The board of directors includes experienced individuals, ensuring operational oversight despite the absence of a CEO[52] - The company has maintained compliance with trading standards and codes of conduct for directors and supervisors[50] - No conflicts of interest were reported among directors, supervisors, and management regarding competing businesses[49] Taxation and Dividends - 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[17] - The company did not declare any dividends for the nine months ended September 30, 2021, consistent with the previous year[20] - No dividends were declared for the nine months ending September 30, 2021, consistent with the previous year[34] Impact of COVID-19 - The impact of COVID-19 on the company's operations remains significant, with ongoing strategies being developed to address the situation[35] Securities Transactions - The company has not purchased, redeemed, or sold any listed securities during the reporting period[48] - The company has not granted any rights to directors or key executives to purchase shares during the nine months ending September 30, 2021[36]

Financial Performance - For the six months ended June 30, 2021, the company reported revenue of RMB 22,894,000, a 38.5% increase from RMB 16,494,000 in the same period of 2020[4] - The gross profit for the same period was RMB 1,205,000, compared to RMB 271,000 in 2020, reflecting a significant improvement[4] - The company incurred a loss before tax of RMB 2,356,000, which is a reduction from a loss of RMB 3,133,000 in the prior year[4] - The net loss for the six months was RMB 2,376,000, down from RMB 3,115,000 in the same period last year, indicating a narrowing of losses[4] - The company's basic loss per share for the six months was RMB 0.48, an improvement from RMB 0.62 in the same period last year[4] - The loss attributable to shareholders for the six months ended June 30, 2021, was approximately RMB 2,376,000, a decrease of about RMB 739,000 from RMB 3,115,000 for the same period in 2020[40] - The gross profit margin for the six months ended June 30, 2021, was 5.26%, up from 1.64% for the same period in 2020, due to product upgrades and reduced sales costs[40] Assets and Liabilities - As of June 30, 2021, the company's total current assets were RMB 10,822,000, a decrease from RMB 15,472,000 at the end of 2020[6] - The company's current liabilities totaled RMB 24,856,000, down from RMB 29,649,000 at the end of 2020, showing improved liability management[6] - Trade receivables as of June 30, 2021, amounted to RMB 8,379,000, an increase from RMB 5,509,000 as of December 31, 2020, with the aging analysis showing all receivables within 90 days[28] - Trade payables as of June 30, 2021, totaled RMB 9,448,000, compared to RMB 7,402,000 as of December 31, 2020, with RMB 748,000 overdue for more than 365 days[29] - As of June 30, 2021, the group's current liabilities net amount was approximately RMB 14,034,000 and capital deficiency was approximately RMB 42,343,000, indicating significant uncertainty regarding the ability to continue as a going concern[14] - As of June 30, 2021, the group's current liabilities net amount was approximately RMB 14,034,000, a decrease from RMB 14,177,000 as of December 31, 2020[45] - Current assets as of June 30, 2021, were approximately RMB 10,822,000, down from RMB 15,472,000 as of December 31, 2020, with cash and bank balances at RMB 1,142,000 compared to RMB 10,147,000 previously[45] Cash Flow and Financing - The cash and cash equivalents at the end of the period were RMB 1,142,000, significantly lower than RMB 10,147,000 at the beginning of the period[9] - The company reported a net cash outflow from financing activities of RMB 10,403,000 for the six months, compared to RMB 12,848,000 in the same period of 2020[9] - The financing cost for the six months ended June 30, 2021, was approximately RMB 2,674,000, compared to RMB 1,743,000 for the same period in 2020[22] - The group had no bank borrowings as of June 30, 2021, and loans from a major shareholder amounted to approximately RMB 28,595,000, an increase from RMB 25,921,000 as of December 31, 2020[46] Business Operations and Strategy - The group operates a single business unit focused on the sale of electronic equipment and components, primarily in China[20] - The group plans to enhance measures to increase operating capital and cash flow, including closely monitoring administrative expenses and operating costs[14] - The company is actively expanding its existing business and exploring new business opportunities in response to the recovering market economy[38] - The group plans to explore business opportunities in intelligent control systems for heavy industries, such as applications in industrial robots, amid increasing competition in the controller systems market[48] - The company has signed cooperation letters of intent and purchase contracts with multiple trading agents, focusing on metal casting and precision machinery companies to expand its market presence[37] - The company plans to continue purchasing a series of processing equipment to develop new products and enhance its market competitiveness[37] - The group has established strategic partnerships with multiple companies to expand its product and sales markets, focusing on electronic components, communication equipment, and industrial electronic intelligent control systems[42] Corporate Governance and Compliance - The company has confirmed that the information in the report is accurate and complete, with no misleading elements[2] - The company has complied with the corporate governance code as per GEM Listing Rules, with a noted deviation from code provision A.2.1[70] - The company has not adopted new accounting standards that have been issued but not yet effective as of June 30, 2021[16] - The company has not disclosed any changes in the information of directors and supervisors as required by GEM Listing Rules[69] - The board of directors believes that the absence of a CEO does not hinder operational oversight due to the experienced composition of the board[71] - The Audit Committee was established on June 1, 2003, consisting of three independent non-executive directors[72] - The Audit Committee reviewed the accounting standards and practices adopted by the group, discussing internal controls and financial reporting matters[72] - The unaudited consolidated financial statements for the six months ended June 30, 2021, were reviewed by the Audit Committee[72] Shareholder Information - As of June 30, 2021, the company has a total of 370,000,000 domestic shares, representing 74% of the total issued shares[62] - Major shareholders include Ruiyuan Robotics, which holds 370,000,000 domestic shares, accounting for 74% of the registered capital[63] - The company’s major shareholders include Hangzhou Qindie and Zhuji Jinfeng, both holding 370,000,000 domestic shares, representing 74%[64] - The mandatory cash offer concluded with Mr. He holding an interest in 1,000 H shares, representing 0.0008% of the total[70] - The company did not purchase, redeem, or sell any of its listed securities during the reporting period[66] - The board did not recommend any dividend payment for the six months ending June 30, 2021, consistent with the previous year[44] - No dividends were declared for the six months ended June 30, 2021, consistent with the previous year[26] Impact of COVID-19 - The impact of the COVID-19 pandemic has severely disrupted many business operations, making it difficult to estimate the overall effect on the group's business[55] - For the six months ended June 30, 2021, the company recorded a revenue of approximately RMB 22,894,000, an increase of about RMB 6,400,000 compared to RMB 16,494,000 for the same period in 2020, reflecting a recovery from the COVID-19 pandemic[40]

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]