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分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。 – 1 – 財務摘要 Kingwisoft Technology Group Company Limited 金慧科技集團股份有限公司 （前 稱ZZ Technology Group Company Limited中 植 科 技 集 團 股 份 有 限 公 司） （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：08295） 截 至2025年3月31日止年度之 年度業績公告 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）GEM的特色 GEM的 定 位，乃 為 中 小 型 公 司 提 供 一 個 上 市 的 市 場，此 等 公 司 相 比 起 其 他 在 聯 交 所 上 市 的 公 司 帶 有 較 高 投 資 風 險。有 意 投 資 者 應 了 解 投 資 於 該 等 公 司 的 潛 在 風 險， ...

Financial Performance - The company recorded revenue of approximately RMB 603.2 million for the first half of 2024, an increase of 5.2% compared to RMB 573.4 million in the same period of 2023[6]. - The loss attributable to owners of the company for the first half of 2024 was approximately RMB 52.1 million, compared to a profit of approximately RMB 11.5 million in the same period of 2023[6]. - Basic and diluted loss per share for the first half of 2024 was approximately RMB 1.09, compared to earnings of approximately RMB 0.24 per share in the same period of 2023[6]. - The company reported a gross profit of RMB 8.1 million for the first half of 2024, down from RMB 56.3 million in the same period of 2023[8]. - The total comprehensive loss for the period was RMB 50.8 million, compared to a total comprehensive income of RMB 10.1 million in the same period of 2023[9]. - The revenue from external customers for the six months ended September 30, 2024, was RMB 603,208,000, compared to RMB 573,352,000 for the same period in 2023, representing an increase of approximately 5.5%[58]. - The customer contract revenue from value-added telecommunications and related services for the six months ended September 30, 2024, was RMB 603,208,000, up from RMB 573,352,000 in 2023, indicating a growth of about 5.2%[63]. - The revenue from customer service solutions, including contact service systems and centers, was RMB 589,163,000 for the six months ended September 30, 2024, compared to RMB 538,850,000 in 2023, reflecting an increase of approximately 9.3%[63]. Assets and Liabilities - As of September 30, 2024, total assets were approximately RMB 1,219.6 million, down from approximately RMB 1,278.3 million as of March 31, 2024[6]. - The net asset value as of September 30, 2024, was approximately RMB 769.9 million, a decrease from approximately RMB 820.7 million as of March 31, 2024[6]. - As of September 30, 2024, current assets amounted to RMB 406,484 thousand, a decrease from RMB 449,785 thousand as of March 31, 2024, representing a decline of approximately 9.5%[41]. - Total assets minus current liabilities were RMB 832,395 thousand, down from RMB 890,307 thousand, indicating a decrease of about 6.5%[41]. - The total equity as of September 30, 2024, was RMB 769,916 thousand, compared to RMB 820,691 thousand as of March 31, 2024, reflecting a reduction of approximately 6.2%[43]. - The company’s total liabilities as of September 30, 2024, were RMB 764,459 thousand, down from RMB 816,601 thousand as of March 31, 2024, reflecting a decrease of approximately 6.4%[43]. Cash Flow and Financial Costs - The net cash generated from operating activities for the six months ended September 30, 2024, was RMB 52,996 thousand, significantly higher than RMB 22,630 thousand for the same period in 2023, marking an increase of about 134%[48]. - Cash and cash equivalents as of September 30, 2024, totaled RMB 90,012 thousand, a slight decrease from RMB 94,642 thousand as of September 30, 2023[47]. - The company incurred financial costs of RMB 92 thousand for the six months ended September 30, 2024, compared to RMB 2,462 thousand for the same period in 2023, indicating a significant reduction in financial expenses[47]. - The company reported a net cash outflow from investing activities of RMB 60,701 thousand for the six months ended September 30, 2024, compared to RMB 55,319 thousand for the same period in 2023[48]. - The bank borrowing interest for the six months ended September 30, 2024, was RMB 92,000, significantly lower than RMB 1,076,000 in 2023, indicating a decrease of approximately 91.5%[69]. - The total interest expenses for the six months ended September 30, 2024, were RMB 9,330,000, down from RMB 10,697,000 in 2023, representing a decrease of about 12.8%[69]. Research and Development - Research and development expenses increased to RMB 24.8 million in the first half of 2024, compared to RMB 17.5 million in the same period of 2023[8]. - Marketing and R&D expenses totaled approximately RMB 28,400,000, an increase from RMB 21,900,000 in the previous year, mainly due to rising employee costs[109]. - The company obtained one new invention patent and multiple software copyrights during the reporting period, bringing the total to four invention patents and 314 software copyrights[106]. Dividends and Shareholder Information - The company did not recommend the payment of an interim dividend for the first half of 2024, consistent with the previous year[6]. - The board does not recommend the payment of an interim dividend for the first half of 2024, consistent with 2023[132]. - Major shareholders include Zhong Zhi Xin Zhuo Capital Company with a 50.46% stake and Tian Xi Capital Company Limited with a 60.00% stake[139]. - The company has a total of 2,865,644,243 shares held by major shareholders, representing 60.00% of the total shares[142]. - Gfly Ltd, LVYY Cayman Limited, and LVYY Holding Limited each hold 437,500,000 shares, accounting for 9.16% of the total shares[144]. - NINEGO Corporation holds 212,640,219 shares, which is approximately 4.45% of the total shares[145]. Operational Developments - The company established 46 self-service contact centers with a total of 18,350 workstations, enhancing its service capabilities across first to fourth-tier cities[107]. - The group plans to enhance service offerings around quality enterprise clients in the internet and finance sectors to improve customer stickiness and expand market share[122]. - The company will consider timely acquisitions or investments in assets related to its main business to increase service types and enhance core competitiveness and profitability[125]. - The company acknowledges challenges such as insufficient effective demand and rising uncertainties in the domestic and international economic landscape, while also focusing on business innovation and collaborative development strategies[126]. - The group sees significant growth potential in the enterprise service industry driven by rapid advancements in AI technology and will actively explore new business opportunities in the finance and internet sectors[127]. - The company is expanding its digital marketing services and integrating them with new consumer scenarios to enhance service capabilities and ensure resilience against economic cycles[129]. Compliance and Governance - The audit committee reviewed the interim financial statements and confirmed compliance with applicable accounting standards[153]. - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM listing rules[150]. - There were no reported conflicts of interest involving directors or major shareholders during the interim period[149]. - The company has maintained compliance with the corporate governance code as per GEM listing rules[152].

Revenue and Financial Performance - Revenue for the first half of 2024 was approximately RMB 603.2 million, a 5.2% increase compared to RMB 573.4 million in the same period of 2023[3] - Revenue from mainland China increased to RMB 603,208 thousand in the first six months of 2024, up from RMB 573,352 thousand in the same period in 2023, representing a growth of approximately 5.2%[15] - Revenue for the first half of 2024 reached approximately RMB 603.2 million, a 5.2% increase compared to the same period last year[38] - The company's revenue from backend services, including customer service solutions, reached RMB 589,163 thousand in the first six months of 2024, compared to RMB 538,980 thousand in the same period in 2023, showing a growth of approximately 9.3%[16] - Backend service revenue accounted for approximately RMB 589.2 million, representing 97.7% of total revenue[38] - Data center services revenue increased to RMB 11,882 thousand in the first six months of 2024, up from RMB 11,191 thousand in the same period in 2023, reflecting a growth of approximately 6.2%[16] Net Loss and Earnings - The company reported a net loss attributable to owners of approximately RMB 52.1 million for the first half of 2024, compared to a profit of RMB 11.5 million in the same period of 2023[3] - Basic and diluted loss per share for the first half of 2024 was RMB 0.0109, compared to a profit of RMB 0.0024 in the same period of 2023[3] - The company recorded a pre-tax loss of RMB 58.435 million for the first half of 2024, compared to a pre-tax profit of RMB 7.779 million in the same period of 2023[4] - The company reported a net loss attributable to shareholders of RMB 52.1 million in mid-2024, compared to a net profit of RMB 11.5 million in the same period of 2023[43] - Basic loss per share was RMB 0.0109 in mid-2024, compared to a basic earnings per share of RMB 0.0024 in the same period of 2023[43] - Basic and diluted earnings per share for the six months ended September 30, 2024, were calculated based on a net loss attributable to ordinary equity holders of RMB (52,142) thousand, compared to a profit of RMB 11,525 thousand in the same period last year[24] Assets and Liabilities - Total assets as of September 30, 2024, were approximately RMB 1.2196 billion, a decrease from RMB 1.2783 billion as of March 31, 2024[3] - Net asset value as of September 30, 2024, was approximately RMB 769.9 million, down from RMB 820.7 million as of March 31, 2024[3] - Total assets decreased from RMB 440,522 thousand to RMB 425,911 thousand, a decline of 3.3%[6] - Current assets decreased from RMB 837,763 thousand to RMB 793,640 thousand, a decline of 5.3%[6] - Net current assets decreased from RMB 449,785 thousand to RMB 406,484 thousand, a decline of 9.6%[7] - Total equity decreased from RMB 820,691 thousand to RMB 769,916 thousand, a decline of 6.2%[7] - Total assets decreased to RMB 1.2196 billion as of September 30, 2024, from RMB 1.2783 billion as of March 31, 2024[43] - Net asset value decreased to RMB 769.9 million as of September 30, 2024, from RMB 820.7 million as of March 31, 2024[43] - Cash and bank balances, including pledged bank deposits, increased to RMB 90.1 million as of September 30, 2024, from RMB 86.4 million as of March 31, 2024[44] - Interest-bearing bank and other borrowings increased to RMB 230.9 million as of September 30, 2024, from RMB 198.0 million as of March 31, 2024[44] Expenses and Costs - Gross profit for the first half of 2024 was RMB 8.148 million, a significant decrease from RMB 56.312 million in the same period of 2023[4] - R&D expenses increased to RMB 24.761 million in the first half of 2024, up from RMB 17.465 million in the same period of 2023[4] - Administrative expenses rose to RMB 43.577 million in the first half of 2024, compared to RMB 41.898 million in the same period of 2023[4] - Service costs for the first half of 2024 increased to approximately RMB 595.1 million, primarily due to higher employee costs, subcontracting fees, and rental expenses[41] - Marketing and R&D expenses for the first half of 2024 totaled approximately RMB 28.4 million, up from RMB 21.9 million in the same period last year[41] - Administrative expenses increased to approximately RMB 43.6 million, mainly due to overall higher expenses compared to the same period last year[42] - Financial costs for the first half of 2024 were approximately RMB 9.3 million, including interest on bank loans, lease liabilities, and acquisition-related payments[42] - Financial costs decreased to RMB 9,330 thousand in the first six months of 2024, down from RMB 10,697 thousand in the same period in 2023, a reduction of approximately 12.8%[18] Cash Flow and Financing - Net cash generated from operating activities increased from RMB 22,630 thousand to RMB 52,996 thousand, a growth of 134.2%[9] - Net cash used in investing activities increased from RMB 55,319 thousand to RMB 60,701 thousand, a growth of 9.7%[9] - Net cash generated from financing activities improved from a net outflow of RMB 36,744 thousand to a net inflow of RMB 11,327 thousand[9] - Cash and cash equivalents increased from RMB 86,424 thousand to RMB 90,012 thousand, a growth of 4.2%[9] - The company secured an interest-free, unsecured loan of RMB 20,000 thousand from NINEGO Corporation and RMB 5,000 thousand from FUNGHWA Ltd., both due on August 4, 2025[31] Government Subsidies and Tax Credits - Government subsidies and grants decreased to RMB 10,358 thousand in the first six months of 2024, compared to RMB 19,274 thousand in the same period in 2023, a decline of approximately 46.3%[19] - The company's income tax credit increased to RMB 7,660 thousand in the first six months of 2024, up from RMB 1,891 thousand in the same period in 2023, reflecting a significant increase of approximately 305%[22] - The company recorded an income tax credit of approximately RMB 7.7 million, including deferred tax credits and adjustments for over-provisioning in previous periods[42] Business Operations and Strategy - The company's main business includes investment holding, backend services, marketing and agency services, and data center services[10] - The company expanded its self-operated contact service centers, with 46 centers totaling 18,350 workstations, covering Tier 1-4 cities[40] - The company obtained 1 new invention patent and multiple software copyrights, bringing the total to 4 invention patents and 314 software copyrights[39] - The company plans to focus on enriching service types for high-quality enterprise clients in the internet and financial industries to enhance customer stickiness and expand market share[48] - The company will consider acquisitions or investments in assets with synergistic effects to increase service types, expand high-quality customer base, and improve technological R&D capabilities[49] - The company has expanded its digital marketing services and integrated them with existing internet marketing capabilities, increasing the number of service clients in this sector[53] - The company is deepening the integration of its digital marketing services with new consumer scenarios to enhance service capabilities and build a healthier ecosystem[53] - The company is actively exploring the integration of marketing and backend services, focusing on local life and cross-border e-commerce businesses to achieve brand effectiveness[53] Corporate Governance and Compliance - The interim financial statements are prepared in accordance with Hong Kong Accounting Standards 34 and GEM Listing Rules[11] - No interim dividend was recommended for the first half of 2024, consistent with the same period in 2023[3] - The company applied and complied with all provisions of the Corporate Governance Code as per GEM Listing Rules Appendix C1 during mid-2024[65] - The audit committee reviewed the interim financial statements and confirmed compliance with applicable accounting standards and adequate disclosure[65] - No purchase, sale, or redemption of the company's listed securities occurred during the mid-2024 period[62] - No directors, controlling shareholders, or their close associates had interests in businesses competing with the company during mid-2024[63] - All directors confirmed compliance with the code of conduct for securities transactions during mid-2024[64] Shareholding and Ownership - The company's directors and senior executives hold significant equity stakes, with Mr. Hu Shilong holding 4.45% and 60.00% of the company's shares through controlled entities and voting rights[55][56] - Ms. Zhou Fang holds 2.38% of the company's shares through a controlled entity[55] - Zhong Zhi Xin Zhuo Capital Company Limited holds 50.46% of the company's shares as a beneficial owner[57] - Kang Bang Qi Hui (Hong Kong) Limited holds 9.54% of the company's shares as a beneficial owner[57] - Tian Xi Capital Company Limited, through its controlled entities, holds 60.00% of the company's shares[57] - Gfly Ltd holds 9.16% of the company's shares as a beneficial owner[57] - NINEGO Corporation holds 4.45% of the company's shares, with Ms. Liu Yingying holding a 59.40% interest in NINEGO[58][60] Accounts Receivable and Payable - Accounts receivable as of September 30, 2024, stood at RMB 612,426 thousand, with a provision for impairment of RMB 11,056 thousand, resulting in a net carrying amount of RMB 601,370 thousand[26] - The aging analysis of accounts receivable as of September 30, 2024, showed RMB 189,693 thousand within 0-60 days, RMB 180,226 thousand within 61-120 days, RMB 37,553 thousand within 121-180 days, and RMB 193,898 thousand over 180 days[27] - Accounts payable as of September 30, 2024, totaled RMB 14,851 thousand, with RMB 6,912 thousand within 0-60 days, RMB 3,774 thousand within 61-120 days, RMB 145 thousand within 121-180 days, and RMB 4,020 thousand over 180 days[28] Staff and Employment - The company employed 14,201 staff as of September 30, 2024, an increase from 13,446 as of March 31, 2024[47] - Total staff costs, including directors' remuneration, increased to RMB 424.8 million in mid-2024 from RMB 371.2 million in the same period of 2023[47] Investments and Acquisitions - The company purchased property and equipment worth approximately RMB 29,844 thousand in the six months ended September 30, 2024, up from RMB 20,289 thousand in the same period last year[25] - The fair value of financial assets measured at fair value on a recurring basis as of September 30, 2024, was RMB 3,812 thousand, all classified as Level 3[33] Other Financial Information - The weighted average number of ordinary shares used for calculating basic and diluted earnings per share remained constant at 4,776,020 thousand shares for both 2024 and 2023[23] - The company issued and fully paid ordinary shares with a nominal value of HKD 0.01 each, totaling 4,776,019,590 shares as of September 30, 2024[29]

Corporate Transactions - The Group completed a disposal of 51% equity interest in Chengdu ThinkMore Technology Co., Ltd. for a total consideration of RMB30.6 million, reducing its equity interest from 100% to 49%[18]. - The Group completed the sale of 51% equity in Chengdu Rongzhi Interactive Technology Co., Ltd. for a total consideration of RMB 30.6 million, reducing its ownership from 100% to 49%[21]. - The equity registration for the disposal transaction was completed on 6 March 2024[18]. - The remaining consideration for the equity transfer must be paid within one year from the effective date of the agreement[18]. - The Group had no significant acquisitions or disposals of subsidiaries, associates, and joint ventures during the year, except for the aforementioned transaction[19]. Financial Performance - The annual report covers the financial performance for the year ended 31 March 2024[17]. - The Group generated revenue of approximately RMB 1,240.9 million for the financial year ended 31 March 2024, representing a 39.6% increase compared to the previous year[35]. - Revenue from back-office services accounted for approximately RMB 1,186.0 million, which is 95.6% of the total revenue[35]. - For the profit guarantee period from 1 April 2022 to 31 March 2023, the audited consolidated net profit attributable to the equity holders of KingNine was approximately RMB 94.8 million, which was less than the guaranteed profit of RMB 150 million, resulting in a compensation of approximately RMB 41.5 million[29]. - For the profit guarantee period from 1 April 2023 to 31 March 2024, the audited consolidated net profit attributable to the equity holders of KingNine is projected to be approximately RMB 148.2 million, which is less than the guaranteed profit of RMB 180 million, leading to a compensation of approximately RMB 41.3 million[29]. - The Group recorded a revenue of approximately RMB1,240.9 million for the fiscal year ending March 31, 2024, representing a 39.6% increase compared to approximately RMB888.6 million in the previous year[42][45]. - Back-office services revenue was approximately RMB1,185.9 million, accounting for 95.6% of total revenue, with a significant increase from RMB835.6 million in the previous year[49]. - The Group recognized a non-cash impairment loss on goodwill of approximately RMB224.8 million, down from RMB349.4 million in the previous year, indicating a reduction in impairment charges[53]. - The Group's net other income and gains for the year were approximately RMB74.5 million, a decrease from RMB160.8 million in the previous year, mainly due to changes in fair value considerations[50]. - Loss attributable to owners of the Company for the Year was approximately RMB197.4 million, compared to RMB230.3 million in the previous year[70]. - Basic and diluted losses per share for the Year were approximately RMB4.13 cent, down from RMB5.03 cent in 2023[71]. Strategic Focus and Innovation - The Group aims to enhance customer satisfaction and ensure sustainable business development while embracing cutting-edge technologies such as AI[30]. - The Group's long-term strategy focuses on innovation to adapt to changes in consumer habits and behaviors[35]. - The Group has been actively expanding new service scenarios in the enterprise services sector to consolidate its industry leadership[30]. - The Group's commitment to technological innovation is reflected in its continuous efforts to provide professional services to customers[30]. - The Group acquired 37 new software copyrights and cumulatively holds 270 software copyrights and 3 invention patents, reflecting its commitment to independent innovation and R&D[37][39]. - The Group's focus on artificial intelligence and big data technologies has led to positive results in integrating these innovations into business scenarios, enhancing operational efficiency[39]. - The Group is considering acquiring or investing in relevant assets to expand service categories and enhance research and development capabilities[93]. - The Group plans to focus on premium corporate clients in the Internet and finance sectors to diversify service categories and strengthen customer loyalty[92]. Operational Developments - The Group established and reconstructed multiple self-operated contact service centers, increasing the total number of completed workstations to 18,794 across 46 centers, enhancing its service capabilities across tier 1 to tier 4 cities[41][44]. - The cost of services incurred during the year was approximately RMB1,113.0 million, up from RMB767.4 million in the previous year, primarily due to increased staff costs and the operational scaling of new contact service centers[48][51]. - The total staff cost for the year amounted to approximately RMB809.3 million, with an increase in employees from 11,755 in 2023 to 13,446 in 2024[84]. - The Group is focused on project tendering and implementation of self-operated contact centers to support new orders and achieve revenue contributions[119]. Market Outlook and Challenges - The service industry in China is expected to recover significantly, contributing to improved market expectations[112]. - The Group's major clients are from finance, telecommunications, and internet sectors, which are anticipated to recover rapidly with the economic recovery[117]. - The company continues to face challenges such as insufficient effective demand and increasing external uncertainties, but sees growth opportunities in the financial and internet sectors as the economy recovers[120]. - AI technology is evolving rapidly, presenting significant opportunities for development in the enterprise service industry[117]. - The company is actively exploring new business opportunities in the financial industry and live e-commerce, aiming for healthy growth and enhanced shareholder value[120]. Governance and Leadership - Mr. Hu Shilong was appointed as the executive director and CEO of the company in November 2023[137]. - The company holds approximately 4.45% of its shares through NINEGO Corporation, and Mr. Hu is a shareholder of Dalian Kingwisoft with about 32.91% ownership[137]. - Ms. Zhou Fang, appointed as an executive director in November 2023, holds approximately 9.47% of Dalian Kingwisoft shares through FUNGHWA Ltd.[143]. - The company has a strong leadership team with extensive experience in IT and management, including Mr. Li Xiang and Ms. Liu Xiaochen, who have held significant positions in the company since 2023 and 2016 respectively[140][149]. - The company is focused on expanding its market presence and enhancing its product offerings through strategic leadership appointments and experienced management[140][143]. - The company has a diverse board of directors, including independent non-executive directors with extensive backgrounds in finance and business development, such as Mr. Stephen Markscheid[156]. - The company aims to leverage its leadership's expertise to drive innovation and growth in the technology sector[140][157]. - The company is committed to maintaining strong corporate governance through its audit and nomination committees[156]. Compliance and Risk Management - Dalian Kingwisoft Technology Co., Ltd., a subsidiary, is responsible for handling a large amount of personal information from clients, ensuring compliance with the Cybersecurity Law of China[176]. - The Group's risk management includes compliance risk related to the confidentiality of client information[176]. - The Group emphasizes the importance of maintaining confidentiality in client information as per signed contracts[176]. - The Group has implemented strict internal control procedures to ensure the security and confidentiality of client data, but cannot guarantee that personal information will not be leaked or stolen[182]. - The Group has not found any leakage of confidential client information during the financial year and has passed the annual review for its information security system certification[186]. - All employees are required to sign a confidentiality agreement upon joining the Company, with legal and financial consequences for any violations[185]. - The Group has obtained ISO 27001 Information Security Management System Certification, reinforcing its commitment to information security[191][196]. Environmental Responsibility - The Group's environmental policies include green office practices, recycling, and reducing resource consumption to protect the environment[193][198]. - The Group's management is committed to maintaining awareness of environmental responsibilities among employees[193].

Financial Performance - The company recorded revenue of approximately RMB 1,240,900,000 for the fiscal year ending March 31, 2024, representing a 39.6% increase compared to RMB 888,600,000 in the previous fiscal year[6]. - The loss attributable to the owners of the company for the year was approximately RMB 197,400,000, an improvement from a loss of RMB 230,300,000 in the previous fiscal year[6]. - The basic loss per share for the year was approximately RMB 4.13, compared to RMB 5.03 in the previous fiscal year[6]. - The gross profit for the year was RMB 127,877,000, compared to RMB 121,238,000 in the previous year[6]. - The company reported a pre-tax loss of RMB 199,917,000, compared to RMB 236,956,000 in the previous fiscal year[6]. - Total revenue for the group reached RMB 1,240,904 thousand in 2024, representing a growth of 39.6% compared to RMB 888,622 thousand in 2023[37]. - Revenue from customer contracts recognized over time was RMB 1,240,813 thousand in 2024, up from RMB 887,282 thousand in 2023, indicating a growth of 39.9%[37]. - The group reported a pre-tax loss of RMB 801,221 thousand in 2024, significantly higher than the RMB 549,095 thousand loss in 2023, marking an increase of 45.8%[43]. - The group recognized a total tax expense of RMB 5,030 thousand in 2024, compared to a tax benefit of RMB 739 thousand in 2023[46]. - The company reported a basic loss attributable to ordinary equity holders of RMB 197,382,000 for the year ending March 31, 2024, compared to a loss of RMB 230,329,000 for the previous year[49]. Assets and Liabilities - Total non-current assets decreased to RMB 440,522,000 from RMB 640,107,000 in the previous year[14]. - Current assets totaled RMB 837,763,000, slightly down from RMB 858,113,000 in the previous year[14]. - Current liabilities increased to RMB 387,978 thousand in 2024 from RMB 239,415 thousand in 2023, representing a 62.2% increase[15]. - Total assets minus current liabilities decreased to RMB 890,307 thousand in 2024 from RMB 1,258,805 thousand in 2023, a decline of 29.3%[15]. - Non-current liabilities decreased significantly to RMB 69,616 thousand in 2024 from RMB 233,528 thousand in 2023, a reduction of 70.2%[15]. - Total equity decreased to RMB 820,691 thousand in 2024 from RMB 1,025,277 thousand in 2023, reflecting a decline of 20%[17]. - Cash and cash equivalents are not explicitly mentioned, but the net current assets decreased from RMB 618,698 thousand in 2023 to RMB 449,785 thousand in 2024, indicating a liquidity contraction[15]. - The company reported a significant increase in interest-bearing bank and other borrowings, rising to RMB 198,044 thousand in 2024 from RMB 68,500 thousand in 2023, an increase of 189.5%[15]. - The company’s retained earnings decreased from RMB 973,168 thousand in 2023 to RMB 776,159 thousand in 2024, a decrease of 20.2%[17]. - The total liabilities increased by RMB 102,580 thousand as of March 31, 2024, reflecting the impact of the new accounting standards[28]. Operational Highlights - The company established and renovated multiple self-operated contact service centers, increasing the total number of completed workstations to 18,794, covering first to fourth-tier cities[79]. - The company obtained 37 new software copyrights and 3 invention patents during the reporting period, reflecting its commitment to innovation in artificial intelligence and big data technology[78]. - The company is focused on enhancing customer satisfaction and sustainable business development while embracing AI and other cutting-edge technologies[75]. - The company has maintained its long-term strategy of innovation to adapt to changing consumer habits and behaviors[75]. - The company is actively exploring new business opportunities in the financial and internet live-streaming sectors to drive growth and enhance shareholder value[108]. - The company is expanding its digital marketing services, particularly in live e-commerce, to enhance service capabilities and adapt to market trends[110]. Market and Economic Outlook - The macroeconomic outlook for China in 2024 is characterized by a "comprehensive recovery," supported by policies aimed at stimulating economic growth and increasing market confidence[105]. - The service industry is expected to stabilize and improve, indicating a positive market outlook and increased employment opportunities[105]. - The company anticipates rapid recovery in its main customer sectors, including financial securities and internet industries, as the economy continues to recover[107]. - AI technology is evolving rapidly, and the company recognizes the growing value of data as a new production factor, presenting significant development opportunities[108]. Corporate Governance and Compliance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[19]. - The audit committee has reviewed the accounting principles and practices adopted by the group, ensuring consistency with the preliminary announcement for the financial year ending March 31, 2024[117]. - The company's auditor, Ernst & Young, confirmed that the figures in the preliminary announcement align with the group's consolidated financial statements for the year[117]. - The company has maintained compliance with all regulatory requirements throughout the year[115]. - The board has resolved to abolish the position of compliance officer effective June 26, 2024, following amendments to the GEM listing rules[118]. Shareholder and Capital Management - The company did not recommend the payment of dividends for the year, consistent with the previous year[6]. - The total amount raised from the subscription of new shares was approximately HKD 235 million, with a net amount of about HKD 215 million after expenses[102]. - Approximately HKD 27 million of the net proceeds from the subscription will be used for existing business development, while HKD 105 million will be allocated for the expansion and acquisition of new media business related to live e-commerce and digital marketing[102]. - The net proceeds of approximately HKD 215 million will be allocated as follows: HKD 53.9 million for existing business development and HKD 161.1 million for general working capital[103]. - The revised allocation includes reallocating HKD 105 million originally intended for business expansion and acquisitions to enhance the group's financial position and liquidity[103]. Employee and Workforce - The total employee cost for the year was approximately RMB 809.3 million, with the number of employees increasing to 13,446 from 11,755 in 2023[95].

Financial Performance - The company recorded revenue of approximately RMB 573,400,000 for the first half of 2023, an increase of 43.9% compared to RMB 398,500,000 in the same period of 2022[6]. - The profit attributable to owners of the company for the first half of 2023 was approximately RMB 11,500,000, down from RMB 34,900,000 in the same period of 2022[6]. - Basic earnings per share for the first half of 2023 were approximately RMB 0.24, compared to RMB 0.80 in the same period of 2022[6]. - Gross profit for the first half of 2023 was RMB 56,312,000, down from RMB 68,204,000 in the same period of 2022[7]. - Total comprehensive income for the first half of 2023 was RMB 10,094,000, down from RMB 38,688,000 in the same period of 2022[9]. - The company reported a net loss of RMB 2,457,000 for the second quarter of 2023, compared to a profit of RMB 21,346,000 in the same quarter of 2022[7]. - The company reported a profit of RMB 11,525 thousand for the six months ended September 30, 2023, compared to a profit of RMB 34,884 thousand for the same period in 2022, reflecting a decrease of approximately 66.9%[15]. - The total comprehensive income for the six months ended September 30, 2023, was RMB 10,094 thousand, compared to RMB 38,688 thousand for the same period in 2022, showing a decrease of about 73.9%[15]. Assets and Liabilities - As of September 30, 2023, total assets were approximately RMB 1,483,700,000, slightly down from RMB 1,492,800,000 as of March 31, 2023[6]. - The net asset value as of September 30, 2023, was approximately RMB 1,036,000,000, an increase from RMB 1,025,900,000 as of March 31, 2023[6]. - The company’s total equity as of September 30, 2023, was RMB 1,035,951 thousand, which includes non-controlling interests of RMB 9,836 thousand[13]. - The company’s retained earnings as of September 30, 2023, were RMB (158,449) thousand, an improvement from RMB (169,974) thousand as of March 31, 2023[15]. - Accounts receivable as of September 30, 2023, amounted to RMB 669,327,000, an increase from RMB 605,941,000 as of March 31, 2023[40]. - The aging analysis of accounts receivable shows that RMB 291,069,000 was within 0 to 60 days, up from RMB 233,016,000 as of March 31, 2023[41]. - The average credit period for accounts payable is 30 days, with total accounts payable amounting to RMB 25,347,000 as of September 30, 2023[42]. - The company had borrowings from a related company amounting to approximately RMB 185,203,000 as of September 30, 2023, compared to RMB 177,144,000 as of March 31, 2023[46]. Cash Flow - The company reported a net cash inflow from operating activities of RMB 22,630 thousand for the six months ended September 30, 2023, a significant increase from RMB 12 thousand in the same period of 2022[18]. - The company incurred a net cash outflow from investing activities of RMB 55,319 thousand for the six months ended September 30, 2023, compared to RMB 82,428 thousand in the same period of 2022, indicating a reduction in cash outflow by approximately 32.9%[18]. - The company’s cash and cash equivalents decreased to RMB 94,642,000 as of September 30, 2023, from RMB 163,697,000 as of March 31, 2023[11]. - The cash and cash equivalents decreased to RMB 94,642 thousand as of September 30, 2023, down from RMB 219,365 thousand as of September 30, 2022, reflecting a decline of approximately 56.9%[18]. Revenue Breakdown - Revenue from value-added telecommunications and related services for the six months ended September 30, 2023, was RMB 573,352,000, an increase of 44% compared to RMB 398,487,000 for the same period in 2022[29]. - Revenue from backend services for the three months ended September 30, 2023, was RMB 283,077,000, up 43% from RMB 197,926,000 in the same period last year[29]. - Backend service revenue accounted for 94.0% of total revenue, amounting to approximately RMB 539,000,000, showing steady recovery[53]. - The internet integrated marketing business grew significantly, reaching approximately RMB 23,200,000, a 135.7% increase year-on-year[53]. - Revenue from external customers in mainland China for the three months ended September 30, 2023, was RMB 301,696,000, an increase of 44.6% from RMB 208,450,000 in the same period last year[28]. Dividends and Shareholder Information - The company did not recommend the payment of an interim dividend for the first half of 2023, consistent with 2022[6]. - The board does not recommend the payment of an interim dividend for the six months ended September 30, 2023, consistent with the previous year[38]. - Major shareholders include Zhong Zhi Xin Zhuo Capital Company with 50.46% and Tian Xi Capital Company Limited with 60.00% ownership[76]. Management and Corporate Governance - The mid-term financial statements were approved by the board on November 7, 2023[50]. - The company has appointed Hu Shilong as the new CEO effective November 7, 2023, following a vacancy since March 6, 2023[91]. - The company has complied with the GEM Listing Rules and has adopted a code of conduct for directors regarding securities trading[89]. - The company’s financial statements have been reviewed by the audit committee and are deemed to comply with applicable accounting standards[94]. Market Outlook and Strategy - The company plans to enhance service types and expand market share by focusing on high-quality enterprise clients in the internet and finance sectors[67]. - The company anticipates rapid recovery in its main customer sectors, including finance, telecommunications, and internet industries, due to ongoing economic recovery[71]. - The company is actively exploring new business opportunities in the financial sector and internet live commerce, aiming for healthy growth in domestic business layout[71]. - The consumption market is stabilizing with significant growth in online consumption and demand for service consumption continuing to be released[70]. - In the first three quarters of 2023, the GDP reached 91,302.7 billion yuan, growing by 5.2% year-on-year[70]. - The service industry, particularly information transmission, software, and IT services, saw value-added growth of 12.1% and 9.5% respectively[70].

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分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。 Kingwisoft Technology Group Company Limited 金慧科技集團股份有限公司 （前 稱ZZ Technology Group Company Limited中 植 科 技 集 團 股 份 有 限 公 司） （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：08295） 截 至2023年9月30日止六個月之 中期業績公告 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）GEM的特色 GEM的 定 位，乃 為 中 小 型 公 司 提 供 一 個 上 市 的 市 場，此 等 公 司 相 比 起 其 他 在 聯 交 所 上 市 的 公 司 帶 有 較 高 投 資 風 險。有 意 投 資 的 人 士 應 了 解 投 資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投 ...

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的內 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分內容而產生或因依賴該等內容而引致的 任何損失承擔任何責任。 Kingwisoft Technology Group Company Limited 金 慧 科 技 集 團 股 份 有 限 公 司 （前稱ZZ Technology Group Company Limited中植科技集團股份有限公司） （於開曼群島註冊成立的有限公司） （股份代號：08295） 截 至2023年6月30日 止 三 個 月 之 第 一 季 度 業 績 公 告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其 他 在 聯 交 所 上 市 的 公 司 帶 有 較 高 投 資 風 險。有 意 投 資 者 應 了 解 投 資 於 該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由 於GEM上 市 公 司 普 遍 為 中 小 型 公 司，在GEM買 賣 的 證 券 可 能 會 較 於 聯 交 所 主 板 買 賣 之 ...

Financial Performance - The company recorded revenue of approximately RMB 271,700,000 for Q1 2023, an increase of 42.9% compared to RMB 190,000,000 in Q1 2022[7] - The profit attributable to owners of the company for Q1 2023 was approximately RMB 11,500,000, down from RMB 12,500,000 in the same period of 2022[7] - Basic earnings per share for Q1 2023 were approximately RMB 0.24, compared to RMB 0.30 in Q1 2022[7] - The gross profit for Q1 2023 was RMB 29,128,000, while the gross profit for Q1 2022 was RMB 37,941,000, indicating a decrease in gross profit margin[8] - The total comprehensive income for Q1 2023 was RMB 12,590,000, down from RMB 16,667,000 in Q1 2022[10] - The company reported a pre-tax profit of RMB 9,491,000 for Q1 2023, compared to RMB 11,185,000 in Q1 2022[8] - The company's revenue for the three months ended June 30, 2023, was RMB 271,656,000, representing a 43% increase from RMB 190,037,000 in the same period of 2022[22] - The company achieved a net profit attributable to ordinary equity holders of approximately RMB 11.5 million in Q1 2023, down from RMB 12.5 million in Q1 2022[43] - Basic and diluted earnings per share for Q1 2023 were approximately RMB 0.24, compared to RMB 0.30 in Q1 2022[45] Revenue Sources - The revenue from backend services was RMB 255,773,000, up from RMB 177,871,000 year-over-year, while comprehensive marketing and agency services revenue increased to RMB 10,512,000 from RMB 5,905,000[24] - Backend service revenue accounted for 94.2% of total revenue, amounting to approximately RMB 255.8 million, showing a significant recovery[38] - The company reported a significant increase in revenue from external customers in mainland China, rising to RMB 271,656,000 from RMB 190,037,000[22] Expenses and Costs - Other income and net losses for Q1 2023 amounted to RMB 19,484,000, significantly higher than RMB 2,785,000 in Q1 2022[8] - Research and development expenses increased to RMB 9,483,000 in Q1 2023 from RMB 6,748,000 in Q1 2022, reflecting a focus on innovation[8] - The company increased its service costs to approximately RMB 242.5 million in Q1 2023, up from RMB 152.1 million in Q1 2022, primarily due to rising employee costs and other expenses[42] - The company reported a pre-tax profit for the three months ended June 30, 2023, was impacted by employee benefits expenses totaling RMB 175,946,000, compared to RMB 105,054,000 in the same period last year[27] - The total financial costs for the three months ended June 30, 2023, were RMB 5,719,000, compared to RMB 5,160,000 in the same period of 2022[26] Dividends and Shareholder Information - The company did not recommend the payment of a dividend for Q1 2023, consistent with the previous year[7] - The board of directors does not recommend the payment of a dividend for the first fiscal quarter of 2023, consistent with 2022[52] - As of June 30, 2023, major shareholders include Zhong Zhi Xin Zhuo Capital Company with 2,409,823,718 shares (50.46%) and 康邦齊輝（香港）有限公司 with 455,820,525 shares (9.54%)[56] - Tian Xi Capital Company Limited and Zhong Zhi Ze Yun Capital Company Limited each hold 2,865,644,243 shares, representing 60.00% of the company[56] - No purchases, sales, or redemptions of the company's listed securities occurred during the first fiscal quarter of 2023[58] Economic and Market Context - The overall economic environment in China is improving, with a GDP growth of 5.5% in the first half of 2023, which is expected to positively impact the company's business prospects[46] - The company is focused on enhancing customer satisfaction and sustainable business development amidst the recovering market demand[38] - The company plans to explore new business opportunities in the financial sector and internet live commerce while maintaining strong relationships with existing clients[50] Compliance and Governance - The audit committee has reviewed the first quarter financial statements and confirmed compliance with applicable accounting standards and adequate disclosure[63] - Discussions are ongoing regarding the potential delegation of voting rights for shares held by Zhongzhi Xinzhuo and 康邦（香港） to a major shareholder, which may lead to a mandatory general offer under the Takeovers Code[64] - The company corrected a prior misstatement regarding service revenue, resulting in a restated revenue figure of RMB 190,037,000 for the three months ended June 30, 2022[18]

Company Overview - Kingwisoft Technology Group Company Limited was established in 2010 and is listed on the GEM of The Stock Exchange of Hong Kong Limited[12]. - The Company is headquartered in Hong Kong, with its principal place of business located in Causeway Bay[20]. - The principal activity of Kingwisoft Technology Group Company Limited is investment holding, with subsidiaries engaged in back-office services, marketing, and data center services[163]. Acquisitions and Subsidiaries - The Group acquired KingNine Holdings Limited on October 15, 2020, which constituted a very substantial acquisition under the GEM Listing Rules[13]. - KingNine Group's principal activities include back-office services, comprehensive marketing and agency services, and data center services[16]. - The Group's subsidiary, Kingwisoft Credit Limited, holds a money lenders license, enhancing its financial services capabilities[14]. - The Group completed the acquisition of a 40% equity interest in Mianyang Kingwisoft Zhiyuan Internet Service Co., Ltd. for a cash consideration of RMB 5 million, making it a wholly owned subsidiary[27]. - The Group also acquired 100% equity interest in Beijing Huiweilai Technology Co., Ltd. for RMB 20 million, focusing on local life service sector[27]. Financial Performance - Kingwisoft Technology Group generated revenue of approximately RMB 888.6 million for the financial year ended 31 March 2023, an increase of 21.1% over the same period last year[41]. - Revenue from back-office services was approximately RMB 837.0 million, accounting for 94.2% of total revenue[41]. - The audited consolidated net profit attributable to the equity holders of KingNine for the period ended 31 March 2023 was approximately RMB 94.8 million, which is less than the guaranteed profit of RMB 150 million[39]. - The Compensation for the Year due to the shortfall in guaranteed profit was approximately RMB 41.5 million[39]. - The Group recorded a loss attributable to owners of approximately RMB 230.1 million, compared to a profit of RMB 80.4 million in the previous financial year[67]. - Basic and diluted losses per share for the Year were approximately RMB 5.03 cents, a decline from earnings of RMB 1.92 cents per share in 2022[68]. Operational Challenges - The Group faced challenges due to external factors such as the COVID-19 pandemic, which impacted service demand and increased operating costs[40]. - The Group's proactive measures to maintain operations during the pandemic included flexible working arrangements, which significantly affected profitability[40]. - The Group's proactive measures during the pandemic included flexible work arrangements and enhanced operational controls, which, while stabilizing operations, increased overall operational costs[43]. Strategic Focus and Innovation - The Group's long-term strategy emphasizes innovation to adapt to changes in consumer habits and behaviors[41]. - The Group's innovation strategy led to the acquisition of 1 new invention patent and 49 software copyrights, totaling 4 invention patents and 233 software copyrights[47][50]. - The Group plans to focus on premium corporate clients in the Internet and finance sectors to diversify service categories and strengthen customer loyalty[90][95]. - The Group aims to expand its service categories and premium customer base through acquisitions and investments, thereby increasing core competitiveness and profitability[91][95]. Financial Position and Capital Management - The Group's cash and bank balances increased to approximately RMB 166.8 million from RMB 86.0 million in 2022[77]. - Interest-bearing bank and other borrowings rose to approximately RMB 245.6 million from RMB 140.8 million in 2022[78]. - The current ratio improved to 3.6 from 2.1 in 2022, while the gearing ratio increased to 23.9% from 12.9%[79]. - The Group's financial position is expected to strengthen through the additional capital raised from the subscriptions, broadening the shareholder base[103]. Compliance and Risk Management - Compliance risk is highlighted as a significant concern, particularly regarding the handling of personal information from clients in accordance with Chinese cybersecurity laws[165]. - The Group emphasizes the importance of confidentiality in managing client information as part of its compliance strategy[165]. - The annual report outlines the Group's commitment to risk management and compliance with regulatory requirements[164]. - The Group has implemented strict internal control procedures to ensure the security and confidentiality of client data, but cannot guarantee that personal information will not be leaked or stolen[172]. Employee Management and Corporate Governance - The Group has developed a remuneration structure to attract and retain talent, with no material interruptions to operations or labor disputes reported[192]. - The total employee compensation package is determined based on job responsibilities, local market standards, and industry trends[93]. - The Board of Directors includes experienced professionals with backgrounds in finance, investment banking, and technology[162]. - All employees are required to sign a confidentiality agreement upon joining the Company, with legal and financial consequences for any violations[175]. Market Trends and Future Outlook - The economic recovery is expected to provide the Group with more opportunities for rapid growth, particularly in sectors like finance and Internet[121][123]. - The Group is focusing on exploring new business opportunities in the financial industry and livestreaming e-commerce to enhance shareholder value[125]. - The Group aims to establish a livestreaming service framework to align with marketing trends and enhance service capabilities[127]. - The Group is expanding its presence in live e-commerce and digital marketing services, integrating these with existing capabilities[127].