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 （ 於開曼群島註冊成立的有限公司 ） （股份代號：08295） 於2025年8月15日舉行的股東週年大會的 投票表決結果 附註： 承董事會命 Kingwisoft Technology Group Company Limited 金慧科技集團股份有限公司 主席 Kingwisoft Technology Group Company Limited金慧科技集團股份有限公司 （「本公司」）於2025年8月15日舉行的股東週年大會（「股東週年大會」）上，日 期為2025年7月16日的股東週年大會通告所載的所有提呈決議案已以投票 ...

Kingwisoft Technology Group Company Limited 金 慧 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） 有關於 2025 年 8 月 15 日舉行之股東週年大會之惡劣天氣安排 茲提述 Kingwisoft Technology Group Company Limited 金慧科技集團股份有限公司（「本 公司」）於 2025 年 7 月 16 日刊發的通函（「通函」）及股東週年大會通告（「通告」）。除 文義另有所指外，本公告所用詞彙與通函及通告所界定者具有相同涵義。 惡劣天氣安排 據通告，股東週年大會原訂於 2025 年 8 月 15 日（星期五）上午 11 時正假座香港九龍 旺角太子道西 193 號新世紀廣場 1 期 16 樓 1608 室。 由於熱帶氣旋臨近，香港天氣情況於股東週年大會原定舉行時間存在或會轉壞之風險。 有鑑於此，本公司謹此宣佈若： 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 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 FF301 致：香港交易及結算所有限公司 公司名稱: 金慧科技集團股份有限公司 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08295 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 ...

Company Profile [Company Profile](index=4&type=section&id=Company%20Profile) Jinhui Technology Group Co, Ltd is a Hong Kong-based investment holding company founded in 2010 and listed on the GEM of the Hong Kong Stock Exchange, expanding its main business to provide back-office, comprehensive marketing, agency, and data center services in China after acquiring the KingNine Group in October 2020 - The Group is an investment holding company headquartered in Hong Kong and listed on the GEM of the Hong Kong Stock Exchange (stock code: 08295)[12](index=12&type=chunk)[15](index=15&type=chunk) - The Group completed the acquisition of the KingNine Group on October 15, 2020, which constituted a very substantial acquisition and a connected transaction[13](index=13&type=chunk) - The Group's principal businesses include back-office services (mainly providing customer service solutions and establishing contact service systems and centers), comprehensive marketing and agency services, and data center services[15](index=15&type=chunk) Corporate Information [Corporate Information](index=5&type=section&id=Corporate%20Information) This chapter provides key corporate information, including core management, committee members, registered office, principal place of business, share registrar, auditor, and principal bankers - The Chairman of the Board is **Mr Qiu Xiaojian**, and the Chief Executive Officer is **Mr Hu Shilong**[17](index=17&type=chunk)[18](index=18&type=chunk) - The company's auditor is **Ernst & Young**[20](index=20&type=chunk) - The company has an Audit Committee, a Nomination Committee, and a Remuneration Committee, chaired by **Ms Li Guiying**, **Mr Qiu Xiaojian**, and **Mr Zeng Liang**, respectively[17](index=17&type=chunk) Management Discussion and Analysis [Business Review](index=8&type=section&id=BUSINESS%20REVIEW) The Group actively responded to a complex global economy and technological changes, maintaining a focus on customer satisfaction and sustainable business development, with total revenue remaining stable at approximately RMB 1.2407 billion | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | **Total Revenue** | Approx. RMB 1,240.7 million | Approx. RMB 1,240.9 million | | **Back-office Service Revenue** | Approx. RMB 1,190.5 million | - | | **Back-office Service Revenue as % of Total** | 96.0% | - | - The Group continued to strengthen business relationships with leading clients in sectors like internet, financial securities, manufacturing, retail, and logistics, while expanding into new areas such as data annotation, review, and commercialization services[32](index=32&type=chunk)[35](index=35&type=chunk) - During the reporting period, the Group obtained **2 new invention patents** and multiple software copyrights, accumulating a total of **5 invention patents and 350 software copyrights**[33](index=33&type=chunk)[35](index=35&type=chunk) - The Group built and renovated several self-operated contact service centers in multiple locations, bringing the total number of completed workstations in its 52 self-operated centers to **19,013**[34](index=34&type=chunk)[36](index=36&type=chunk) [Financial Review](index=10&type=section&id=Financial%20Review) The Group's total revenue slightly decreased to RMB 1.2407 billion, while increased service costs and a significant goodwill impairment led to a wider loss attributable to owners of RMB 207.7 million | Financial Metric (RMB'000) | FY2025 | FY2024 | | :--- | :--- | :--- | | **Total Revenue** | 1,240,654 | 1,240,904 | | **Cost of Services** | 1,199,889 | 1,113,027 | | **Gross Profit** | 40,765 | 127,877 | | **Goodwill Impairment Loss** | 56,742 | 224,838 | | **Loss Attributable to Owners of the Company** | 207,729 | 197,382 | | **Basic Loss Per Share (RMB cents)** | 4.35 | 4.13 | | **Total Assets (End of Period)** | 1,029,100 | 1,278,300 | | **Net Assets (End of Period)** | 617,600 | 820,700 | - The increase in service costs, leading to a decline in gross margin, was primarily due to proactive expansion and upgrades in personnel, equipment, and work environments to adapt to new technologies like AI, without a corresponding growth in revenue[40](index=40&type=chunk)[41](index=41&type=chunk) - A goodwill impairment loss of approximately **RMB 56.7 million** was recognized during the year based on conservative future sales growth forecasts for the KingNine Group, resulting in the **full impairment of goodwill** as of March 31, 2025[44](index=44&type=chunk)[46](index=46&type=chunk)[52](index=52&type=chunk) | Key Assumptions for Goodwill Impairment Test | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | **Revenue Growth Rate** | 2.5%–6.4% | 3%–11.4% | | **Perpetual Growth Rate** | 2% | 2.5% | | **Discount Rate** | 19.2% | 21.6% | [Capital Structure, Liquidity and Financial Resources](index=14&type=section&id=Capital%20Structure%2C%20liquidity%20and%20financial%20resources) The Group's operations and investments are mainly funded by internal resources and interest-bearing borrowings, with an improved current ratio but a higher gearing ratio as of March 31, 2025 | Financial Metric (RMB) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | **Total Cash and Bank Balances** | Approx. 110.9 million | Approx. 86.4 million | | **Interest-bearing Bank and Other Borrowings** | Approx. 234.6 million | Approx. 198.0 million | | **Current Ratio** | 4.8 | 2.2 | | **Gearing Ratio** | 38.0% | 24.1% | - The Group's operational and investment capital is primarily sourced from **internal resources and interest-bearing bank and other borrowings**[67](index=67&type=chunk) [Employees and Remuneration Policies](index=15&type=section&id=Employees%20and%20remuneration%20policies) As of March 31, 2025, the Group's employee count increased to 14,377, with total staff costs for the year amounting to approximately RMB 852.8 million | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | **Number of Employees** | 14,377 | 13,446 | | **Total Annual Staff Costs** | Approx. RMB 852.8 million | - | [Future Plans for Material Investments or Capital Assets](index=15&type=section&id=Future%20plans%20for%20material%20investments%20or%20capital%20assets) The Group plans to focus on high-quality corporate clients in the internet and financial industries, considering synergistic acquisitions or investments to enhance its service offerings and core competitiveness - Future focus will be on high-quality corporate clients in the internet and financial sectors, enriching service types to increase customer stickiness[82](index=82&type=chunk)[87](index=87&type=chunk) - The Group will consider timely acquisitions or investments in assets with synergistic effects to expand service categories and customer base, and to enhance R&D capabilities and core competitiveness[83](index=83&type=chunk)[87](index=87&type=chunk) [Outlook](index=16&type=section&id=Outlook) Despite economic uncertainties, the Group sees opportunities in AI and the digital economy, planning to expand back-office services and develop digital marketing and local life services - Despite macroeconomic challenges, the wave of **artificial intelligence and data elements** presents development opportunities for the corporate services industry[89](index=89&type=chunk)[90](index=90&type=chunk)[92](index=92&type=chunk) - Back-office services: The Group will continue to secure new orders from telecom operators, traditional financial institutions, and new leading internet companies, while systematically developing digital services like data annotation and review[96](index=96&type=chunk)[98](index=98&type=chunk) - Internet marketing: The Group will continue to expand its digital marketing services and actively develop its local life and digital marketing businesses to achieve brand-performance integration[97](index=97&type=chunk)[98](index=98&type=chunk) Biographical Details of Directors [Executive Directors](index=19&type=section&id=EXECUTIVE%20DIRECTORS) This section details the personal biographies, professional backgrounds, and positions held by the company's executive directors within and outside the Group - Executive Directors include: - Mr Qiu Xiaojian (Chairman) - Mr Hu Shilong (Chief Executive Officer) - Mr Li Xiang - Ms Zhou Fang - Ms Liu Xiaochen - Mr Xu Gang - Mr Wang Rui[105](index=105&type=chunk)[110](index=110&type=chunk)[116](index=116&type=chunk)[118](index=118&type=chunk)[123](index=123&type=chunk)[125](index=125&type=chunk)[127](index=127&type=chunk) [Independent Non-Executive Directors](index=23&type=section&id=INDEPENDENT%20NON-EXECUTIVE%20DIRECTORS) This section details the personal biographies, professional backgrounds, and positions held by the company's independent non-executive directors within and outside the Group - Independent Non-Executive Directors include: - Mr Zeng Liang - Mr Wang Li - Mr Yang Hongjun - Ms Li Guiying[132](index=132&type=chunk)[134](index=134&type=chunk)[138](index=138&type=chunk)[140](index=140&type=chunk) Directors' Report [Principal Activities](index=25&type=section&id=PRINCIPAL%20ACTIVITIES) The company's principal activity is investment holding, with its subsidiaries primarily engaged in back-office, comprehensive marketing, agency, and data center services - The principal activity of the Company is investment holding, while its subsidiaries are mainly engaged in investment holding, providing back-office services (primarily customer service solutions and establishing contact service systems and centers), comprehensive marketing and agency services, and data center services[147](index=147&type=chunk)[151](index=151&type=chunk) [Principal Risks and Uncertainties](index=25&type=section&id=Principal%20risks%20and%20uncertainties) The Group's main risks include compliance risks related to the confidentiality of personal information and risks associated with its contractual arrangements (VIE structure) due to foreign investment restrictions in China - Compliance risk: As a customer service outsourcer, the Group handles a large amount of personal information, posing a risk of data leakage; it mitigates this through strict internal controls, confidentiality agreements, and **ISO 27001 certification**[149](index=149&type=chunk)[153](index=153&type=chunk)[156](index=156&type=chunk)[168](index=168&type=chunk) - Contractual arrangement risk: Due to Chinese legal restrictions on foreign investment in value-added telecommunications services (such as call centers), the Group controls its PRC operating entities through contractual arrangements (VIE structure), which entails related legal and operational risks[164](index=164&type=chunk)[169](index=169&type=chunk)[232](index=232&type=chunk) [Directors' and Chief Executive's Interests](index=31&type=section&id=DIRECTORS%27%20AND%20CHIEF%20EXECUTIVE%27S%20INTERESTS) This section discloses the interests of directors and the chief executive in the company's shares as of March 31, 2025, with Mr Hu Shilong holding approximately 64.45% of the voting rights | Director/Chief Executive | Capacity | Number of Shares Held | Approx. % of Company's Shareholding | | :--- | :--- | :--- | :--- | | Mr Hu Shilong | Interest in a controlled corporation | 212,640,219 | 4.45% | | | Interest of a party to a voting rights entrustment deed | 2,865,644,243 | 60.00% | | Ms Zhou Fang | Interest in a controlled corporation | 113,560,919 | 2.38% | [Substantial Shareholders' Interests](index=32&type=section&id=SUBSTANTIAL%20SHAREHOLDERS%27%20INTERESTS) This section discloses the interests of substantial shareholders holding 5% or more of the company's shares as of March 31, 2025, with Zhong Zhi Xin Zhuo Capital Limited being the largest single shareholder | Shareholder Name | Capacity | Number of Shares Held | Approx. % of Company's Shareholding | | :--- | :--- | :--- | :--- | | Zhong Zhi Xin Zhuo Capital Company Limited | Beneficial owner | 2,409,823,718 | 50.46% | | Kang Bang Qi Hui (HK) Company Limited | Beneficial owner | 455,820,525 | 9.54% | | Tian Xi Capital Company Limited | Interest in a controlled corporation | 2,865,644,243 | 60.00% | | Gfly Ltd | Beneficial owner | 437,500,000 | 9.16% | [Contractual Arrangements (VIE Structure)](index=36&type=section&id=CONTRACTUAL%20ARRANGEMENTS) The Group controls its main PRC operating entity, Dalian Jinhui Group, through a VIE structure to comply with foreign investment restrictions, with these arrangements contributing 99.5% of total revenue this year - Due to PRC legal restrictions on foreign investment in value-added telecommunications services (such as call centers), the Group uses **contractual arrangements (VIE structure)** to control its operating entities in mainland China (Consolidated Affiliated Entities)[227](index=227&type=chunk)[232](index=232&type=chunk)[238](index=238&type=chunk) - The contractual arrangements, including Exclusive Business Cooperation, Exclusive Option, Share Pledge, and Power of Attorney agreements, are designed to transfer economic benefits and control of the operating entities to the Group[263](index=263&type=chunk)[273](index=273&type=chunk)[279](index=279&type=chunk)[284](index=284&type=chunk) - For the fiscal year, the Consolidated Affiliated Entities controlled via the VIE structure generated revenue of approximately **RMB 1.2344 billion**, accounting for **99.5% of the Group's total revenue**, with net assets of approximately **RMB 549.3 million**[296](index=296&type=chunk)[297](index=297&type=chunk) - The independent non-executive directors and the company's auditor have reviewed the contractual arrangements for the year and confirmed their approval, compliance with agreements, and that no dividends were distributed to equity holders without being transferred to the Group[313](index=313&type=chunk)[317](index=317&type=chunk) [Major Customers and Suppliers](index=59&type=section&id=MAJOR%20CUSTOMERS%20AND%20SUPPLIERS) The Group exhibits a high concentration of customers and suppliers, with the top five customers and suppliers accounting for 77.5% of revenue and 21.2% of service costs, respectively | Concentration | Percentage of Total Revenue/Cost | | :--- | :--- | | **Top Five Customers** | 77.5% | | **Largest Customer** | 34.9% | | **Top Five Suppliers** | 21.2% | | **Largest Supplier** | 13.9% | Corporate Governance Report [Corporate Governance Practices](index=63&type=section&id=Corporate%20Governance%20Practices) The company complied with all code provisions of the Corporate Governance Code during the year, with separate individuals serving as Chairman and Chief Executive Officer - Throughout the reporting year, the company has applied and complied with all code provisions of the **Corporate Governance Code**[371](index=371&type=chunk)[375](index=375&type=chunk) - The Board is responsible for formulating the Group's overall strategy and supervising its development, with Audit, Remuneration, and Nomination Committees established with written terms of reference[373](index=373&type=chunk)[386](index=386&type=chunk) - The Board has conducted an annual review of the Group's risk management and internal control systems and considers them **effective and adequate** for the year[425](index=425&type=chunk)[441](index=441&type=chunk) - The company has adopted a shareholder communication policy to maintain effective communication through various channels such as the company website, financial reports, and general meetings[466](index=466&type=chunk)[468](index=468&type=chunk) Independent Auditor's Report [Opinion](index=79&type=section&id=OPINION) The auditor, Ernst & Young, concluded that the consolidated financial statements give a true and fair view of the Group's financial position, performance, and cash flows in accordance with HKFRSs - The auditor issued an **unqualified opinion** on the consolidated financial statements for the year, stating they give a 'true and fair view' of the Group's financial position and performance[474](index=474&type=chunk)[475](index=475&type=chunk) [Key Audit Matters](index=80&type=section&id=KEY%20AUDIT%20MATTERS) The key audit matters for the year were the impairment of goodwill and intangible assets and the impairment of trade receivables, both involving significant management judgment - Key Audit Matter 1: **Impairment of goodwill and intangible assets with indefinite useful lives**, which involved complex management judgments on cash flow forecasts and discount rates, was addressed by the auditor through procedures including assessing independent valuers and reviewing valuation methodologies[483](index=483&type=chunk)[487](index=487&type=chunk) - Key Audit Matter 2: **Impairment of trade receivables**, which involved significant management judgment based on the Expected Credit Loss (ECL) model, was addressed by the auditor through procedures including assessing the ECL model and examining forward-looking factors[488](index=488&type=chunk)[492](index=492&type=chunk) Consolidated Financial Statements [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=87&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's revenue remained stable at RMB 1.2407 billion, but the loss attributable to owners widened to RMB 207.7 million due to higher service costs and goodwill impairment | Item (RMB'000) | 2025 | 2024 | | :--- | :--- | :--- | | **Revenue** | 1,240,654 | 1,240,904 | | **Gross Profit** | 40,765 | 127,877 | | **Loss before tax** | (207,063) | (199,917) | | **Loss for the year** | (203,383) | (204,947) | | **Loss attributable to owners of the Company** | (207,729) | (197,382) | | **Basic and diluted loss per share (RMB cents)** | (4.35) | (4.13) | [Consolidated Statement of Financial Position](index=89&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, the Group's total assets decreased to RMB 1.029 billion, primarily due to the full impairment of goodwill and a reduction in trade receivables | Item (RMB'000) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | **Total non-current assets** | 323,458 | 440,522 | | **Total current assets** | 705,623 | 837,763 | | **Total assets** | **1,029,081** | **1,278,285** | | **Total current liabilities** | 147,843 | 387,978 | | **Total non-current liabilities** | 263,589 | 69,616 | | **Total liabilities** | **411,432** | **457,594** | | **Net assets** | **617,649** | **820,691** | | **Equity attributable to owners of the Company** | 609,213 | 816,601 | [Consolidated Statement of Cash Flows](index=92&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The Group's net cash from operating activities increased to RMB 74.13 million, and the year-end cash and cash equivalents balance grew to RMB 104.8 million | Item (RMB'000) | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash flows from operating activities** | 74,128 | 60,267 | | **Net cash flows used in investing activities** | (15,453) | (18,916) | | **Net cash flows used in financing activities** | (36,675) | (124,305) | | **Net increase/(decrease) in cash and cash equivalents** | 22,000 | (82,954) | | **Cash and cash equivalents at end of year** | 104,758 | 82,673 | Five Years' Financial Summary [Five Years' Financial Summary](index=221&type=section&id=Five%20Years%27%20Financial%20Summary) This section summarizes key performance, asset, and liability data for the past five fiscal years, showing continuous revenue growth since FY2021 but consecutive losses from FY2023 to FY2025 | Results (RMB'000) | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 1,240,654 | 1,240,904 | 888,622 | 734,021 | 264,368 | | **Profit/(loss) for the year** | (203,383) | (204,947) | (236,217) | 76,955 | 26,876 | | Assets and Liabilities (RMB'000) | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total assets** | 1,029,081 | 1,278,285 | 1,498,220 | 1,579,053 | 1,415,441 | | **Total liabilities** | (411,432) | (457,594) | (472,943) | (488,177) | (399,810) | | **Equity attributable to owners of the Company** | 609,213 | 816,601 | 1,013,610 | 1,070,742 | 999,904 |

Financial Highlights [Financial Highlights](index=2&type=section&id=Financial%20Highlights) In FY2025, Jinhui Technology Group's revenue remained flat at **RMB 1.241 billion**, while loss attributable to owners expanded to **RMB 208 million**, increasing basic loss per share to **4.35 cents** Financial Highlights Summary | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | Revenue | Approx. RMB 1.2407 billion | Approx. RMB 1.2409 billion | | Loss attributable to owners of the Company | Approx. RMB 207.7 million | Approx. RMB 197.4 million | | Basic loss per share | 4.35 cents | 4.13 cents | | Dividend Proposal | None | None | Consolidated Financial Statements [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In FY2025, total revenue was **RMB 1.241 billion**, flat year-on-year, but gross profit plummeted **76%** to **RMB 40.77 million** due to increased service costs, leading to a loss for the year of **RMB 203 million** and an expanded loss attributable to owners of **RMB 208 million** Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Item (RMB thousands) | 2025 | 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 1,240,654 | 1,240,904 | -0.02% | | Gross Profit | 40,765 | 127,877 | -75.9% | | Research and Development Expenses | (60,252) | (43,572) | +38.3% | | Administrative Expenses | (95,816) | (79,609) | +20.4% | | Impairment Loss on Goodwill | (56,742) | (224,838) | -74.8% | | Loss for the Year | (203,383) | (204,947) | -0.8% | | Loss Attributable to Owners of the Company | (207,729) | (197,382) | +5.2% | - Basic and diluted loss per share for the year increased to **RMB 4.35 cents** from **4.13 cents** last year[8](index=8&type=chunk) [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, total assets decreased from **RMB 1.278 billion** to **RMB 1.029 billion** due to full goodwill impairment and reduced trade receivables, while total liabilities decreased from **RMB 458 million** to **RMB 411 million**, and net assets declined from **RMB 821 million** to **RMB 618 million** Consolidated Statement of Financial Position Summary | Item (RMB thousands) | March 31, 2025 | March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current Assets | 323,458 | 440,522 | Decrease | | Current Assets | 705,623 | 837,763 | Decrease | | **Total Assets** | **1,029,081** | **1,278,285** | **-19.5%** | | **Liabilities and Equity** | | | | | Current Liabilities | 147,843 | 387,978 | Decrease | | Non-current Liabilities | 263,589 | 69,616 | Increase | | **Total Liabilities** | **411,432** | **457,594** | **-10.1%** | | **Net Assets** | **617,649** | **820,691** | **-24.7%** | - Goodwill was fully impaired to **zero** from **RMB 56.74 million** in the prior year[10](index=10&type=chunk) - Total interest-bearing bank and other borrowings increased from **RMB 198 million** to **RMB 235 million**, with the non-current portion significantly rising to **RMB 209 million**[11](index=11&type=chunk)[36](index=36&type=chunk) Notes to the Financial Statements [Operating Segment Information](index=10&type=section&id=3.%20Operating%20Segment%20Information) The Group's business operates as a single segment, "Provision of value-added telecommunications and related services," with all revenue derived from Mainland China and approximately **56%** of total revenue contributed by two major customers - The Group's business is operated and managed as a single segment, "Provision of value-added telecommunications and related services," with all revenue generated from Mainland China[19](index=19&type=chunk)[20](index=20&type=chunk) Revenue from Major Customers | Major Customer | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | | :--- | :--- | :--- | | Customer A | 432,096 | 414,628 | | Customer B | 259,012 | 283,693 | [Revenue Analysis](index=11&type=section&id=4.%20Revenue) In FY2025, total revenue was approximately **RMB 1.241 billion**, flat year-on-year, with core back-end services revenue slightly increasing to **RMB 1.190 billion**, accounting for **96%** of total revenue, primarily from customer service solutions Revenue Breakdown by Source | Revenue Source (RMB thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Back-end Services** | **1,190,455** | **1,185,952** | | - Provision of Customer Service Solutions | 1,188,765 | 1,185,861 | | - Establishment of Contact Service Systems and Centers | 1,690 | 91 | | Comprehensive Marketing and Agency Services | 22,859 | 32,585 | | Data Center Services | 26,423 | 22,367 | | **Total Revenue from Contracts with Customers** | **1,239,737** | **1,240,904** | [Summary of Other Financial Notes](index=12&type=section&id=Summary%20of%20Other%20Financial%20Notes) Other income and gains significantly decreased from **RMB 74.52 million** to **RMB 19.55 million** due to a prior year's one-off gain from subsidiary disposal, while finance costs slightly decreased, trade receivables decreased, impairment allowance increased, and total interest-bearing borrowings rose - Other income and gains significantly decreased, primarily because the prior fiscal year recognized a gain of approximately **RMB 52.3 million** from the disposal of a 51% equity interest in Chengdu Rongzhi Interactive Technology Co., Ltd., with no such gain in the current year[24](index=24&type=chunk)[48](index=48&type=chunk) - Allowance for impairment loss on trade receivables increased from **RMB 12.5 million** at the beginning of the period to **RMB 31.67 million** at the end, with new impairment losses of **RMB 19.16 million** recognized this year[34](index=34&type=chunk) - The repayment date for certain borrowings (total principal of **RMB 157 million**) from entities indirectly controlled by the ultimate beneficial owner has been extended from March 31, 2025, to March 31, 2027[38](index=38&type=chunk) - The Board did not recommend the payment of a dividend for the year ended March 31, 2025[31](index=31&type=chunk) Management Discussion and Analysis [Business Review](index=20&type=section&id=Business%20Review) Facing a complex macroeconomic environment, the Group focused on customer satisfaction and sustainable development, embracing AI to expand new service scenarios, with core back-end services accounting for **96%** of total revenue, securing customer relationships, investing in R&D, adding **2** invention patents, and expanding contact service centers to **19,013** workstations - The Group actively embraces cutting-edge technologies like AI, continuously innovating and applying them to customer services to ensure growth in its principal business revenue[41](index=41&type=chunk) - Back-end services revenue was approximately **RMB 1.191 billion**, accounting for **96.0%** of total revenue[42](index=42&type=chunk) - The Group built and renovated multiple self-operated contact service centers during the reporting period, reaching a total of **19,013** workstations covering tier 1 to 4 cities[44](index=44&type=chunk) - The Group obtained **2** new invention patents and multiple software copyrights during the reporting period, accumulating a total of **5** invention patents and **350** software copyrights[43](index=43&type=chunk) [Financial Review](index=22&type=section&id=Financial%20Review) FY2025 revenue remained flat, but increased service costs due to pre-emptive expansion for AI-driven changes led to gross margin decline; other income significantly decreased due to a prior year's one-off disposal gain, while **RMB 56.7 million** goodwill was fully impaired, and R&D and administrative expenses increased, ultimately expanding loss attributable to owners from **RMB 197 million** to **RMB 208 million** - Service costs increased due to pre-emptive expansion of personnel, equipment, and work environments to address new technological changes like AI, leading to a decline in gross margin as revenue did not grow proportionally[48](index=48&type=chunk) - The Group recognized a non-cash impairment loss on goodwill of approximately **RMB 56.7 million**, which had no impact on cash flow; as of March 31, 2025, goodwill was fully impaired[49](index=49&type=chunk) - To address new business scenarios, the Group increased relevant R&D investments and adopted more refined project management, leading to increased research and development and administrative expenses[50](index=50&type=chunk) Key Financial Performance Summary | Key Financial Indicators (RMB millions) | FY2025 | FY2024 | Primary Reason | | :--- | :--- | :--- | :--- | | Revenue | 1,240.7 | 1,240.9 | Largely Flat | | Service Costs | 1,199.9 | 1,113.0 | Personnel, Equipment Expansion | | Gross Profit | 40.8 | 127.9 | Costs Rose Faster Than Revenue | | Impairment Loss on Goodwill | 56.7 | 224.8 | Management Assessment | | Loss Attributable to Owners | 207.7 | 197.4 | Increased Costs, Expenses, and Impairment | [Capital Structure, Liquidity and Financial Resources](index=24&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) The Group primarily funds operations through internal resources and borrowings; as of period-end, cash and bank balances increased to **RMB 111 million**, the current ratio significantly improved from **2.2** to **4.8** due to short-term loans reclassified as long-term, and the gearing ratio rose from **24.1%** to **38.0%**, indicating increased leverage - As of March 31, 2025, the Group's total cash and bank balances, restricted cash, and pledged deposits amounted to approximately **RMB 111 million**, higher than **RMB 86.4 million** last year[55](index=55&type=chunk) Key Financial Ratios | Financial Ratio | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 4.8 | 2.2 | | Gearing Ratio* | 38.0% | 24.1% | - *Gearing ratio is calculated as interest-bearing bank and other borrowings divided by the Group's total equity[56](index=56&type=chunk) [Outlook and Future Plans](index=26&type=section&id=Outlook%20and%20Future%20Plans) Looking ahead, the Group believes AI and data elements will reshape industry logic, creating vast opportunities in enterprise services; it plans to leverage its back-end service strengths to expand into new digital services like data labeling and auditing, secure new orders, actively develop local life and digital marketing businesses, and consider synergistic acquisitions to enhance core competitiveness - The Group believes AI and data elements are reshaping industries, and will closely monitor macroeconomic policies and emerging technologies to actively explore new business opportunities in the financial and internet sectors[65](index=65&type=chunk)[66](index=66&type=chunk) - Future plans include: - In back-end services, new orders have been secured in the operator, financial, and internet industries, with new businesses like data labeling and auditing commenced - In internet marketing, integrating marketing with back-end services to actively develop local life and digital marketing businesses - Considering timely acquisitions or investments in assets with synergies to the principal business to expand customer base, enhance technological capabilities, and improve profitability[62](index=62&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) Other Corporate Information [Dividends and Share Transfer](index=20&type=section&id=Dividends%20and%20Share%20Transfer) The Board does not recommend a final dividend for the year ended March 31, 2025, and share transfer registration will be suspended from August 12 to 15, 2025, to determine eligibility for the Annual General Meeting - The Board does not recommend the payment of a final dividend for the current year[39](index=39&type=chunk) - The company will suspend share transfer registration from August 12 to August 15, 2025, to determine eligibility for attending the Annual General Meeting[40](index=40&type=chunk) [Corporate Governance and Audit](index=28&type=section&id=Corporate%20Governance%20and%20Audit) The company complied with all code provisions of Appendix C1 "Corporate Governance Code" of the GEM Listing Rules throughout the fiscal year; the Audit Committee reviewed the annual consolidated financial statements, and the financial data was audited and reconciled by Ernst & Young - The company consistently complied with all code provisions of the Corporate Governance Code throughout the fiscal year[70](index=70&type=chunk)[71](index=71&type=chunk) - The company's Audit Committee reviewed the annual consolidated financial statements, and the reported data has been reconciled with the audit results from Ernst & Young[72](index=72&type=chunk)[73](index=73&type=chunk)

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].