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 對 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 之 任 何 損 失 承 擔 任 何 責 任。 ZHI SHENG GROUP HOLDINGS LIMITED 智昇集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號︰8370） 截 至2023年6月30日 止 年 度 全 年 業 績 公 告 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）GEM的 特 色 GEM之 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 主 板 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 資 決 ...

Financial Performance - The company's revenue for the three months ended March 31, 2023, was RMB 17,460,000, a decrease of 50.1% compared to RMB 35,016,000 for the same period in 2022[3]. - Gross profit for the nine months ended March 31, 2023, was RMB 7,546,000, representing an increase of 4.9% from RMB 7,190,000 for the same period in 2022[3]. - The operating loss for the nine months ended March 31, 2023, was RMB 10,939,000, a significant improvement compared to an operating loss of RMB 26,738,000 for the same period in 2022[3]. - The net loss attributable to the owners of the company for the nine months ended March 31, 2023, was RMB 18,678,000, compared to RMB 32,389,000 for the same period in 2022, indicating a reduction of 42.5%[3]. - The company reported a basic and diluted loss per share of RMB 2.06 for the nine months ended March 31, 2023, down from RMB 3.57 for the same period in 2022[3]. - The total comprehensive loss for the nine months ended March 31, 2023, was RMB 19,864,000, compared to RMB 31,190,000 for the same period in 2022, reflecting a decrease of 36.5%[4]. - The overall loss before tax for the nine months was RMB 18,369 thousand, improving from a loss of RMB 32,761 thousand in the previous year[12]. - The company reported a net loss of RMB 18,678 thousand for the nine months ended March 31, 2023, an improvement from a net loss of RMB 32,389 thousand for the same period in 2022[30]. Revenue Breakdown - For the nine months ended March 31, 2023, total revenue was RMB 88,219 thousand, a decrease of 19.7% compared to RMB 109,820 thousand for the same period in 2022[12]. - The furniture manufacturing and sales segment generated revenue of RMB 36,988 thousand, down 11.4% from RMB 42,000 thousand in the previous year[12]. - The data center segment reported revenue of RMB 18,028 thousand, an increase of 9.5% from RMB 16,457 thousand in the prior year[12]. - The construction management services segment earned RMB 33,203 thousand, a decline of 35.4% compared to RMB 51,363 thousand in the same period last year[12]. - Revenue from external customers in mainland China for the nine months was RMB 88,179 thousand, down 19.5% from RMB 109,544 thousand in the previous year[17]. - Revenue from furniture sales for the three months ended March 31, 2023, was RMB 10,100 thousand, slightly up from RMB 9,894 thousand in the same period of 2022[21]. - Data center business revenue increased to RMB 5,895 thousand for the three months ended March 31, 2023, compared to RMB 5,439 thousand in the same period of 2022, reflecting a growth of 8.4%[21]. - The company's revenue from construction management services for the nine months ended March 31, 2023, was RMB 33,203 thousand, a decrease of 35.4% from RMB 51,363 thousand in the same period of 2022[21]. Cost and Expenses - The group's total cost of sales was approximately RMB 80.7 million, a decrease of about RMB 21.9 million or approximately 21.4% compared to the previous year[50]. - Sales and distribution expenses for the reporting period were approximately RMB 5.0 million, a decrease of about RMB 1.0 million or 17.6% compared to the same period last year[60]. - Administrative and other expenses for the reporting period were approximately RMB 17.6 million, a decrease of about RMB 14.7 million or 45.5% year-on-year[61]. - Financing costs increased to approximately RMB 7.4 million, up about 23.4% from RMB 6.0 million in the same period last year[64]. Strategic Plans - The company plans to continue its market expansion and product development strategies to enhance its competitive position in the industry[6]. - The company plans to strengthen resource allocation in the southwestern market and expand into other regions as conditions permit, focusing on new product development and marketing channel expansion[45]. - The company aims to enhance supply chain management and control costs to improve the operational situation of the furniture segment[45]. - The data center business will seek opportunities to expand its scope and enhance profitability, capitalizing on national policies promoting data center development[45]. - The company will implement employee incentive mechanisms to maintain market share and reasonable profit margins in the southwestern region[45]. Shareholder Information - As of March 31, 2023, Mr. Ma held 245,300,400 shares, representing approximately 27.04% of the issued share capital[72]. - Mr. Yi held 116,580,000 shares, representing approximately 12.85% of the issued share capital[72]. - Mr. Lai held 100,000,000 shares, representing approximately 11.02% of the issued share capital[72]. - The total number of issued ordinary shares as of March 31, 2023, is 907,333,333 shares[80]. Compliance and Governance - The audit committee reviewed the unaudited consolidated financial statements for the nine months ending March 31, 2023, confirming compliance with applicable accounting standards and GEM Listing Rules[90]. - The company has adhered to the corporate governance code as per GEM Listing Rules throughout the reporting period[96].

ZHI SHENG GROUP HOLDINGS LIMITED 智昇集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號︰8370） 截至2023年3月31日止九個月之 第三季度業績公告 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主板上市 的公司帶有較高投資風險。有意投資的人士應瞭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上市公司一般為中小型公司，於GEM買賣的證券可能會較於聯交所主板買賣 的證券承受較大的市場波動風險，同時無法保證於GEM買賣的證券會有高流通市場。 香港交易及結算所有限公司及聯交所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，概不對因本公告或任何部分內容而產生或因依賴該等內 容而引致之任何損失承擔任何責任。 本公告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）之規定提供有關智昇集團控 股有限公司（「本公司」）及其附屬公司（統稱「本集團」）之資料。本公司董事（「董事」）各 自對本公告共同及個別承擔全部責任，董事在作出一切合理查詢後確認 ...

Financial Performance - For the three months ended December 31, 2022, the company reported revenue of RMB 34,339,000, an increase from RMB 26,331,000 in the same period of 2021, representing a growth of 30.4%[2] - The gross profit for the six months ended December 31, 2022, was RMB 5,305,000, compared to RMB 1,982,000 for the same period in 2021, indicating a significant increase of 167.5%[2] - The company reported a net loss attributable to owners of RMB 5,112,000 for the three months ended December 31, 2022, compared to a loss of RMB 12,035,000 in the same period of 2021, representing a 57.5% improvement[2] - The company reported a net loss of RMB 12,235,000 for the six months ended December 31, 2022, compared to a net loss of RMB 28,394,000 for the same period in 2021, representing a 57.1% improvement in losses year-over-year[6] - The overall loss before tax for the six months was RMB 11,880 thousand, a significant improvement from a loss of RMB 29,214 thousand in the same period last year[15] Assets and Liabilities - The total assets as of December 31, 2022, amounted to RMB 228,017,000, down from RMB 269,810,000 as of June 30, 2022, reflecting a decrease of 15.5%[3] - The company's net assets as of December 31, 2022, were RMB 115,882,000, compared to RMB 127,921,000 as of June 30, 2022, indicating a decline of 9.4%[4] - The company’s total liabilities decreased to RMB 112,135,000 as of December 31, 2022, from RMB 141,899,000 as of June 30, 2022, a reduction of 21.1%[4] - The company’s total equity as of December 31, 2022, was RMB 115,882,000, a decrease from RMB 146,670,000 at the end of the previous reporting period[6] Cash Flow - The cash and cash equivalents as of December 31, 2022, were RMB 32,170,000, an increase from RMB 28,936,000 as of June 30, 2022, showing a growth of 8.0%[3] - Operating cash flow for the six months ended December 31, 2022, was a net outflow of RMB 7,092,000, a significant decrease from a net inflow of RMB 34,456,000 in the prior year[7] - The company experienced a decrease in cash and cash equivalents, ending the period with RMB 32,170,000, down from RMB 45,471,000 at the end of the previous year[8] Revenue Segmentation - The total revenue for the six months ended December 31, 2022, was RMB 70,759 thousand, a decrease of 5.4% compared to RMB 74,804 thousand for the same period in 2021[15] - The furniture manufacturing and sales segment generated revenue of RMB 26,888 thousand, down 16.5% from RMB 32,106 thousand in the previous year[15] - The data center segment reported revenue of RMB 12,133 thousand, an increase of 10.1% from RMB 11,018 thousand in the prior year[15] - The construction management services segment achieved revenue of RMB 31,738 thousand, slightly up from RMB 31,680 thousand in the previous year[15] Expenses and Costs - The company’s basic and diluted loss per share for the six months ended December 31, 2022, was RMB 1.35, an improvement from RMB 3.13 in the same period of 2021, reflecting a decrease of 56.9%[2] - The company’s depreciation expenses for right-of-use assets decreased to RMB 1,923,000 from RMB 7,394,000 in the previous year, reflecting a 74.0% reduction[7] - The group recorded a loss of approximately RMB 12.2 million during the reporting period, a reduction from a loss of approximately RMB 28.4 million in the same period last year[80] - The sales cost for the group was approximately RMB 65.5 million, a decrease of about RMB 7.3 million or approximately 10.1% compared to the previous year[90] Credit and Receivables - Trade receivables increased to RMB 18.553 million as of December 31, 2022, from RMB 11.883 million as of June 30, 2022, marking a 56.2% increase[38] - The net trade receivables after provision for losses were RMB 10.646 million as of December 31, 2022, compared to RMB 4.908 million as of June 30, 2022, indicating a 116.5% increase[39] - The provision for trade receivables increased to RMB 7.907 million as of December 31, 2022, from RMB 6.975 million as of June 30, 2022, reflecting a 13.3% rise[42] - The total expected credit loss for trade receivables was RMB 15 million as of December 31, 2022, with a net value of RMB 9.109 million after accounting for expected losses[43] Corporate Governance and Compliance - The audit committee has reviewed the unaudited consolidated financial statements for the six months ended December 31, 2022, and found them compliant with applicable accounting standards and GEM listing rules[136] - The company has adhered to the corporate governance code applicable since the listing date[142] - There were no changes in director information that required disclosure under GEM listing rules during the reporting period[140] Future Outlook and Strategy - The company is focusing on expanding its data center services in China and Hong Kong, enhancing its IT management services[22] - The company plans to continue investing in new technologies and products to drive future growth and market expansion[22] - The group aims to enhance its data center business profitability by leveraging national strategies to develop data centers and expanding its service offerings[83] - The company plans to stabilize its market share in the southwest region while exploring opportunities for expansion beyond that area as market conditions improve[81]

Financial Performance - The group's revenue for the three months ended September 30, 2022, was RMB 36,420,000, a decrease of 24.8% compared to RMB 48,473,000 for the same period in 2021[2] - Gross profit for the same period was RMB 1,994,000, showing a slight increase of 3.3% from RMB 1,930,000 in 2021[2] - Operating loss for the three months was RMB 4,333,000, significantly improved from a loss of RMB 14,877,000 in the previous year, indicating a reduction of 70.9%[2] - The net loss attributable to the owners of the company for the period was RMB 7,123,000, down from RMB 16,359,000 in the prior year, representing a 56.5% improvement[2] - The company reported a basic and diluted loss per share of RMB 0.79, compared to RMB 1.80 for the same period last year[2] - The company recorded a loss before tax of RMB 6,769,000, significantly improved from a loss of RMB 16,500,000 in the prior year[18] - The company reported a loss of RMB 7,123,000 for the three months ended September 30, 2022, an improvement from a loss of RMB 16,359,000 in the same period last year[28] Revenue Breakdown - The furniture manufacturing and sales segment generated revenue of RMB 8,439,000, down 29.5% from RMB 11,915,000 in the previous year[18] - The data center segment reported revenue of RMB 5,815,000, slightly up from RMB 5,768,000 year-on-year[18] - The construction management services segment earned RMB 22,166,000, a decline of 28.2% from RMB 30,790,000 in the same quarter last year[18] - Furniture product sales were RMB 8,439,000, down 29.5% from RMB 11,915,000 year-on-year[20] - Data center business revenue was RMB 5,815,000, slightly up by 0.8% from RMB 5,768,000 in the previous year[20] - Construction management services revenue decreased by 28.3% to RMB 22,166,000 from RMB 30,790,000 in the same period last year[20] Expenses and Costs - Administrative and other expenses decreased significantly to RMB 5,105,000 from RMB 14,296,000, a reduction of 64.3%[2] - The group's sales cost for the reporting period was approximately RMB 344 million, a decrease of about RMB 121 million or 26.0% compared to the same period last year[43] - The furniture manufacturing and sales segment reported a sales cost of approximately RMB 90 million, down RMB 34 million or 27.2% year-on-year, with a larger decline in gross margin due to a decrease in sales revenue[43] - The data center segment's sales cost was approximately RMB 53 million, a decrease of RMB 5 million or 9.3% year-on-year, primarily due to the absence of amortization costs related to intangible assets from acquisitions[45] - Selling and distribution expenses for the group were approximately RMB 20 million, an increase of RMB 3 million or 18.5% year-on-year, primarily due to increased installation and handling costs[51] - Financing costs totaled RMB 2,436,000, an increase of 50.0% compared to RMB 1,623,000 in the same period of 2021[23] Other Income and Financial Activities - Other income net of expenses increased to RMB 1,651,000 from RMB 740,000, reflecting a growth of 123.5%[2] - The company reported a total of RMB 756,000 in other income, an increase from RMB 421,000 in the same period last year[18] - Other net income for the group was approximately RMB 1.65 million, an increase of about 123.1% compared to the previous year, mainly due to increased interest income from loans[49] - The interest expense on convertible bonds was RMB 2,308,000, compared to RMB 1,348,000 in the previous year[12] Corporate Governance and Compliance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards and GEM Listing Rules[6] - The company has established an audit committee, which reviewed the unaudited consolidated financial statements for the three months ended September 30, 2022, confirming compliance with applicable accounting standards and GEM listing rules[75] - The company has adhered to the corporate governance code as per GEM Listing Rules during the reporting period[81] - The company’s management discussion and analysis section highlights the importance of compliance with the Securities and Futures Ordinance regarding shareholdings[63] Shareholding and Capital Structure - As of September 30, 2022, Mr. Ma Minghui holds 245,300,400 shares, representing 27.04% of the company's issued share capital[59] - Mr. Yi Cong holds 116,580,000 shares, representing 12.85% of the company's issued share capital[59] - Mr. Lai Ningning is a beneficial owner of 100,000,000 shares, which is 11.02% of the company's issued share capital[59] - The total number of ordinary shares issued as of September 30, 2022, is 907,333,333[66] - The company has conditional agreements to issue convertible bonds to Even Joy Holdings Limited, allowing for the conversion of up to 46,800,000 shares, which would represent 5.15% of the company's issued share capital if fully converted[66] Future Outlook and Challenges - The company has been diversifying its operations by engaging in data center business since 2020 to stabilize revenue streams[32] - Future challenges include the ongoing COVID-19 pandemic, geopolitical tensions, and a downturn in the real estate market, which may impact the furniture sector[38] - The company aims to enhance the profitability of the data center segment by leveraging national strategies to develop data centers and expanding its business scope[38] - The construction management experience is expected to create more business opportunities for the company, particularly in the data center sector[38]

Financial Performance - The furniture division achieved revenue of approximately RMB 768 million, an increase of about RMB 191 million or 33.1% compared to the same period last year[16]. - The data center division generated revenue of approximately RMB 349 million, an increase of about RMB 102 million or 41.4% year-on-year[18]. - The group confirmed construction management service revenue of approximately RMB 608 million, with a gross profit of approximately RMB 56 million after deducting costs[19]. - The group recorded a loss of approximately RMB 737 million during the reporting period, compared to a loss of RMB 270 million in the same period last year[19]. - The group achieved revenue of approximately RMB 172.5 million during the reporting period, an increase of about RMB 90.1 million or approximately 109.3% compared to the same period last year[20]. - The furniture manufacturing and sales segment generated revenue of approximately RMB 76.8 million, an increase of about RMB 19.1 million or approximately 33.1% year-on-year[21]. - The data center segment's original business revenue was approximately RMB 34.9 million, an increase of about RMB 10.2 million or approximately 41.4% compared to the previous year[22]. - The group's total sales cost was approximately RMB 162.8 million, an increase of about RMB 86.3 million or approximately 112.7% year-on-year[23]. - The gross profit increased from approximately RMB 5.9 million in the previous year to approximately RMB 9.7 million during the reporting period[27]. - The gross profit margin for the furniture segment slightly increased from approximately 7.5% to about 7.6%[27]. - The other net income for the group was approximately RMB 6.1 million, an increase of about RMB 2.3 million or approximately 59.9% compared to the previous year[29]. Financial Position - As of June 30, 2022, the group's net current assets were approximately RMB 631 million, a decrease from RMB 728 million as of December 31, 2020[49]. - The current ratio as of June 30, 2022, was approximately 1.9, compared to 2.1 as of December 31, 2020[49]. - The total equity attributable to the company's owners as of June 30, 2022, was approximately RMB 1,279 million, down from RMB 1,722 million as of December 31, 2020[50]. - The debt-to-equity ratio as of June 30, 2022, was approximately 0.72, compared to 0.42 as of December 31, 2020[53]. - The company's distributable reserves were approximately RMB 119.9 million as of June 30, 2022[133]. - As of June 30, 2022, the company had no outstanding bank borrowings[130]. Business Operations - The office building sales in China decreased by 6.9% year-on-year in 2021, with new construction area down by 20.9% year-on-year[6]. - The company faced significant pressure due to the reduction of financial institutions' physical branches, impacting sales from financial clients[6]. - The data center business experienced a decline in revenue due to early lease terminations and reduced business from existing clients[7]. - A management agreement was signed with Gu'an Fua Electronics Co., Ltd. to expand the company's data center business network in China, expected to bring new revenue sources[7]. - The company is actively exploring new business opportunities to improve profitability in the data center sector[7]. - The sales team will actively expand the customer base, targeting hotels, schools, and real estate clients to increase market share[10]. - The company plans to enhance its internal approval mechanisms to ensure effective resource utilization in Yunnan, Guizhou, and Tibet, aiming to increase market share and gross profit in these regions[10]. - The group will invest in billboard and vehicle advertising in key markets to expand brand influence and attract new customers[10]. - The company aims to establish its own proprietary data center to enhance competitiveness and increase market share[11]. - The company is actively seeking opportunities to expand its business scope in the data center sector, leveraging experience and expertise from construction management projects[11]. Costs and Expenses - Sales and distribution expenses for the reporting period amounted to approximately RMB 11.9 million, an increase of about RMB 3.2 million or 37.0% compared to the same period last year[31]. - Administrative and other expenses, including asset impairment losses, were approximately RMB 69.7 million, representing an increase of about 189.2% year-on-year[32]. - Financing costs for the reporting period were approximately RMB 9.4 million, an increase of about RMB 4.8 million or 105.2% compared to the previous year[34]. - The increase in administrative expenses was primarily due to share-based payment expenses of approximately RMB 16.5 million and convertible bond-related expenses of about RMB 13.8 million[32]. - The company recorded a gross profit decrease of approximately RMB 1.8 million despite a revenue increase of 35.6% due to a sales cost increase of 40.7%[36]. Corporate Governance - The board consists of eight directors, including four executive directors, one non-executive director, and three independent non-executive directors[69]. - The board held a total of six meetings during the reporting period, with all directors actively participating[71]. - All directors have attended training courses or reviewed materials related to corporate governance and regulations for continuous professional development[77]. - The company appointed independent non-executive directors, with changes effective from June 1, 2022, including the resignation of Mr. Guo Rui Xiong and the appointment of Mr. Li Sheng Zhi[78]. - The audit committee, chaired by Mr. Chen Yong Jie, consists of three independent non-executive directors, ensuring the effectiveness of internal controls and risk management systems[80]. - The remuneration committee, also chaired by Mr. Chen Yong Jie, oversees the overall remuneration policy for all directors and senior management, ensuring no self-determination of remuneration by directors[83]. - The company does not have a corporate governance committee; the board is responsible for executing corporate governance functions and ensuring compliance with legal and regulatory requirements[92]. - The audit committee reviewed the consolidated financial statements during the reporting period, ensuring transparency and integrity in financial reporting[82]. - The company adheres to the "comply or explain" principle regarding its corporate governance policies and practices[92]. - The company has adopted a board diversity policy considering various aspects such as age, cultural and educational background, professional experience, skills, and knowledge[94]. Risk Management - The company identified and classified major risks as strategic, operational, and financial risks during the reporting period[110]. - Strategic risks include the downturn in the office furniture industry due to the pandemic and customer concentration risks[111]. - The company employs a "three lines of defense" governance structure for risk management, involving operational management, financial and compliance teams, and external consultants[112]. - The company is committed to maintaining high transparency to enhance investor relations and regularly updates shareholders through various reports[103]. - The company has established an enterprise risk management framework since 2016 to effectively manage risks[108]. - The company will continue to review its internal control and risk management systems annually through external consultants[112]. Shareholder Information - The company has not repurchased any of its own shares since its listing on January 20, 2017[134]. - The board of directors has reviewed the company's dividend policy, considering various financial and operational factors[125]. - No interim or final dividends were recommended for the eighteen-month period ending June 30, 2022[127]. - The company maintains ongoing communication with shareholders, particularly through annual general meetings, ensuring timely updates on business developments[96]. - The largest customer contributed 35.2% of total revenue, while the top five customers accounted for 51.6% of total revenue, compared to 10.2% and 39.2% in the same period last year[182]. - The largest supplier accounted for 32.8% of total procurement, with the top five suppliers contributing 63.9%, compared to 17.4% and 48.9% in the same period last year[182]. Environmental and Regulatory Compliance - The group has implemented multiple environmental protection measures to minimize its impact on the environment and natural resources[62]. - As of the report date, the group has not faced any significant administrative sanctions, fines, or penalties for violating environmental laws or regulations[63]. - The company has not engaged in any significant acquisitions or disposals of subsidiaries or associates as of the report date[65]. - There are no undisclosed post-reporting events as of the report date[64]. Auditor Information - The company appointed Zhonghui Anda CPA as the new auditor effective June 15, 2022, following the resignation of the previous auditor, Hong Kong Lixin Dehao CPA[89]. - The total fees paid to auditors during the reporting period amounted to HKD 730,000, which includes HKD 720,000 for annual audit services and HKD 10,000 for non-audit services[91]. - The board believes that the change in auditors will help the company effectively control costs and reduce overall operating expenses, aligning with future business development needs[196].

Revenue Performance - The group reported revenue of RMB 15,333,000 for the three months ended March 31, 2022, compared to RMB 14,467,000 for the same period in 2021, representing an increase of 6%[2] - For the fifteen months ended March 31, 2022, the group generated revenue of RMB 89,629,000, down from RMB 96,886,000 in the previous fifteen months, a decrease of 7.5%[2] - Revenue for the three months ended March 31, 2022, was RMB 15,333 million, an increase of 6% compared to RMB 14,467 million for the same period in 2021[20] - Revenue from furniture sales for the fifteen months ended March 31, 2022, was RMB 60,486 million, a decrease of 8% from RMB 65,704 million in the previous period[20] - Data center business revenue for the three months ended March 31, 2022, was RMB 5,439 million, a decrease of 16% compared to RMB 6,455 million for the same period in 2021[20] - The furniture manufacturing and sales segment generated revenue of RMB 60,486,000, down 7.5% from RMB 65,704,000 in the previous year[9] - The data center segment reported revenue of RMB 29,143,000, a decrease of 6.5% from RMB 31,182,000 in 2021[9] - The revenue from external customers in China was RMB 87,335,000, down from RMB 95,577,000 in the previous year, indicating a decline in market demand[15] Financial Losses - The gross loss for the three months ended March 31, 2022, was RMB 808,000, compared to a gross profit of RMB 1,271,000 for the same period in 2021[2] - The group incurred a net loss attributable to owners of RMB 3,995,000 for the three months ended March 31, 2022, compared to a loss of RMB 5,345,000 for the same period in 2021, showing an improvement of 25%[2] - The total comprehensive loss for the fifteen months ended March 31, 2022, was RMB 42,242,000, compared to RMB 33,199,000 for the previous fifteen months, indicating a worsening of 27.2%[3] - The company incurred a loss before tax of RMB 44,541,000, compared to a loss of RMB 33,409,000 in the previous year, indicating a worsening financial performance[9] - The company reported a net loss of RMB 43,383 million for the fifteen months ended March 31, 2022, compared to a net loss of RMB 32,298 million in the previous period[27] Expenses and Costs - The group’s financing costs increased to RMB 2,191,000 for the three months ended March 31, 2022, from RMB 669,000 in the same period of 2021, an increase of 227%[2] - The group’s administrative and other expenses rose to RMB 5,920,000 for the three months ended March 31, 2022, compared to RMB 3,658,000 for the same period in 2021, an increase of 62%[2] - Interest expenses for financing for the fifteen months ended March 31, 2022, totaled RMB 7,234 million, an increase from RMB 5,245 million in the previous period[22] - Administrative and other expenses increased to approximately RMB 42.5 million, up about RMB 13.4 million or 46.1% year-on-year, largely due to one-time legal and professional fees related to agreements[62] - The group’s sales cost for the reporting period was approximately RMB 87.8 million, a decrease of about RMB 1.9 million or 2.1% compared to the same period last year[53] Corporate Strategy and Future Plans - The company plans to continue its expansion in the data center business initiated in 2020, focusing on the Chinese and Hong Kong markets[4] - The company aims to diversify its operations by engaging in data center business since 2020 to stabilize revenue streams amid economic challenges[38] - The group plans to strengthen its market presence in the southwest region and expand into other markets when conditions permit[46] - The company is actively seeking new customers for its data center business to offset the loss of revenue from existing clients[41] - The company has established sales offices in Chengdu and Chongqing to enhance its market presence in the furniture sector[38] Shareholder Information - As of March 31, 2022, the company had a total of 907,333,333 ordinary shares issued[75] - Mr. Ma holds 245,300,400 shares, representing 27.04% of the company's issued share capital[72] - Mr. Yi has a beneficial interest in 116,580,000 shares, accounting for 12.85% of the issued share capital[72] - Mr. Lai is a beneficial owner of 100,000,000 shares, which is 11.02% of the issued share capital[72] - Sun Universal Limited, controlled by Mr. Ma, holds 27.04% of the company's shares[77] Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the fifteen months ending March 31, 2022, and confirmed compliance with applicable accounting standards and GEM listing rules[87] - The company has adopted GEM listing rules as its own code of conduct for directors' securities transactions, confirming compliance by all directors during the reporting period[88] - The company has maintained high standards of corporate governance and adhered to the applicable provisions of the corporate governance code since its listing[93]

Financial Performance - For the three months ended December 31, 2021, the company reported revenue of RMB 25,441,000, an increase of 6.06% compared to RMB 23,988,000 for the same period in 2020[4] - The gross profit for the twelve months ended December 31, 2021, was RMB 2,607,000, a decrease of 55.8% from RMB 5,891,000 in 2020[4] - The company incurred a loss before tax of RMB 40,994,000 for the twelve months ended December 31, 2021, compared to a loss of RMB 27,656,000 in 2020, representing an increase in losses of 48.1%[4] - The company reported a net loss attributable to owners of RMB 39,388,000 for the twelve months ended December 31, 2021, compared to RMB 26,953,000 in 2020, marking an increase in losses of 46.3%[4] - The company reported a basic and diluted loss per share of RMB 4.34 for the twelve months ended December 31, 2021, compared to RMB 2.98 in 2020, reflecting an increase in loss per share of 45.3%[4] - The company reported a net loss of RMB 39,388,000 for the year ended December 31, 2021, compared to a loss of RMB 26,953,000 in the previous year, representing an increase in losses of approximately 46.3%[8] - For the twelve months ended December 31, 2021, the total revenue was RMB 74,296,000, a decrease of 9.5% compared to RMB 82,419,000 for the previous year[19] - The office furniture segment generated revenue of RMB 50,592,000, down 12.2% from RMB 57,692,000 in 2020[19] - The data center segment reported revenue of RMB 23,704,000, a slight decrease of 4.1% from RMB 24,727,000 in 2020[19] Assets and Liabilities - Total assets as of December 31, 2021, were RMB 258,008,000, a decrease of 2.4% from RMB 265,297,000 in 2020[5] - The company's cash and cash equivalents decreased to RMB 45,471,000 from RMB 64,552,000 in 2020, reflecting a decline of 29.6%[5] - The total liabilities increased to RMB 111,338,000 in 2021, up from RMB 93,074,000 in 2020, indicating a rise of 19.6%[6] - The company's equity attributable to owners decreased to RMB 146,670,000 in 2021 from RMB 172,223,000 in 2020, a decline of 14.8%[6] - The company’s inventory as of December 31, 2021, was RMB 12,391,000, down 21.5% from RMB 15,667,000 in 2020[5] Cash Flow and Financing - Operating cash flow for the year was RMB 28,809,000, a significant improvement from a cash outflow of RMB 8,616,000 in 2020[10] - The company issued convertible bonds, raising RMB 50,054,000 after transaction costs during the financing activities[11] - The company incurred interest expenses on convertible bonds amounting to RMB 3,779,000, compared to RMB 872,000 in the previous year, indicating increased borrowing costs[24] - Financing costs for the twelve months ended December 31, 2021, totaled RMB 5,043,000, an increase of 10.2% from RMB 4,576,000 in 2020[34] Customer and Revenue Diversification - Major customers contributing over 10% of revenue included Customer A and Customer B, with revenues of RMB 4,686,000 and RMB 3,185,000 respectively for the three months ended December 31, 2021[29] - The company has diversified its customer base, with no single customer accounting for more than 10% of total revenue for the twelve months ended December 31, 2021[29] Corporate Governance and Management - The audit committee reviewed the unaudited consolidated financial statements for the twelve months ending December 31, 2021, confirming compliance with applicable accounting standards and GEM listing rules[121] - The company has adopted a code of conduct for directors' securities transactions, confirming compliance by all directors for the twelve months ending December 31, 2021[122] - The board appointed Mr. Ma as an executive director and compliance officer effective April 1, 2021, while Mr. Lai was appointed as an executive director on August 2, 2021[123] - The company has maintained high standards of corporate governance and complied with the applicable provisions of the corporate governance code during the reporting period[127] Future Plans and Strategies - The company plans to expand its data center business in China and Hong Kong, which commenced in January 2020, as part of its growth strategy[13] - The company plans to continue focusing on expanding its data center business and enhancing its furniture sales strategy in the upcoming fiscal year[32] - The company aims to enhance product design and invest in technology research and development to attract new customers and retain long-term clients[73] - The company is focused on consolidating its position in the southwestern market while considering expansion beyond this region when conditions permit[73]

Revenue Performance - The company reported revenue of RMB 48,473 thousand for the three months ended September 30, 2021, compared to RMB 15,180 thousand for the same period in 2020, representing a year-over-year increase of 219%[2]. - For the nine months ended September 30, 2021, the company achieved revenue of RMB 86,108 thousand, up from RMB 58,431 thousand in the same period of 2020, reflecting a growth of 47%[2]. - Revenue from the furniture manufacturing and sales segment decreased to RMB 30,401 thousand, down 23.9% from RMB 39,953 thousand in the previous year[10]. - The data center segment generated revenue of RMB 55,707 thousand, significantly up from RMB 18,478 thousand in the same period last year, marking a 201.5% increase[10]. - Total revenue for the nine months ended September 30, 2021, was RMB 86,108 thousand, an increase of 47.4% compared to RMB 58,431 thousand in the same period of 2020[17]. Profit and Loss - The gross profit for the three months ended September 30, 2021, was RMB 1,930 thousand, down from RMB 2,779 thousand in 2020, indicating a decrease of 31%[2]. - The company incurred a loss before tax of RMB 16,500 thousand for the three months ended September 30, 2021, compared to a loss of RMB 8,548 thousand in the same period of 2020, representing a deterioration of 93%[2]. - The net loss attributable to owners of the company for the nine months ended September 30, 2021, was RMB 27,353 thousand, compared to RMB 15,384 thousand for the same period in 2020, an increase of 78%[2]. - The total comprehensive loss for the nine months ended September 30, 2021, was RMB 27,390 thousand, compared to RMB 15,662 thousand for the same period in 2020, indicating an increase of 74%[2]. - The company reported a basic and diluted loss per share of RMB 1.80 for the three months ended September 30, 2021, compared to RMB 0.95 for the same period in 2020[2]. Operational Highlights - The company has been engaged in the manufacturing and sales of furniture products and started data center operations in China and Hong Kong since January 2020[5]. - The operating performance of the data center segment improved, with a profit of RMB 503 thousand, compared to a loss of RMB 2,401 thousand in the previous year[10]. - Major clients contributing over 10% of revenue included Client A from the data center segment, generating RMB 37,255 thousand in revenue for the nine months ended September 30, 2021[15]. - The group is actively expanding its data center business in China, which is expected to bring new revenue sources in the coming years[42]. Financial Position - The company’s total assets are primarily located in China, reflecting its operational focus in the region[13]. - The group recorded a comprehensive income of approximately RMB 86.1 million for the reporting period, an increase of approximately RMB 27.7 million or 47.4% year-on-year, mainly due to increased revenue from the data center segment[40]. - The group’s cost of sales was approximately RMB 81.3 million, an increase of about RMB 35.3 million or approximately 76.6% compared to the same period last year[48]. Shareholder Information - As of September 30, 2021, Mr. Ma Minghui held 245,300,400 shares, representing 27.04% of the issued share capital[63]. - Mr. Yi Cong held 116,580,000 shares, representing 12.85% of the issued share capital as of September 30, 2021[63]. - The total number of issued ordinary shares as of September 30, 2021, was 907,333,333 shares[66]. Corporate Governance - The company has maintained compliance with the GEM Listing Rules and corporate governance codes throughout the reporting period[83]. - The audit committee has reviewed the unaudited consolidated financial statements for the nine months ended September 30, 2021, confirming compliance with applicable accounting standards[77]. - The company has established a non-competition commitment with its executive directors to avoid conflicts of interest in business opportunities[73].

Financial Performance - The company's revenue for the three months ended March 31, 2021, was RMB 14,467,000, a decrease of 9.7% compared to RMB 16,016,000 for the same period in 2020[2] - Gross profit for the same period was RMB 1,271,000, down 62.8% from RMB 3,421,000 year-on-year[2] - The company reported a loss before tax of RMB 5,753,000, compared to a loss of RMB 5,032,000 in the previous year, indicating a 14.4% increase in losses[2] - The total comprehensive loss attributable to owners of the company for the period was RMB 5,422,000, compared to RMB 6,127,000 in the same period last year, showing a 11.5% improvement[2] - Basic and diluted loss per share for the period was RMB 0.59, slightly higher than RMB 0.56 for the same period in 2020[2] - The company incurred financing costs of RMB 669,000, down 29.7% from RMB 952,000 in the previous year[2] - Trade and other receivables impairment losses increased to RMB 1,346,000 from RMB 583,000, reflecting a 130.5% rise[2] - The company reported a loss of approximately RMB 5.345 million for the three months ended March 31, 2021, compared to a loss of RMB 4.990 million for the same period in 2020, reflecting an increase in loss of about 7.1%[28] - Other income for the reporting period was approximately RMB 361,000, a decrease of about 50.3% compared to RMB 727,000 in the same period last year, primarily due to the absence of interest income from other receivables this period[51] Revenue Segmentation - Revenue from the furniture manufacturing and sales segment was RMB 8,012,000, down 25.6% from RMB 10,782,000 year-over-year[21] - Data center segment revenue increased to RMB 6,455,000, up 23.3% from RMB 5,234,000 in the previous year[21] - The group recognized RMB 1,015,000 in revenue from IT management services, which was not present in the previous year[19] - The data center segment contributed approximately RMB 6.5 million in revenue during the reporting period, an increase from RMB 5.2 million in the same period last year, representing a growth of about 25%[38] - The data center segment recorded revenue of approximately RMB 6.5 million, an increase of about RMB 1.2 million or approximately 23.3% compared to the previous year[46] Cost Management - Unallocated expenses decreased to RMB 772,000 from RMB 1,386,000 year-over-year[19] - Sales and distribution expenses for the reporting period were approximately RMB 1.7 million, a decrease of about 13.6% from RMB 2.0 million in the same period last year, with the furniture manufacturing and sales segment seeing an 8.9% decrease[53] - Administrative and other expenses for the reporting period were approximately RMB 5.0 million, a decrease of about 19.9% from RMB 6.2 million in the same period last year, largely due to the absence of certain legal and pandemic-related expenses[54] - Financing costs for the reporting period were approximately RMB 700,000, down from RMB 1.0 million in the same period last year, mainly due to the repayment of a bank loan[56] - The company aims to implement stricter cost control measures to reduce unnecessary energy consumption and achieve profit targets[41] Equity and Shareholder Information - The company’s total equity as of March 31, 2021, was RMB 166,801,000, a decrease from RMB 172,223,000 at the beginning of the year[3] - Major shareholders include Sun Universal Limited and its beneficial owner, holding 245,300,400 shares, representing 27.04% of the total shares[62] - The company’s director, Mr. Yi Cong, holds 116,580,000 shares, representing 12.85% of the total shares, through his spouse[60] - The company reported a weighted average number of ordinary shares of 907,333,333 for the calculation of basic loss per share for the three months ended March 31, 2021[27] Strategic Initiatives - The company aims to diversify its operations by expanding into the data center business, which began in 2020, to stabilize revenue streams amid economic challenges[36] - The company has established sales offices in Chengdu and Chongqing, focusing on furniture manufacturing and sales primarily in Sichuan, Chongqing, and Guizhou provinces[36] - The company plans to strengthen its presence in the southwestern market and expand into other markets when conditions permit, while increasing investment in product R&D to diversify product design[41] - The company is negotiating to establish a joint venture for data center operations in China, with expected demand for neutral data center services projected to grow at a compound annual growth rate of 31.8% over the next four years[43] - The company will collaborate with banks, investment funds, and other investors to minimize investment costs while maintaining an optimistic balance sheet for its capital-intensive data center business[43] Governance and Compliance - The company has adhered to the corporate governance code as per GEM listing rules from the listing date to the report date[69] - The board appointed Mr. Ma Minghui as an executive director effective April 1, 2021, responsible for financial and compliance matters[64] - The audit committee reviewed the unaudited consolidated financial statements for the three months ended March 31, 2021[65] - The company confirmed that all directors complied with the code of conduct regarding securities transactions for the three months ended March 31, 2021[66] - There have been no repurchases of the company's shares since the listing date up to the report date[67] Dividend Policy - The company did not declare any dividends for the three months ended March 31, 2021, consistent with the previous year[26] Asset Management - The company has no non-current assets located outside of China, emphasizing its primary operational focus in the region[17] - As of the report date, the company repaid a bank loan of RMB 30.0 million, which was secured by land use rights and properties, and no other asset pledges exist[58]