元力控股(01933) - 2025 - 年度业绩

Financial Summary This section provides an overview of Oneforce Holdings Limited's financial performance, highlighting key changes in revenue, profit, and operational metrics for FY2025 Financial Summary Oneforce Holdings Limited experienced a significant decline in revenue and gross profit, resulting in a net loss for the year ended March 31, 2025 Financial Summary for FY2025 and FY2024 (RMB thousand yuan) | Indicator | Year Ended March 31, 2025 (RMB thousand yuan) | Year Ended March 31, 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Revenue | 377,688 | 490,552 | | Gross Profit | 51,601 | 77,078 | | Other Income | 972 | 2,173 | | Administrative and Other Operating Expenses | 54,131 | 48,498 | | Impairment Losses | 30,747 | 11,894 | | (Loss)/Profit Attributable to Equity Holders | (37,550) | 8,357 | | (Loss)/Earnings Per Share (RMB cents) | (7.58) | 1.69 | - Revenue decreased by approximately RMB 112,864,000, a 23.0% decline year-on-year, primarily due to fewer projects and the Group's strategy to reduce projects with longer collection cycles to enhance cash flow management[3] - Gross profit decreased by approximately RMB 25,477,000, a 33.1% decline year-on-year, with the overall gross profit margin falling from approximately 15.7% to 13.7%, mainly due to intensified market competition leading to adjusted quotations for new projects[3] - The Group turned from profit to a loss attributable to equity holders of approximately RMB 45,907,000, primarily due to decreased gross profit, an increase in impairment losses on trade and contract assets of approximately RMB 18,853,000, and an increase in finance costs of approximately RMB 1,120,000[3] Chairman's Report This section outlines the Group's strategic focus on the power energy sector, emphasizing operational stability, efficiency improvements, and strategic transformation amidst macroeconomic shifts and technological advancements Industry and Business Review China's power energy sector is transforming amidst a weak economy, with the Group focusing on cash collection, efficiency, and strategic transformation - China's macroeconomic growth momentum is weak, but the power energy industry faces both growth opportunities and pressures for transformation[5] - China is steadfastly advancing the construction of new power systems and deepening power market reforms, aiming to increase the proportion of new energy consumption[5] - The power energy sector is deeply integrating with digitalization and intelligent technologies, with breakthroughs in AI bringing significant opportunities for application innovation across all segments[5] - The Group strategically focuses on cash collection, improving human and cost efficiency, maintaining stable operations, and advancing strategic transformation for high-quality development[5] Smart Energy Smart energy is the Group's core business, driven by the urgent demand for intelligent systems and AI integration in the evolving power sector - Smart energy is the Group's foundational business, with the clean transformation of power systems and electrification of end-use energy driving urgent demand for smart energy systems[6] - The Group continuously integrates information technology with energy technology, providing digital and intelligent products and solutions to empower the energy industry chain[6] - AI technology is considered a revolutionary tool for addressing major challenges in the power system, including energy structure transformation, dynamic supply-demand balance, new energy consumption, and power market transactions[6] - The Group aligns with the "Dual Carbon" strategy, collaborating across the energy industry chain to jointly build and share energy interconnection for green and low-carbon development[6] Next-Generation Information Technology, New Energy Technology, and Smart Manufacturing Technology Digital technologies, especially AI, are reshaping industries, leading the Group to leverage its energy expertise for smart city solutions as a second growth curve - Breakthroughs in next-generation information technology, new energy technology, and smart manufacturing technology, especially AI and large model research, are leading industrial upgrades and reshaping market competition rules[7] - The Group positions smart cities as its second growth curve, leveraging its experience and technological reserves in energy industry informatization to enhance urban resilience and improve residents' quality of life through digital solutions[7] Development Outlook The Group prioritizes cash flow and operational stability, aiming to become a leading global provider of smart energy, city, and living services - The Group will maintain strategic confidence, prioritize cash flow, safeguard its operational foundation, and focus on tackling challenges, improving quality, and enhancing efficiency[8] - The Group's vision is to become a "globally leading smart energy, smart city, and smart living service provider"[8] Financial Review This section details the Group's financial performance, including revenue, cost of sales, administrative expenses, and key balance sheet items Revenue Total revenue decreased due to fewer software and technical service projects, while product sales saw an increase Revenue by Business Segment (RMB thousand yuan) | Business Segment | Year Ended March 31, 2025 (RMB thousand yuan) | Year Ended March 31, 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Sales of Software and Solutions | 113,153 | 177,061 | | Provision of Technical Services | 214,221 | 280,587 | | Sales of Products | 50,314 | 32,904 | | Total | 377,688 | 490,552 | - Revenue from sales of software and solutions decreased by approximately RMB 63,908,000 year-on-year, and revenue from provision of technical services decreased by approximately RMB 66,366,000, mainly due to fewer projects and cash flow management strategies[11] - Revenue from sales of products increased by approximately RMB 17,410,000, primarily driven by hardware demand from the development of ubiquitous power IoT[11] Cost of Sales and Gross Profit Margin Despite a decrease in cost of sales, the overall gross profit margin declined due to intensified market competition and adjusted project quotations Cost of Sales and Gross Profit Margin by Business Segment | Business Segment | 2025 Cost of Sales (RMB thousand yuan) | 2024 Cost of Sales (RMB thousand yuan) | 2025 Gross Profit Margin | 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Sales of Software and Solutions | 98,871 | 143,203 | 12.6% | 19.1% | | Provision of Technical Services | 184,888 | 241,271 | 13.7% | 14.0% | | Sales of Products | 42,328 | 29,000 | 15.9% | 11.9% | | Total/Average | 326,087 | 413,474 | 13.7% | 15.7% | - The overall gross profit margin decreased from approximately 15.7% to 13.7%, primarily due to intensified market competition, leading the Group to adjust quotations for new projects to secure long-term clients[12] Administrative and Other Operating Expenses Administrative and other operating expenses increased, primarily driven by higher research and development investments and increased severance payments Administrative and Other Operating Expenses Details (RMB thousand yuan) | Expense Category | Year Ended March 31, 2025 (RMB thousand yuan) | Year Ended March 31, 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Staff Costs | 6,614 | 6,035 | | Research and Development Expenses | 26,737 | 24,510 | | Professional Service Fees | 4,329 | 4,898 | | Others | 16,451 | 13,055 | | Total | 54,131 | 48,498 | - Administrative and other operating expenses increased by approximately RMB 5,633,000, representing an 11.6% increase compared to the previous year[13] - Research and development expenses increased by approximately RMB 2,227,000, mainly due to increased upfront R&D investment for future projects[13] - Other expenses increased by approximately RMB 3,396,000, primarily due to an increase in severance payments of approximately RMB 4,087,000[13] Trade and Bills Receivables The net value of trade and bills receivables decreased, prompting the Group to strengthen collection management to alleviate cash flow pressure Trade and Bills Receivables Details (RMB thousand yuan) | Indicator | As of March 31, 2025 (RMB thousand yuan) | As of March 31, 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Trade Receivables | 475,627 | 484,264 | | Bills Receivables | 3,600 | 453 | | Total Original Value | 479,227 | 484,717 | | Less: Loss Allowance | 67,949 | 36,985 | | Net Value | 411,278 | 447,732 | - The net value of trade and bills receivables decreased by approximately RMB 36,454,000, an 8.1% decrease compared to the previous year[14] - The Group will continue to strengthen collection management, formulate collection plans, and implement various measures to enhance collection efforts and alleviate cash flow pressure[14] Inventories and Contract Costs Inventories and contract costs decreased as certain informatization construction projects recognized revenue and transferred costs during the year Inventories and Contract Costs Details (RMB thousand yuan) | Category | As of March 31, 2025 (RMB thousand yuan) | As of March 31, 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Software Systems Under Development | 44,335 | 58,704 | - Inventories and contract costs decreased by approximately RMB 14,369,000, mainly because some informatization construction projects recognized revenue and transferred costs during the year[15] Research and Development Expenses Research and development expenses increased, reflecting the Group's continuous investment in R&D and intellectual property accumulation - The Group's research and development expenses increased by 9.1% compared to the previous year[17] - As of March 31, 2025, the Group's operating subsidiaries have cumulatively applied for/registered 23 patents and 189 software copyrights (2024: 25 patents and 185 software copyrights)[17] Consolidated Financial Statements This section presents the Group's consolidated financial performance and position, highlighting the shift from profit to loss and changes in key financial metrics Consolidated Statement of Profit or Loss The Group reported a net loss for the year, driven by significant declines in revenue and gross profit, coupled with increased impairment losses and finance costs Key Data from Consolidated Statement of Profit or Loss (RMB thousand yuan) | Indicator | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Revenue | 377,688 | 490,552 | | Cost of Sales | (326,087) | (413,474) | | Gross Profit | 51,601 | 77,078 | | Operating (Loss)/Profit | (38,398) | 12,259 | | (Loss)/Profit Before Tax | (43,320) | 8,436 | | (Loss)/Profit for the Year Attributable to Equity Holders of the Company | (37,550) | 8,357 | | Basic/Diluted (RMB cents) | (7.58) | 1.69 | - Operating profit turned into an operating loss of RMB 38,398 thousand yuan for the year, compared to a profit of RMB 12,259 thousand yuan in the prior year[18] - Impairment losses on trade receivables, contract assets, and other receivables significantly increased from RMB 11,894 thousand yuan to RMB 30,747 thousand yuan[18] Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group recorded a total comprehensive loss attributable to equity holders for the year ended March 31, 2025, following a net loss Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB thousand yuan) | Indicator | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | (Loss)/Profit for the Year | (37,550) | 8,357 | | Exchange Differences on Translation of Financial Statements to Presentation Currency | 96 | 264 | | Total Comprehensive Income for the Year Attributable to Equity Holders of the Company | (37,454) | 8,621 | Consolidated Statement of Financial Position The Group's net current assets, total assets less current liabilities, and net assets all decreased, reflecting declines across various asset categories Key Data from Consolidated Statement of Financial Position (RMB thousand yuan) | Indicator | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Non-current Assets | 20,116 | 28,770 | | Current Assets | 544,993 | 627,735 | | Current Liabilities | 308,337 | 367,437 | | Net Current Assets | 236,656 | 260,298 | | Total Assets Less Current Liabilities | 256,772 | 289,068 | | Non-current Liabilities | 17,138 | 11,980 | | Net Assets | 239,634 | 277,088 | | Total Equity | 239,634 | 277,088 | - Net current assets amounted to RMB 236,656 thousand yuan, a decrease from RMB 260,298 thousand yuan in the prior year[20] - Property, plant and equipment decreased from RMB 6,226 thousand yuan to RMB 4,192 thousand yuan, and intangible assets decreased from RMB 3,335 thousand yuan to RMB 827 thousand yuan[20] - Bank balances and cash decreased from RMB 62,891 thousand yuan to RMB 56,151 thousand yuan[20] Notes to Financial Information Extracted from the Consolidated Financial Statements Prepared in Accordance with IFRS This section provides detailed notes on the Group's financial information, covering company details, significant accounting policies, key judgments, and breakdowns of various financial statement items Company Information Oneforce Holdings Limited, listed on the HKEX, primarily engages in software system design, technical services, product sales for power grid companies, and smart city infrastructure development in China - The Company was incorporated in the Cayman Islands on July 5, 2016, and listed on the Main Board of the Stock Exchange of Hong Kong on March 2, 2018[21] - The Group's principal activities include designing, implementing, enhancing, and upgrading software systems for power grid and distribution companies in China, providing technical services, selling products, and investing in, constructing, and operating smart city infrastructure[21] Significant Accounting Policies Financial statements are prepared under IFRS on a historical cost and going concern basis, despite a net loss, due to expected bank support and cash flow management - The financial statements are prepared in accordance with all applicable International Financial Reporting Standards issued by the International Accounting Standards Board and the requirements of the Hong Kong Companies Ordinance[22] - For the year ended March 31, 2025, the Group recorded a net loss of RMB 37,550,000 (2024: net profit of RMB 8,357,000)[23] - Despite the net loss, the financial statements are prepared on a going concern basis, as directors believe the Group has sufficient financial resources to continue operations for at least 12 months, considering solid relationships with major banks, shareholder guarantees, and cash flow forecasts[23] Statement of Compliance These financial statements comply with IFRS, the Hong Kong Companies Ordinance, and HKEX Listing Rules, incorporating new and revised IFRS effective for the period - The financial statements are prepared in accordance with International Financial Reporting Standards and the Hong Kong Companies Ordinance, and comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[22] Basis of Preparation of the Financial Statements The financial statements are prepared on a historical cost and going concern basis, supported by net current assets and anticipated bank loan renewals despite the current year's net loss - The measurement basis used in the preparation of the financial statements is the historical cost basis[23] - The Group's net current assets exceed current liabilities by RMB 236,656,000, and it is expected to obtain renewal of bank loans, thus the financial statements are prepared on a going concern basis[23] Changes in Accounting Policies The Group applied IFRS amendments issued by the IASB, which did not significantly impact its current accounting period's performance or financial position - The Group has applied amendments to International Financial Reporting Standards issued by the International Accounting Standards Board to the financial statements for the current accounting period[26] - None of the above developments had a significant impact on the Group's results and financial position for the current accounting period or on the preparation or presentation thereof[26] Accounting Judgments and Estimates Management makes significant accounting judgments and estimates for revenue recognition, impairment provisions, and asset valuation, which could materially affect future financial reporting - Management's significant judgments in applying International Financial Reporting Standards and the key sources of estimation uncertainty that have a significant effect on the financial statements are outlined[25][27] Service Contracts Revenue recognition for uncompleted service projects relies on estimates of contract outcomes and work performed, with actual results potentially differing and impacting future financial results - Revenue recognition for uncompleted service projects depends on estimates of the total outcome of service contracts and the work performed to date[28] - Actual results regarding total costs or revenue may be higher or lower than estimates at the end of the reporting period, which will affect revenue and profit recognized as adjustments to amounts accounted for to date in future years[28] Impairment of Trade and Contract Assets Impairment provisions for trade and contract assets are based on expected loss rates, and changes in these assumptions could lead to additional impairment losses - Impairment provisions for trade and contract assets are calculated based on assumptions regarding expected loss rates[30] - Changes in assumptions and estimates can significantly impact the assessment results, and may require additional impairment to be deducted from profit or loss[30] Inventory Provision Inventories are valued at the lower of cost and net realizable value, with management's estimates influencing write-downs or reversals and affecting net assets - Inventories are stated at the lower of cost and net realizable value, with management estimating net realizable value based on current market conditions and past experience[31] - Any change in assumptions will increase or decrease the inventory write-down or the corresponding reversal of the write-down, and thus affect the Group's net assets[31] Impairment of Property, Plant and Equipment and Intangible Assets Impairment losses are recognized when asset carrying amounts are unrecoverable, requiring significant judgment on future cash flows to determine recoverable amounts - Impairment losses may be recognized if circumstances indicate that the carrying amount of property, plant and equipment or intangible assets is not recoverable[32] - The recoverable amount is the higher of fair value less costs to sell and value in use, with determining value in use requiring significant judgment on revenue levels and operating cost amounts[32] Income Tax Current tax is calculated based on taxable income and applicable rates, considering preferential treatments, with actual tax potentially differing from estimated amounts - The Group calculates current tax based on taxable income for the year, applying tax rates enacted or substantively enacted at the end of the reporting period, and considering preferential tax rates and reliefs[33] - Actual current tax at the end of the reporting period may be higher or lower than the estimated amount[33] Revenue and Segment Reporting The Group's revenue is disaggregated by business segment, with operations primarily in China, and performance managed based on gross profit - The Group is principally engaged in the design, implementation, enhancement, and upgrading of software systems and provision of technical services for power grid and distribution companies in China, as well as the sale of products[34] Revenue Disaggregation Revenue from software and technical services declined, while product sales increased, with notable shifts in contributions from major customers Revenue by Major Service Items (RMB thousand yuan) | Service Item | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Sales of Software and Solutions | 113,153 | 177,061 | | Provision of Technical Services | 214,221 | 280,587 | | Sales of Products | 50,314 | 32,904 | | Total | 377,688 | 490,552 | Revenue from Customers Accounting for 10% or More of the Group's Revenue (RMB thousand yuan) | Customer | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Customer A | 129,455 | 70,005 | | Customer B | 84,232 | 161,954 | | Customer C | 73,796 | 96,366 | | Customer D | 59,901 | 89,703 | Segment Reporting The Group manages its business through three reportable segments: software and solutions, technical services, and products, all operating in China - The Group manages its business by business lines, which are segmented into three reportable segments: software and solutions, technical services, and products[37][38] - The measure used for reporting segment profit is gross profit[37] - All of the Group's operations and customers are located in China, and all non-current assets are also located in or allocated to operations in China[41] Other Income Other income decreased due to the termination of the VAT super deduction policy, with remaining income primarily from VAT refunds Other Income Details (RMB thousand yuan) | Category | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | VAT Super Deduction | - | 985 | | VAT Refund | 721 | 962 | | Others | 251 | 226 | | Total | 972 | 2,173 | - The VAT super deduction policy terminated on December 31, 2023, resulting in zero income from this item for the current year[42] (Loss)/Profit Before Tax The Group recorded a loss before tax, influenced by staff costs, depreciation, increased impairment losses, and reduced outsourced labor costs - (Loss)/Profit before tax is stated after deducting items such as staff costs, depreciation and amortization, impairment losses, operating lease expenses, auditor's remuneration, research and development costs, and outsourced labor costs[43][45] Staff Costs Total staff costs decreased, comprising salaries, wages, other benefits, and contributions to defined contribution retirement plans Staff Costs Details (RMB thousand yuan) | Category | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Salaries, Wages and Other Benefits | 75,066 | 92,910 | | Contributions to Defined Contribution Retirement Plans | 5,519 | 6,935 | | Total | 80,585 | 99,845 | Other Items Impairment losses on trade and contract assets significantly increased, while outsourced labor costs and cost of inventories sold both decreased Other Items Details (RMB thousand yuan) | Category | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Depreciation and Amortization | 4,933 | 7,530 | | Impairment Losses on Trade Receivables, Contract Assets and Other Receivables | 30,747 | 11,894 | | Research and Development Costs (excluding amortization) | 26,737 | 24,510 | | Outsourced Labor Costs | 211,987 | 346,409 | | Cost of Inventories Sold | 325,439 | 412,283 | - Impairment losses on trade receivables, contract assets, and other receivables increased from RMB 11,894 thousand yuan to RMB 30,747 thousand yuan[45] - Outsourced labor costs decreased from RMB 346,409 thousand yuan to RMB 211,987 thousand yuan[45] Income Tax in Consolidated Statement of Profit or Loss Income tax for the year was negative, primarily due to deferred tax movements, with R&D super deduction and tax concessions impacting the effective tax expense Tax in Consolidated Statement of Profit or Loss (RMB thousand yuan) | Category | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Current Tax – PRC Enterprise Income Tax | - | 2,277 | | Deferred Tax – Origination and Reversal of Temporary Differences | (5,770) | (2,198) | | Total | (5,770) | 79 | Reconciliation of Tax Expense and Accounting (Loss)/Profit Before Tax at Applicable Tax Rates The expected tax on loss before tax was negative, with R&D super deduction and tax concessions significantly influencing the actual tax expense, and subsidiaries enjoying a preferential 15% tax rate Reconciliation of Tax Expense and Accounting (Loss)/Profit Before Tax (RMB thousand yuan) | Item | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | (Loss)/Profit Before Tax | (43,320) | 8,436 | | Expected Tax on (Loss)/Profit Before Tax | (10,554) | 2,413 | | Tax Effect of R&D Super Deduction | (342) | (5,044) | | Tax Concession | 4,064 | (142) | | Actual Tax Expense | (5,770) | 79 | - The Group's subsidiaries established in China (Beijing Ailangrui Technology Co., Ltd. and Beijing Aipuzhicheng Network Technology Co., Ltd.) enjoy a preferential PRC Enterprise Income Tax rate of 15% for the period from October 18, 2022, to October 17, 2025[47] Directors' Remuneration Total directors' remuneration increased, comprising fees, salaries, allowances, benefits in kind, and retirement scheme contributions, with a new non-executive director appointed Total Directors' Remuneration (RMB thousand yuan) | Category | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Directors' Fees | 1,330 | 1,197 | | Salaries, Allowances and Benefits in Kind | 2,716 | 2,326 | | Retirement Scheme Contributions | 231 | 180 | | Total | 4,277 | 3,703 | - Ms. Yang Chun was appointed as a Non-executive Director of the Company, effective December 13, 2024[48] Five Highest Paid Individuals Two directors were among the five highest-paid individuals, and total remuneration for non-director highest-paid individuals decreased Total Remuneration for Non-Director Highest Paid Individuals (RMB thousand yuan) | Category | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Salaries and Other Remuneration | 2,714 | 3,535 | | Retirement Scheme Contributions | 201 | 256 | | Total | 2,915 | 3,791 | - The remuneration of two (2024: one) directors among the five highest-paid individuals is disclosed in note 8[50] (Loss)/Earnings Per Share Basic loss per share was RMB 7.58 cents, with no diluted loss/earnings per share presented due to the absence of potential ordinary shares (Loss)/Earnings Per Share (RMB cents) | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic/Diluted (RMB cents) | (7.58) | 1.69 | - Basic loss per share is calculated based on the loss attributable to equity holders of the Company of RMB 37,550,000 and the weighted average number of 495,415,177 ordinary shares outstanding[51] - Diluted (loss)/earnings per share is not presented as there were no potential ordinary shares in issue during the year[53] Property, Plant and Equipment The net book value of property, plant and equipment decreased due to depreciation, disposals, and impairment losses on leasehold improvements Net Book Value of Property, Plant and Equipment (RMB thousand yuan) | Category | As of March 31, 2025 (RMB thousand yuan) | As of March 31, 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Motor Vehicles, Office Equipment and Other Equipment | 301 | 550 | | Leasehold Improvements | 3,514 | 4,542 | | Right-of-use Assets | 377 | 1,134 | | Total | 4,192 | 6,226 | - Leasehold improvements primarily relate to an agreement by a Group subsidiary with Mentougou District Economic and Information Bureau to acquire a 10-year right to use lamp poles and renovate them to provide smart city infrastructure services[54] Intangible Assets The net book value of intangible assets significantly decreased due to amortization expenses and impairment losses during the year Net Book Value of Intangible Assets (RMB thousand yuan) | Category | As of March 31, 2025 (RMB thousand yuan) | As of March 31, 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Software and Patents | 827 | 3,335 | - Impairment losses on intangible assets amounted to RMB 22,418 thousand yuan for the period from April 1, 2023, to March 31, 2025[55] Investments in Subsidiaries The Group holds wholly-owned subsidiaries engaged in software system design, technical services, product sales, and smart city infrastructure across China, BVI, and Hong Kong - The Group owns several wholly-owned subsidiaries, including Beijing Ailangrui Technology Co., Ltd., First Magic International Limited, Chengwan Development Limited, and Beijing Aipuzhicheng Network Technology Co., Ltd.[57] - The principal activities of the subsidiaries cover software system design, technical services, product sales, investment holding, and investment, construction, and operation of smart city infrastructure[57] Interests in an Associate The Group holds a 36.59% effective interest in an associate focused on smart city and energy internet development, with its carrying amount at RMB 3,673 thousand yuan Summary of Associate Information (RMB thousand yuan) | Indicator | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Current Assets | 20,022 | 8,414 | | Non-current Assets | 2,809 | 2,939 | | Current Liabilities | 14,408 | 3,011 | | Equity | 8,423 | 8,342 | | Revenue | 14,189 | 3,980 | | Profit from Continuing Operations | 79 | 25 | | Total Comprehensive Income | 81 | 25 | - The Group holds a 36.59% effective interest in Beijing Beikong Zhike Energy Internet Co., Ltd., whose principal activities are the development of smart cities and energy internet[59] - The carrying amount of the Group's interest in the associate is RMB 3,673 thousand yuan (2024: RMB 3,643 thousand yuan)[59] Inventories and Contract Costs Inventories and contract costs, primarily software systems under development, decreased, with a significant amount recognized as cost of inventories sold Inventories and Contract Costs (RMB thousand yuan) | Category | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Software Systems Under Development | 44,335 | 58,704 | Amount of Inventories Recognized as Expense (RMB thousand yuan) | Category | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Cost of Inventories Sold | 325,439 | 412,283 | Contract Assets Net contract assets significantly decreased, with most amounts expected to be recovered within one year Contract Assets (RMB thousand yuan) | Category | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Arising from Customer Contracts | 28,830 | 49,833 | | Less: Loss Allowance | 712 | 634 | | Net Value | 28,118 | 49,199 | - As of March 31, 2025, contract assets expected to be recovered after one year amounted to RMB 617,800, all related to retention money[61] Trade and Bills Receivables Net trade and bills receivables decreased, with a notable reduction in receivables aged one to two years Trade and Bills Receivables (RMB thousand yuan) | Category | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Trade Receivables | 475,627 | 484,264 | | Bills Receivables | 3,600 | 453 | | Less: Loss Allowance | 67,949 | 36,985 | | Net Value | 411,278 | 447,732 | Ageing Analysis The ageing analysis shows that receivables less than one year constitute the largest portion, while those aged one to two years significantly decreased Ageing Analysis of Trade and Bills Receivables (RMB thousand yuan) | Ageing | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Less than One Year | 366,036 | 361,805 | | One to Two Years | 21,897 | 71,257 | | Two to Three Years | 23,345 | 14,670 | | More than Three Years | - | - | | Total | 411,278 | 447,732 | - The Group generally requires customers to settle progress payments and retention receivables according to contract terms, with some customers granted a 30-day credit period[63] Prepayments, Deposits and Other Receivables The net value of prepayments, deposits, and other receivables decreased, mainly due to reductions in prepayments for technical services and staff advances Prepayments, Deposits and Other Receivables (RMB thousand yuan) | Category | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Amounts Due from Related Parties | 38 | 38 | | Prepayments for Technical Service Fees | 1,656 | 4,548 | | Staff Advances and Other Deposits | 4,028 | 4,392 | | Prepayments for Other Expenses | 1,101 | 1,896 | | Others | 804 | 1,146 | | Less: Loss Allowance | 2,516 | 2,811 | | Net Value | 5,111 | 9,209 | - All other trade and other receivables are expected to be recovered or recognized as expenses within one year[64] Bank Balances and Cash Total bank balances and cash decreased, with RMB funds subject to China's foreign exchange controls Bank Balances and Cash (RMB thousand yuan) | Category | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Total Bank Balances and Cash | 56,239 | 72,891 | | Less: Restricted Cash | 88 | 10,000 | | Bank Deposits and Cash on Hand | 56,151 | 62,891 | - As of March 31, 2025, a deposit of RMB 88,000 was pledged to Hangzhou Bank Co., Ltd. to secure the issuance of bank guarantees[66] - RMB is not a freely convertible currency, and funds remitted out of China are subject to foreign exchange control rules and regulations promulgated by the PRC government[65] Trade Payables Total trade payables decreased, primarily due to a significant reduction in trade payables to third parties, with all amounts expected to be repaid within one year Trade Payables (RMB thousand yuan) | Category | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Trade Payables to Related Parties | 4,213 | 6,850 | | Trade Payables to Third Parties | 110,961 | 145,082 | | Total | 115,174 | 151,932 | Ageing Analysis of Trade Payables (RMB thousand yuan) | Ageing | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Less than One Year | 55,245 | 104,982 | | One to Two Years | 37,835 | 36,866 | | Two to Three Years | 14,836 | 8,264 | | More than Three Years | 7,258 | 1,820 | | Total | 115,174 | 151,932 | Other Payables and Accrued Expenses Total other payables and accrued expenses decreased, mainly due to a significant reduction in staff-related costs payable Other Payables and Accrued Expenses (RMB thousand yuan) | Category | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Amounts Due to Related Parties | 9,569 | 9,569 | | Cash Advances from a Third Party | 599 | 599 | | Other Taxes Payable | 28,592 | 25,830 | | Staff-Related Costs Payable | 7,191 | 14,743 | | Lease Liabilities (within 1 year) | 224 | 675 | | Others | 8,131 | 7,695 | | Total | 54,306 | 59,111 | - As of March 31, 2025, amounts due to a third party were unsecured, interest-free, and repayable within one year[68] Bank Borrowings Total bank borrowings decreased, with most short-term and long-term loans guaranteed by executive directors, their spouses, or financing guarantee companies Bank Borrowings (RMB thousand yuan) | Category | 2025 (RMB thousand yuan) | 2024 (RMB thousand yuan) | | :--- | :--- | :--- | | Within One Year or On Demand (Short-term Bank Borrowings, Secured) | 115,000 | 132,455 | | Between One and Two Years (Long-term Bank Borrowings, Secured) | 14,900 | 9,920 | | Total | 129,900 | 142,375 | - Short-term bank borrowings are jointly guaranteed by executive directors, their spouses, and/or financing guarantee companies[70] - Long-term bank borrowings of RMB 14,900,000 are guaranteed by an executive director[69] Other Information This section covers various non-financial aspects of the Group, including public float, securities transactions, corporate governance, and social responsibilities Public Float The Company maintained a public float of at least 25% of its total issued share capital during the year, in compliance with the Listing Rules - During the year, at least 25% of the Company's total issued share capital was held by the public, in compliance with the Listing Rules[71] Purchase, Sale or Redemption of the Company's Listed Securities Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the year, nor did they hold any treasury shares - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the year[72] - The Company and its subsidiaries did not hold any treasury shares during the year[72] Compliance with Corporate Governance Code The Company is committed to high corporate governance standards and complied with all code provisions of the Corporate Governance Code during the year - The Company is committed to achieving and maintaining the highest level of corporate governance suitable for the Group's needs and interests[73] - The Company has complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules during the year[74] Compliance with the Model Code for Securities Transactions by Directors The Company adopted the Model Code for Directors' securities transactions, and all directors confirmed compliance during the year - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[75] - All Directors confirmed that their securities transactions during the year complied with the Model Code[75] Annual General Meeting The Company will hold its Annual General Meeting on Friday, September 19, 2025, with details to be published online - The Company will hold its Annual General Meeting on Friday, September 19, 2025[76] Final Dividend The Directors do not recommend the payment of a final dividend for the year - The Directors do not recommend the payment of a final dividend for the year (2024: nil)[77] Closure of Register of Members Share transfer registration will be suspended from September 16 to September 19, 2025, to determine eligibility for the Annual General Meeting - The Company will suspend its share transfer registration from Tuesday, September 16, 2025, to Friday, September 19, 2025, during which no share transfers will be registered[78] - The record date is Friday, September 19, 2025[78] Employees and Remuneration Policy The Group employed 319 staff, with total employee benefit expenses of approximately RMB 80.6 million, and remuneration based on performance and market conditions - As of March 31, 2025, the Group employed a total of 319 employees (March 31, 2024: 517 employees)[79] - Total employee benefit expenses (including directors' remuneration) for the year amounted to approximately RMB 80.6 million (2024: approximately RMB 99.8 million)[79] - Remuneration is determined based on employees' qualifications, experience, and performance, while discretionary bonuses are generally based on work performance, the Group's financial results for the specific year, and overall market conditions[79] Compliance with Laws and Regulations The Group confirms its compliance with all applicable laws and regulations in China and Hong Kong in all material aspects during the year - The Group has complied with all applicable laws and regulations in China and Hong Kong in all material aspects during the year[80] Environmental, Social and Governance Responsibilities The Group is committed to sustainable development, prudently managing operations, and actively fulfilling corporate social responsibility through community support - The Group is committed to maintaining long-term sustainable development for its business and the communities in which it operates, and actively fulfills its corporate social responsibilities[81] - The Group practices corporate citizenship by sponsoring and supporting civic responsibility projects at the corporate level, striving to benefit the community and give back to society[81] Review by Audit Committee The consolidated financial statements were reviewed by the Audit Committee and audited by KPMG, with consistency confirmed but no assurance on the announcement - The consolidated financial statements for the year have been reviewed by the Company's Audit Committee and audited by KPMG[82] - KPMG considers the figures contained in the preliminary annual results to be consistent with the amounts in the audited consolidated financial statements but has not expressed any assurance opinion on this announcement[82] Post Balance Sheet Events No significant post balance sheet events occurred from April 1, 2025, up to the date of this announcement, other than those disclosed - No significant post balance sheet events have occurred from April 1, 2025, up to the date of this announcement, other than those disclosed elsewhere in this announcement[83] Publication of Annual Results and Annual Report The annual results announcement will be published on the Company's and HKEX websites, with the 2025 Annual Report to follow - This annual results announcement will be published on the Company's website http://www.oneforce.com.hk and the website of Hong Kong Exchanges and Clearing Limited http://www.hkexnews.hk[84](index=84&type=chunk) - The Company's 2025 Annual Report will be dispatched to shareholders in due course and will also be published on the aforementioned websites[84] Acknowledgement The Board expresses gratitude to its team, partners, customers, suppliers, and shareholders for their support, confident in future milestones - The Board extends its sincere gratitude to the Group's management team and employees for their outstanding contributions to the Group's success and their collaboration in achieving the Group's vision[85] - The Board is also deeply grateful to all the Group's partners, customers, suppliers, and shareholders, and with their support and trust, the Board is confident in leading the Group towards its next milestones[85]