Financial Performance - For the period ending June 30, 2025, the company reported a significant decline in main business revenue due to weakened procurement demand, with a 12.0% year-on-year drop in national real estate development investment[10]. - The group achieved total revenue of approximately RMB 69.4 million, an increase of about RMB 11.9 million or 20.8% year-on-year[24]. - The group recorded a loss attributable to equity holders of approximately RMB 13.5 million, a significant improvement from a loss of approximately RMB 38.5 million in the same period last year[24]. - The group reported a loss attributable to owners of approximately RMB 13.5 million, a decrease from RMB 38.5 million in the same period last year, driven by a revenue increase of approximately 20.8%[40]. - The group achieved furniture sales revenue of approximately RMB 51.3 million, an increase of about RMB 14.2 million or approximately 38.4% compared to the same period last year[20]. - The data center segment generated revenue of approximately RMB 18.1 million, a decrease of about RMB 2.3 million or 11.3% compared to the same period last year[23]. - The gross profit for the group increased from approximately RMB 3.7 million in the previous year to approximately RMB 15.1 million during the reporting period[31]. - The gross profit margin for the manufacturing and sales furniture division rose from approximately 4.4% to about 25.0%[32]. - The gross profit for the data center division was approximately RMB 2.2 million, an increase of about RMB 0.1 million or approximately 6.8% year-on-year[33]. - The overall sales cost for the group was approximately RMB 54.4 million, an increase of about RMB 0.6 million or 1.1% year-on-year[29]. Business Strategy and Development - The company established "Shangcheng Intelligent" in Guangdong to diversify its market presence, achieving sales revenue that has surpassed its original furniture business in Sichuan, becoming a new growth point[11]. - The company is transitioning to a "self-built, self-operated, and self-owned" asset-heavy model in the data center business to meet the increasing demand for AI-driven infrastructure[12]. - The company recognizes the need for self-owned land and power resources to adapt to the evolving data center market driven by AI technology[12]. - The group is focusing on the southwestern region of China as its core operational area while continuing to stabilize existing business operations[11]. - The group is actively seeking opportunities in non-traditional sectors to expand its customer base and drive new growth[21]. - The group is focusing on diversifying its furniture business and enhancing strategic cooperation with core customers to mitigate risks associated with market dependence[15]. - The group plans to enhance its self-built data center capabilities in Inner Mongolia, leveraging the "East Data West Computing" policy and green energy advantages[26]. - The group is focusing on expanding its data center services in Thailand, targeting potential land plots in Rayong and other areas to capture market opportunities[24]. - The group aims to enter the Thai data center market by issuing convertible bonds for land acquisition and construction of data centers, aligning with its development strategy[134]. Market Conditions - The furniture industry continues to face challenges due to a prolonged downturn in the real estate market, with residential investment down by 10.9%[10]. - The competitive landscape in the furniture industry has intensified, with leading companies expanding their market share, making order acquisition increasingly difficult[10]. - The traditional furniture business of Sichuan Qingtian continued to decline, while the smart furniture business of Shangcheng Intelligent showed steady growth, partially offsetting the impact of the contraction in Sichuan Qingtian's business[135]. - The bidding sales revenue for furniture was approximately RMB 20.03 million, accounting for about 39.0% of the furniture sales business during the reporting period, and approximately 28.8% of total revenue[135]. Corporate Governance - The board consists of eight directors, including four executive directors, one non-executive director, and three independent non-executive directors[80]. - The board is committed to maintaining high standards of corporate governance and has complied with applicable code provisions, with some deviations noted[77]. - The company has engaged external auditors to ensure transparency and accountability in financial reporting[77]. - The company has established a rotation policy for directors, requiring one-third of the board to retire at each annual general meeting, ensuring regular re-election[88]. - The independent non-executive directors confirmed their independence and lack of conflicts of interest, complying with GEM listing rules[92]. - The company has adopted a board diversity policy to enhance the effectiveness of the board[111]. - The audit committee reviewed the accounting principles and financial performance, ensuring no significant issues were identified[83]. - The company has implemented various environmental protection measures to minimize its impact on the environment and ensure compliance with applicable regulations[66]. Financial Position - As of June 30, 2025, the company's net current assets were approximately RMB 132 million, an increase from RMB 65 million as of June 30, 2024, including cash and bank balances of RMB 422 million[54]. - The company had no outstanding interest-bearing bank loans as of June 30, 2025, maintaining a current ratio of approximately 1.2, up from 1.1 a year earlier[54]. - The total equity attributable to the company's owners was approximately RMB 359 million as of June 30, 2025, compared to RMB 198 million as of June 30, 2024[55]. - The debt-to-equity ratio as of June 30, 2025, was approximately 2.13 times, a decrease from 2.27 times a year earlier[58]. - The company has no significant capital commitments other than those disclosed in the report[59]. - The company has no significant contingent liabilities as of the report date, aside from disclosed asset pledges[64]. Employee and Management - The total employee count increased to 197 as of June 30, 2025, up from 142 a year earlier, with total employee costs around RMB 15.8 million, compared to RMB 14.6 million in the previous year[65]. - The company has appointed a new CEO effective December 23, 2024, to ensure effective governance and management of the group’s operations[95]. - The company has provided necessary onboarding training for newly appointed directors to ensure their understanding of operations and regulatory responsibilities[91]. Shareholder Information - The company does not recommend the declaration or payment of any interim or final dividends for the year ending June 30, 2025[141]. - The total number of ordinary shares issued as of June 30, 2025, is 153,888,529[171]. - The company has adopted a share option scheme as an incentive for directors and eligible participants[158]. - The stock option plan has a remaining term of approximately 1 year, 5 months, and 19 days until June 30, 2025[188]. - The stock options can be exercised within a period determined by the board, not exceeding ten years from the grant date[187].
智升集团控股(08370) - 2025 - 年度财报