Financial Performance - The company reported a decline in real estate development investment by 8.5% year-on-year and a decrease in commercial housing sales area by 6.5% from January to July 2023[7]. - The furniture manufacturing and sales segment achieved revenue of approximately RMB 48.3 million, a decrease of about RMB 28.5 million or approximately 37.1% compared to the previous reporting period[20]. - The data center segment reported revenue of approximately RMB 23.6 million, a decrease of about RMB 11.3 million or approximately 32.4% compared to the previous reporting period[24]. - The construction management service segment recognized revenue of approximately RMB 38.9 million, a decrease of about RMB 21.9 million or approximately 35.9% compared to the previous reporting period[25]. - The total revenue for the group during the reporting period was approximately RMB 110.8 million, a decrease of about RMB 61.7 million or approximately 35.8% compared to the previous reporting period[25]. - The group recorded a loss of approximately RMB 79.2 million during the reporting period, compared to a loss of approximately RMB 73.7 million in the previous reporting period[25]. - The group achieved revenue of approximately RMB 110.8 million, a decrease of about RMB 61.7 million or 35.8% compared to the previous reporting period[30]. - Revenue from the data center segment was approximately RMB 23.6 million, a decrease of about RMB 11.3 million or 32.4% compared to the previous year[32]. - The group confirmed revenue from the construction management services segment of approximately RMB 38.9 million, down RMB 21.9 million or 35.9% year-on-year[32]. - Selling and distribution expenses decreased by approximately RMB 5.4 million or approximately 46.0%, attributed to strict control of daily expenses and reduced ineffective spending[40]. - Administrative and other expenses increased by approximately RMB 13.2 million or approximately 19.0%, largely due to asset impairment losses related to pledged properties[42]. - The company reported a loss attributable to owners of approximately RMB 79.2 million for the year, compared to a loss of RMB 73.7 million in the previous reporting period, marking an increase in loss of about 6.7%[46]. - Revenue decreased by approximately 35.8% compared to the previous reporting period, while sales costs decreased by about 38.6%, leading to an increase in gross profit of approximately RMB 1.1 million[47]. Market Strategy - The company aims to focus on the southwestern region, particularly Sichuan Province, to stabilize market share amidst economic uncertainties[7]. - The company plans to strengthen its marketing channels and recover its market position in Southwest China while considering expansion beyond the region when conditions permit[13]. - The company is actively seeking opportunities to expand its business scope, particularly in the data center sector, to enhance future profitability[16]. - The company aims to expand its customer base and enhance the profitability of its data center business through management services and strategic partnerships[16]. - The group plans to focus resources on stabilizing and expanding the market in the southwestern region of China, while also exploring opportunities in other regions when conditions permit[27]. Operational Efficiency - The company has implemented strict cost control measures and actively collected overdue receivables, achieving positive operational results[7]. - The company is focused on reducing operational costs to maintain competitiveness amid increasing market competition in the furniture industry[17]. - The group intends to strengthen supply chain management and control, improve production processes, and reduce costs to enhance operational efficiency[27]. - The company has established strategic partnerships with leading data center operators to gain competitive advantages in leasing prices[14]. Investment and Financial Products - The company has invested RMB 10 million in three financial products, with one product amounting to RMB 4 million overdue, leading to an estimated investment loss of RMB 9.5 million[12]. - The group has three financial products with a total principal amount of RMB 10 million that have not been redeemed[79]. - The group has made a provision for investment loss of approximately RMB 9.5 million due to high redemption risk[80]. - One financial product issued by Zhongzhi International Investment Holdings Group has a principal amount of RMB 4 million and has been overdue since August 2023[83]. - Two financial products issued by Zhongzhi Automobile Anhui Co., Ltd. have principal amounts of RMB 3 million each, with one starting from April 4, 2023, and the other from April 20, 2023, both of which are not yet due[83]. Corporate Governance - The company has adhered to the corporate governance code, with the exception of the separation of roles between the chairman and the CEO[84]. - The board of directors consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors[88]. - The board is responsible for leading and controlling the company, making decisions on major policies, strategies, and financial matters[87]. - The board will continue to review and implement appropriate measures to comply with corporate governance code requirements[85]. - The company has taken legal measures to pursue the defaulting issuers of overdue products to recover investment losses[80]. - The company held its annual general meeting on December 9, 2022, with all directors present, ensuring effective communication with shareholders[84]. - The company held six board meetings, three audit committee meetings, one remuneration committee meeting, and one nomination committee meeting during the reporting period[90]. - The attendance of directors at meetings was high, with all independent non-executive directors attending 100% of the meetings they were eligible for[90]. - The company has appointed three independent non-executive directors, constituting over one-third of the board, ensuring adequate independence to protect shareholder interests[92]. - The independent non-executive directors have extensive business and financial expertise, contributing significantly to the board's decision-making processes[92]. - The company secretary attended all scheduled board meetings to report on governance, risk management, compliance, and financial matters[92]. - The company has established a policy for the rotation of directors, requiring one-third of the board to retire at each annual general meeting[94]. - All directors are encouraged to participate in continuous professional development to enhance their knowledge and skills[97]. - The company has confirmed the independence of its independent non-executive directors in accordance with GEM Listing Rules[98]. - The CEO is responsible for managing the group's business and implementing the policies set by the board[102]. - The company maintains a robust internal control and risk management system, reviewed by the audit committee[90]. - The audit committee consists of three independent non-executive directors, with Mr. Chan as the chairman, overseeing the effectiveness of internal controls and risk management systems[103]. - The remuneration committee, chaired by Mr. Chan, is responsible for recommending overall remuneration policies for all directors and senior management, ensuring no self-determination of remuneration by directors[104]. - The company has adopted a share option scheme as an incentive for directors and eligible participants, linking discretionary bonuses and other remuneration to the group's performance[108]. Risk Management - The group identified and classified major risks as strategic, compliance, operational, and financial risks[140]. - The company has established a corporate risk management framework since 2016 to manage various risks[138]. - The internal audit team conducted a series of daily audits and assessments to identify and evaluate the group's risks[135]. - The internal audit team will continue to review the internal control and risk management systems annually[142]. Shareholder Information - The company did not recommend the declaration or payment of any interim or final dividends for the year ending June 30, 2023[159]. - The board has implemented a diversity policy, with the current board comprising one female and seven male directors, achieving satisfactory gender diversity[121]. - The employee gender ratio, including senior management, is approximately 70:30, indicating a commitment to promoting diversity at all levels[121]. - The company has adopted the GEM Listing Rules regarding directors' securities trading conduct, confirming compliance by all directors during the reporting period[122]. - The company will hold its annual general meeting on October 20, 2023[125]. Employee and Management Information - The total employee cost for the reporting period was approximately RMB 183 million, a decrease from RMB 383 million in the previous reporting period[75]. - During the reporting period, the remuneration for senior management (excluding directors) ranged from RMB 0 to 1,000,000 for three individuals[107]. - The auditor's fees for the reporting period totaled HKD 730,000, with HKD 720,000 for annual audit services and HKD 10,000 for non-audit services[117].
智昇集团控股(08370) - 2023 - 年度财报