Oneforce Holdings (01933.HK) 2022 annual results: revenue of RMB377 million, increased 28%; net profit RMB22.02 million, increased 6%.

Financial highlights

On 20 June 2022, Oneforce Holdings (1933.HK) announced its annual report for the year ended March 31, 2022. During the year, the company recorded an income of RMB 377 million, an increase of approximately 28% over the previous year; gross profit reached RMB 88 million, an increase of approximately RMB 21 million over the previous year, and the overall gross profit margin increased from approximately 22.8% to 23.4%; shareholders attributable profit amounted to RMB 22 million, an increase of 6% over the previous year. Earnings per share were 4.44 cents, an increase of 6% over the previous year.

INDUSTRY AND BUSINESS REVIEW

Since 2020, the global epidemic and climate change have brought a huge impact on everyone's life. People need to adapt to a more fast-changing and complex world.

In response to the global climate change, on 22 September 2020, President Xi Jinping proposed a target for China of reaching the carbon peak by 2030 and achieving the carbon neutrality by 2060 at the 75th United Nations General Assembly. In 2021, the Central Committee of the Communist Party of China and the State Council successively issued several guiding policy documents such as the Working Guidance for Carbon Dioxide Peaking and Carbon Neutrality in Full and Faithful Implementation of the New Development Philosophy, and the Action Plan for Carbon Peaking Emission Before 2030, focusing on the building of a "1+N" policy framework for carbon peaking and carbon neutrality. The government work report published in March 2022 has also put forward the requirements of "orderly promoting carbon peak and carbon neutralization, promoting low-carbon energy transformation, improving the consumption capacity of power grid for renewable energy power generation, and accelerating the formation of green production and lifestyle".

The energy and electricity field is the main battlefield of carbon emission reduction, and as China's economy enters into the stage of high-quality development, people's demand on energy has changed from “a stable and guaranteed supply” in old days to “a safe, economic and green energy” nowadays. Digitalisation, marketisation and scenario-based means have become the main solutions to solve the energy issue in the new era.

In terms of the urban governance, when physical facilities, economic structure and living patterns cannot be easily changed, digital solutions can accelerate the urban resilience and adaptability of the city which allow residents to enjoy a happy life.

SMART ENERGY

In October 2021, the National Development and Reform Commission issued the “Notice on Further Deepening the Market-Based Reform of On-Grid Electricity Prices for Coal-fired Power Generation”, which on one hand, promote all the coal-fired type power generation to enter into the power market, and expand the fluctuation range of the market price of the electricity to 20%. On the other hand, it completely abolishes the tariff catalogue to promote the entering of all the industrial and commercial users into the power market. In January 2022, the National Development and Reform Commission issued the “Guiding Opinions on Accelerating the Construction of a National Unified Electricity Market System”, specifying that the national unified electricity market system will be preliminarily completed by 2025 and will be basically completed by 2030. The core of such electricity marketisation is to reflect the relationship between supply and demand through the prices, to form price signals, and to return to the commodity attributes of electricity.

With the marketisation of the electricity prices and the increase in the proportion of renewable energy, the electricity prices become more fluctuating, and thus the ability to digitalise has become the foundation for realising the marketisation of electricity and meeting the new demand for electricity. At the same time, the digital technology runs through the whole life cycle of energy development, production, transportation, utilisation and recycling. China is improving the foundation of the digitalised power network through a series of planning and construction, such as a strong smart grid and the power IoT.

Since its establishment, the Group has been deeply engaged in the field of smart energy. Starting from the power industry, the Group has now expanded to water, gas, heat, oil and other energy industries, providing customised services for large enterprises and industrial users in the whole chain of consultation, design, development, implementation and operation and maintenance. Through the intelligent transformation of energy enterprises, including real-time collection, quality monitoring, energy consumption analysis and other means, the overall planning, coordination and optimal allocation of energy can be achieved to help improve the digitalised power network, thus achieves the dual-carbon goal.

SMART LIFE

The power of the global third generation Internet comes from the urban Internet, and its scale will far exceed that of its predecessor mobile Internet. The speed of the development of digital economy, the wide range of radiation and strong influence are unprecedented. According to the 14th Five-Year Plan for Big Data Industry Development issued by the Ministry of Industry and Information Technology, the average annual compound growth rate of China's big data industry will exceed 30%. By 2025, the estimated scale of big data industry will exceed RMB3 trillion, and the average annual compound growth rate will remain at about 25%. The value of data, as the fifth largest factor of production, will be further released.

The Group’s Smart Life Strategy includes smart cities, smart parks/communities, and smart homes. At the urban level, the government implements the fine governance of “instant perception and data-driven” in the fields of traffic environment, city appearance, security, communication and people’s livelihood. At the community and park level, managers can conduct management on property, sanitation, parking, security, public services and other matters through digital means. At the family level, the Group is committed to maximising the value of digitisation in special living services, such as bed care, remote medical care, AED first aid, intelligent interactive companionship, etc., so that residents can live at ease and convenience. With all the above improvements in technologies related to smart life, it is our Group’s goal to make digitisation truly beneficial to the daily life of residents.

OUTLOOK AND PROSPECT

The concepts of low-carbon and digitalisation are opening up a new world. The Group's long-standing strategy of "Smart Energy + Smart Life" will eventually pay off. In the future, the Group will use various methods such as share options and dividends, so that every striver and every shareholder who supports and believes in the company can share the benefits of the company's development and look to the future together.

WANG Dongbin

Chairman

20 June 2022