2022 Annual Board of Directors Work Report

2022 Annual Board of Directors Work Report

In 2022, the Board of Directors of Shanghai Huahong Jitong Intelligent System Co., Ltd. strictly adhered to the requirements of the Company Law, Securities Law, and other relevant laws, regulations, and rules, as well as the Company’s Articles of Association and Board Meeting Rules. The Board operated in a standardized manner, made scientific decisions, and diligently fulfilled the functions assigned by the shareholders' meeting, effectively implementing all resolutions. All directors performed their duties diligently, ensuring the company's sustainable and healthy development. The following is the report on the Board's work in 2022:

1. Company Annual Operating Situation

In 2022, the company focused on the strategic positioning of "integrated cloud management and terminal solutions for the digital transformation of smart cities," closely aligning with the annual operational plan and objectives. However, due to macro policies and external environmental impacts, the company's traditional AFC market construction and renovation business were delayed, and the progress of new business projects did not meet expectations. Additionally, significant increases in credit impairment losses and asset impairment losses led to operational losses for the year. The company achieved an operating revenue of 303.09 million yuan, a year-on-year decrease of 18.46%; a net profit attributable to shareholders of the listed company of -19.77 million yuan, a year-on-year decrease of 293.63%; a net profit attributable to shareholders of the listed company, excluding non-recurring gains and losses, of -20.81 million yuan, a year-on-year decrease of 595.05%. The equity attributable to shareholders of the listed company was 360.49 million yuan, a decrease of 5.20% compared to the same period last year; basic earnings per share were -0.1177 yuan/share, a year-on-year decrease of 293.59%.

2. Board of Directors Meeting Situation

(1) Board Meetings Held

During the reporting period, the Board of Directors held a total of 7 meetings, with all directors attending either in person or by proxy. They fully deliberated on the matters for discussion, made cautious decisions, and expressed clear voting opinions, with no absences recorded. The procedures for convening and holding each Board meeting complied with the Company’s Articles of Association, Board Meeting Rules, and relevant laws and regulations. The specific content of the Board meetings is as follows: