主席报告

Dear Valued Shareholders,

On behalf of the board (the “Board”) of directors (the “Directors”) of Smartac
International Holdings Limited (the “Company”) together with its subsidiaries
(the “Group”), I hereby present the annual results of the Group for the year
ended 31 December 2021 (“FY2021”).

For E-commerce solutions segment, this segment began to contribute results to the Group in FY2018 upon acquisition completed on 28 December 2017. The main services were to build and operate single and multi-brand e-commerce platforms and flagship stores on multiple online channels such as Tmall, Taobao, JD.com, brand official website and self-built platform and provide end-to-end e-commerce solutions that were tailored to meet clients’ unique need. Amid the shift in consumer behaviour and market landscape from traditional e-commerce platforms to other new social media e-commerce platforms, the segment recorded a net loss for FY2018 mainly resulted from reduced investment in brand promotion by brand partners on the traditional e-commerce platforms which the Group provides services to clients in FY2018.

E-commerce market of the People’s Republic of China (“PRC”) has increased focus on social media e-commerce platforms which enables customers to create richer consumer experiences. In the PRC, consumers use social media to discover new brands and products, validate the product quality through reviews, comments and feedback, purchase directly through a social channel and then write a review of the product or experience. Social media e-commerce platforms such as Pinduoduo and WeChat, have captured increasing attention in the PRC’s market to make purchases and share post-purchase experiences. In the view of increasing market attention and high growth on social media e-commerce platforms in the PRC, apart from working with traditional e-commerce platforms such as Tmall, Taobao and JD.com, the Group would increase resources to develop self-built platforms, brand official website malls and WeChat official accounts that will enable collection of data about customers’ consumption pattern and preferences so as to better adjust product assortment and carry out more precise marketing and promotional activities for brand partners. The Group also started to partner with different e-commerce channels to increase branded product exposure and liaise with suppliers for improvement on supply chain in order to provide timely and quality-assured delivery for enhancing consumer shopping experiences, drive sales and improve profit margin.

For integrated digital marketing (“IDM”) solutions segment, the Group mainly continued to engage in WeChat Pay business in Hong Kong during FY2018 through a subsidiary, Haihai Travel Cloud Limited (“Haihai”). In FY2018, Haihai was awarded WeChat Pay’s Excellent Service Award 2018 award for its dedication to offer quality services to merchants. Riding with the support of the People’s Bank of China and the Hong Kong Monetary Authority, a rapid development of the mobile payment industry was anticipated in FY2018. Although the revenue of WeChat Pay business had been increased by 68% in FY2018, many service providers in the mobile payment industry have been racing in the competition at a low rate in order to seize the merchants. In order to create more comprehensive services to merchants, increase merchants’ loyalty and make differentiation among other players, apart from purely serving merchants with WeChat Pay payment as a mobile payment collection tool, we have planned to focus on the significance in data collection, precise marketing and promotion through WeChat Pay payment services in the coming years. For Online to Offline (“O2O”) solutions segment, during the year under review, segment revenue for the FY2018 dropped by 70.8% largely because of decrease in customer demand on social customer relationship management services and O2O marketing under PRC’s economy slowdown.

In December 2018, the Company completed the placing of 812,500,000 ordinary shares which generated a net proceed of approximately RMB226,926,000 (equivalent to approximately HK$257,380,000, after deducting relevant expenses incurred in relation to the placing), which was mainly used as general working capital for existing business and for investment of new business in the upstream and downstream of the Group’s principal business if opportunities arise. The placing proceeds would further strengthen the Group’s capital structure for future challenges.

Finally, I would like to take this opportunity to express my sincere gratitude to our team for their efforts and contributions and to all of our shareholders for their long-term trust and support.

Yours Faithfully

Yang Xin Min
Chairman

28 March 2019

尊敬的股东:

本人谨代表环球智能控股有限公司(「本公司」,连同附属公司统称「本集团」)董事(「董事」)会(「董事会」),提呈截至二零二一年十二月三十一日止年度(「二零二一财年」)的全年业绩。

于二零二一财年,2019冠状病毒及病毒变种肆虐,影响广泛,包括旅游及通关限制,严格的防疫隔离政策须遏止变种病毒蔓延,但削弱消费信心、全球营商环境未见大幅改善。疫情加速了线上消费趋势,亦令大众对健康及保健的意识加强,推动了对健康产品的需求,尽管本集团把握这两方面的机遇及已投入资源,然而由于竞争激烈,于二零二一财年,在这方面的发展,有待改善。于二零二零年,本集团引入多个国际奢侈生活品牌,包括服装及个人护理护肤产品等,疫情反复令消费者信心未能对本集团的国际奢侈生活品牌商品全面恢复,而本集团在香港开设多间实体店、一间概念店及在中华人民共和国(「中国」)的主要电商平台亦开设旗舰店,尽管本集团拥有强大的电子商务团队、创新的解决方案及一站式服务,仍未能带动本集团国际奢侈生活品牌商品的销售进一步上升,员工成本及固定租金开支进一步加重了本集团的财务负担,存货的积压及大量逾期应收账款的拨备令二零二一财年表现失色。

面对前所未有的挑战,本集团调整了管理层及经营方向,出售了部份经营亏损的附属公司,包括了在中国及香港从事线上线下一般商品买卖业务的Upfront Success Holding Limited及主要从事于中国及香港营销健康产品的智能创力有限公司,减少经营亏损及进一步的财务负担;本集团亦积极地追收逾期的应收账款及处理积压的存货,同时将八个公众仓库的存货转至一个自家管理的中央仓库集中处理,及重新调配人力资源,以提升营运效率,从而减少营运开支。

本集团继续瞄准健康产品市场,于二零二一财年在中国注册成立漳州市科睿琳生物科技有限公司及于二零二二年初由60%增持至100%,其主要于中国从事营销、推广及销售保健产品。本集团正积极找寻其他投资机遇,不排除发展本集团过往一直已存在及具丰富经验的电子数据平台服务,其中包括投资于无线网络设备等。纵使电子支付解决方案业务受到疫情的影响和面对市场的激烈竞争,二零二一财年内仍有所增长,在疫情缓和而有序通关之后,相信微信支付服务将有不俗增长。最后,本人谨向董事会、管理团队及员工于新型冠状病毒疫情下作出的贡献及付出致以诚挚谢意,并由衷感谢客户、业务伙伴及本公司股东坚定不移的支持和信任,本集团将继续努力,为股东创造更大的长期价值。

杨新民
主席

二零二二年三月二十五日

环球智能控股有限公司

于开曼群岛注册成立之有限公司

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