Gelonghui July 13?Cybertron International Holdings (01020.HK) announcementOn July 13, 2023, PTF, a subsidiary of the company, entered into a memorandum of understanding with Seido Solutions Sdn Bhd on market positioning, timing and navigation applications in Malaysia, including, but not limited to, smart agriculture management, smart roads and the Internet of things. Seido Solutions Sdn Bhd is a service provider based in Malaysia that provides comprehensive energy-saving solutions to Malaysian households, businesses, manufacturers and cities.

Recently, the company has actively expanded the spatio-temporal intelligent application market in Southeast Asia, and has carried out active negotiations with local enterprises or government departments in Malaysia, Indonesia, Thailand, Cambodia and many other ASEAN countries. including but not limited to intelligent agriculture, mapping, slope deformation monitoring, intelligent transportation, intelligent wharf and so on.

These projects are expected to make substantial progress in the second half of the year, and in the future, the company will continue to invest more resources in expanding the spatio-temporal intelligent industry in Southeast Asia. The company believes that the ASEAN market is the fastest growing region in the field of smart city development in the next five years, coupled with its geographical proximity to China and Hong Kong, which is conducive to the company's deployment in the region and bring value and returns to shareholders. The company is strengthening the training of internal R & D team, applying scenario testing, and setting up a branch company in Southeast Asia in the near future to manage local business more effectively and expand its business territory.

In response to China's educational laws and regulations and the opinions on further reducing the burden of homework and out-of-school training of students in compulsory education issued by the government in August 2021, the company's board of directors decided to make appropriate strategic adjustments, reallocate the resources of the online education business division, and adjust the provision of out-of-school training services by Beijing Woxue (Beijing) Education Technology Co., Ltd. ("Woxue") to Chinese students. To ensure compliance with the new education policy. Woxue previously operated under a variable interest entity agreement with Huzhou Company, a wholly-owned subsidiary of the company engaged in online IT education business in China, and subsequently ceased operation. In order to restore the branch business of education and related services in China, the company has gone through different restructuring procedures. The restructuring process is expected to be completed in the next quarter of the year, which will become an indirect wholly-owned subsidiary of the company, engaged in the operation of education, entertainment and arts, sports and extracurricular tutoring-related courses.

Due to the continued outage of flights in different countries and the lack of health precautions, as well as the change in customers' preference for buying brand new smartphones over second-hand refurbished machines since the Covid-19 epidemic in 2021, the higher cost of container arrangements and the unexpected and persistent shortage of local logistics arrangements delivered by overseas customers, the Group's revenue from its past e-commerce business has been adversely affected.

In addition, due to the additional requirements of different market platforms, such as margin and return policy changes, the business segment faces more operating pressure, which makes the B2C e-commerce business segment face more great difficulties in 2022. With its existing advantages in the e-commerce market, e-commerce subsidiaries have been transformed into B2B-based businesses in 2023 to reduce any unexpected risks in their operations, and since the re-liberalization of cross-border trade in China at the beginning of this year, B2B has shown vitality to the segment business of dealers. Management is confident about the strategic shift in e-commerce business and expects e-commerce business to return to normal size in the second half of 2023.