Financial Performance - For the fiscal year ending December 31, 2022, the company's revenue was 32.1 million in 2021 and 3.46 million, representing an increase from 2.78 million in 2020 [405]. - The sales and marketing expenses for fiscal year 2022 were approximately 10.06 million in gross proceeds from its IPO of 2,012,500 Ordinary Shares at an offering price of 5.00 per share [735]. Market and Growth Strategy - The company aims to expand into international markets as the Belt & Road Initiative accelerates [312]. - The company plans to increase revenue by leveraging existing customer relationships and identifying new use cases for its global trade software applications and technology services [316]. - The strategy includes increasing market penetration in China through enhanced sales and marketing capabilities and strategic partnerships [317]. - The company intends to expand into international markets by collaborating with Chinese organizations involved in the Belt and Road Initiative, which will help mitigate risks and reduce costs [318]. - Strategic acquisitions and investments will be pursued to enhance technology capabilities and expand offerings, which are deemed critical for growth [318]. Technology and Innovation - The company intends to leverage emerging technologies such as big data, artificial intelligence, and Internet of Things to enhance its core technology capabilities [303]. - The company has begun offering Powerbridge BaaS Services since June 2019, generating limited revenue from it [300]. - Powerbridge BaaS Services generated approximately 0.7 million in fiscal 2021, indicating initial revenue from blockchain technology applications [351]. - The company is developing various cloud services, including Trade Zone Operations Cloud and Inward Processed Manufacturing Cloud, to streamline operations for businesses in regulated environments [341][344]. - The company is focused on enhancing its machine learning capabilities to optimize trade logistics services [393]. Compliance and Regulatory Environment - The company is subject to regulations regarding foreign investment, which categorize industries into encouraged, restricted, and prohibited [422]. - The company must comply with local minimum wage standards and execute written labor contracts with full-time employees [428]. - The company is required to allocate at least 10% of its retained profits to reserve funds, which are not distributable as cash dividends [437]. - The company must adhere to the registration procedures set forth in Circular 37 for foreign exchange registration of overseas investments [438]. - The New M&A Rule requires offshore special purpose vehicles to obtain CSRC approval before listing on overseas exchanges, effective from September 8, 2006 [441]. Employee and Labor Relations - The company has a total of 177 full-time employees, with 90 in research and development [305]. - The company maintains a good working relationship with employees and has not experienced any labor disputes or work stoppages [419]. - The company participates in various social security plans, including pension insurance, medical insurance, and unemployment insurance, as required by Chinese law [418]. Product and Service Offerings - The company has introduced new products such as Import & Export Loan and Insurance Processing to a selected group of customers [297]. - Powerbridge SaaS Services are designed for rapid deployment and lower total cost of ownership, providing significant operational benefits to customers [336]. - The company continues to expand its logistics service offerings to improve efficiency and reduce processing time for import and export logistics [338]. - The BaaS services will provide end-to-end visibility and transparency throughout the global trade supply chain, ensuring real-time document and event exchanges among trading parties [357]. - Compliance Blockchain Services will enhance regulatory compliance for government agencies by providing a unified view of trade events and documents [366]. Market Trends - The global trade management software market is expected to grow from 416.23 million in 2024 [308]. - The blockchain technology market size surpassed $488 million in 2018 and is predicted to grow at more than 69% CAGR between 2019 and 2025 [308].
Powerbridge(PBTS) - 2022 Q4 - Annual Report