ST data Source (000909) 2023 annual board of directors management review is as follows:

I. the situation of the company's industry during the reporting period

The company's main business includes the development and sales of electronic and information products, the development and operation of science and technology industrial parks, commodity trade and real estate development business. The industry situation of the company during the reporting period:

1. Electronic information industry:

From the perspective of the consumer market of electronic products, in recent years, the development trend of electronic products towards digitalization and intelligence is obvious, and there is great potential for upgrading from "you" to "excellent" consumption. however, affected by the industry cycle, the international environment, the disturbance of the global industrial chain supply chain and other factors, the electronic product market has weakened, while the instability of income expectations, the delay of the innovation cycle and other factors also lead to the slow recovery of electronic product consumption.

According to the information released by the Ministry of Industry and Information Technology, the production of China's electronic information manufacturing industry has recovered in 2023, the decline in exports has narrowed, the efficiency has gradually recovered, investment has increased steadily, and the decline in revenue in multiple regions has narrowed.

2. Industry of science and technology industrial park:

Under the influence of the market environment, the problems of excess stock and homogenized competition still exist in the whole country. With the continuous entry of a number of new parks and a large number of stock parks, the demand for the revitalization of park stock assets is further increased.GratisspinscoinmasterAt present, the homogenization competition of industrial parks is becoming increasingly fierce, the effectiveness of the traditional investment attraction strategy with "profit" as the core is declining day by day, and more and more parks adopt innovative investment model to play the game. With the rapid development of a new generation of information technology, such as the Internet of things, 5G, cloud computing, big data and artificial intelligence, digital technology will further infiltrate the park, based on the considerations of differentiated competitiveness, improving service quality and promoting investment. Digital intelligence of the park has become a "must".

3. Commodity trading industry:

Commodity prices as a whole have been under pressure since the beginning of 2023. For commodities, domestic demand has officially entered the repair channel after the introduction of optimization policies, and market expectations for domestic policy increases are heating up, but the impact of expectations on actual demand remains to be verified. At present, the effect of demand on industrial products such as black and non-ferrous materials and energy such as coal is not as good as expected. As demand returns to endogenous drive after the recovery, commodity markets have entered the midfield adjustment stage focusing on fundamental differences, supply is actively adjusted to adapt to the deceleration of demand, and commodity prices are further differentiated in the marginal pricing process of bottoming.

4. Real estate industry:

In 2023, governments at all levels optimize the property market policies frequently, but residents' income expectations, property market confidence and other factors restrict the market repair. The "guidance on the Planning and Construction of indemnificatory Housing" issued in the middle of the year sounded the horn of a new round of "housing reform" and defined two major goals in the future, one is to increase the construction and supply of indemnificatory housing, and the other is to promote the establishment of a new model for the transformation and development of the real estate industry, so that commercial housing can return to commodity attributes. During the reporting period, Hangzhou property market policy was greatly relaxed, successively issued a credit policy of housing recognition and non-loan, liberalized regional purchase restrictions outside the main urban area, and canceled price restrictions, in order to further release the demand for housing purchase. II. The main business of the company during the reporting period

During the reporting period, the company focused on the main business, followed the market and product trends, and complied with the trend of "expanding the market and excellent products". However, due to the pressure of internal and external challenges, complex and changeable market environment and other factors, the business development of various sectors of the company this year is limited, product sales fall short of expectations, and the overall performance falls short of the target; at the same time, the company analyzes and evaluates some real estate projects and makes relevant impairment preparations according to the actual situation, resulting in a loss in annual performance. The company will continue to strengthen technological innovation and new product research and development, optimize product structure, increase market development efforts, and constantly enhance the core competitiveness of products and enterprises.

1. Electronic information services

During the reporting period, according to the overall development strategy, the company focused on the electronic information industry, taking the application of the new generation 5G communication technology as the carrier, focusing on expanding business in the fields of intelligent transportation, future community, intelligent terminal, etc., to stimulate market increment, continue to open up the market and enhance the competitiveness of products.

Automotive electronics business covers the research, development, production and sales of automotive electronic products. During the reporting period, we anchored the commercial vehicle market accurately, gave full play to the advantages of vehicle equipment research and development, established a government third-party supervision platform for two passengers and one dangerous bus in cooperation with the government, and expanded the commercial vehicle operation market. the vehicle use project of the operation center and special team operators was initially set up and gradually formed a scale; the vehicle equipment integrated with intelligent algorithm realized mass production and enhanced the technical added value of the existing products. The electronic rearview mirror and Tonglu / Jiande project are carried out in an orderly manner, and the blind area safety early warning device for new energy vehicles is selected as a case study of Hangzhou workers'"five small" innovation achievements.

Multimedia services cover commercial multimedia display systems, self-service terminal equipment and intelligent communication terminals and other products and services, relying on multimedia business platform, combined with the new generation of communication technology to enhance the competitiveness of products and services.

Smart community business products and services include intelligent access control system, intelligent public rent integrated service management platform, intelligent information system integration services. During the reporting period, the company's public rental housing and resettlement housing projects continued to maintain a good trend of development. during the year, more than 35000 households were maintained by the intelligent access control system of Hangzhou public rental housing, and the overall volume of the resettlement housing project was close to 8, 000. public rental housing projects in Xiaoshan, Fuyang, Yuhang, Linping and other areas are being promoted one after another. In terms of technology, in addition to fingerprints, face and vein biometric technology is introduced to increase the identification methods of the existing intelligent access control system, so as to make a good technical reserve for the later market layout. In terms of research and development, complete the development and delivery of the new generation of intelligent access control management platform for public rental housing, and achieve data exchange with the original public rental housing project; complete the production testing and transformation of intelligent access control system products such as intelligent gateways and intelligent door locks.

Intelligent engineering business, the company relies on real estate projects, enables urban operation with digital technology, and actively plans the future development direction of community digitalization. During the reporting period, the company implemented the intelligent system engineering in the "Hangzhou Gate" project. As a key project in Zhejiang Province and one of the key supporting projects of the Hangzhou Asian Games, the Hangzhou Gate project has a tight schedule and high requirements for construction quality. the project team and construction team rushed to grasp the quality day and night, and the main project passed the completion acceptance in September 2023 and submitted the project settlement in October. In the future, the company will continue to focus on Hangzhou, plough Jiangsu, Zhejiang and Shanghai, radiate key cities such as Tianjin, Shanghai and Shenyang, and actively participate in the construction of future community intelligent projects.

2. Business of science and technology industrial park

The company takes the eastern software park and 5G pilot park as the main platform, combined with the industrial positioning and future development strategy of the park, constantly enriches the park cluster. During the reporting period, the eastern software park promoted the optimization of management levels with high quality and high efficiency, improved the quality of the science and technology park as a whole, and gradually presented the landmark image of the science and technology park in the first place through the co-construction with the Wensan digital district. Continuously release the demonstration effect of "National small and Micro Enterprise Entrepreneurship and Innovation demonstration Base" and "National Science and Technology Business Incubator" with professional services, and constantly optimize the scientific and technological innovation ecology of the park. Hangzhou small and micro enterprise park performance evaluation "A" and passed the review of Zhejiang four-star small and micro enterprise park Focus on meta-universe industry and digital economy industry, set up the East Software Park Industrial Innovation Research Institute, landed the "AI unmanned store" project; in order to activate the existing assets, optimize the allocation of resources and promote the public offering of REITs, at this stage, it has completed the formulation and evaluation of a series of public offering REITs projects, the implementation of internal decision-making procedures and information disclosure, and the selection and recruitment of fund managers and intermediaries. During the year, the investment promotion work of the first and second phases of Dongruanyuan Universe Fusion Innovation Park was completed, and high-quality projects were successfully introduced, with an average annual occupancy rate of about 92%. At the same time, through the inspection of the targeted industrial park, participating in hosting the "China Virtual reality and Meta-Universe Industry Summit", "founder China" and attracting meta-universe industrial enterprises to build a meta-universe innovation center and other omni-directional consolidation of Neusoft management team management capacity.

Xiasha 5G Industrial pilot Park, in accordance with the requirements of the national 5G industrial base, high-standard, high-starting point planning and construction, efficient promotion of park, factory building and other work, won the Hangzhou Dachuang Town "Digital economy characteristic Park" in March 2023. The park covers an area of 66GratisspinscoinmasterBy the end of 2023, the rental area has reached 70712.77 square meters, with a rental rate of 98.45%. The park mainly has four major functions: 5G communications R & D and manufacturing base, 5G application demonstration base, 5G industry cultivation and incubation base and 5G industry public service platform.

3. Commodity trading business

The company's trade business gives full play to the advantages of trade and financial resources, focuses on core customers, and constantly improves business efficiency around the company's key business groups. During the reporting period, the construction of key business chains was comprehensively deepened, and the revenue scale of steel supply chain business increased significantly; the spot business path of bulk trade was further optimized to enhance the core competitiveness of the business; comprehensively enhance the intensity of compliance risk prevention and control work, and achieved remarkable results, with steady business development throughout the year.

4. Real estate business

At present, the company's real estate business is mainly government construction business and industrial park construction, the company's independent development projects have been greatly reduced, and various projects are being promoted. The company is committed to the construction of indemnificatory housing, government public construction and co-ownership housing projects, which is a light asset operation mode. During the reporting period, the Highland Community Resettlement Housing Project was completed for the record; the Minle Community Resettlement Housing Project has completed the real estate license processing; the Wulin Resettlement Housing Agent Construction Project reached the top of the project in September; the Niutian unit property rights protection housing project basically completed the underground construction; the Wenhong Golden Block project is now on sale; Digital Source Technology (000909) completed the sale of some office buildings, parking spaces and so on.

The relevant information about the real estate business is as follows:

1. Development of major projects

2. Sales of major projects

3. Rental of major projects

4. Financing channels

5. Development strategy and business plan for the coming year

Closely centering on the two strategic directions of providing government construction services and transforming the construction of wisdom parks, the company continues to improve basic management, optimize marketing and leasing business processes, focus on ensuring engineering construction services, and cooperate with all parties to do a good job in risk prevention.

Third, the analysis of core competence

Digital source science and technology, as listed companies with the background of state-owned enterprises, state-level high-tech enterprises and innovative pilot enterprises in Zhejiang Province, closely follow the trend of scientific and technological innovation, digital economic innovation and quality improvement and industrial digital transformation, optimize the strategic layout, and constantly consolidate their core competitiveness:

Industrial structure advantages: in recent years, the company focuses on the market and product direction, optimizes industrial layout according to the company's overall development strategy, and focuses on main industries such as electronic information and science and technology parks. The main electronic information industry takes the application of the new generation 5G communication technology as the carrier, focusing on expanding business in the fields of intelligent transportation, future community, intelligent terminal, etc., and the science and technology park revolves around the strategic orientation of "one park, one industry" and "one park, one brand". The layout of science and technology park construction, management and operation industry, currently has a professional park construction and management team And continue to consolidate the ability of team management by inspecting the target industrial park to learn advanced modern enterprise management concepts, business models and institutional mechanisms.

Technical advantages: the company has a large number of scientific research achievements and core patented technologies with independent intellectual property rights in intelligent applications such as intelligent community, intelligent transportation, vehicle networking and so on. Intelligent driving aids have been widely used in intelligent public transport systems in many cities. Based on the existing 5G technology, the company continues to innovate and make breakthroughs in the field of intelligent applications. It has won many awards, such as "Zhejiang 5G Application demonstration Innovation Award", "Zhejiang New Smart City Development 5G + New Smart City Outstanding Achievement Award 2020", "Ministry of Industry and Information Technology 5G blooming Cup Zhejiang Branch Competition third prize, National Outstanding Award" and so on. Products and technologies such as intelligent building access control system and intelligent public rental housing management system maintain a leading position in the industry. The research and development of new energy vehicle charging equipment and operating platform has been successfully verified by the qualification of State Grid charging equipment suppliers and has become a qualified supplier of State Grid for many years in a row. During the reporting period, 42 applications for various intellectual property rights were completed, of which 11 were applied for invention patents, and 35 patents were granted in 2023, including 10 invention patents and 7 authorized software copyright.

R & D advantages: the company has been engaged in the main electronic information industry for many years and always regards technological innovation as the core competitiveness of the enterprise. As a provincial enterprise technology center, relying on the major shareholders of the national enterprise technology center, Zhejiang key enterprise research institute and other platforms, after years of technological research and development and accumulation, the company has established a strong R & D team. There are many achievements in product and technological innovation. In 2020, the major scientific and technological innovation project of Hangzhou Science and Technology Bureau declared by the company, "Research and Development of key Technologies for two-way charging of New Energy vehicles", officially passed the acceptance test; the company was recognized as "2019 Hangzhou High-tech (300478) District (Binjiang) Gazelle Enterprise". In 2021, the key research and development plan of Zhejiang Provincial Science and Technology Department in 2019, "Development of vehicle Intelligent Terminal and Cloud Information platform integrating multiple Communication modes", passed acceptance; the company's "Research and Application of 5G-based Intelligent Police vehicle and Service platform" was included in the 5G Industry Project of Hangzhou Economic and Information Bureau in 2021. The scientific and technological innovation achievement "Research and Application of key Technologies of Electric vehicle Power Battery package based on big data Analysis" jointly developed and implemented by the company and Hangzhou University of Electronic Science and Technology won the first prize of Zhejiang Science and Technology Progress Award. In 2022, the company was recognized as Zhejiang Province specialized special new small and medium-sized enterprises, 2022 Hangzhou High-tech Zone (Binjiang) gazelle enterprise. In 2023, the company was identified as a national intellectual property advantage enterprise, the company and its subsidiary Yihe Network were recognized as a national high-tech enterprise, and the subsidiary Yihe Network was identified as a specialized and new small and medium-sized enterprise in Zhejiang Province.

Management advantages: over the years, the company has continuously improved the construction of governance pattern, always emphasized the systematization, standardization and standardization of work, combined preventive management with fine management, and established a professional, stable and efficient senior management team. In the aspect of internal control management, combined with its own business characteristics and documents issued by relevant regulatory departments, continuously improve the management system and process, follow the three major management system standards of ISO9000, ISO14000 and OHSAS18000, and establish a comprehensive quality, environmental and occupational health and safety management system and process, which effectively ensures the standardization, standardization and internationalization of the company's operation. And passed the certification of GB/T29490 intellectual property management system and IATF16949 automobile quality management system. Under the joint promotion of the five systems, effectively help the company to further enhance management awareness, standardize the management process, and the implementation of the management system throughout every process of research and development, production, sales and other operations. IV. Analysis of main business

1. Overview

During the reporting period, the company's consolidated statement realized operating income of 673 million yuan, an increase of 14.53% over the same period last year; the net profit belonging to the parent company was-319 million yuan, with a loss reduced compared with the same period last year.

In 2023, electronic information services will focus on expanding business in intelligent applications such as intelligent transportation, future communities, intelligent terminals, and so on.

Intelligent transportation business: in terms of automotive electronics business, an operation center and a special team have been set up to carry out the "two passengers and one danger" vehicle big data analysis and management application platform project to provide active safety supervision services for passenger and freight companies; the vehicle equipment integrated with intelligent algorithm has realized mass production and enhanced the technical added value of existing products; the electronic rearview mirror and Tonglu / Jiande project have been promoted in an orderly manner. The blind area safety early warning device for new energy vehicles was selected as a case study of the "five small" innovation achievements of workers in Hangzhou.

Future community business: mainly around the city-level public rental housing, resettlement housing projects, Xiaoshan District public rental housing allocation projects, Fuyang, Yuhang, Linping and other areas of public rental housing projects; products, based on the original intelligent door lock function for iteration, the introduction of face and vein biometric technology except fingerprints, to make a good technical reserve for the later market layout. At the same time, relying on real estate projects, digital technology enables urban operation, and actively plans the future development direction of community digitalization. During the reporting period, the company implemented the intelligent system engineering in the "Hangzhou Gate" project.

During the reporting period, the company's electronic information business achieved operating income of 135 million yuan, accounting for 20.07% of the company's operating income, an increase of 2.09% over the same period last year.

The company's science and technology park business is based on the eastern software park and 5G pilot park. In 2023, the eastern software park continues to release the demonstration effect of "National demonstration Base for Entrepreneurship and Innovation of small and Micro Enterprises" and "National Science and Technology Business Incubator". It constantly optimizes the scientific and technological innovation ecology of the park, focuses on meta-cosmic industry and digital economy industry, establishes the Industrial Innovation Research Institute of Eastern Software Park, and lands the "AI unmanned Store" project. To promote the issuance of public REITs, we have completed the formulation and evaluation of a series of public REITs projects, the implementation of internal decision-making procedures and information disclosure, and the selection of fund managers and intermediaries; further upgrade the park and work with the Wensan digital district to create the landmark image of the science and technology park in the first place in the Wensan district. Xiasha 5G Industrial pilot Park, in accordance with the requirements of the national 5G industrial base, high-standard, high-starting point planning and construction, efficient promotion of park, factory building and other work, won the Hangzhou Dachuang Town "Digital economy characteristic Park" in March 2023. By the end of 2023, the average annual occupancy rate of the eastern software park was about 92%, and the rental rate of Xiasha 5G Industrial Park was 98.45%. During the reporting period, the industrial business of the company park achieved operating income of 175 million yuan, accounting for 25.99% of the company's operating income, an increase of 36.88% over the same period last year.

In 2023, the company's trade business will give full play to the advantages of trade and financial resources, further promote strategic cooperation with core customers, and build a diversified business ecosystem. Comprehensively deepen the construction of key business chains, achieve substantial growth in the business revenue scale of the steel supply chain, strengthen the belief of "going out" to "bring in" the business, further consolidate the business foundation, and improve the level of risk control in the early stage of the business. and achieved remarkable results, the steady development of business throughout the year. During the reporting period, the company's business income reached 9 million yuan, accounting for 1.32% of the company's operating income, a decrease of 29.55% compared with the same period last year.

In 2023, facing the general environment of continuous decline in the property market, the company focused on reducing costs and efficiency, lean management and team consensus, and continued to promote key work such as stock real estate elimination, organizational structure optimization, foreign investment risk control, agent construction transformation and development, etc. although affected by the market, the income was not as good as expected. However, there are still some bright spots: the completion and filing of the highland community resettlement housing project during the reporting period, and the real estate license processing of the Minle community resettlement housing project. The conclusion of the Wulin resettlement housing construction project was realized in September; the underground construction of the common property rights protection housing project of the Niutian unit was basically completed; the Wenhong Golden Block project is now on sale; the digital source science and technology building project completed the sale of some office buildings, parking spaces and so on. During the reporting period, the company's real estate business achieved operating income of 338 million yuan, accounting for 50.28% of the company's operating income, an increase of 11.67% over the same period last year.

V. Prospect of the company's future development

(1) Development strategy:

Digital Source Technology will firmly focus on the theme of deepening reform, transformation and development, continue to implement innovation-driven and "strengthening enterprises with talents" strategy, actively promote the integration of internal resources, and increase the intensity of scientific and technological innovation. Adhering to the concept of "technological innovation as the core and industrial development as the leading", the company will speed up the adjustment of industrial structure and seize the opportunity of vigorously developing information digital economy and promoting intelligent applications in Hangzhou. make every effort to transform science and technology industrial parks, intelligent transportation, intelligent communities and other emerging industries, increase the proportion of intelligent application business in the business structure, enhance the company's profitability, and achieve sustainable development.

(2) Business plan:

1. In view of the matters emphasized in the audit report and internal control audit report, the company intends to take the following improvement measures according to the actual situation: (1) the company will continue to optimize business and management processes, and further improve the relevant systems of capital revenue and expenditure and transaction norms. The company's business will be strictly implemented in accordance with the relevant systems of the company, and at the same time continue to strengthen the management of the company, including the carding and control of financial, capital, sales and business processes. To ensure the safety of the company's funds, with emphasis on receivables, especially the verification of the credit rating of the counterparty to the transaction, increase the regular reconciliation mechanism, reduce capital risks, and strengthen fund management. (2) strengthen the management of receivables and clean up all kinds of receivables. On the one hand, the relevant responsible persons and business departments are required to strengthen communication with partners, promote contract execution and speed up sales payback. (3) continuously improve the company's internal control system and control measures, further improve various rules and regulations, continuously improve the management level, promote the benign and stable operation of the company, and ensure the sustained and stable development of the company, at the same time, it is also necessary to strengthen the company's management, relevant business departments, key positions of business personnel on the relevant laws and regulations, management system, examination and approval process learning and training, strengthen the standardization consciousness of key personnel and key positions. To ensure the effective implementation of the internal control system.

2. Continue to optimize and strengthen the leading industry. Focus on the electronic information industry, science and technology industrial parks and other main industries to enhance core competitiveness. Seize the opportunity to actively promote the production and marketization of core technologies and innovative achievements in the field of intelligent application industry; strengthen quality and production management; enhance the ability of business personnel; increase the intensity and depth of market development; implement the concept of innovation in every link of work and accelerate the stable benefits of transformation and upgrading.

3. Centering on the advantages of the construction, management, operation and enterprise development of the industrial park, we will further develop the park economy and future community business, deeply promote the integrated development among the main industries, maintain strategic concentration, steadily promote existing projects, and practice internal skills. We will withdraw funds, strengthen the management of work details, do a good job in the dual reserve of projects and talents, and strive to rise abruptly based on accumulated strength when the spring of the industry comes.

4. actively deal with the impact of the environment and seek breakthroughs in trade business. Carefully plan the future development path around the main electronic information industry, major infrastructure construction, consumption upgrading and other areas, take the construction of the supply chain business platform as the core work, and make full use of and give full play to the advantages of both trade and financial platforms. strive to introduce new customers, find new blue oceans, activate staff potential and achieve business breakthroughs in the new year.

5. Fill their own shortcomings and optimize the structure of human resources and internal management. As a technology company, human resources play an important role in the development of the company. the company will improve the relevant management system in order to meet the needs of R & D and market personnel of various departments and optimize the structure of human resources. open up a new situation of talent strategy and incentive system.

(C) the risks that may be faced:

1. Policy risk: the company's main business is electronic and information products, science and technology industrial parks, commerce and real estate, and policy changes in various fields may have an impact on the company's business development. Countermeasures: the company will always pay attention to the changes in national macro policies and adjust the company's business decisions accordingly to minimize the significant impact of policy changes on the company's operating performance.

2. Competition risk: the rapid influx of new entrants to the industry may bring market competition risk. Countermeasures: the company will strive to enhance its core competitive advantage, actively acquire new projects, and speed up development at the same time.

3. The risk of force majeure in terms of natural and social factors: the natural and social factors of force majeure such as major natural disasters, public health emergencies, and large-scale social activities may affect the company's project schedule and revenue recognition, thus affecting the company's operating performance. Countermeasures: the company continues to establish and improve the emergency management system, early prediction, scientific response, steadily promote online and offline (300959) linkage working mechanism, enhance business capacity in extraordinary periods; at the same time, actively make good use of relevant policies, try our best to reduce the impact of force majeure risk on the company's operation.