Economic Recovery and Market Conditions - The Group's interim report for the six months ended June 30, 2021, reflects a recovery in business and market activities following the challenges posed by the Covid-19 pandemic [8]. - The International Monetary Fund (IMF) maintained its global growth forecast for 2021 at 6%, with an upgraded outlook for developed economies but a downgrade for emerging markets [10]. - China's economy contracted by 6.8% in Q1 2020 due to the pandemic, but government incentives have been implemented to drive growth momentum in the first half of 2021 [11]. - The Group anticipates uneven recovery in the Chinese economy across different industries and markets in the second half of 2021 [9]. - Ongoing trade tensions between the U.S. and China continue to impact global trade and economic growth, contributing to a recessionary environment [11]. - The IMF highlights significant downside risks globally, including the potential for new Covid-19 variants to disrupt economic activity [10]. - The Group's performance in the first half of 2021 demonstrates resilience amid challenging market conditions [8]. - The Hong Kong government projected economic growth between 5.5% and 6.5% for the year, supported by government stimulus measures [19]. - The unemployment rate in Hong Kong decreased from 7.2% to 5% early in 2021 [44]. - The fundamentals for economic operation in the second half of the year are relatively good, despite ongoing global uncertainties [109]. E-commerce Trends and Performance - In the first half of 2021, the company's eCommerce subsidiary maintained steady performance despite global uncertainties, including flight delays and regulatory restrictions due to the Covid-19 pandemic [21]. - Retail sales of consumer goods in China increased by 23% year-on-year during the first half of 2021, partly due to increased online shopping [16]. - The Covid-19 pandemic has accelerated the shift towards eCommerce, with more retailers adopting technology and online platforms [28]. - The eCommerce subsidiary primarily operates in B2C retailing through platforms like eBay and Amazon, and is seeking to expand into other marketplaces such as Rakuten, cDiscount, Fnac, and Darty [119]. - The eCommerce business recognized product sales trends for second-hand and refurbished mobile phones, adapting to local market demands and exploring various online marketplace platforms [66]. - In the first half of 2021, eCommerce contributed more than 79% of total revenue for the Group [78]. - The company is evaluating internet shopping habits country by country to sustain business growth amid increasing competition in the eCommerce sector [66]. - E-commerce is projected to continue growing as a percentage of total global retail sales over the next five years, driven by increased online shopping accessibility [48]. - Nearly 150 million people shopped online for the first time during the Covid-19 pandemic in 2020, with the number of eCommerce buyers expected to rise further [48]. Online Education Sector Insights - The online education business of the company has provided quality services to students, particularly during the Covid-19 pandemic, contributing to steady performance in the first half of 2021 [33]. - The Chinese government has issued regulations to reduce the burden of homework and off-campus training, which may impact the online education operations of the company [34]. - The online education market in China was valued at RMB 400.38 billion (USD 58.51 billion) in 2020, with an annual growth rate exceeding 24% [53]. - The Covid-19 pandemic accelerated the growth of online education, particularly in the K-12 sector, while slowing down tertiary and vocational education [54]. - The Chinese government's double reduction policy, released in July 2021, aims to ease the educational burden on parents and restricts tutoring services for K-9 students [59]. - The policy mandates that tutoring businesses restructure as non-profit entities and limits classes to weekdays only [59]. - The online education subsidiary of Cybernaut Group maintained business returns and market developments despite the regulatory changes introduced by the Chinese government in July 2021, which aimed to reduce the burden of compulsory education students' homework and off-campus training [69]. - The company is closely monitoring the impact of new educational guidelines and government measures on its online education services in China [121]. Financial Performance and Challenges - Revenue for the six months ended June 30, 2021, was RMB 71,887,000, a decrease from RMB 137,492,000 in the same period of 2020, representing a decline of approximately 47.8% [154]. - Gross profit for the period was RMB 21,147,000, down from RMB 27,251,000 in 2020, indicating a decrease of about 22.5% [154]. - The Group's loss for the six months ended 30 June 2021 was approximately RMB33.1 million, compared to a loss of approximately RMB8.2 million for the same period in 2020, representing an increase in loss of over 303% [96]. - The basic loss per share for the six months ended 30 June 2021 was approximately RMB0.85 cents, compared to RMB0.31 cents for the same period in 2020, indicating a significant increase in loss per share [96]. - The Group's revenue from the money lending business was approximately RMB7.8 million for the six months ended 30 June 2021, a decrease from approximately RMB8.2 million for the same period in 2020 [81]. - Revenue from the eCommerce business decreased by approximately 52.4%, contributing approximately RMB57.0 million for the six months ended 30 June 2021, down from approximately RMB119.6 million in the same period of 2020 [81]. - The internet education services revenue decreased to approximately RMB7.1 million for the six months ended 30 June 2021, compared to approximately RMB9.0 million for the same period in 2020 [81]. - The Group's cost of sales decreased by approximately 54.0% from approximately RMB110.2 million for the six months ended 30 June 2020 to approximately RMB50.7 million for the six months ended 30 June 2021 [83]. - The Group's outstanding bank loan and promissory notes as at 30 June 2021 were approximately RMB7.5 million and RMB315.0 million, respectively, compared to RMB3.4 million and RMB334.7 million as at 31 December 2020, indicating an increase in bank loan by approximately 120.6% [96]. Strategic Initiatives and Future Outlook - The Group emphasizes the need for policy solutions to address internal and external challenges to sustain growth [14]. - The Group aims to expand eCommerce business in France, Germany, and Russia to capture more market share during the ongoing health crisis [78]. - The management recognizes the importance of diversifying the customer base to mitigate economic uncertainties caused by the Covid-19 pandemic and geopolitical tensions [78]. - The Group will follow new government education guidelines and explore further business opportunities in its segments [76]. - The company plans to allocate resources effectively across different subsidiary businesses to enhance growth potential and long-term benefits [121]. - The company will adopt a tighter credit policy for mortgage loans and loan renewals in the second half of 2021 [114]. - The company is committed to enhancing growth across different business segments and is exploring potential investments to diversify revenue streams [35]. - The Group's management remains focused on navigating the complex and fast-changing environment to ensure operational resilience [9].

Economic Impact and Recovery - The company faced significant challenges due to the COVID-19 outbreak, but the Chinese economy began to recover in the second half of 2020, leading to improved market growth and social development[13]. - The company reported a gradual resumption of work, production, and business activities following a drastic economic downturn in Q1 2020[13]. - The ongoing U.S.-China trade tensions continued to impact global markets, contributing to economic instability[13]. - The company anticipates a challenging recovery period due to ongoing uncertainties related to the pandemic[15]. - The economic situation in Hong Kong has been severely impacted by the Covid-19 pandemic and U.S.-China trade war[15]. - The Federal Reserve has implemented measures including up to $2.3 trillion in lending to mitigate economic damage from the pandemic[18]. - The Federal Reserve has cut the federal funds rate by a total of 1.5 percentage points since March 2020, bringing it to a range of 0% to 0.25%[18]. - The economic downturn triggered by the Covid-19 crisis in the U.S. has led to business closures and work-from-home policies[18]. - The global economy is projected to grow by 6% in 2021, up from an earlier forecast of 5.5% by the IMF[15]. - The IMF estimates a growth of 5.1% for advanced economies in 2021, with the United States expected to expand by 6.4%[15]. - The growth forecast for emerging and developing economies is 6.7% for 2021[15]. Company Strategy and Operations - The company is committed to enhancing its operational strategies in response to the complex and fast-changing environment[13]. - The annual report for the year ended December 31, 2020, reflects the company's resilience amid external challenges[13]. - The company aims to leverage market recovery to drive future growth and expansion initiatives[13]. - The management is focused on developing new products and technologies to adapt to market demands[13]. - The company is exploring potential mergers and acquisitions to strengthen its market position[13]. - The board emphasizes the importance of corporate governance and strategic planning in navigating future uncertainties[13]. - The company is dedicated to maintaining transparency and accountability in its financial reporting and operations[13]. E-commerce and Online Education Performance - The company consists of three reporting segments, with eCommerce and internet online education segments performing well in 2020[17]. - The global online marketplace sales reached approximately US$2.67 trillion in 2020, with Alibaba's Taobao and Tmall among the top three platforms[23]. - Several online marketplaces globally experienced nearly 100% growth in 2020, including Etsy in the U.S. and Ozon in Russia[23]. - The online education market in China is expected to reach a value of approximately US$100 billion by 2026, indicating significant business potential[26]. - The company's wholly-owned subsidiary, Huzhou Company, showed a steady growth performance in 2020 despite the competitive online education landscape[26]. - The impact of the Covid-19 pandemic led to a surge in online education demand, with many businesses temporarily shutting down during early 2020[26]. - The online education subsidiary of Cybernaut Group capitalized on increased demand during the pandemic, enhancing its offerings and market presence in the EdTech sector in China[52]. - The revenue from the internet education services business for the year ended 2020 was approximately RMB24.6 million, a decrease of about 15.2% compared to RMB29.0 million in 2019 due to temporary operational suspension and increased competition from new market entrants[95]. Financial Performance and Challenges - The Group's loss for the year ended 2020 was approximately RMB77.4 million, a decrease from RMB105.0 million in the previous year, mainly due to fair value gains on the extension of promissory notes of approximately RMB35.5 million[99]. - The gross profit for the year ended 2020 was approximately RMB66.5 million, representing a decrease of about 9.5% from RMB73.5 million in 2019, with a slight drop in gross profit ratio in the money lending and internet education services[95]. - Impairment losses on trade and loan receivables were approximately RMB20.1 million for the year ended 2020, down from RMB41.6 million in 2019, due to the impact of the Covid-19 outbreak on repayment abilities[97]. - The impairment loss recognized on goodwill of the eCommerce business was approximately RMB92.5 million for 2020, compared to RMB61.2 million in 2019, attributed to unexpected performance and business growth challenges due to Covid-19 and competition[97]. - The revenue from the money lending business remained stable despite market competition and the impact of Covid-19[89]. - The e-commerce sector showed resilience with a modest revenue increase, reflecting changing consumer behavior during the pandemic[90]. Regulatory and Market Environment - The Chinese government has implemented new rules to regulate TSF and online financial services, particularly targeting peer-to-peer lending[21]. - The P2P lending industry in China faced significant challenges due to regulatory tightening, leading many platforms to seek opportunities in Southeast Asia[32]. - New guidelines from the Companies Registry in Hong Kong regarding money lending practices will take effect on April 1, 2021[32]. - The VIE Agreements are confirmed to comply with relevant laws and regulations in the PRC, ensuring enforceability under PRC law[119]. - The value-added telecommunications services related business of Wowxue is categorized as "restricted" under PRC laws, limiting foreign ownership to below 50%[114]. - There are uncertainties regarding the interpretation of PRC laws affecting the VIE Agreements, particularly in the value-added telecommunications sector[196]. - The PRC Foreign Investment Law draft may impact VIE Agreements, which could be classified as foreign investments when adopted[198]. VIE Agreements and Corporate Structure - The VIE structure allows the financial results of Wowxue to be consolidated with Huzhou Company as a variable interest entity[111]. - The Company has entered into various agreements to establish the VIE arrangement, including Management Services Agreement and Equity Pledge Agreement[111]. - The management services agreement ensures that Wowxue cannot change its registered capital or enter into partnerships without Huzhou Company's consent[188]. - Huzhou Company has sufficient control over Wowxue's board and daily operations through VIE Agreements, requiring explicit consent for director appointments[192]. - The management services agreement and other related agreements impose obligations on the Registered Shareholders regarding their equity interests[161]. - The Registered Shareholders have pledged their holding of 100% of the equity interest in Wowxue to guarantee its obligations under the Management Services Agreement[155]. - The VIE Agreements restrict Wowxue from declaring or distributing dividends or other interests to its shareholders[188]. - The total revenue for Wowxue reflects a stable financial performance, indicating effective management and operational control[190].

Economic Impact of COVID-19 - The Group faced significant challenges in the first half of 2020 due to the COVID-19 outbreak, but gradually resumed work and market activities in the second quarter[9]. - The IMF projected a global output decline of -4.9% for 2020, with advanced economies expected to contract by -8% and emerging markets by -3%[10]. - The Group's interim report covers the six months ended June 30, 2020, reflecting the impact of the pandemic on operations and market conditions[8]. - The economic environment remains complex and fast-changing, necessitating adaptive strategies for market expansion and resilience[9]. - The Group's performance will be closely monitored in light of ongoing economic uncertainties and potential market fluctuations[9]. - The COVID-19 outbreak has led to the weakest growth in decades for the Chinese economy, with consumer sentiment remaining depressed due to the lack of an effective vaccine[32]. - The outbreak of COVID-19 has not materially impacted the Group's financial performance during the review period, but future impairment provisions may be affected[101]. - The overall economic recovery in China is expected to weaken in the second half of 2020 due to various headwinds, prompting potential monetary policy adjustments by the central bank[113]. Recovery and Growth Projections - China is expected to achieve a modest growth of approximately 1.0% in 2020, contrasting with declines in other Asian economies such as Korea (-2%), India (-4.5%), and Japan (-5.8%)[10]. - The Group anticipates a recovery in the Chinese economy with good restorative market growth and social development in the second half of 2020[9]. - The management is optimistic about future growth opportunities as the market stabilizes and recovers[9]. - Economists predict that the resilience of the Chinese economy in the second half of 2020 will be a scarce resource in the global market, maintaining high attractiveness for RMB assets[113]. E-commerce and Online Retail Trends - Retail sales of consumer goods in China dropped by 11.4%, while online retail sales grew by 7.3% year-on-year[15]. - The online retail sales in China showed a significant growth of 7.3% year-on-year during the first half of 2020[18]. - The eCommerce subsidiary group generated good revenues from European countries during the COVID-19 pandemic, despite a slight market shift from the U.S.[27]. - The eCommerce business primarily consisted of online retail sales, with future plans to enhance customer loyalty to increase site visits[58]. - The eCommerce sector is expected to benefit from increased consumer demand and agility compared to offline retail, with a more predictable business environment in the second half of 2020[115]. - E-commerce has rapidly grown, with significant technical innovations such as Shopify's marketplace launch and Facebook's introduction of 'shops', driven by the COVID-19 pandemic[36]. Online Education Market Developments - The online education business in China experienced steady growth due to increased demand during the COVID-19 pandemic, with the Huzhou Company providing quality services[27]. - The online education market in China saw positive growth in the first half of 2020, contributing to the steady performance of the Huzhou subsidiary[27]. - The online education market in China has experienced a steady growth rate exceeding 20% annually, driven by the COVID-19 pandemic and increased demand for online learning solutions[43]. - China's online learning applications saw a notable increase, with Dingtalk being installed 1.1 billion times during the first half of 2020, indicating a strong shift towards digital platforms for education[116]. - The Group's management will continue to engage highly qualified education expertise to provide high-quality education packages and online platforms in response to market needs[118]. Financial Performance and Challenges - The Group reported a loss of approximately RMB8.2 million for the six months ended June 30, 2020, compared to a profit of approximately RMB21.1 million for the same period in 2019, with a basic loss per share of approximately RMB0.31 compared to a profit per share of approximately RMB0.51 in 2019[89]. - Gross profit decreased to RMB 27,251,000, down 42% from RMB 46,907,000 in the previous year[158]. - Loss before taxation for the period was RMB 38,217,000, compared to a loss of RMB 15,750,000 in 2019[158]. - The total comprehensive income for the period ended June 30, 2020, was RMB (12,423,000), compared to RMB 5,567,000 for the same period in 2019, indicating a decline in performance[161]. - The loss allowance for trade receivables and loan receivables increased significantly to approximately RMB17.4 million for the six months ended June 30, 2020, compared to approximately RMB1.0 million for the same period in 2019, reflecting the impact of COVID-19 on repayment abilities across industries[77][82]. Strategic Focus and Future Plans - The Group is committed to focusing on public investment in infrastructure and healthcare systems to support recovery post-pandemic[10]. - The Group aims to diversify revenue streams and increase business developments in response to challenges posed by the U.S.-China trade war and the COVID-19 pandemic[29]. - The Group plans to allocate more resources to profit-generating subsidiaries and seek potential investment opportunities to create synergies and long-term benefits for shareholders[119]. - The Group aims to diversify its customer base and expand overseas markets while consolidating its business in China[65]. - The Group's strategic focus includes enhancing digital infrastructure and exploring new technologies to drive growth[10]. Regulatory and Compliance Matters - The Group's money lending business has complied with all relevant laws and regulations, with no objections or investigations regarding its money lenders license[109]. - The Company has adhered to the corporate governance code as of June 30, 2020, except for the attendance requirement of non-executive Directors at the annual general meeting[126]. - The review of the condensed consolidated financial statements was conducted in accordance with HKAS 34, confirming compliance with the relevant provisions[151].

賽伯樂國際控股有限公司 Cybernaut International Holdings Company Limited 賽伯樂國際控股有限公司 Cybernaut International Holdings Company Limited (incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司 ) Stock Code 股份代號：1020 ANNUAL REPORT 2019 年報Annual Report 年報 2019 Contents 目錄 | --- | --- | --- | --- | |-------|---------------------------------------------------------------------------|-------|---------------------------| | | | | | | | Corporate Information | 2 | 公司資料 | | | Chairman ' s Statement | 4 | 主席報告書 ...

Economic Performance - In the first half of 2019, China's GDP growth was 6.3%, with a per capita disposable income of RMB 15,294, representing a nominal year-on-year growth of 8.8%[12] - The International Monetary Fund (IMF) forecasted a reduction in China's economic growth from 6.3% to 6.2% for the second half of 2019 due to ongoing trade tensions with the U.S.[12] - Consumer prices in China rose by 2.2% year-on-year, which was 0.4 percentage points faster than the first quarter of 2019[12] - The trade war between the U.S. and China has created significant uncertainty for the Chinese economy, with no immediate resolution in sight[13] - The negative impact of tariff increases imposed by the U.S. has been noted to outweigh the positive effects of China's supportive macro policies[13] - The service sector in China has shown good momentum, contributing positively to the overall economic performance[12] - The Chinese economy experienced a year-on-year GDP growth of 6.3% in the first half of 2019, with industrial enterprises' total value added growing by 6.0%[31] - The fixed-asset investment in China increased by 5.8% year-on-year in the first half of 2019[31] - The Index of Services Production in China rose by 7.3% year-on-year during the same period[31] Consumer Behavior and Retail - Retail sales of consumer goods increased by 8.4% in the first half of 2019, while online retail sales surged by 17.8%[12] - The eCommerce and internet education segments significantly contributed to the Group's revenue during the review period[18] - The eCommerce subsidiary group saw increased sales in European countries, adapting to avoid losses from the U.S. trade embargo[23] - The online education market in China is growing steadily at over 20% annually, with a focus on expanding into underserved non-tier-one cities[43] - ECommerce revenue increased significantly to approximately RMB100.5 million for the six months ended June 30, 2019, compared to RMB73.4 million for the same period in 2018, representing a growth of about 36.8%[68] - The online education segment generated RMB 16.0 million for the period ended June 30, 2019, reflecting strong market development in China[59] Business Strategy and Operations - The company is committed to promoting reform and innovation while optimizing the business environment in response to economic challenges[12] - The company plans to continue supporting market stability through measures such as reducing taxes and fees[12] - The Group is committed to developing and upgrading products and services to broaden income sources[25] - The Group will continue to seek potential business investments to diversify revenue streams[25] - The management is focusing on diversifying the customer base and expanding eCommerce operations in France, Germany, and Russia to capture more market share[62] - The Group plans to allocate more resources to develop profit-generating subsidiaries and seek potential investment opportunities that create synergies with existing business segments[119] Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 143,845,000, an increase of 27.5% compared to RMB 112,832,000 in the same period of 2018[162] - Gross profit for the period was RMB 50,234,000, representing a gross margin of 34.9%, up from RMB 34,058,000 in 2018[162] - Profit before taxation was RMB 28,663,000, compared to a loss of RMB 25,140,000 in the previous year[162] - Profit for the period from continuing operations was RMB 27,300,000, a significant recovery from a loss of RMB 21,571,000 in 2018[162] - Total comprehensive income for the period was RMB 21,135,000, compared to a total comprehensive expense of RMB 48,640,000 in the same period last year[162] - Basic and diluted earnings per share from continuing operations was RMB 0.68 cents, compared to a loss of RMB 0.52 cents in 2018[162] Market Challenges - The company is facing strong economic headwinds in China, with concerns over a potential global recession due to the ongoing US-China trade war[111] - Retail sales, investment, and credit data are expected to confirm the ongoing slowdown in the Chinese economy[111] - The People's Bank of China is maintaining a cautious monetary strategy amid trade tensions, signaling a targeted approach to support economic output[111] - The trade war between the US and China could escalate, with warnings from the China Ministry of Commerce about the potential for the largest trade war in economic history[111] Regulatory and Compliance - The lending subsidiary will adopt a tight credit policy for mortgage loans, focusing on clients with good and healthy reference checks[112] - The company adopted HKFRS 16 Leases, which requires recognition of right-of-use assets and lease liabilities for all leases, impacting financial reporting[171] - The Group's bank balances and cash as at 30 June 2019 was approximately RMB83.9 million, down from approximately RMB138.6 million as at 31 December 2018[82] Human Resources - As at 30 June 2019, the Group employed 218 staff members, a significant decrease from 498 in 2018[97] - The Group's research and development team consisted of 4 professionals as of June 30, 2019, with a total of 10 registered patents in paper converting equipment manufacturing[68]

賽伯樂國際控股有限公司 Cybernaut International Holdings Company Limited 賽伯樂國際控股有限公司 Cybernaut International Holdings Company Limited (incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司 ) Stock Code 股份代號：1020 ANNUAL REPORT 2018 年報Annual Report 2018 年報 Contents 目錄 | --- | --- | --- | |---------------------------------------------------------------------------|-------|---------------------------| | | | | | Corporate Information | 2 | 公司資料 | | Chairman's Statement | 4 | 主席報告書 | | Management Discuss ...