Revenue Performance - Revenue for the first half of 2022 decreased by approximately 25.0% to RMB 0.9 million from RMB 1.2 million in the same period of 2021[14] - Revenue from the event operation and marketing segment fell by about 37.5% to RMB 0.5 million, primarily due to ongoing pandemic impacts limiting sponsorship opportunities[14] - The sports services segment reported revenue of RMB 0.4 million, remaining stable compared to the previous year[14] - For the six months ended June 30, 2022, the company reported revenue of RMB 897,000, a decrease from RMB 1,238,000 for the same period in 2021, representing a decline of approximately 27.5%[89] - Event operation and marketing revenue was RMB 453,000, down 45.8% from RMB 835,000 in the prior year[143] - Sports service revenue increased by 10.2% to RMB 444,000 from RMB 403,000 in the previous year[143] Cost Management - Service costs decreased by approximately 50.0% to RMB 0.6 million from RMB 1.2 million in the same period of 2021[15] - The event operation and marketing segment's costs increased to RMB 0.6 million, attributed to costs incurred during the preparation period for events[15] - The sports services segment's costs dropped to zero, reflecting reduced costs associated with online marathons[15] - Sales and distribution expenses decreased by approximately 35.3% from RMB 1.7 million to RMB 1.1 million, primarily due to cost optimization amid the impact of COVID-19[19] - General and administrative expenses reduced by approximately 14.3% from RMB 15.4 million to RMB 13.2 million, attributed to enhanced daily expense management[20] - Total employee costs for the six months ended June 30, 2022, were RMB 2.6 million, down from RMB 4.8 million as of December 31, 2021[44] Profitability and Losses - The group's gross profit increased from RMB 0 to approximately RMB 0.3 million, with a gross margin rising from 0.0% to about 33.3% for the six months ended June 30, 2022[18] - The group's loss before tax increased by approximately 5.8% from RMB 24.2 million to RMB 25.6 million for the six months ended June 30, 2022[24] - Loss attributable to the owners of the company increased by approximately 50.7% from RMB 21.3 million to RMB 32.1 million[26] - The total comprehensive loss for the period was RMB 32,112,000, compared to a loss of RMB 5,576,000 in the same period last year, indicating a significant increase in losses[91] - The operating loss for the period was RMB 24,342,000, slightly improved from a loss of RMB 24,508,000 in the prior year[89] Cash Flow and Assets - As of June 30, 2022, the group's cash and cash equivalents were approximately RMB 138.6 million, up from RMB 127.4 million as of December 31, 2021[27] - The group's net current assets increased by approximately 8.5% from RMB 293.5 million to RMB 318.5 million, indicating stable working capital[28] - The current ratio as of June 30, 2022, was 709.5%, an increase from 661.6% as of December 31, 2021[42] - Total assets decreased to RMB 554,474 thousand from RMB 586,595 thousand, representing a decline of approximately 5.5%[94] - Current assets increased to RMB 370,707 thousand, compared to RMB 345,735 thousand, reflecting a growth of approximately 7.2%[94] - Cash and cash equivalents rose to RMB 138,583 thousand from RMB 127,443 thousand, marking an increase of about 8.9%[94] Shareholder and Equity Information - The company’s major shareholder, Ren Wen, holds 37.84% of the shares, with an additional 6.20% held through controlled corporations[51] - As of June 30, 2022, major shareholders hold a total of 602,780,000 shares, representing approximately 37.84% of the company's equity[61] - The total equity attributable to owners decreased to RMB 502,223 thousand from RMB 534,335 thousand, a decline of approximately 6.0%[96] - The company has a stock option plan that allows for the issuance of up to 160,000,000 shares, which is 10% of the total issued shares post-global offering[66] Financial Instruments and Fair Value - The company’s investment in financial assets at fair value through profit or loss decreased to RMB 48,574 thousand from RMB 59,356 thousand, a decline of approximately 18.2%[94] - The fair value of financial assets classified as other comprehensive income for non-listed equity securities was RMB 62,919 thousand as of June 30, 2022[129] - The fair value of financial assets classified as profit or loss included listed equity securities valued at RMB 23,105 thousand and wealth management products valued at RMB 25,469 thousand[129] - The group reported a fair value loss of RMB (1,873,000) on listed equity securities during the reporting period[150] Taxation and Deferred Tax - The income tax expense for the six months ended June 30, 2022, was RMB 6.5 million, compared to an income tax credit of RMB 2.9 million for the same period in 2021[25] - The company recognized a deferred tax expense of RMB 6,501,000 for the period, compared to a tax credit of RMB 2,898,000 for the same period in 2021[166] Employee and Operational Information - The company had 12 employees, a decrease from 16 employees as of December 31, 2021[44] - The company incurred employee costs of RMB 2,188,000 for salaries, bonuses, and allowances during the period, a decrease from RMB 2,546,000 in the same period of 2021[169] Future Outlook and Strategic Initiatives - The company is actively preparing for the Nanchang Marathon online event and is in discussions for the resumption of offline events in the second half of the year[11] - The management expresses optimism for the future of the sports industry, anticipating recovery and growth post-pandemic[11] - The company aims to optimize and control costs while seeking stable financial returns through self-managed investments[11]

Event Operations and Market Expansion - In 2021, the total number of marathon events significantly decreased, with fewer than 15 large-scale events successfully held due to the pandemic[9]. - The company faced losses from costs incurred for five major marathon events that were postponed or canceled during the year[9]. - The company actively expanded online events to meet participant demand and strengthen brand influence during the pandemic[10]. - The company collaborated with local governments to explore other sports events beyond marathons, including basketball and hiking, to capture new business opportunities[10]. - The company initiated online marathon events in October to December 2021, including Nanchang, Tumushuke, and Shenzhen marathons, while retaining rights for offline events[15]. - The company signed service agreements with Nanchang and Tumushuke cities to ensure its event rights and business interests were protected[15]. - The company has established a comprehensive cooperation with local governments in the southern Xinjiang region for sports cultural activities, including youth training and sports venue operations[16]. - The company aims to enhance industry integration by collaborating with other event operators and media units to reduce operational costs and expand revenue channels[16]. - The company believes that the normalization of the pandemic and successful hosting of the Winter Olympics will lead to a recovery and rapid development of the sports industry[13]. - The company is focused on improving its operational capabilities and professional standards to provide better products and services to sports consumers[13]. - The company has successfully operated over 200 large-scale city marathon events, becoming the largest industry operator in China and globally[144]. Financial Performance - The group's revenue increased by approximately 37.1% from RMB 8.9 million for the year ended December 31, 2020, to RMB 12.2 million for the year ended December 31, 2021[21]. - The revenue from the event operation and marketing segment rose by 120.0% to RMB 9.1 million, while the sports services segment revenue decreased by approximately 62.2% to RMB 3.1 million due to the sale of a subsidiary[21]. - The group's service costs increased by approximately 33.3% from RMB 9.3 million to RMB 12.4 million, with the event operation and marketing segment's costs rising to RMB 12.2 million[24]. - The gross loss decreased by approximately 50.0% to RMB 0.2 million, with a gross loss margin of about 1.6% for the year ended December 31, 2021[25]. - Other income increased by approximately 9.0% to RMB 19.4 million, primarily due to interest income from financial assets triggering redemption clauses[28]. - The group's net loss attributable to owners increased by 1.8% to RMB 47.8 million for the year ended December 31, 2021[33]. - Cash and cash equivalents were approximately RMB 127.4 million as of December 31, 2021, down from RMB 137.7 million a year earlier[34]. - The group's current assets decreased by approximately 8.2% to RMB 293.5 million, while maintaining sufficient working capital for daily operations[35]. - Capital expenditures for property, plant, and equipment totaled RMB 1.2 million, significantly down from RMB 58.5 million in the previous year[36]. Risk Management and Compliance - The company aims to identify, assess, and manage all existing and future significant risks to maintain them within acceptable levels[110]. - The company has implemented a risk management framework that includes risk identification, assessment, management measures, and monitoring[111]. - The operational risk related to the COVID-19 pandemic has significantly impacted the company's main business of event operations and marketing[114]. - The company is cautious in expanding new business areas, avoiding large upfront investments without thorough market research[114]. - The company has established a risk monitoring mechanism to ensure compliance with external regulations and internal policies[110]. - The company reported a stable trend in operational risks, while new business expansion risks are increasing[114]. - The internal audit function is responsible for coordinating risk identification and assessment procedures[108]. - The company aims to enhance financial performance by diversifying its revenue sources through low-risk financial and investment strategies[114]. - The board is responsible for evaluating and determining the major risks annually and monitoring the effectiveness of risk management systems[108]. - The company has implemented a risk management and internal control system that is deemed effective and sufficient as of December 31, 2021, with no significant issues affecting financial monitoring or compliance identified[119]. Corporate Governance - The board of directors held four meetings during the year ended December 31, 2021[68]. - The company has adopted the standard code for securities transactions as per Listing Rule Appendix 10, confirming compliance by all directors for the year ended December 31, 2021[65]. - The remuneration range for directors and senior management members was between 0 to HKD 1,000,000 for the year ended December 31, 2021[84]. - The company has received annual written confirmations regarding the independence of independent non-executive directors as per Listing Rule 3.13[70]. - All independent non-executive directors have confirmed their independence and have no significant connections with other directors[70]. - The company has implemented a continuous professional development program for all directors, ensuring they stay updated on their responsibilities and the company's operations[79]. - The board believes that high standards of corporate governance are essential for the company's business strategy and transparency[63]. - The company has complied with the corporate governance code throughout the year ended December 31, 2021[64]. - The board is collectively responsible for the company's business strategies and performance, ensuring objective decisions are made in the company's best interest[75]. - The Audit Committee held two meetings in the year ended December 31, 2021, to review the annual financial performance and reports for the year ended December 31, 2020, and the interim financial performance for the six months ended June 30, 2021[87]. - The Remuneration Committee conducted three meetings in the year ended December 31, 2021, to review the company's remuneration policies and structures, as well as the remuneration of executive directors and senior management[91]. - The Nomination Committee held two meetings in the year ended December 31, 2021, to review the board's structure, composition, and the independence of independent non-executive directors[93]. - The company has adopted a board diversity policy aimed at maintaining a balanced and diverse board composition to achieve strategic goals and sustainable development[98]. - The Audit Committee's main responsibilities include independent review of the financial reporting process, internal controls, and risk management systems[86]. - The company has established a director nomination policy to ensure that board members possess the necessary skills, experience, and diverse perspectives[96]. - The Remuneration Committee is responsible for evaluating the performance of executive directors and approving the terms of their service contracts[91]. - The company aims to recruit a diverse range of talents and maintain a board with diverse perspectives[98]. - The Nomination Committee will review the board diversity policy periodically to ensure its effectiveness[102]. - The Audit Committee also met with external auditors twice during the year ended December 31, 2021[89]. - The board members attended all scheduled meetings, with attendance rates of 100% for the board and various committees[104]. Environmental, Social, and Governance (ESG) Initiatives - The board of directors is responsible for overseeing the company's environmental, social, and governance (ESG) issues and processes[155]. - The company has established clear short-term and long-term sustainable development visions and goals to achieve continuous emission reduction[155]. - The ESG report is based on four reporting principles: materiality, quantification, balance, and consistency[149]. - The company has adopted a dividend policy to maintain sufficient cash reserves for funding needs and future growth[138]. - The board will consider financial performance, cash flow, and other factors when declaring dividends[138]. - The company has no predetermined dividend payout ratio at present[140]. - The company encourages stakeholders to provide feedback on its ESG policies and performance[152]. - The company aims to reduce air emissions by 1% by 2025, 2% by 2027, and 3% by 2030 compared to the 2019 baseline[169]. - Energy consumption is targeted to decrease by 1% by 2025, 2% by 2027, and 3% by 2030, measured in million watt-hours[169]. - Water usage is expected to be reduced by 1% by 2025, 3% by 2027, and 5% by 2030, measured in approximate tons[169]. - Waste management is set to decrease by 1% by 2025, 3% by 2027, and 5% by 2030[169]. - The company emphasizes stakeholder engagement and regularly consults with internal and external stakeholders regarding operational and performance aspects[159]. - Key ESG issues identified include customer satisfaction, service safety, and business ethics[167]. - The company is committed to monitoring ESG performance and maintaining close communication with stakeholders for effective risk management[167]. - The company plans to establish an ESG working group or committee as necessary to prepare for future business challenges[168]. - The company strictly adheres to environmental laws in China, ensuring operations do not pose significant environmental threats[172]. - The company will track water and packaging material usage during marathon events and comply with environmental impact assessments conducted by the government[172]. - The group did not consume any gas fuel during the reporting period, resulting in no direct emissions of nitrogen oxides (NOx), sulfur oxides (SOx), or particulate matter (PM)[175]. - The total greenhouse gas (GHG) emissions for 2021 amounted to 55.83 tons of CO2 equivalent, a 103% increase from 27.43 tons in 2020, but a 34% decrease compared to 190.95 tons in 2019[176][184]. - Business travel was identified as the main source of GHG emissions, with a 274% increase in direct GHG emissions due to increased vehicle usage for marathon event preparations compared to 2020[184]. - The group disposed of a total of 0.09 tons of waste paper in 2021, a decrease from 0.15 tons in 2020 and 0.736 tons in 2019, attributed to reduced business activities during the pandemic[186][187]. - The group has implemented measures to reduce emissions, including encouraging employees to use public transportation instead of private cars and promoting the use of teleconferencing for meetings[189]. - The group plans to continue monitoring vehicle usage and optimizing data collection systems to manage emissions effectively[175]. - The group has adopted an office automation system to promote paperless operations and encourages double-sided printing and recycling of paper[192]. - The group aims to utilize new technologies and eco-friendly materials in future marathon events to minimize environmental impact[192]. - The group reported no significant incidents of non-compliance with applicable laws regarding air pollutants and greenhouse gas emissions during the reporting period[175]. - The group will continue to assess the necessity of business travel to control GHG emissions[184]. - Total energy consumption in 2021 was 93,478 kWh, a significant decrease from 143,493 kWh in 2019, reflecting a reduction of approximately 34.8%[194]. - Gasoline consumption in 2021 was 85,256 kWh, compared to 101,617 kWh in 2019, indicating a decline of about 16.1%[194]. - Office electricity intensity in 2021 was 8.7 kWh per square meter, an increase from 6.8 kWh per square meter in 2020[197]. - The total office area in 2021 was 944.42 square meters, down from 1,339.09 square meters in 2020[197]. - There were no marathon events held in 2021, compared to 12 events in 2019, impacting energy metrics related to events[196].

Event Operations and Marketing - The group successfully obtained the operation rights for the Tumushuke Marathon in May 2021, marking a significant achievement amidst ongoing pandemic challenges [11]. - The group plans to operate multiple large-scale marathons in the second half of 2021, including events in Nanchang, Shenzhen, Jinan, and Liu'an, maintaining its leading position in the domestic marathon operation sector [16]. - The group is actively communicating with local governments to explore new event opportunities and diversify its service offerings in response to the ongoing pandemic [12]. - The group emphasizes the importance of safety measures and health protocols in organizing events to ensure a safe experience for participants amid the pandemic [17]. - The group has strengthened its event safety measures in response to a tragic incident during a trail running event in Gansu Province in May 2021, highlighting the need for improved safety protocols [11]. - The group remains committed to enhancing its event execution capabilities to ensure high-quality and safe events for sports enthusiasts [15]. - The group aims to provide a variety of products and services to meet the growing demand for sports and health among consumers as the sports industry continues to develop [12]. Financial Performance - The group's revenue increased by approximately 20.0% from RMB 1.0 million for the six months ended June 30, 2020, to RMB 1.2 million for the six months ended June 30, 2021 [22]. - Revenue from the event operation and marketing segment rose from RMB 0 to RMB 0.8 million, attributed to corporate sponsorship income from online marathons held in the first half of 2021 [22]. - Revenue from the sports services segment decreased by approximately 60.0% from RMB 1.0 million to RMB 0.4 million, primarily due to the sale of a subsidiary in the second half of 2020 [22]. - The group's service costs decreased by approximately 77.4% from RMB 5.3 million to RMB 1.2 million, mainly due to the same subsidiary sale [24]. - The group recorded a gross profit of RMB 0 for the six months ended June 30, 2021, compared to a gross loss of approximately RMB 4.3 million for the same period in 2020, resulting in a gross profit margin of 0.0% [25]. - Other income increased by approximately 20.9% from RMB 6.7 million to RMB 8.1 million, mainly due to increased dividend income from a financial asset measured at fair value [28]. - The group's pre-tax loss decreased by approximately 10.0% from RMB 26.9 million to RMB 24.2 million for the six months ended June 30, 2021 [32]. - The total comprehensive income for the period was RMB (5,576) thousand, compared to RMB (15,455) thousand in the same period of 2020, showing an improvement of 63.9% [108]. - The total loss for the period was RMB 21,343,000, reflecting a slight improvement from the previous year's loss of RMB 22,984,000 [188]. Assets and Liabilities - Cash and cash equivalents were approximately RMB 136.8 million as of June 30, 2021, compared to RMB 137.7 million as of December 31, 2020 [35]. - The group's net current assets decreased by approximately 7.2% from RMB 319.8 million as of December 31, 2020, to RMB 296.8 million as of June 30, 2021 [36]. - Non-current assets totaled RMB 257,389 thousand as of June 30, 2021, an increase of 7.4% from RMB 239,979 thousand at the end of 2020 [112]. - Current assets decreased to RMB 340,807 thousand from RMB 367,922 thousand, reflecting a decline of 7.4% [112]. - The total assets of the company were RMB 598,196 thousand, down from RMB 607,901 thousand, indicating a decrease of 1.2% [112]. - Current liabilities totaled RMB 43,959 thousand, down from RMB 48,088 thousand, reflecting a decrease of 8.5% [115]. Investments and Acquisitions - The group completed the acquisition of a 49% stake in YTO Global Financial Group for HKD 53.41 million on March 26, 2021 [44][46]. - The group invested RMB 40.0 million in the Chang'an Trust Plan on April 7, 2020, and subsequently reinvested RMB 50.0 million on April 12, 2021 [47][49]. - The company invested RMB 50 million in a private equity fund managed by Ningbo Guanshi Investment Management Co., Ltd. on July 5, 2021 [93]. - On September 1, 2021, the company further invested RMB 12.5 million in another private equity fund managed by Ningbo Guanshi, indicating ongoing investment strategies [96]. Shareholder and Corporate Structure - As of June 30, 2021, the company’s major shareholder, Ren Wen, holds 602,780,000 shares, representing 37.84% of the total shares [60]. - The company has established a series of structural contracts to control Beijing Zhimei Media, as foreign investment in certain business activities is restricted under Chinese law [57]. - The company’s structural contracts transfer all economic benefits and risks from Beijing Zhimei Media to the group [57]. - The company’s major shareholders include Queen Media, which holds 602,780,000 shares, also representing 37.84% [71]. Cash Flow and Financial Management - The net cash used in operating activities was RMB (8,073) thousand, a significant improvement from RMB (30,425) thousand in the same period of 2020, representing a reduction of approximately 73% [121]. - The net cash generated from investing activities was RMB 8,118 thousand, compared to a net cash used of RMB (114,184) thousand in the prior year, indicating a turnaround in investment cash flow [121]. - The company maintains a prudent financial management policy to ensure strong liquidity for daily operations and future development [39]. - The company has not faced any significant operational or liquidity issues due to exchange rate fluctuations as of June 30, 2021 [40]. Legal and Compliance - The company is involved in ongoing legal proceedings with claims totaling approximately RMB 38 million against a subsidiary, reflecting potential financial risks [97]. - The company has received exemptions from the Stock Exchange regarding strict compliance with certain listing rules related to the structural contracts [57]. Stock Options and Dividends - The company did not declare or pay any dividends for the six months ended June 30, 2021 [89]. - As of June 30, 2021, there were no shares issued or repurchased under the stock option plan during the six months [80]. - The maximum number of shares that can be issued under the stock option plan is 160,000,000, which represents 10.04% of the total issued shares as of the mid-term report date [75].

Financial Performance - The group's revenue decreased approximately 94.4% from RMB 159.0 million in the year ended December 31, 2019, to RMB 8.9 million in the year ended December 31, 2020, primarily due to the impact of COVID-19 on sports events[27]. - Revenue from the event operation and marketing segment fell 99.1% from RMB 74.2 million in 2019 to RMB 0.7 million in 2020, while the sports services segment revenue decreased about 90.3% from RMB 84.8 million to RMB 8.2 million[29]. - The group's service costs decreased approximately 95.0% from RMB 186.7 million in 2019 to RMB 9.3 million in 2020, with event operation and marketing segment costs dropping 100% to RMB 0[30]. - The gross loss decreased about 98.6% from RMB 27.7 million in 2019 to RMB 0.4 million in 2020, with the gross loss margin reducing from 17.4% to approximately 4.5%[31]. - Other income increased approximately 0.6% from RMB 17.7 million in 2019 to RMB 17.8 million in 2020[35]. - The group's other losses decreased by approximately 97.5% from a net loss of RMB 397.9 million for the year ended December 31, 2019, to a net loss of RMB 10.0 million for the year ended December 31, 2020[36]. - The group's loss before income tax decreased by 91.8% from RMB 499.9 million for the year ended December 31, 2019, to RMB 40.9 million for the year ended December 31, 2020[37]. - The loss attributable to owners of the company decreased by 90.3% from RMB 455.1 million for the year ended December 31, 2019, to RMB 44.0 million for the year ended December 31, 2020[39]. - As of December 31, 2020, the group's cash and cash equivalents were approximately RMB 137.7 million, down from RMB 167.3 million as of December 31, 2019[40]. - The net current assets increased by approximately 2.5% from RMB 312.1 million as of December 31, 2019, to RMB 319.8 million as of December 31, 2020[41]. Business Strategy and Operations - The company focused on cost reduction and increasing investment returns to stabilize cash flow during the pandemic[11]. - The company organized two online marathon events to meet the demand of runners during the pandemic[11]. - The company anticipates a recovery in the sports event industry starting in April 2021, with a large number of events planned[12]. - The company aims to host contractually obligated events and expand into small and customized corporate events in 2021[15]. - The company is exploring business expansion opportunities in the sports industry and related sectors to mitigate risks associated with a single event operation[12]. - The company has developed strategies for event operations under the new normal of pandemic prevention, ensuring safety and health[15]. - The company has prepared to resume normal operations and is actively communicating with local governments to explore new events[12]. - The company emphasizes providing a safe and comfortable event platform for the sports community[15]. - The group is actively exploring new market opportunities in paddle sports, winter sports, and youth training for project planning in 2021[24]. - The management anticipates a gradual recovery in the sports event market post-March 2021, following successful pandemic control measures and vaccine rollout[24]. Investments and Financial Management - The company invested RMB 34 million in the Minsheng Trust Plan, expecting an annualized return of 4.7%[60]. - The company confirmed a gain of approximately RMB 271,441 from the Minsheng investment by December 31, 2020[60]. - The company made an investment of RMB 40 million in the Chang'an Trust Plan, which has since matured and been reinvested[61]. - The total gain from the Chang'an investments was approximately RMB 1,531,682, with a fair value of RMB 28.3 million as of December 31, 2020[63]. - The investment in the China-US Green Investment Fund amounted to RMB 50 million, with a fair value of RMB 60 million as of December 31, 2020, reflecting a fair value loss of RMB 6.2 million[64]. - The Chang'an investments represented about 4.66% of the company's total assets as of December 31, 2020[63]. Corporate Governance - The company adhered to the corporate governance code and maintained a high level of governance standards throughout the year[77]. - All independent non-executive directors confirmed their independence and compliance with the relevant regulations as of December 31, 2020[85]. - The company provided training for all directors to ensure they are updated on their responsibilities and the company's operations[95]. - The board includes a diverse range of expertise, enhancing its operational efficiency[90]. - The company has established appropriate insurance for directors and senior management against legal claims arising from corporate activities[92]. - The company has a structured process for the re-election of directors every three years[87]. - The board is collectively responsible for the company's strategic decisions and performance[89]. - The company has implemented a clear guideline for securities trading by employees to prevent conflicts of interest[78]. - The Audit Committee held two meetings during the year ending December 31, 2020, to review the annual financial performance and reports for the year ending December 31, 2019, and the interim financial performance for the six months ending June 30, 2020[102]. - The Remuneration Committee conducted two meetings in the year ending December 31, 2020, to review the company's remuneration policies and structures, as well as the compensation of executive directors and senior management[104]. - The Nomination Committee held two meetings during the year ending December 31, 2020, to review the board's structure, size, and composition, and to assess the independence of independent non-executive directors[108]. - The company has adopted a board diversity policy to ensure a diverse perspective at the board level, which includes considerations of gender, age, cultural background, professional qualifications, and industry experience[111]. - The Audit Committee is responsible for independent review of the group's financial reporting processes, internal controls, and risk management systems[99]. - The company aims to maintain a balanced perspective on diversity to support business growth and will review the board's composition annually[114]. - The Nomination Committee will review the board diversity policy periodically to ensure its effectiveness[116]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with clear written terms of reference[98]. - The Remuneration Committee's main responsibilities include reviewing and recommending the remuneration of individual executive directors and senior management to the board[104]. - The board of directors reviewed the company's corporate governance policies and compliance with legal and regulatory requirements[119]. Risk Management - The company faced significant operational risks due to the COVID-19 pandemic, impacting its event operations and marketing business[129]. - The company is conducting market research for new business development to mitigate risks associated with its single business model[129]. - The board is responsible for assessing and determining the nature and extent of risks the company is willing to accept to achieve strategic objectives[120]. - The company has established a risk management and internal control system to manage significant risks rather than eliminate them[120]. - The audit committee assists the board in evaluating and monitoring the risk levels and the effectiveness of the risk management system[121]. - The company aims to identify, assess, and manage all existing and future significant risks within acceptable levels[125]. - The risk management process includes risk identification, assessment, management measures, and monitoring and reporting[126]. - The company is implementing cost-saving measures and low-risk financial investments to increase other revenue sources[129]. - The board concluded on the effectiveness of the risk management and internal control systems after reviewing the audit committee's work[121]. - The company is facing a risk of employee turnover due to the COVID-19 pandemic, with many employees considering other industries for income sources[132]. - The company is actively maintaining relationships with government and sponsors to mitigate customer attrition risks caused by the inability to hold events[132]. - As of December 31, 2020, the company has implemented a risk-oriented internal control evaluation covering financial reporting, fund management, and revenue processes[135]. - The company has established a quality control center responsible for internal monitoring, ensuring compliance with financial reporting and risk management[135]. - The company paid RMB 1,150,000 for audit-related services and RMB 74,000 for non-audit services for the year ending December 31, 2020[144]. - The board believes that the internal control procedures for handling and disclosing inside information are effective[137]. - The company has a closed-loop management mechanism for internal control planning, review, reporting, and follow-up[135]. - The company has not identified any significant uncertainties that may affect its ability to continue as a going concern[141]. Shareholder Relations and Communication - The company ensures that all resolutions presented at the shareholders' meeting are voted on according to listing rules[147]. - The company has established procedures for shareholders to request special meetings and submit proposals[148]. - The company emphasizes effective communication with shareholders to strengthen investor relations and enhance understanding of business performance and strategies[155]. - The company has adopted a dividend policy to maintain sufficient cash reserves for funding needs, future growth, and shareholder value[156]. - As of December 31, 2020, there were no changes to the company's articles of association[159]. Environmental, Social, and Governance (ESG) Performance - The company continues to diversify its business into areas such as sports insurance and sports beverages, aiming to integrate "real economy + finance" for long-term development[168]. - During the reporting period, the company reported significant reductions in air emissions: SOx decreased from 0.82 kg in 2019 to 0.18 kg in 2020, NOx decreased from 2.34 kg to 0.53 kg, and PM decreased from 0.41 kg to 0.06 kg[172]. - The company plans to monitor vehicle usage closely and optimize data collection systems for future emissions tracking[172]. - The company is committed to maintaining close communication with stakeholders to improve ESG performance and risk management[163]. - The company has established a shareholder communication policy to ensure shareholder concerns are addressed appropriately[155]. - The company has not set any predetermined dividend payout ratio[158]. - The company will continue to develop various products and conduct market research despite the impact of the COVID-19 pandemic on its operations[168]. - GHG emissions decreased significantly to 27.43 tons CO2 equivalent in 2020, down approximately 86.7% from 190.954 tons in 2019[176]. - Scope 1 direct emissions from fuel combustion dropped by about 82% from 29.35 tons to 5.18 tons CO2 equivalent due to reduced vehicle usage[176]. - Electricity consumption decreased by approximately 78%, with total energy consumption falling to 32,314 kWh from 143,493 kWh in 2019[193]. - The intensity of electricity usage in the office increased by 42%, reaching 24.1 kWh per square meter due to changes in office space and rental costs[193]. - Water consumption in the office was 889 cubic meters in 2020, a significant increase compared to 11,410 cubic meters in 2019, as the Beijing office was included in the data for the first time[197]. - The company reported a total of 0.15 tons of paper waste in 2020, down from 0.736 tons in 2019, reflecting reduced business activities during the pandemic[184]. - Business travel remained the primary source of emissions, prompting the company to review and strengthen travel management policies[185]. - The company implemented measures to promote public transport usage for commuting, aiming to reduce private car use[186]. - The company adopted an OA system to promote paperless operations and encouraged double-sided printing and recycling[187]. - The company plans to utilize new technologies and eco-friendly materials in future marathon events to minimize environmental impact[191]. - The group does not engage in the use of any packaging materials, thus no related data or information is presented in this report[200].

Financial Performance - The company's revenue decreased approximately 97.7% from RMB 43.5 million for the six months ended June 30, 2019, to RMB 1.0 million for the same period in 2020, primarily due to the impact of COVID-19 on event operations[21]. - Revenue from the event operation and marketing segment dropped 100% from RMB 8.3 million to RMB 0 million, while the sports services segment revenue fell approximately 97.2% from RMB 35.2 million to RMB 1.0 million[21]. - The gross loss decreased approximately 84.1% from RMB 27.1 million to RMB 4.3 million, with the gross loss margin increasing from 62.3% to about 430.0%[25]. - The loss attributable to the company's owners decreased 91.9% from RMB 270.7 million to RMB 21.8 million[33]. - The company reported a net cash outflow of RMB 144,895 thousand in cash and cash equivalents during the period[127]. - The company reported a significant other loss of RMB (256,253,000) for the six months ended June 30, 2020, compared to no other loss in the previous period, indicating potential asset impairments[176]. Operational Challenges and Responses - The company faced significant challenges in H1 2020 due to the COVID-19 pandemic, leading to the cancellation of all scheduled marathon events[8]. - Management implemented cost-cutting measures and optimized expenses to maintain stable cash flow during the pandemic[13]. - The management anticipates a gradual recovery of marathon events, although the scale and sponsorship may be impacted by the pandemic[9]. - The company is actively communicating with event organizers and government bodies to prepare for the resumption of events[9]. - The company organized the 2020 Nanchang Online Hero Marathon to engage with running communities despite the inability to hold large-scale offline events[13]. Investment and Financial Strategy - The company is exploring investment opportunities in the "sports + finance" sector to create a dual-driven development model[14]. - The group plans to acquire a 49% stake in YTO Global Financial Group for HKD 53.41 million, which is expected to broaden its revenue sources in Hong Kong's financial services market[43]. - The group subscribed to the Baoyin A-001 private investment fund for RMB 50 million, with expectations of varying annualized returns based on subscription terms[44]. - The group invested RMB 34 million in the Minsheng Trust Plan, anticipating an annualized return of 4.7%, aimed at improving fund utilization efficiency and combating inflation[48]. - The group has maintained a prudent financial management policy to ensure strong liquidity for daily operations and future development needs[39]. Shareholder and Equity Information - The beneficial owner of 602,780,000 shares represents 37.84% of the total shares, held by Queen Media Co., Ltd.[65]. - Lucky Go Co., Ltd. holds 78.88% equity and Top Car Co., Ltd. holds 43.69% equity, indicating significant ownership concentration[66]. - The company has a share option plan that allows for the issuance of up to 160,000,000 shares, which is 10% of the total issued shares post-global offering[76]. - As of the mid-report date, 159,535,000 shares are available for issuance under the share option plan, accounting for about 10.02% of the issued shares[77]. Cash Flow and Liquidity - As of June 30, 2020, the company's cash and cash equivalents were approximately RMB 23.0 million, down from RMB 167.3 million as of December 31, 2019[34]. - The net current assets increased approximately 2.6% from RMB 312.1 million as of December 31, 2019, to RMB 320.2 million as of June 30, 2020, indicating stable working capital[35]. - The current ratio improved to 577.2% as of June 30, 2020, compared to 445.4% on December 31, 2019[56]. - The group has not faced any significant operational or liquidity difficulties due to exchange rate fluctuations, indicating a low risk in this area[40]. Impairment and Asset Management - The company decided to write off an intangible asset with a carrying amount of RMB 84,552,000 as of June 30, 2019, due to operational issues related to the "Run China" marathon series[200]. - The management's assessment indicated that the recoverable amount of the cash-generating units was lower than their carrying amounts, leading to the recognition of impairment losses[199]. - The cash-generating unit for sports services was assessed using a discount rate of 18.0% and a growth rate of 3.0%, consistent with industry forecasts[199]. Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the separation of roles between the chairman and CEO, which has been addressed with recent management changes[103]. - The group’s financial reporting is based on Hong Kong Financial Reporting Standards, ensuring consistency with the annual financial statements for the year ended December 31, 2019[131].

Financial Performance - The group's revenue decreased by approximately 65.1% from RMB 455.4 million in 2018 to RMB 159.0 million in 2019[34]. - Revenue from event operations and marketing fell by about 58.6% to RMB 74.2 million, primarily due to the loss of exclusive operation rights for the "Run China" marathon series[34]. - Sports services revenue decreased by approximately 55.8% to RMB 84.8 million, mainly due to a reduction in marathon events[34]. - The company recorded a gross loss of RMB 27.7 million for the year ended December 31, 2019, compared to a gross profit of RMB 125.8 million for the year ended December 31, 2018, representing a decrease of approximately 122.0%[37]. - The gross loss margin for the year ended December 31, 2019, was approximately 17.4%, down from a gross profit margin of 27.6% for the year ended December 31, 2018[37]. - The sports service segment reported a gross profit of RMB 21.2 million for the year ended December 31, 2019, down approximately 79.4% from RMB 102.8 million for the year ended December 31, 2018, with a gross profit margin of 25.0%[37]. - The company reported a loss attributable to owners of the company of RMB 455.1 million for the year ended December 31, 2019, compared to a profit of RMB 46.4 million for the year ended December 31, 2018[46]. - Cash and cash equivalents decreased to approximately RMB 167.3 million as of December 31, 2019, from RMB 417.4 million as of December 31, 2018[47]. - Net cash used in operating activities was RMB 56.0 million for the year ended December 31, 2019, compared to net cash generated of RMB 97.0 million for the year ended December 31, 2018[50]. - The company's current assets decreased by approximately 60.6% to RMB 312.1 million as of December 31, 2019, from RMB 791.9 million as of December 31, 2018[53]. Strategic Focus and Development - The company is focusing on three core strategies: "high frequency," "intelligent," and "lifestyle," to develop a large consumer platform in the sports health sector[17]. - The company is actively seeking new development paths and channels, including building domestic and international financial investment platforms[17]. - The company anticipates a surge in demand for sports health products and services post-pandemic, preparing to leverage its "real economy + finance" model[17]. - The restructuring of the internal management framework aims to optimize personnel and event costs to recover from the performance downturn[21]. - The company has accumulated experience from operating over 200 marathon events, which it plans to utilize in expanding its service offerings[21]. - The company is exploring investments in cross-sector areas of the sports industry to establish a foundation for consumer product development[21]. - The group plans to enhance its product and service offerings in the health and sports consumption market post-pandemic, focusing on personalized products[30]. - The group aims to leverage big data technology to provide customized insurance products for sports enthusiasts[30]. - The company is actively promoting large-scale marathons and other sports events, with a focus on developing products and services in the sports health consumer market[160]. - The company has completed preliminary strategic planning for the sports health consumer market, marking an evolution towards a diversified development model[160]. Competition and Market Challenges - The company faced a challenging year in 2019 due to a slowdown in China's economic growth and increased competition in the marathon industry, leading to a decline in overall industry profit margins[21]. - The company faces increased competition in the marathon event sector, with a notable rise in the number of operators, impacting market share[126]. - The overall marketing market for marathons has become more transparent, leading to a decrease in industry gross margins and profit margins[128]. - The company is enhancing event quality and optimizing service offerings to mitigate customer attrition risks[128]. - There is a risk of losing professional management talent due to intense market competition, prompting the company to focus on talent retention strategies[128]. Governance and Management - The board held four meetings throughout the year ending December 31, 2019[74]. - The board consists of at least three independent non-executive directors, representing no less than one-third of the board, with one possessing appropriate professional qualifications or financial management expertise[80]. - All directors, including independent non-executive directors, bring valuable business experience and expertise to ensure efficient and effective board operations[84]. - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, each with clear written terms of reference[95]. - The audit committee held three meetings during the year to review the annual financial performance and reports for the year ended December 31, 2018, and the interim financial performance for the six months ended June 30, 2019[98]. - The audit committee is responsible for independent reviews of the group's financial reporting processes, internal controls, and risk management systems[98]. - The company has appropriate insurance coverage for directors and senior management against legal actions arising from corporate activities, reviewed annually[89]. - The company has established a formal and transparent process for determining compensation policies to avoid conflicts of interest[101]. - The company has established a risk management framework to identify and monitor significant risks, ensuring they remain within acceptable levels[122]. - The company is committed to complying with external regulatory requirements and internal policies to ensure effective risk management[122]. Environmental and Social Responsibility - The company reported sulfur oxides (SOx) emissions of 0.82 kg in 2019, an increase from 0.12 kg in 2018[165]. - Nitrogen oxides (NOx) emissions were recorded at 2.34 kg in 2019, down from 3.25 kg in 2018[165]. - GHG emissions totaled 189.50 tons of CO2 equivalent in 2019, a decrease of approximately 9.3% from 208.94 tons in 2018[169]. - Scope 1 direct emissions increased by about 38% due to increased vehicle usage, while purchased electricity emissions decreased by 66% due to office relocation[169]. - The intensity of GHG emissions per employee rose significantly to 2.756 tons of CO2 equivalent, up from 1.12 tons in 2018, due to a reduction in total employees from 187 to 69[173]. - Total energy consumption decreased by approximately 23% to 143,493 kWh in 2019 from 185,923 kWh in 2018, with a notable 64% reduction in purchased electricity[186]. - The company aims to reduce emissions by encouraging public transport use and limiting business travel through enhanced management policies[179]. - The total amount of paper waste increased by approximately 84% to 0.577 tons due to higher paper usage in offices[177]. - The company has implemented an office automation system to promote paperless operations and reduce waste generation[182]. - The company collaborates with government departments to select suitable marathon routes to minimize environmental impact[200].

Financial Performance - The group's revenue decreased approximately 70.7% from RMB 148.7 million in the first half of 2018 to RMB 43.5 million in the first half of 2019[34]. - Revenue from the event operation and marketing segment fell about 86.7% from RMB 62.5 million to RMB 8.3 million, primarily due to a reduction in marathon events[34]. - The sports service segment's revenue decreased approximately 39.0% from RMB 57.7 million to RMB 35.2 million, also due to fewer marathon events[34]. - The group reported a loss before tax of RMB 319.7 million for the six months ended June 30, 2019, compared to a profit before tax of RMB 90.5 million for the same period in 2018, representing a change of approximately 453.3%[45]. - The group recorded a gross loss of RMB 27.1 million for the six months ended June 30, 2019, compared to a gross profit of RMB 56.6 million for the same period in 2018, representing a change of approximately 147.9%[37]. - The total comprehensive loss for the period was RMB 284,097 thousand, compared to a comprehensive income of RMB 36,129 thousand in the same period last year[107]. - Basic and diluted loss per share was RMB 0.17, compared to earnings of RMB 0.03 per share in the previous year[107]. - The company reported a significant increase in impairment provisions for accounts receivable, amounting to RMB (4,218) thousand for the six months ended June 30, 2019, compared to RMB (144) thousand in the same period of 2018[177]. - The company reported a net loss attributable to shareholders of RMB (270,703,000) for the six months ended June 30, 2019, compared to a profit of RMB 46,061,000 in 2018[200]. Strategic Focus - The company is focusing on three core strategies: "high frequency," "intelligent," and "lifestyle," to build a large consumption platform in the sports health sector[14]. - The company aims to leverage its accumulated sports health data to upgrade from event operations to a broader sports health consumption model[21]. - The company is committed to investing in cross-sector areas of the sports industry chain to create a market for incremental sports consumption[21]. - The strategic upgrade is expected to enhance the company's ability to provide richer and more professional sports services to the public[21]. - The company emphasizes the importance of adapting to market demands and industry trends to ensure sustainable growth[14]. - The company is determined to continue its strategic upgrades to navigate through the current economic challenges and seize new opportunities[14]. Operational Challenges - In the first half of 2019, the company faced significant challenges due to a slowdown in the Chinese economy and increased competition in the marathon market, leading to a decline in traditional road running business[14]. - The company plans to optimize its internal management structure and conduct comprehensive personnel optimization and cost control to address short-term operational challenges[21]. - The service cost decreased approximately 23.3% from RMB 92.1 million to RMB 70.6 million, with specific increases in event operation costs due to quality upgrades[35]. - The company has experienced a strategic transformation since its listing on the Hong Kong Stock Exchange in 2013, becoming a leader in the Chinese sports industry[14]. Cash Flow and Assets - Cash and cash equivalents as of June 30, 2019, were approximately RMB 308.2 million, down from RMB 417.4 million as of December 31, 2018[48]. - The net current assets decreased by approximately 19.9% from RMB 791.9 million as of December 31, 2018, to RMB 634.7 million as of June 30, 2019[50]. - Non-current assets decreased to RMB 260,495 thousand as of June 30, 2019, down from RMB 402,574 thousand at the end of 2018[112]. - Current assets totaled RMB 695,879 thousand, a decrease from RMB 904,845 thousand at the end of 2018[112]. - Total assets amounted to RMB 956,374 thousand, down from RMB 1,307,419 thousand at the end of 2018[112]. Shareholding and Corporate Governance - The company has a competitive salary policy, providing commissions and discretionary bonuses based on performance[61]. - The company has complied with the corporate governance code principles as of June 30, 2019, except for the separation of the roles of Chairman and CEO[97]. - The audit committee, consisting of three independent non-executive directors, reviewed the financial information for the six months ended June 30, 2019[99][100]. - The company has no significant related party transactions that are exempt from ongoing disclosure requirements[65]. Financial Reporting Standards - The company has adopted the revised Hong Kong Financial Reporting Standard 16 from January 1, 2019, affecting the financial statements presentation[108]. - The company incurred financial expenses of RMB 29 thousand related to lease liabilities for the six months ended June 30, 2019[178]. - The company reported a total cash and cash equivalents of RMB 308,248,000 as of June 30, 2019, down from RMB 417,355,000 at the beginning of the year[122]. - The company’s total liabilities increased due to the recognition of lease liabilities under the new accounting standard[127].

Event Management and Operations - In 2018, Wisdom Sports Group organized over 30 marathon events, with the "Run China" series featuring 28 events and attracting over 2 million participants, significantly boosting local tourism economies [22]. - The company acquired First Intelligent Sports Technology (Shenzhen) Co., Ltd., enhancing its full industry chain operational system, integrating event operations, sports marketing, live broadcasting, and sports technology [17]. - The "Run China" series achieved over 70 hours of live broadcasting, reaching nearly 400 million people, addressing the growing demand for fitness among the public [22]. - The marathon timing chip developed by First Intelligent has been certified by the Chinese Athletics Association and is now widely used in various events [23]. - The group has established a comprehensive operational model that includes event operations, sports marketing, sports services, live broadcasting, and sports technology [22]. - The "Marathon Event Management Platform" developed by First Intelligent is set to trial in the second half of the year, integrating management across security, medical, volunteer, and supply areas [23]. - In 2018, the group operated 8 gold, 3 silver, and 4 bronze medal city marathon events, enhancing its reputation in the sports event sector [31]. - The group expanded its overseas sports tourism segment, providing services for over 30 international marathon events, serving more than 2,000 runners by year-end [34]. Financial Performance - The group's revenue increased by approximately 22.6% from RMB 371.5 million in 2017 to RMB 455.4 million in 2018 [41]. - The sports service segment's revenue rose by about 68.8% from RMB 113.6 million in 2017 to RMB 191.7 million in 2018, primarily due to an increase in marathon events [41]. - The group's gross profit decreased by approximately 3.7% from RMB 130.6 million in 2017 to RMB 125.8 million in 2018, with a gross margin decline from 35.2% to 27.6% [45]. - Operating expenses for sales and distribution decreased by approximately 44.5% from RMB 24.5 million in 2017 to RMB 13.6 million in 2018 [46]. - General and administrative expenses increased by approximately 11.2% from RMB 51.1 million in 2017 to RMB 56.8 million in 2018, mainly due to acquisitions [47]. - Other income surged by approximately 237.2% from RMB 26.1 million in 2017 to RMB 88.0 million in 2018, primarily from early settlement agreements [48]. - The group's cash and cash equivalents increased from RMB 324.4 million in 2017 to RMB 417.4 million in 2018 [54]. - The group reported a pre-tax profit increase of approximately 76.4% from RMB 67.7 million in 2017 to RMB 119.4 million in 2018 [51]. - Net cash generated from operating activities decreased from RMB 76.9 million in 2017 to RMB 53.0 million in 2018, primarily due to increased tax payments [56]. - Net cash used in investing activities decreased from RMB 190.3 million in 2017 to RMB 137.9 million in 2018, attributed to increased net proceeds from the sale of financial products and higher interest income [59]. - Net cash used in financing activities increased from RMB 85.6 million in 2017 to RMB 98.8 million in 2018, mainly for dividend payments approved at the annual general meeting [60]. Strategic Focus and Innovation - Wisdom Sports Group plans to focus on "thematic innovation, standard innovation, technological innovation, and communication innovation" for comprehensive upgrades in the running industry in 2019 [14]. - The company aims to solidify its industry advantage by expanding superior event resources and innovating products and services that meet user needs [17]. - The company plans to expand its "Sports + Technology" strategy and develop new fitness events to meet diverse consumer demands [38]. - The company aims to strengthen its management systems and optimize resource allocation in sports technology and the internet in 2019, focusing on the "Sports + Technology" strategic development plan [166]. Corporate Governance - The company has complied with corporate governance codes, with a noted exception regarding the separation of the roles of Chairman and CEO [75]. - The board held four meetings during the year ending December 31, 2018 [80]. - The company has appointed at least three independent non-executive directors, constituting over one-third of the board [84]. - The company emphasizes the importance of separating the roles of the chairman and CEO, although the current structure has not been deemed detrimental to governance [82]. - All independent non-executive directors confirmed their independence in accordance with listing rules [84]. - The company provides training for new directors to ensure they understand their responsibilities and the company's operations [94]. - The board collectively oversees the company's business strategies and performance, ensuring decisions are made in the company's best interest [87]. - The company has appropriate insurance coverage for directors and senior management against legal claims arising from corporate activities [93]. - The company has established a whistleblowing arrangement for employees to report potential misconduct related to financial reporting and internal controls [104]. Risk Management - The company faced increased competition risk due to the rise of major brand IP events in the industry [132]. - The company has established a risk management framework to identify and assess major risks annually [132]. - The company is committed to maintaining an effective risk management and internal control system [123]. - The company has implemented a risk response plan to manage significant risks effectively [128]. - The company is focused on continuous monitoring and reporting of risks through various mechanisms [129]. - The company aims to ensure compliance with external regulations and internal policies as part of its risk management objectives [129]. Environmental, Social, and Governance (ESG) Initiatives - The company reported a total greenhouse gas (GHG) emission of 208.94 tCO2e for the reporting period, with 41% from purchased electricity and 49% from paper disposal [172]. - The company disposed of a total of 311.38 kg of waste paper during the reporting period, with approximately 73.85 tons of plastic water bottles and other waste collected from marathon events [176]. - The company emphasizes the importance of stakeholder feedback in its ESG performance and regularly consults with various stakeholders on operational and performance aspects [162]. - The company is committed to improving its ESG management opportunities and developing supportive policies to address future challenges [166]. - The company operates under strict compliance with environmental laws, ensuring no significant environmental threats arise from its operations [170]. - The company has established rules and guidelines for vehicle fuel usage and emissions monitoring during marathon events [171]. - The company aims to promote public fitness through marathon events, contributing to sustainable business development [166]. - The total energy consumption during the reporting period was 185,923.07 kWh, with an energy intensity of 11,620.19 kWh per marathon event [183]. - The company has implemented measures to promote resource efficiency, including the use of energy-saving devices and management regulations for lighting [185]. - The company has adopted new technologies and eco-friendly materials to minimize waste generation during marathon events [179]. - The company has established a paperless office initiative and encourages double-sided printing and recycling among employees [178]. - The company has committed to managing and operating marathon events with a focus on promoting green, healthy, and low-carbon living concepts [192]. Human Resources and Talent Management - The company is experiencing a growing demand for mid-to-senior management talent as its business expands, posing a risk of talent recruitment and retention [132]. - The company has increased its workforce by 131% compared to December 31, 2017, with a total of 187 employees as of December 31, 2018, due to business expansion and new acquisitions [196]. - The group provides competitive salaries and contributes to various social insurances including pension, basic medical, unemployment, work injury, and maternity insurance [198]. - Performance evaluations are conducted fairly, with outstanding employees being promoted, ensuring equal and strategic career development opportunities [199]. - The group adheres to the Labor Law of the People's Republic of China, limiting employee work hours to 8 hours per day or 40 hours per week, with paid leave rights including annual leave [200].