Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 22,356,000, compared to RMB 2,571,000 for the same period in 2023, representing an increase of 769%[2] - Gross profit for the same period was RMB 7,496,000, a significant improvement from a gross loss of RMB 257,000 in 2023[2] - Operating profit for the six months ended June 30, 2024, was RMB 15,442,000, compared to an operating loss of RMB 5,898,000 in the previous year[2] - Net profit for the period was RMB 14,135,000, compared to a net loss of RMB 6,375,000 in the same period of 2023[2] - Other income for the six months ended June 30, 2024, was RMB 16,606,000, up from RMB 5,744,000 in the same period last year, indicating a growth of 189%[2] - Investment income from financial products amounted to RMB 8,269 thousand, up from RMB 1,811 thousand in the previous year, reflecting a growth of about 356%[11] - The company reported a pre-tax profit of RMB 14.8 million for the six months ended June 30, 2024, compared to a pre-tax loss of RMB 6.4 million for the same period in 2023[36] Assets and Equity - Total assets as of June 30, 2024, amounted to RMB 465,360,000, an increase from RMB 412,358,000 as of December 31, 2023[4] - Cash and cash equivalents increased to RMB 266,251,000 from RMB 173,732,000 at the end of 2023, reflecting a growth of 53%[4] - The company's equity attributable to owners increased to RMB 421,420,000 from RMB 369,272,000, marking a rise of 14.1%[5] - The net current assets increased by approximately 47.2%, from RMB 219.5 million as of December 31, 2023, to RMB 323.0 million as of June 30, 2024[41] Earnings Per Share - The company reported a basic and diluted earnings per share of RMB 0.80 for the period, compared to a loss per share of RMB 0.40 in 2023[3] - The weighted average number of ordinary shares used to calculate basic and diluted earnings per share was 1,773,775 for the six months ended June 30, 2024, compared to 1,592,942 for the same period in 2023[19] Expenses - The company incurred general and administrative expenses of RMB 4,903 thousand for the six months ended June 30, 2024, a decrease from RMB 21,083 thousand in the previous year[14] - The company reported a significant decrease in selling and distribution expenses, dropping approximately 100% from RMB 0.4 million for the six months ended June 30, 2023, to RMB 0 for the same period in 2024[32] - General and administrative expenses decreased by approximately 76.8%, from RMB 21.1 million for the six months ended June 30, 2023, to RMB 4.9 million for the same period in 2024[33] Revenue Segmentation - The gross profit from the event operation and marketing segment was RMB 6,884 thousand, while the sports services segment contributed RMB 612 thousand, leading to a total gross profit of RMB 7,496 thousand[14] - The revenue from the event operation and marketing segment surged approximately 2,180% from RMB 0.9 million to RMB 20.5 million during the same period[29] - The company recognized income from event operations and marketing of RMB 20,542 thousand for the six months ended June 30, 2024, compared to RMB 903 thousand in the same period of 2023, marking a growth of approximately 2,177%[15] Share Capital and Dividends - The company’s issued ordinary shares increased to 1,902,942,000 shares as of June 30, 2024, from 1,592,942,000 shares as of December 31, 2023[47] - No interim dividends were declared for the six months ending June 30, 2024, consistent with the same period in 2023[49] Strategic Developments - The company plans to expand into high-end golf event operations, having successfully hosted the "2024 Hong Kong University Global CEO Golf Celebrity Invitation Tournament" in Singapore and Hong Kong[25] - The company aims to leverage advancements in artificial intelligence to develop a new business focused on high-tech asset management services, responding to the growing demand in this sector[27] - The company has rebranded itself as "China Frontier Technology Group" to align with its new strategic focus on high-tech investments and services[27] Compliance and Governance - The audit committee confirmed compliance with applicable corporate governance codes for the six months ending June 30, 2024[53] - The company’s board of directors has confirmed adherence to the standard code for securities trading for the six months ending June 30, 2024[54] - The company’s financial performance for the six months ending June 30, 2024, is unaudited and has not been reviewed by external auditors[56] Other Financial Metrics - The company reported a net loss from foreign exchange of RMB (4,175) thousand, compared to a loss of RMB (1,140) thousand in the prior period, indicating a deterioration in foreign exchange performance[12] - As of June 30, 2024, accounts receivable amounted to RMB 23,181 thousand, an increase from RMB 17,489 thousand as of December 31, 2023, reflecting a growth of approximately 32.7%[21] - Accounts payable decreased from RMB 11,810 thousand as of December 31, 2023, to RMB 9,985 thousand as of June 30, 2024, indicating a reduction of approximately 15.4%[23] - The company reported a decrease in accounts receivable aging over one year, from RMB 2,337 thousand to RMB 3,186 thousand, indicating improved collection efforts[21] - The company reported no significant contingent liabilities as of June 30, 2024[49]

Sports Industry Development - The sports industry in China has shown strong vitality in 2023, with the company successfully operating various events, including the "2023 Dalian Marathon" and "2023 Nanchang Marathon," enhancing its brand influence and value[9]. - The company has entered the high-end golf event market with the successful hosting of the "2024 Hong Kong University Global CEO Golf Celebrity Invitation Tournament," marking its first international high-end golf event[10]. - A new high-end sports event service club, "1661 Club," is being established to provide members with a one-stop golf service experience, integrating resources from world-renowned golf courses[11]. - The company aims to expand its audience and market share by exploring diverse business forms based on the sports market, responding to the growing and personalized consumer demand for sports services[10]. - The company is actively engaging with local governments and event organizers to develop event resources and cooperation opportunities, enhancing its operational capabilities[9]. - The company has successfully hosted a variety of events, solidifying its position in professional event operations and enhancing its reputation in the industry[9]. - The outdoor sports market is expected to thrive in 2024, driven by events like the Paris Olympics and Copa America, increasing public participation in outdoor activities[17]. Financial Performance - The company's revenue increased approximately 547.4% from RMB 4.98 million for the year ended December 31, 2022, to RMB 32.24 million for the year ended December 31, 2023, primarily due to the recovery of the sports industry post-COVID-19[26]. - Service costs surged approximately 2,135.1% from RMB 1.5 million in 2022 to RMB 33.08 million in 2023, driven by the increase in the number of events operated by the company[26]. - The company recorded a gross loss of RMB 0.84 million for the year ended December 31, 2023, compared to a gross profit of RMB 3.50 million in 2022, resulting in a gross loss margin of 2.6%[26]. - Revenue from the event operation and marketing segment rose approximately 556.4% to RMB 26.32 million, while the sports services segment revenue increased approximately 510.3% to RMB 5.92 million[27]. - Selling and distribution expenses grew approximately 94.3% from RMB 3.66 million in 2022 to RMB 7.11 million in 2023, mainly due to business expenses related to event operations[28]. - General and administrative expenses increased approximately 67.6% from RMB 26.40 million in 2022 to RMB 44.24 million in 2023, primarily due to rising labor costs associated with business recovery and new business expansion[29]. - Other income rose approximately 81.9% from RMB 8.99 million in 2022 to RMB 16.35 million in 2023, mainly due to increased returns from short-term bank financial products and fixed income interests[30]. Business Strategy and Expansion - The company plans to explore a new business focused on cutting-edge technology asset management services, aiming to create a comprehensive enterprise that spans sports, health, member services, investment management, and financial services[13]. - The company is focused on leveraging the rapid development of artificial intelligence and global technology trends to identify valuable investment and acquisition opportunities in high-tech sectors[13]. - The company aims to develop two main business directions in 2024: professional event operations and high-end sports services, alongside AI asset management services[24]. - The company operates two main business segments: event operations and marketing, and sports services, generating revenue from sponsorships and service-related income[25]. Corporate Governance - The company has adhered to the corporate governance code and standards throughout the fiscal year ending December 31, 2023[83]. - The board is committed to maintaining high standards of corporate governance to enhance transparency and accountability[82]. - The company has established a balanced structure of executive and non-executive directors to ensure effective independent judgment[86]. - The company has appointed at least three independent non-executive directors, constituting no less than one-third of the board[91]. - The board is collectively responsible for the company's business strategy and performance, ensuring objective decisions are made in the company's best interest[94]. - The company has established three committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, each with clear written terms of reference[104]. Environmental, Social, and Governance (ESG) Performance - The company is committed to enhancing its environmental, social, and governance (ESG) performance, as detailed in its eighth ESG report[170]. - The company has set carbon reduction targets compared to the 2019 baseline, aiming to reduce air emissions by 1% by 2025, 2% by 2027, and 3% by 2030[195]. - Energy consumption is targeted to decrease by 1% by 2025, 2% by 2027, and 3% by 2030, measured in million watt-hours[195]. - Water usage is expected to be reduced by 1% by 2025, 3% by 2027, and 5% by 2030, measured in approximate tons[195]. - Waste management is projected to decrease by 1% by 2025, 3% by 2027, and 5% by 2030[195]. - The board is committed to integrating climate-related issues and ESG factors into long-term business strategy planning[177]. - The company emphasizes stakeholder engagement and regularly consults internal and external stakeholders regarding ESG performance[184]. Risk Management - The company has established a risk management and internal control system to manage significant risks rather than eliminate them, providing reasonable assurance against material misstatements or losses[129]. - The risk management framework includes annual assessments of major risks and monitoring of the effectiveness of risk management systems, with reports submitted to the board[130]. - The company identifies and evaluates risks at least once a year, creating a risk register based on potential impacts and past significant issues[132]. - Risk response measures are developed to manage significant risks, utilizing avoidance, reduction, sharing, or acceptance strategies[132]. - The company aims to maintain all significant risks within an acceptable level for management, including environmental, social, and governance risks[134].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 32,243,000, a significant increase from RMB 4,976,000 in 2022, representing a growth of approximately 546%[4] - The cost of services for the same period was RMB 33,083,000, leading to a gross loss of RMB 840,000 compared to a gross profit of RMB 3,500,000 in 2022[4] - Other income increased to RMB 16,345,000 from RMB 8,996,000, marking an increase of about 81%[4] - The total operating loss for the year was RMB 79,978,000, compared to a loss of RMB 65,896,000 in 2022, indicating a deterioration in operational performance[4] - The net loss for the year was RMB 87,171,000, up from RMB 75,507,000 in 2022, reflecting a year-over-year increase of approximately 15%[4] - The group reported a total loss of RMB 87,171 thousand for the year ended December 31, 2023, compared to a loss of RMB 75,507 thousand in 2022, reflecting an increase in losses of approximately 15%[27] - The company reported a net loss attributable to shareholders of RMB 87,178 thousand for 2023, compared to a loss of RMB 75,479 thousand in 2022, indicating an increase in losses of approximately 15.5% year-over-year[36] - The company's loss attributable to owners increased approximately 15.5% from RMB 75.50 million to RMB 87.20 million for the year ended December 31, 2023[63] Assets and Liabilities - Total assets decreased to RMB 412,358,000 from RMB 499,155,000, a decline of about 17.4%[8] - Current assets also fell to RMB 256,693,000 from RMB 292,156,000, representing a decrease of approximately 12.1%[8] - The group’s non-current assets in China decreased to RMB 50,000 thousand in 2023 from RMB 132,054 thousand in 2022[30] - The group’s net current assets decreased by approximately 13.5% from RMB 253.80 million as of December 31, 2022, to RMB 219.50 million as of December 31, 2023[65] - Accounts receivable decreased slightly to RMB 17,489 thousand in 2023 from RMB 17,951 thousand in 2022, with a provision for impairment remaining unchanged at RMB 12,630 thousand[37] - Accounts payable increased significantly to RMB 11,810 thousand in 2023 from RMB 4,784 thousand in 2022, reflecting a rise of approximately 147%[40] - Bank borrowings as of December 31, 2023, were RMB 6.60 million, an increase from zero as of December 31, 2022[67] - The current ratio as of December 31, 2023, was approximately 690.9%, down from 761.1% as of December 31, 2022[71] - The debt-to-asset ratio was approximately 10.61% as of December 31, 2023, compared to 7.69% as of December 31, 2022[71] Revenue Segmentation - Revenue from event operations and marketing was RMB 26,320 thousand in 2023, compared to RMB 4,017 thousand in 2022, indicating a growth of about 554%[18] - The event operation and marketing segment's revenue grew about 556.4% from RMB 4.02 million to RMB 26.32 million, while the sports services segment's revenue increased approximately 510.3% from RMB 0.96 million to RMB 5.92 million[53] - The group reported interest income of RMB 7,357 thousand in 2023, compared to RMB 1,415 thousand in 2022, representing an increase of approximately 419%[18] Expenses - The group’s total service costs for 2023 were RMB 33,083 thousand, up from RMB 1,476 thousand in 2022, indicating a significant rise in costs[27] - Selling and distribution expenses rose about 94.3% from RMB 3.66 million to RMB 7.11 million, mainly due to business expenses related to event operations[56] - General and administrative expenses increased approximately 67.6% from RMB 26.40 million to RMB 44.24 million, attributed to rising labor costs associated with business recovery and new business expansion[57] - The group incurred impairment losses on property, plant, and equipment of RMB 16,262 thousand in 2023, with no such losses reported in 2022[20] Future Plans and Market Outlook - The company has plans for market expansion and new product development, although specific details were not disclosed in the earnings report[11] - The company plans to focus on high-quality development in professional event operations and high-end sports services, alongside exploring new business opportunities in AI asset management services[51] - The company aims to diversify its business model by exploring various sports events both domestically and internationally, laying a solid foundation for business expansion in 2024[43] - The outdoor sports market is expected to grow significantly in 2024, driven by events like the Paris Olympics and Copa America, which will enhance public participation in outdoor sports[45] - The company is focusing on high-value consumer segments, which contribute nearly 60% of the outdoor sports market, particularly in high-end sports like golf and skiing[46] Shareholder Information - The company did not recommend any dividend payments for the years ended December 31, 2023, and 2022[35] - The company did not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with the previous year[74] - The controlling shareholder sold 400 million shares at an average price of HKD 0.25 per share, totaling HKD 100 million[98] - The company entered into a subscription agreement for 310 million new shares at a price of HKD 0.139 per share[103] - The total amount raised from the subscription was approximately HKD 43.1 million, with a net amount of HKD 43 million intended for sports event development and working capital[104] Corporate Governance - The executive directors of the company include Ren Wen, Sheng Jie, Huang Wenqiang, and Ren Song[107] - The independent non-executive directors include Chen Zhijian, Li Jianhui, Jin Guoqiang, and Gao Wenjuan[107] Reporting and Compliance - The 2023 annual performance announcement is published on the Hong Kong Stock Exchange and the company's website[107] - The annual report will be sent to shareholders who opted for printed copies and will also be available on the Hong Kong Stock Exchange and the company's website[107] - The company has not yet adopted new Hong Kong Financial Reporting Standards that are effective from January 1, 2024, and beyond, which may impact future financial reporting[16] - The company has no significant contingent liabilities as of December 31, 2023, remaining unchanged from the previous year[73]

Revenue Growth - The group's revenue increased by approximately 188.9% from RMB 0.9 million in the six months ended June 30, 2022, to RMB 2.6 million in the six months ended June 30, 2023, primarily due to the gradual recovery of events post-COVID-19[10]. - Revenue for the six months ended June 30, 2023, was RMB 2,571,000, compared to RMB 897,000 for the same period in 2022, representing a significant increase of 187%[116]. - The revenue from the event operation and marketing segment increased by 80.0% from RMB 0.5 million to RMB 0.9 million, while the sports services segment revenue surged by 325.0% from RMB 0.4 million to RMB 1.7 million[10]. Cost and Expenses - The service costs rose by about 366.7% from RMB 0.6 million to RMB 2.8 million during the same period, attributed to the increase in the number of events operated[10]. - General and administrative expenses increased by approximately 59.9% from RMB 13.2 million for the six months ended June 30, 2022, to RMB 21.1 million for the six months ended June 30, 2023[12]. - Sales and distribution expenses decreased by approximately 63.6% from RMB 1.1 million to RMB 0.4 million, mainly due to adjustments in the sales personnel structure and optimization of labor costs[11]. Profitability and Loss - The group recorded a gross loss of RMB 0.2 million for the six months ended June 30, 2023, compared to a gross profit of RMB 0.3 million for the same period in 2022, resulting in a gross loss margin of 7.7%[11]. - The net loss for the period was RMB 6,375,000, compared to a net loss of RMB 32,102,000 for the same period in 2022, indicating a reduction in losses[86]. - The pre-tax loss decreased by 75.0% from RMB 25.6 million to RMB 6.4 million for the six months ended June 30, 2023[16]. Cash Flow and Assets - Cash and cash equivalents increased to approximately RMB 206.1 million as of June 30, 2023, from RMB 172.4 million as of December 31, 2022[20]. - Current assets net increased by approximately 15.2% from RMB 253.8 million to RMB 292.4 million as of June 30, 2023[21]. - The company reported a net cash outflow from operating activities of RMB (5,741) thousand, an improvement compared to RMB (27,663) thousand in the previous year[96]. Investments and Financial Assets - Other income rose by approximately 147.8% from RMB 2.3 million to RMB 5.7 million, primarily due to returns from financial products purchased from reputable financial institutions and increased interest income from short-term bank deposits in USD and GBP[13]. - The company has a total of RMB 18,409,000 in financial assets measured at fair value through profit or loss as of June 30, 2023, up from RMB 13,108,000 as of December 31, 2022, marking an increase of about 40.5%[146]. - The fair value of non-listed equity securities measured at fair value through other comprehensive income increased to RMB 63,259,000 as of June 30, 2023, from RMB 62,349,000 at the end of 2022[114]. Employee Costs - Total employee cost for the six months ended June 30, 2023, was RMB 9.0 million, slightly up from RMB 8.9 million for the same period in 2022[48]. - Employee costs, including salaries and bonuses, amounted to RMB 8,855,000 for the six months ended June 30, 2023, compared to RMB 2,188,000 in 2022, marking an increase of 304%[133]. - For the six months ended June 30, 2023, the total remuneration for directors and key management personnel was RMB 8,252,000, an increase of 380.23% compared to RMB 1,720,000 for the same period in 2022[158]. Future Outlook - The second half of 2023 is expected to be busy with multiple events scheduled, including Nanchang Marathon and Dalian Marathon, with ongoing preparations and negotiations for additional events[7]. - The group aims to expand its event operation rights and diversify its product offerings to better meet the needs of different types of sports enthusiasts[7]. - The overall trend in the sports industry is positive, with expectations of recovery to pre-pandemic levels, driven by events like the Chengdu Universiade and Hangzhou Asian Games[7].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 WISDOM SPORTS GROUP 智美體育集團 （於開曼群島註冊成立的有限公司） （股份代號：1661） 截至2023年6月30日止6個月中期業績公告 財務摘要 智美體育集團（「本公司」或「智美」）董事（「董事」）會（「董事會」）謹此發佈本公司及其附屬 公司（統稱「本集團」）截至2023年6月30日止6個月期間的未經審核合併中期業績連同2022 年同期的比較數字。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 WISDOM SPORTS GROUP 1661 (1) 有關截至2022年12月31日止年度之年度報告的補充公告； (2) 有關提供貸款的須予披露及主要交易； 及 (3) 根據上市規則第13.13條作出披露 謹此提述智美體育集團（「本公司」）於2023年4月26日刊發的截至2022年12月31日止年度的 年度報告（「年報」）。除本公告另行定義或文義另有指明外，本公告所用詞彙與年報所界 定者具有相同涵義。 除年報中提供的資料外，本公司董事會（「董事會」）謹此就截至2022年12月31日止年度於 聯營公司的投資減值虧損的相關披露提供額外資料。 於聯營公司的權益減值虧損 ...

COVID-19 Impact and Recovery - In 2022, the company faced significant challenges due to the COVID-19 pandemic, leading to the cancellation or postponement of offline marathon events, impacting overall performance [8]. - The company reported a significant impact on its operations due to the pandemic, with a focus on adapting to new market conditions and consumer behaviors [10]. - The company anticipates a gradual recovery in the sports industry, with a focus on health and fitness as public interest in physical well-being increases [11]. - The recovery of profitability is expected to require multiple cycles, with a focus on diversifying sponsorship sources due to the impact of the pandemic on existing sponsors [105]. - The company believes that the sales market in the sports industry will rebound after the COVID-19 pandemic [136]. Business Strategy and Diversification - The company aims to diversify its business by exploring various sports-related services and products to meet consumer demands in the post-pandemic era [9]. - The company is actively preparing for events scheduled for 2023, including marathons that were postponed due to pandemic restrictions [10]. - The company is exploring new strategies to increase its resilience against market fluctuations and enhance its service offerings [9]. - New business expansion efforts are being approached cautiously to minimize initial capital investment while ensuring thorough market research [105]. - The company aims to expand the consumer market in sports and health sectors while continuously exploring product development and market research [136]. Financial Performance - The company's revenue decreased approximately 59.0% from RMB 12.2 million for the year ended December 31, 2021, to RMB 5.0 million for the year ended December 31, 2022, primarily due to the severe impact of the COVID-19 pandemic on the sports industry [13]. - The service costs dropped about 87.9% from RMB 12.4 million for the year ended December 31, 2021, to RMB 1.5 million for the year ended December 31, 2022, also due to the pandemic's impact [13]. - The gross profit for the year ended December 31, 2022, was RMB 3.5 million, compared to a gross loss of RMB 0.2 million for the year ended December 31, 2021, resulting in a gross margin of 70.0% [14]. - The net loss attributable to the company’s owners increased about 58.0% from RMB 47.8 million for the year ended December 31, 2021, to RMB 75.5 million for the year ended December 31, 2022 [21]. - Cash and cash equivalents as of December 31, 2022, were approximately RMB 172.4 million, compared to RMB 127.4 million as of December 31, 2021 [22]. Corporate Governance - The company has maintained compliance with the corporate governance code throughout the year ending December 31, 2022 [49]. - The board of directors held four meetings throughout the year, ensuring effective leadership and oversight of the company's affairs [53]. - The company has established three committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, to oversee specific aspects of corporate governance [72]. - The board includes at least three independent non-executive directors, meeting the requirement of being at least one-third of the board [55]. - Continuous professional development was provided to all directors, covering corporate governance, regulatory updates, financial and accounting knowledge, and industry updates [67]. Environmental, Social, and Governance (ESG) Initiatives - The company has set carbon reduction targets compared to the 2019 baseline, aiming for a 1% reduction in air emissions by 2025, 2% by 2027, and 3% by 2030 [158]. - The board is committed to integrating climate-related issues and ESG factors into long-term business strategy planning [142]. - The company reported a total greenhouse gas (GHG) emissions of 35.06 tons CO2 equivalent in 2022, a decrease of 37% from 55.83 tons in 2021 [163]. - The company has implemented measures to reduce emissions, such as encouraging employees to use trains for business trips under 1,300 kilometers [167]. - The company aims to enhance internal policies and improve ESG management and performance through active communication with stakeholders [156]. Employee Management and Turnover - The employee turnover rate for 2022 was 26.67%, with a breakdown of 27.27% for males and 25.00% for females [198]. - The total number of employees as of December 31, 2022, was 15, with 14 being full-time employees [198]. - The group provided competitive compensation and benefits, including retirement insurance and basic medical insurance [199]. - The employee turnover rate during the reporting period was calculated as 15 employees who left divided by the total number of employees at the end of the reporting period [200].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 WISDOM SPORTS GROUP 智美體育集團 （於開曼群島註冊成立的有限公司） （股份代號：1661） 截至2022年12月31日止年度之全年業績公告 合併業績 智美體育集團（「本公司」）董事（「董事」）會（「董事會」）謹此公佈本公司及其附屬公司（統稱 「本集團」）截至2022年12月31日止年度（「報告期間」）經審核合併業績如下： ...

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].