Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 16,539,000, a decrease of 30.5% compared to RMB 23,813,000 for the same period in 2023[9]. - The gross profit for the same period was RMB 1,599,000, down 66.7% from RMB 4,810,000 in the previous year[9]. - The company incurred a loss of RMB 10,262,000 for the period, compared to a loss of RMB 8,359,000 in the prior year, indicating a worsening of 22.7%[9]. - The company's revenue for the six months ended June 30, 2024, was approximately RMB 16.5 million, a decrease of about 30.7% compared to RMB 23.8 million for the same period in 2023[16]. - Gross profit for the six months ended June 30, 2024, was approximately RMB 1.6 million, a decrease of about 66.7% from RMB 4.8 million in the same period last year, with the gross margin dropping from approximately 20% to about 9.7%[18]. - The company's loss for the six months ended June 30, 2024, was approximately RMB 10.3 million, an increase of about 22.6% from RMB 8.4 million in the same period last year[24]. - The group reported a loss attributable to owners of the company of RMB 10,262,000 for the six months ended June 30, 2024, compared to a loss of RMB 8,359,000 for the same period in 2023, representing an increase in loss of approximately 22.7%[104]. - Basic and diluted loss per share for the six months ended June 30, 2024, was RMB (3.39), compared to RMB (4.05) for the same period in 2023, indicating an improvement in loss per share by approximately 16.3%[103]. Revenue and Income Sources - Revenue from customer contracts for the six months ended June 30, 2024, was RMB 16,539,000, a decrease of 30.7% compared to RMB 23,813,000 for the same period in 2023[69]. - Other income and gains increased by approximately 350% to RMB 6.3 million, compared to RMB 1.4 million in the previous year, mainly due to the sale of a subsidiary[19]. - Revenue from marketing and promotional services for the six months ended June 30, 2024, was RMB 14,179,000, an increase of 22.4% compared to RMB 11,548,000 for the same period in 2023[88]. - The company recorded other income of RMB 6,326,000 for the six months ended June 30, 2024, significantly higher than RMB 1,375,000 for the same period in 2023[92]. Expenses and Costs - The sales cost for the same period was approximately RMB 14.9 million, down about 21.6% from RMB 19.0 million in the previous year, primarily due to a decrease in orders[17]. - Selling and distribution expenses rose by approximately 20.4% to RMB 6.5 million, up from RMB 5.4 million in the previous year, primarily due to increased promotional expenses[20]. - Administrative expenses increased by approximately 60% to RMB 7.2 million, compared to RMB 4.5 million in the previous year, mainly due to higher intermediary fees[21]. - Research and development costs decreased by approximately 25% to RMB 2.1 million, down from RMB 2.8 million in the previous year, due to a reduction in R&D personnel and investment[22]. - The cost of services provided for the six months ended June 30, 2024, was RMB 12,587,000, compared to RMB 9,215,000 for the same period in 2023, reflecting an increase of approximately 36.5%[98]. - The group incurred financing costs of RMB 2,848,000 for the six months ended June 30, 2024, compared to RMB 1,912,000 for the same period in 2023, representing an increase of approximately 48.9%[99]. Assets and Liabilities - The asset-liability ratio as of June 30, 2024, was 97.6%, up from 68.6% as of December 31, 2023[25]. - The company's net current liabilities were approximately RMB 31.6 million as of June 30, 2024, compared to RMB 9.0 million as of December 31, 2023[26]. - As of June 30, 2024, the company's current liabilities exceeded its current assets by approximately RMB 31,552,000[81]. - The total financial liabilities as of June 30, 2024, were RMB 38,492,000, which includes borrowings of RMB 24,369,000[134]. - The company reported a total of RMB 2,888,000 in receivables after accounting for impairment provisions, down from RMB 18,593,000 as of December 31, 2023[116]. - Trade payables amounted to RMB 271,000 as of June 30, 2024, significantly down from RMB 5,170,000 as of December 31, 2023[118]. Investments and Strategic Focus - The company is focusing on enhancing employee training programs to improve morale and operational efficiency[28]. - The company is focusing on expanding its user base through strategic investments in technology and healthcare sectors, particularly in AI and online medical services[36]. - The company aims to leverage its investments to create a comprehensive ecosystem for parenting services, integrating technology and healthcare solutions[36]. - The company is exploring new product developments and technological advancements to strengthen its market position in the parenting industry[36]. - The company is committed to improving the quality of its content production to attract new generation parenting families[11]. - The company is enhancing its collaboration with professional institutions to provide scientific and professional parenting guidance, including the development of a curriculum system for parents of children aged 0-6[11]. Compliance and Governance - The company has confirmed compliance with relevant laws and regulations, ensuring no significant violations as of June 30, 2024[61]. - The audit committee, consisting of independent non-executive directors, has reviewed the interim financial results and reports for the period[63]. - The company has established a risk management framework to regularly assess and report risks, particularly concerning contracts with Chinese entities[64]. - The company has not granted any rights to directors or their immediate family members to acquire shares or debentures during the reporting period[59]. Future Outlook - Future outlook includes potential market expansion and strategic acquisitions to enhance service offerings and user engagement[36]. - The company plans to seek additional financial support, including loans and issuing new equity or bonds, to strengthen its working capital and cash flow[83]. - The company aims to expand its family-related services by leveraging internet technology to meet the needs of new generation family consumers, focusing on health, education, and entertainment[48].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 57,444,000, a decrease of 32.5% compared to RMB 84,970,000 in 2022[9] - Gross profit for the same period was RMB 2,501,000, down 86.4% from RMB 18,392,000 in the previous year[9] - The net loss for the year was RMB 48,181,000, compared to a loss of RMB 42,005,000 in 2022, indicating a worsening financial position[9] - The company's administrative expenses increased by approximately 51.1% to RMB 13.9 million for the year ended December 31, 2023, compared to RMB 9.2 million in the previous year[35] - Research and development costs rose by approximately 11.7% to RMB 8.6 million for the year ended December 31, 2023, compared to RMB 7.7 million in the prior year[36] - The company's debt increased to approximately RMB 37.7 million as of December 31, 2023, compared to RMB 18.4 million in the previous year[43] - The asset-liability ratio as of December 31, 2023, was 68.6%, up from 39.3% in the previous year[40] - Total employee cost for the year ended December 31, 2023, was approximately RMB 13.0 million, a decrease of 26.5% from RMB 17.7 million in 2022[48] - As of December 31, 2023, the company had a total of 49 employees, down from 92 employees in 2022[48] - The company's revenue for the year ended December 31, 2023, was approximately RMB 57.4 million, a decrease of about 32.5% compared to RMB 85.0 million for the year ended December 31, 2022[29] - The cost of sales for the year ended December 31, 2023, was approximately RMB 54.9 million, down about 17.6% from RMB 66.6 million for the previous year[30] - The gross profit for the year ended December 31, 2023, was approximately RMB 2.5 million, a decrease of about 86.4% from RMB 18.4 million in the prior year, resulting in a gross margin decline from 21.6% to 4.4%[31] - The net loss for the year ended December 31, 2023, was approximately RMB 48.2 million, an increase of about 14.8% compared to a net loss of RMB 42.0 million for the year ended December 31, 2022[38] Market and Strategic Focus - The management highlighted the potential of the maternal and child market due to favorable government policies aimed at increasing birth rates[11] - The company is focusing on enhancing its digital technology capabilities to better serve the diverse needs of Generation Z parents, leveraging AI and digitalization[12] - The platform aims to create a comprehensive ecosystem for maternal and child services, connecting users with brands and industry partners[12] - Future strategies include providing personalized smart family solutions to meet the evolving demands of new-generation parents[13] - The company plans to continue expanding its ecosystem to enhance user experience and drive business growth[12] - In 2023, various provinces and cities in China implemented favorable policies for families with two or three children, significantly enhancing childbirth willingness and unlocking the potential of the maternal and infant market[16] - 51% of Generation Z parents prefer to purchase smart maternal and infant products, indicating a shift towards personalized and quality-focused parenting[17] - 60% of consumers are open to AI services in parenting, with high expectations for health management and daily care[20] Technology and Innovation - The company utilizes "digital + AI" technologies to offer refined services, enhancing user experience and reducing parenting costs[21] - The company has upgraded its AI parenting service "Smart Parenting Assistant" to version 3.0, which utilizes a large language model for more natural and context-aware interactions[24] - The "Smart Parenting Assistant" can switch between various intelligent modes, including pregnancy Q&A, ultrasound interpretation, and name suggestions, providing professional and convenient services[25] - The company collaborates with professional institutions to enhance scientific content and parenting education, addressing societal concerns about childbirth and parenting costs[22] - The company has established a professional maternal and infant MCN platform, integrating over 3,200 quality influencers and 800 authoritative parenting experts[22] - The company is committed to continuous upgrades of its AI services, aiming to make parenting easier and more enjoyable for users[25] Corporate Governance - The company has adopted corporate governance practices in line with the Stock Exchange Listing Rules, ensuring transparency and accountability[90] - The board consists of nine directors, including four executive directors and three independent non-executive directors, ensuring a diverse governance structure[97] - The board is committed to regular reviews of corporate governance practices to maintain compliance with established codes[91] - The company emphasizes the importance of independent non-executive directors in providing unbiased opinions on business performance and strategy[103] - The board diversity policy was established in June 2015, focusing on various factors such as gender, race, and professional experience to enhance governance standards[104] - The company has confirmed compliance with the board diversity policy as of December 31, 2023[104] - The company has established mechanisms to ensure independent viewpoints are available to the board, enhancing decision-making processes[100] - The company’s management team includes experienced professionals responsible for strategic planning and customer service[87] - The company has maintained a commitment to good corporate governance practices to enhance investor confidence and support sustainable development[90] Risk Management - The company emphasizes the importance of effective risk management for long-term sustainable development[140] - The risk management framework aims to strengthen risk management and internal controls in accordance with listing rules[141] - The internal control system is designed based on the COSO framework, covering key areas such as cash management and sales[143] - The board and audit committee review the effectiveness of the risk management and internal control systems semi-annually, concluding they are sufficient as of December 31, 2023[144] - The company has established a policy for insider information disclosure, ensuring compliance with the Securities and Futures Ordinance and maintaining strict confidentiality protocols[145] - The board emphasizes the importance of clear communication with shareholders, providing timely and accurate information through various reports and the company website[146] Investments and Financial Assets - The fair value of financial assets as of December 31, 2023, included investments in various companies, with a notable decrease in value for Nanjing Hongdou Information Technology Co., Ltd. by RMB 2,092,439.10[58] - The company reported a total investment cost of RMB 6,000,000 in Nanjing Liqi Information Technology Co., with a fair value of RMB 1,675,911, reflecting a decrease of RMB 3,254,089 or 66.5% compared to the previous year[59] - The overall performance of the investments indicates a trend of declining fair values across multiple holdings, with significant decreases in several key investments[60] - The company is actively monitoring its investments in emerging market growth enterprises, particularly those in the research and development phase[65] - The group aims to expand its family-related services by leveraging internet technology to meet the evolving needs of new-generation family consumers, including health, education, and entertainment[72] - The company prefers long-term investments, typically targeting entities with a potential return rate of at least 6% per annum or the current one-year deposit rate published by the People's Bank of China[73] - The group is focused on investing in companies engaged in the maternal and child industry and related technology development, with a strategy to limit ownership to no more than 20% of the target entity[73] Shareholder Information - The company did not declare any interim dividends during the fiscal year 2023, and the board does not recommend a final dividend for the twelve months ending December 31, 2023[161] - As of December 31, 2023, the company's distributable reserves were approximately RMB 0, compared to RMB 53.0 million as of December 31, 2022[171] - The company encourages shareholder participation in annual general meetings, ensuring at least 21 days' notice is provided[146] - The company’s shareholders' annual general meeting is scheduled for June 18, 2024[162] - The company will suspend the transfer of shares from June 13, 2024, to June 18, 2024, to determine eligibility for attending the annual general meeting[163] - Major shareholder Maria Rachel Mai Decolongon holds 50,562,270 shares, representing 17.55% of the company's equity[182] - Victory Glory Holdings Limited, owned by Executive Director Cheng Li, holds 24,000,000 shares, accounting for 8.33% of the company's equity[183]

Financial Performance - The company's revenue for the fiscal year ending December 31, 2023, was approximately RMB 57.4 million, a decrease of about 32.5% compared to RMB 85.0 million for the fiscal year ending December 31, 2022, due to the overall economic environment and intensified industry competition[21]. - Total revenue for the year ended December 31, 2023, was CNY 57,444,000, compared to CNY 84,970,000 in 2022, representing a decrease of approximately 32.5%[63]. - Gross profit for the year ended December 31, 2023, was approximately RMB 2.5 million, down approximately 86.4% from approximately RMB 18.4 million for the year ended December 31, 2022, resulting in a gross margin decrease from about 21.6% to approximately 4.4%[24]. - The company reported a net loss of CNY 48,181,000 for 2023, compared to a net loss of CNY 42,005,000 in 2022, reflecting a worsening financial position[65]. - Total comprehensive loss for the year was CNY 75,593,000, compared to CNY 166,983,000 in 2022, indicating an improvement in overall financial performance[65]. - The group reported a pre-tax loss of RMB 4,798,000 in 2023, compared to RMB 4,014,000 in 2022[93]. - The net loss for the year ended December 31, 2023, was approximately RMB 48.2 million, an increase of about 14.8% compared to a net loss of approximately RMB 42.0 million for the year ended December 31, 2022[31]. - The basic and diluted loss per share for 2023 was CNY 19.74, slightly improved from CNY 20.59 in 2022[63]. Market Trends and Consumer Behavior - 51% of Generation Z parents are inclined to purchase smart maternal and infant products, indicating a shift towards quality and convenience in parenting[6]. - The maternal and infant market is experiencing a consumption upgrade driven by favorable policies and changing consumer attitudes towards parenting[4]. - AI is leading the transformation in the maternal and infant industry, with 60% of consumers open to AI services for health management and childcare[9]. - The focus on "intelligent and refined parenting" aligns with the preferences of Generation Z parents, who prioritize personalized and high-quality products[5]. Technological Innovations - The company aims to leverage "digitalization + AI" technologies to reduce parenting costs and enhance user experience through personalized services[10]. - The company has upgraded its AI parenting service "Smart Parenting Assistant" 3.0, which utilizes a large language model to provide more intelligent and natural responses to user inquiries[14]. - The "Smart Parenting Assistant" can switch between various intelligent modes, including pregnancy Q&A, B-ultrasound interpretation, naming suggestions, and companionship, enhancing user experience and service convenience[16]. - The company is committed to exploring AI-driven innovations in maternal and infant services, enhancing the quality of parenting support[7]. Business Strategy and Ecosystem Development - The company has established a strong professional maternal and infant ecosystem by connecting users, brands, and channels[10]. - The company aims to continuously improve its ecosystem layout through "digital + AI" technology, providing more refined services for maternal and infant users and brand merchants[19]. - The company plans to explore industry frontiers by conducting research on online and offline user needs, focusing on professional selection, research, production, and quality control of maternal and infant products[20]. - The company aims to expand its family-related services by integrating health, education, and entertainment into its existing maternal and infant platform, thereby extending user engagement and meeting the growing demand in the maternal and infant sector[57]. Operational and Financial Management - The group's sales cost for the year ended December 31, 2023, was approximately RMB 54.9 million, a decrease of about 17.6% compared to approximately RMB 66.6 million for the year ended December 31, 2022[22]. - Selling and distribution expenses for the year ended December 31, 2023, were approximately RMB 13.7 million, a decrease of about 12.7% compared to approximately RMB 15.7 million for the year ended December 31, 2022[26]. - Administrative expenses for the year ended December 31, 2023, increased by approximately 51.1% to about RMB 13.9 million from approximately RMB 9.2 million for the year ended December 31, 2022[27]. - Research and development costs for the year ended December 31, 2023, were approximately RMB 8.6 million, an increase of about 11.7% from approximately RMB 7.7 million for the year ended December 31, 2022[28]. Corporate Governance and Compliance - The company has established corporate governance policies to enhance transparency and accountability in its operations[132]. - The company has complied with all corporate governance code provisions as of December 31, 2023[132]. - The audit committee has reviewed the financial performance for the year ending December 31, 2023, and believes that the financial statements comply with applicable accounting standards[139]. - The annual performance announcement has been verified by the external auditor, Tianjian International CPA Limited, and aligns with the financial statements for the year[140]. Future Outlook and Growth Potential - Future growth is expected as the company continues to adapt to the evolving needs of consumers in the maternal and infant sector[10]. - The company is focused on enhancing its product offerings and technology development to drive future growth[71]. - The company plans to seek additional financial support, including loans, issuance of new equity, or bonds[77].

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 23,813,000, a decrease of 29.2% compared to RMB 33,560,000 for the same period in 2022[10]. - Gross profit for the same period was RMB 4,810,000, down 39.4% from RMB 7,982,000 in the previous year[10]. - The company incurred a loss of RMB 8,359,000 during the period, compared to a loss of RMB 6,223,000 in the prior year, indicating a worsening financial performance[10]. - The company's revenue for the six months ended June 30, 2023, was approximately RMB 23.8 million, a decrease of about 29.2% compared to RMB 33.6 million for the same period in 2022[21]. - The company reported a loss of approximately RMB 8.4 million for the six months ended June 30, 2023, an increase of about 35.5% compared to a loss of RMB 6.2 million in the same period of 2022[30]. - The company reported a pre-tax loss of RMB 8,359,000 for the six months ended June 30, 2023, compared to a loss of RMB 5,858,000 for the same period in 2022, indicating an increase in losses of approximately 42.7%[142]. - The company’s total comprehensive loss for the period was RMB 4,919,000, compared to a loss of RMB 8,359,000 in the previous year, indicating an improvement of approximately 41.5%[113]. - The basic and diluted loss per share for the period was RMB 4.05, compared to RMB 2.86 in 2022, indicating a 41.6% increase in loss per share[107]. User Engagement and Services - The company's mobile apps, including "Pregnancy Reminder" and "Mom Community," achieved a Monthly Active User (MAU) count of 15.14 million and a Daily Active User (DAU) count of 3.59 million[13]. - The launch of the AI pregnancy service "Smart Assistant 3.0" aims to enhance user interaction by providing more natural and contextually relevant responses[11]. - The introduction of various intelligent modes in "Smart Assistant 3.0" allows users to access specialized services such as pregnancy Q&A and ultrasound interpretation[15]. - The company aims to optimize and upgrade its AI services continuously, enhancing the user experience in pregnancy and parenting[15]. - The overall strategy emphasizes building a comprehensive ecosystem for maternal and infant services, connecting users with brands and channels[12]. Market Presence and Technology - The company is focusing on digital and AI technologies to offer refined services across four key user needs: learning, communication, medical, and consumption[12]. - The company has over 20,000 maternal and infant stores utilizing its SaaS solutions, indicating significant market penetration[12]. - The company aims to enhance its ecosystem layout by leveraging "digitalization + AI" technology to provide more refined services to maternal and infant users and brand merchants[19]. - The company is focusing on expanding its service capabilities in the parenting sector through strategic investments in technology firms[43]. Investment and Financial Strategy - The company holds investments in various technology firms, with a notable investment of RMB 13 million in Nanjing Pengfeng Engine Information Technology, representing 18.10% of the shares[42]. - The fair value of the investment in Nanjing Hongdou Information Technology decreased by 43.5% from RMB 15 million to RMB 8.86 million[42]. - The company is focusing on expanding its investment in user-centered enterprise intelligent marketing ecosystems through social business strategies and social experience management[46]. - The overall investment strategy emphasizes the integration of new technologies and market expansion to drive growth in various sectors[46]. - The company plans to invest in companies engaged in maternal and child-related businesses and technology development, preferring long-term investments[68]. Financial Management and Compliance - The company has established a risk management and internal control system to monitor investment risks and ensure effective management of its expanding investment scale[102]. - The company has taken all reasonable actions to ensure compliance with the qualification requirements for foreign investors in China's value-added telecommunications services[93]. - As of June 30, 2023, the company has not violated any relevant laws and regulations significantly[94]. - The company has established various management and monitoring mechanisms to mitigate potential legal risks[94]. Cash Flow and Assets - The company reported a net cash outflow from operating activities of RMB 8,494,000, compared to RMB 7,095,000 in the previous year, indicating a worsening of about 19.7%[115]. - Cash and cash equivalents at the end of the period were RMB 5,377,000, down from RMB 8,555,000, a decrease of approximately 37.9%[115]. - The total equity decreased to RMB 96,892,000 from RMB 101,253,000, reflecting a decline of about 4.3%[111]. - The company’s inventory increased significantly to RMB 3,149,000 from RMB 1,187,000, marking an increase of about 165.5%[110]. Employee and Management Information - As of June 30, 2023, the total employee cost was approximately RMB 7.0 million, a decrease of 18.6% compared to RMB 8.6 million as of June 30, 2022[36]. - The company had a total of 82 employees as of June 30, 2023, down from 110 employees as of June 30, 2022[36]. - The total compensation for key management personnel decreased from RMB 1,837,000 in 2022 to RMB 797,000 in 2023[170]. Shareholder and Equity Information - As of June 30, 2023, Mr. Cheng Li holds an 11.46% equity interest in the company through Victory Glory Holdings Limited, which he fully owns[74]. - The maximum number of shares that may be issued upon the exercise of all options granted under the share option plan is 100,000,000 shares, equivalent to 10% of the issued shares on the GEM listing date[83]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[90].

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之內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不會 就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之任何損 失承擔任何責任。 China Parenting Network Holdings Limited 中 國 育 兒 網 絡 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1736） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 告 中國育兒網絡控股有限公司（「本公司」及其附屬公司，統稱「本集團」或「我 們」）董事（「董事」）會（「董事會」）欣然宣佈本集團截至二零二三年六月三十 日止六個月之未經審核簡明綜合中期業績。本公告列載本公司二零二三 年 中 期 報 告 之 全 文，並 符 合 香 港 聯 合 交 易 所 有 限 公 司（「香 港 聯 交 所」）證 券 上 市 規 則（「上 市 規 則」）中 有 關 中 期 業 績 初 步 公 告 附 載 的 資 料 要 求。本 業 績 公 告 刊 發 於 香 港 聯 交 所 網 站(www.hkexnews.hk)及 本 ...

Financial Performance - For the year ended December 31, 2022, the company's revenue was RMB 84,970,000, a decrease of 9.4% compared to RMB 93,744,000 in 2021[8]. - The gross profit for the same period was RMB 18,392,000, significantly up from RMB 5,195,000 in 2021, indicating a gross margin improvement[8]. - The net loss for the year was RMB 42,005,000, an improvement from a loss of RMB 55,137,000 in the previous year, reflecting a reduction in losses by 23.5%[8]. - The company's revenue for the year ended December 31, 2022, was approximately RMB 85.0 million, a decrease of about 9.3% compared to RMB 93.7 million for the year ended December 31, 2021, primarily due to the impact of COVID-19 on advertising business in the first half of 2022[32]. - The sales cost for the year ended December 31, 2022, was approximately RMB 66.6 million, a reduction of about 24.7% from approximately RMB 88.5 million for the year ended December 31, 2021, mainly due to decreased promotional efforts and technical support for the company's apps[33]. - The group's gross profit for the year ended December 31, 2022, was approximately RMB 18.4 million, an increase of about 254% compared to approximately RMB 5.2 million for the year ended December 31, 2021[34]. - The gross profit margin increased from approximately 5.5% for the year ended December 31, 2021, to approximately 21.6% for the year ended December 31, 2022, due to effective cost control measures implemented by the group[34]. - Other income, gains, and losses decreased by approximately 49.3% to about RMB 3.7 million for the year ended December 31, 2022, down from approximately RMB 7.3 million for the year ended December 31, 2021, primarily due to a reduction in government subsidies[35]. - Sales and distribution expenses decreased by approximately 42.5% to about RMB 15.7 million for the year ended December 31, 2022, compared to approximately RMB 27.3 million for the year ended December 31, 2021[37]. - Administrative expenses decreased by approximately 26.4% to about RMB 9.2 million for the year ended December 31, 2022, down from approximately RMB 12.5 million for the year ended December 31, 2021[38]. - Research and development costs decreased by approximately 49.7% to about RMB 7.7 million for the year ended December 31, 2022, compared to approximately RMB 15.3 million for the year ended December 31, 2021[39]. - The net loss for the year ended December 31, 2022, was approximately RMB 42.0 million, a narrowing of about 23.8% compared to a net loss of approximately RMB 55.1 million for the year ended December 31, 2021[41]. - The loss per share for the year was approximately RMB 0.0412, a decrease of about 17.9% compared to RMB 0.0502 for the year ended December 31, 2021[42]. User Engagement and Market Strategy - The company's mobile apps, including "Pregnancy Reminder" and "Mom Community," achieved a Monthly Active User (MAU) count of 16.99 million and a Daily Active User (DAU) count of 3.79 million, representing growth of 6.19% and 5.87% respectively[9]. - The company is focusing on a strategy of "capturing traffic, new customers, members, and growth," leveraging its strengths in digital technology and scientific content services[9]. - The company aims to respond to the evolving needs of new-generation parents and provide solutions for easier parenting in China[12]. - The maternal and infant market is experiencing a strong recovery as consumer spending rebounds post-pandemic, driven by new parenting concepts and consumption patterns[15]. - The new generation of parents, particularly those born in the 1990s and 2000s, are increasingly seeking one-stop service platforms that provide scientific parenting knowledge and high-quality products[16]. - The company is focusing on a multi-channel marketing strategy to enhance consumer engagement and brand loyalty through social sharing and precise targeting[18]. - The implementation of the three-child policy and supportive welfare measures across various provinces has boosted consumer confidence in the maternal and infant industry, indicating significant future growth potential[15]. - The company aims to optimize user experience by leveraging big data and AI to provide tailored solutions for parenting challenges[22]. - The introduction of value-added services under the "Light Parenting" initiative aims to meet five key user needs, enhancing user interaction and satisfaction[22]. - The company is committed to building a comprehensive family ecosystem service network, addressing the diverse needs of parents and families across various life stages[20]. Innovation and Technology - The introduction of new technologies, including AI and cloud-native technologies, aims to enhance operational efficiency and user experience[9]. - The company launched its first digital collection series "Ling Miao Yu Shou" and an AI pregnancy service based on GPT-3, indicating a commitment to innovation[9]. - The company has integrated its original MCN matrix into "Yujian Media," enhancing content quality and user engagement through collaborations with authoritative institutions[23]. - The launch of the "Mama Planet" platform aims to strengthen digital infrastructure and support user-driven sales models, facilitating faster user conversion and transaction[26]. - The company has introduced AI-based pregnancy services, "Smart Assistant," which enhances user experience by providing precise and rapid responses to parenting inquiries[30]. - Future plans include leveraging innovative technologies to reduce parenting costs and improve user experiences, while promoting digital transformation in the maternal and infant industry[31]. - The company is focusing on digital transformation across the supply chain, leveraging new technologies and service applications to enhance traditional business models[69]. Corporate Governance and Management - The board of directors includes experienced professionals with backgrounds in technology and finance, enhancing the company's strategic direction[88]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules and has complied with all provisions as of December 31, 2022[98]. - The board consists of eight members, including two executive directors and three independent non-executive directors, ensuring a balance of power and authority[98]. - The company has established a mechanism to ensure the board receives independent views and opinions, which are reviewed annually for effectiveness[101]. - The board has a diversity policy in place since June 2015, focusing on various aspects such as gender, ethnicity, and professional experience to enhance governance standards[105]. - The company has a clear delegation of authority to management, with regular updates provided to the board for performance assessment[98]. - The independent non-executive directors play a crucial role in providing unbiased insights on the company's strategy and performance[104]. - The board held a total of 4 meetings in 2022, with all directors attending at least 75% of the meetings[117]. - The company arranged appropriate insurance coverage for potential legal actions against directors and senior management[113]. - The audit committee confirmed that the financial statements for the year ended December 31, 2022, were prepared in accordance with applicable accounting standards and provided sufficient disclosures[125]. Investment and Financial Strategy - The company aims to improve its financial position and reduce debt through the issuance of new shares[54]. - The company is actively pursuing strategic partnerships with retail platforms like JD.com to optimize sales channels and enhance customer engagement[27]. - The company has established an investment team to monitor market influences and technological developments in the maternal and child business chain[75]. - The company emphasizes the importance of shared technology and user data with invested companies to enhance operational efficiency and user experience[75]. - The company’s investment in related sectors is expected to create synergies and improve service offerings[75]. - The company has a dividend policy that requires any final dividend to be approved by shareholders at the general meeting and cannot exceed the amount recommended by the board[155]. - The company plans to enhance its research and development capabilities, with a revised allocation of HKD 52.8 million for this purpose[163]. - The company aims to strengthen its user base and internet traffic, with a revised allocation of HKD 49.6 million[163]. - The company has allocated HKD 166.6 million for the development of technology-related businesses and expanding its e-commerce operations in China[163]. Future Outlook - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[80]. - The company is considering strategic acquisitions to enhance its service offerings, with a target of completing at least two acquisitions within the next 12 months[83]. - A new product line is set to launch in Q3 2023, expected to contribute an additional $2 million in revenue[84]. - The management team emphasized the importance of enhancing customer service, aiming to improve customer satisfaction scores by 20%[85]. - The company plans to increase its marketing budget by 30% to support the upcoming product launches and brand awareness campaigns[86].

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之內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不會 就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之任何損 失承擔任何責任。 China Parenting Network Holdings Limited 中 國 育 兒 網 絡 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1736） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 佈 中國育兒網絡控股有限公司（「本公司」及其附屬公司，統稱「本集團」或「我 們」）董 事（「董 事」）會（「董 事 會」）欣 然 宣 佈 本 集 團 截 至 二 零 二 二 年 十 二 月 三十一日止年度（「年內」或「報告期」）的經審核綜合業績。 摘要 — 於二零二二年度，本公司旗下手機APP加總（手機APP加總數據為育兒 網旗下2款主要APP孕育提醒和媽媽社區的數據之和）MAU及DAU分別 為16.99百萬和3.79百萬，較之去年分別增長了6.19%和5.87%。 — 育兒網圍繞「網住流量、網住新客、網住會員、網住增長」策略，憑藉 ...

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之內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不會 就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之任何損 失承擔任何責任。 China Parenting Network Holdings Limited 中 國 育 兒 網 絡 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1736） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 佈 中國育兒網絡控股有限公司（「本公司」及其附屬公司，統稱「本集團」或「我 們」）董 事（「董 事」）會（「董 事 會」）欣 然 宣 佈 本 集 團 截 至 二 零 二 二 年 十 二 月 三十一日止年度（「年內」或「報告期」）的經審核綜合業績。 摘要 — 於二零二二年度，本公司旗下手機APP加總（手機APP加總數據為育兒 網旗下2款主要APP孕育提醒和媽媽社區的數據之和）MAU及DAU分別 為16.99百萬和3.79百萬，較之去年分別增長了6.19%和5.87%。 — 育兒網圍繞「網住流量、網住新客、網住會員、網住增長」策略，憑藉 ...

Company Information This section provides an overview of the company's governance structure and essential contact details [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) This chapter lists the composition of the company's Board of Directors, including executive, non-executive, and independent non-executive directors, as well as members of the Audit, Nomination, and Remuneration Committees - Board members include **Mr. Zhang Lake Mozi** (Chairman), **Mr. Cheng Li**, **Mr. Hu Qingyang** as executive directors; **Ms. Li Juan**, **Mr. Wu Haiming**, **Mr. Zhang Haihua** as non-executive directors; and **Mr. Hu Zemin**, **Mr. Zhao Zhen**, **Mr. Ge Ning** as independent non-executive directors[4](index=4&type=chunk) - **Mr. Hu Zemin** chairs the Audit Committee, **Mr. Zhang Lake Mozi** chairs the Nomination Committee, and **Mr. Ge Ning** chairs the Remuneration Committee[4](index=4&type=chunk) [Company Basic Information](index=3&type=section&id=Company%20Basic%20Information) This chapter provides the company's essential contact and registration details, including company secretary, authorized representatives, auditor, legal counsel, registered office, headquarters, and stock code - The company secretary and authorized representatives are **Mr. Zhang Lake Mozi** and **Mr. Cheng Li**[4](index=4&type=chunk) - The auditor is **Tianjian International Certified Public Accountants Limited**, and the Hong Kong legal counsel is **Jingtian & Gongcheng Attorneys at Law**[4](index=4&type=chunk) - The company's stock code is **1736**, and its website is www.ci123.com[7](index=7&type=chunk) Summary This section provides a high-level overview of the company's financial performance and key operational achievements during the reporting period [Financial Summary](index=5&type=section&id=Financial%20Summary) For the six months ended June 30, 2022, the Group's revenue decreased by 19.81% year-on-year, gross profit decreased by 22.33%, but the loss for the period narrowed by 34.04% Financial Performance Overview | Indicator | June 30, 2022 (thousand RMB) | June 30, 2021 (thousand RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 33,560 | 41,911 | -19.81% | | Gross Profit | 7,982 | 10,259 | -22.33% | | Loss for the Period | (6,233) | (9,411) | -34.04% | | Loss for the Period Attributable to Owners of the Parent | (5,858) | (9,068) | -35.39% | | Loss for the Period Attributable to Non-controlling Interests | (365) | (343) | 6.41% | [Operational Highlights](index=5&type=section&id=Operational%20Highlights) During this period, Ci123.com launched "Lingmiao Yushou," the industry's first digital collection platform based on the "Star Orange Chain" technology, and integrated its product matrix membership system to offer high-value exclusive member services - Ci123.com launched the industry's first digital collection platform, **"Lingmiao Yushou,"** based on the Group's self-developed **"Star Orange Chain"** technology platform[10](index=10&type=chunk) - Ci123.com fully integrated the membership systems of its product matrix, including Mama Community App, Pregnancy Reminder App, and Ci123.com mini-program, to unify member identities and provide exclusive member services[10](index=10&type=chunk) Management Discussion and Analysis This section provides an in-depth review of the Group's business operations, financial performance, and future strategies, including market trends, product innovations, and risk factors [Business Review](index=6&type=section&id=Business%20Review) The Group actively responded to changes in the maternal and infant industry amidst the digital economy and post-pandemic era, enhancing user experience and market competitiveness through innovative technology and product upgrades [Industry Overview](index=6&type=section&id=Industry%20Overview) The digital economy continues to grow, with AI, cloud-native, and metaverse technologies driving industrial digital transformation, while the maternal and infant industry adapts to consumption upgrades and policy support despite birth rate challenges - The digital economy continues to grow, with innovative technologies such as artificial intelligence, cloud-native, and the metaverse driving digital transformation across various industries[11](index=11&type=chunk) - The maternal and infant industry continues to develop, driven by rising consumption levels, evolving parenting concepts, and supportive birth policies, with **post-90s and post-95s** becoming the main consumer groups seeking personalized and high-tech products and services[11](index=11&type=chunk)[12](index=12&type=chunk) [Operating Data](index=7&type=section&id=Operating%20Data) As of June 30, 2022, the company's mobile apps (Pregnancy Reminder and Mama Community) achieved growth in both Monthly Active Users (MAU) and Daily Active Users (DAU) Mobile App User Metrics | Indicator | June 30, 2022 | Prior Period | YoY Change | | :--- | :--- | :--- | :--- | | MAU | 16.94 million | - | +2.5% | | DAU | 3.81 million | - | +5.2% | [Product and Service Innovation](index=7&type=section&id=Product%20and%20Service%20Innovation) Ci123.com launched "Lingmiao Yushou," a maternal and infant digital collection based on "Star Orange Chain" technology, and upgraded its "Light Parenting" product matrix to offer value-added services aimed at reducing parenting costs for new parents - Ci123.com launched **"Lingmiao Yushou,"** a maternal and infant digital collection based on the **"Star Orange Chain"** technology platform, helping mothers permanently preserve cherished memories[14](index=14&type=chunk) - The **"Light Parenting"** concept was introduced, with a comprehensive upgrade of the "Light Parenting" product matrix, offering premium member services such as "Light Parenting Daily," "Light Parenting Community," "Light Parenting Encyclopedia," "Light Parenting Consultation," and "Light Parenting Premium Selection"[16](index=16&type=chunk) - **"Light Parenting Consultation"** provides remote consultation services from hundreds of top-tier doctors, addressing high medical costs and cross-infection risks during the pandemic[16](index=16&type=chunk) [Mammy Shop New Retail System](index=8&type=section&id=Mammy%20Shop%20New%20Retail%20System) Mammy Shop, an investment by Ci123.com, provides digital transformation solutions for small and medium-sized maternal and infant stores, including smart cashier, inventory management, CRM, marketing, and data platforms, to reduce customer acquisition and operating costs - Mammy Shop provides digital transformation solutions for small and medium-sized maternal and infant stores nationwide, covering **smart cashier, inventory management, CRM, marketing platform, and data platform**[18](index=18&type=chunk) - Mammy Shop collaborates with quality supply chain channels to offer a **zero-threshold, high-quality, low-cost cloud warehouse platform**, now covering tens of thousands of maternal and infant stores[18](index=18&type=chunk) [Future Outlook](index=8&type=section&id=Future%20Outlook) Ci123.com will continue to uphold its user-centric philosophy, leveraging emerging technologies to upgrade products and services, build a relaxed parenting lifestyle, and empower maternal and infant stores through its "Light Parenting" product matrix and "Star Orange Chain" platform - Ci123.com will continue to explore and utilize new emerging technologies, upgrading its comprehensive products and services to build a relaxed parenting lifestyle[19](index=19&type=chunk) - The **"Light Parenting"** product matrix will empower maternal and infant stores, embracing digital marketing to improve operational efficiency and upgrade member services[19](index=19&type=chunk) - Ci123.com will leverage the **"Star Orange Chain"** platform to drive digital upgrades in the maternal and infant industry, creating virtual-real interactive spaces and innovating metaverse experience scenarios[19](index=19&type=chunk) [Financial Review](index=9&type=section&id=Financial%20Review) During the period, the Group's revenue, cost of sales, gross profit, other income and gains, selling and distribution expenses, administrative expenses, research and development costs, and income tax expenses all decreased, leading to a significant narrowing of the loss for the period [Revenue](index=9&type=section&id=Revenue) The Group's revenue for the six months ended June 30, 2022, was approximately RMB 33.6 million, a decrease of approximately 19.81% year-on-year, primarily due to reduced client promotion budgets affected by the pandemic Revenue Performance | Indicator | June 30, 2022 (million RMB) | June 30, 2021 (million RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 33.6 | 41.9 | -19.81% | [Cost of Sales](index=9&type=section&id=Cost%20of%20Sales) The Group's cost of sales for the six months ended June 30, 2022, was approximately RMB 25.6 million, a decrease of approximately 19.24% year-on-year, mainly due to reduced orders and corresponding decreases in promotion efforts and technical support Cost of Sales Performance | Indicator | June 30, 2022 (million RMB) | June 30, 2021 (million RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 25.6 | 31.7 | -19.24% | [Gross Profit and Gross Margin](index=9&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The Group's gross profit for the six months ended June 30, 2022, was approximately RMB 8.0 million, a decrease of approximately 22.33% year-on-year, with gross margin declining from 24.48% to 23.78% due to a higher proportion of lower-margin goods sales Gross Profit and Margin Performance | Indicator | June 30, 2022 (million RMB) | June 30, 2021 (million RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 8.0 | 10.3 | -22.33% | | Gross Margin | 23.78% | 24.48% | -0.70pp | [Other Income and Gains](index=9&type=section&id=Other%20Income%20and%20Gains) The Group's other income and gains for the six months ended June 30, 2022, were approximately RMB 1.6 million, a decrease of approximately 48.39% year-on-year, primarily due to reduced local government subsidies Other Income and Gains Performance | Indicator | June 30, 2022 (million RMB) | June 30, 2021 (million RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Other Income and Gains | 1.6 | 3.1 | -48.39% | [Selling and Distribution Expenses](index=9&type=section&id=Selling%20and%20Distribution%20Expenses) The Group's selling and distribution expenses for the six months ended June 30, 2022, were approximately RMB 5.1 million, a decrease of approximately 36.25% year-on-year, mainly due to reduced marketing and promotion expenses Selling and Distribution Expenses Performance | Indicator | June 30, 2022 (million RMB) | June 30, 2021 (million RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 5.1 | 8.0 | -36.25% | [Administrative Expenses](index=9&type=section&id=Administrative%20Expenses) The Group's administrative expenses for the six months ended June 30, 2022, were approximately RMB 4.1 million, a decrease of approximately 28.07% year-on-year, primarily due to reduced staff costs Administrative Expenses Performance | Indicator | June 30, 2022 (million RMB) | June 30, 2021 (million RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 4.1 | 5.7 | -28.07% | [Research and Development Costs](index=9&type=section&id=Research%20and%20Development%20Costs) The Group's research and development costs for the six months ended June 30, 2022, were approximately RMB 4.1 million, a decrease of approximately 48.75% year-on-year, mainly due to reduced R&D personnel and technology development investment Research and Development Costs Performance | Indicator | June 30, 2022 (million RMB) | June 30, 2021 (million RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Research and Development Costs | 4.1 | 8.0 | -48.75% | [Income Tax Expense](index=10&type=section&id=Income%20Tax%20Expense) The Group's income tax expense for the six months ended June 30, 2022, was approximately RMB 0.02 million, a decrease of approximately 71.43% year-on-year Income Tax Expense Performance | Indicator | June 30, 2022 (million RMB) | June 30, 2021 (million RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 0.02 | 0.07 | -71.43% | [Loss for the Period](index=10&type=section&id=Loss%20for%20the%20Period) Due to the aforementioned factors, the Group's loss for the six months ended June 30, 2022, was approximately RMB 6.2 million, a decrease of approximately 34.04% year-on-year Loss for the Period Performance | Indicator | June 30, 2022 (million RMB) | June 30, 2021 (million RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Loss for the Period | 6.2 | 9.4 | -34.04% | [Gearing Ratio](index=10&type=section&id=Gearing%20Ratio) As of June 30, 2022, the Group's gearing ratio was 21%, a slight decrease from 22% as of December 31, 2021 Gearing Ratio Trend | Indicator | June 30, 2022 | December 31, 2021 | Change (pp) | | :--- | :--- | :--- | :--- | | Gearing Ratio | 21% | 22% | -1pp | [Liquidity and Financial Resources](index=10&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2022, the Group's net current assets were approximately RMB 31.9 million, and cash and cash equivalents were approximately RMB 6.4 million, both significantly lower than at the end of 2021, with bank borrowings at approximately RMB 18.5 million Liquidity and Financial Resources Overview | Indicator | June 30, 2022 (million RMB) | December 31, 2021 (million RMB) | | :--- | :--- | :--- | | Net Current Assets | 31.9 | 36.6 | | Cash and Cash Equivalents | 6.4 | 27.9 | | Bank Borrowings | 18.5 | 22.5 | [Capital Commitments](index=10&type=section&id=Capital%20Commitments) As of June 30, 2022, the Group's capital commitments were approximately RMB 52.3 million, remaining consistent with the end of 2021 Capital Commitments Overview | Indicator | June 30, 2022 (million RMB) | December 31, 2021 (million RMB) | | :--- | :--- | :--- | | Capital Commitments | 52.3 | 52.3 | [Foreign Exchange Risk](index=10&type=section&id=Foreign%20Exchange%20Risk) The Group's transactions are primarily settled in RMB, with some cash and bank deposits denominated in HKD; management closely monitors foreign exchange risk but experienced no significant impact or hedging activities during the period - The Group's transactions are primarily settled in **RMB**, with some cash and bank deposits denominated in **HKD**[34](index=34&type=chunk) - During the period, the Group did not experience significant exchange rate fluctuations that materially affected operations or liquidity, nor did it engage in hedging transactions or forward contracts[34](index=34&type=chunk) [Employees, Training and Remuneration Policy](index=11&type=section&id=Employees%2C%20Training%20and%20Remuneration%20Policy) The Group's remuneration policy considers directors' responsibilities, workload, and Group performance, with employee salaries determined by performance and length of service; total employees decreased to 110, and total staff costs significantly declined to approximately RMB 8.6 million - The Company's Remuneration Committee determines remuneration based on directors' responsibilities, workload, and Group performance, while employee salaries are determined by performance and length of service[36](index=36&type=chunk) - The Group provides training for new employees and occasionally arranges internal and external training on topics such as finance, accounting, risk management, or information technology[36](index=36&type=chunk) Employee and Staff Cost Overview | Indicator | June 30, 2022 | June 30, 2021 | | :--- | :--- | :--- | | Total Employees | 110 | 147 | | Total Staff Costs | 8.6 million RMB | 13.8 million RMB | [Significant Acquisitions and Disposals of Subsidiaries, Associates or Joint Ventures](index=11&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20or%20Joint%20Ventures) During the period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures - During the period, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[37](index=37&type=chunk) [Pledge of Assets](index=11&type=section&id=Pledge%20of%20Assets) As of June 30, 2022, the Group had no pledged bank deposits - As of June 30, 2022, the Group had no pledged bank deposits[38](index=38&type=chunk) [Contingent Liabilities](index=11&type=section&id=Contingent%20Liabilities) As of June 30, 2022, the Group had no significant contingent liabilities - As of June 30, 2022, the Group had no significant contingent liabilities[39](index=39&type=chunk) [Dividends](index=11&type=section&id=Dividends) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2022 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2022[40](index=40&type=chunk) [Financial Assets](index=12&type=section&id=Financial%20Assets) The Group holds substantial financial assets, primarily unlisted equity securities designated at fair value through other comprehensive income and financial assets at fair value through profit or loss, invested in various technology, AI, education, and maternal and infant-related companies [Financial Assets Designated at Fair Value Through Other Comprehensive Income](index=12&type=section&id=Financial%20Assets%20Designated%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) The Group holds 27 financial assets designated at fair value through other comprehensive income, mainly unlisted equity securities invested in gaming, animation, AI, education, blockchain, and maternal and infant new retail sectors, with most experiencing a decline in fair value during the reporting period Fair Value of Financial Assets (FVOCI) | No. | Related Company Name | Shareholding (%) | Investment Amount (RMB) | Fair Value (RMB) | % of Total Assets | Fair Value Change (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Nanjing Hongdou Information Technology Co., Ltd. | 12.30% | 15,000,000.00 | 8,118,000.00 | 2.85% | -6,519,000.00 | | 6 | Nanjing Shendu Yuansu Artificial Intelligence Technology R&D Co., Ltd. | 10.00% | 5,000,000.00 | 2,100,000.00 | 0.74% | -700,000.00 | | 7 | Nanjing Shenkong Shixian Artificial Intelligence Technology R&D Co., Ltd. | 17.20% | 10,000,000.00 | 9,976,000.00 | 3.51% | -2,236,000.00 | | 8 | Nanjing Zhiren Cloud Information Technology Co., Ltd. | 17.20% | 10,000,000.00 | 688,000.00 | 0.24% | -3,096,000.00 | | 9 | Nanjing Ziyou Chain Information Technology Co., Ltd. | 17.20% | 10,000,000.00 | 7,052,000.00 | 2.48% | -2,236,000.00 | | 10 | Nanjing Luobo Information Technology Co., Ltd. | 15.00% | 12,000,000.00 | 8,850,000.00 | 3.11% | -1,350,000.00 | | 11 | Nanjing Suchuang Xiupu Information Technology Co., Ltd. | 10.00% | 10,000,000.00 | 2,700,000.00 | 0.95% | -1,000,000.00 | | 12 | Nanjing Xinmeng Hui Education Technology Co., Ltd. | 10.00% | 5,000,000.00 | 1,100,000.00 | 0.39% | -700,000.00 | | 14 | Guangzhou Baxian Guohai Information Technology Co., Ltd. | 18.00% | 5,000,000.00 | 4,500,000.00 | 1.58% | -720,000.00 | | 15 | Nanjing Xianju Information Technology Co., Ltd. | 14.85% | 10,000,000.00 | 6,682,500.00 | 2.35% | -1,782,000.00 | | 16 | Nanjing Youchao Information Technology Co., Ltd. | 19.00% | 7,000,000.00 | 5,130,000.00 | 1.80% | -1,140,000.00 | | 17 | Nanjing Liqi Information Technology Co., Ltd. | 17.00% | 6,000,000.00 | 4,760,000.00 | 1.67% | -1,020,000.00 | | 18 | Nanjing Qianguang Information Technology Co., Ltd. | 17.20% | 10,000,000.00 | 12,384,000.00 | 4.35% | -2,064,000.00 | | 19 | Nanjing Yuanhui Information Technology Co., Ltd. | 17.20% | 10,000,000.00 | 7,052,000.00 | 2.48% | -1,548,000.00 | | 20 | Nanjing Youke Gongfang Information Technology Co., Ltd. | 17.20% | 10,000,000.00 | 12,728,000.00 | 4.47% | -1,892,000.00 | | 21 | Nanjing Mengmiao Education Technology Co., Ltd. | 18.00% | 8,000,000.00 | 13,680,000.00 | 4.81% | -2,340,000.00 | | 22 | Nanjing Suyun Xiupu Information Technology Co., Ltd. | 9.46% | 3,000,000.00 | 4,919,200.00 | 1.73% | -1,040,600.00 | | 24 | Nanjing Yunqu Lv Network Technology Co., Ltd. | 17.20% | 10,000,000.00 | 6,192,000.00 | 2.18% | -860,000.00 | | 25 | Nanjing Bocheng Medical Technology Co., Ltd. | 17.20% | 16,000,000.00 | 3,956,000.00 | 1.39% | -1,376,000.00 | | 26 | Nanjing Jufeng Engine Information Technology Co., Ltd. | 18.10% | 13,000,000.00 | 12,488,400.00 | 4.39% | -3,076,900.00 | | 27 | Nanjing Duo Zan Health Technology Co., Ltd. | 17.07% | 13,000,000.00 | 6,828,000.00 | 2.40% | -1,194,900.00 | [Financial Assets at Fair Value Through Profit or Loss](index=18&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) The Group holds a significant investment in CCLOUD TECH LIMITED, a financial asset at fair value through profit or loss, primarily engaged in blockchain technology R&D and operations, which generated an unrealized gain of RMB 350,000 from fair value changes Fair Value of Financial Assets (FVTPL) | Related Company Name | Shareholding (%) | Investment Amount (HKD) | Fair Value (RMB) | % of Total Assets | Unrealized Gain from Fair Value Change (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | CCLOUD TECH LIMITED | 17.60% | 50,000,000.00 | 40,169,600.00 | 14.12% | 350,000.00 | [Investment Management Strategy](index=18&type=section&id=Investment%20Management%20Strategy) The Company continuously monitors and conducts third-party professional evaluations of its investments, considering their effective output in industry chain applications, operational progress, and future market prospects, aligning with the Group's strategic layout - The Company continuously monitors and conducts third-party professional evaluations of its investments, considering their effective output in industry chain applications, operational progress, and future industry market growth prospects[50](index=50&type=chunk)[52](index=52&type=chunk) - The Group's investments facilitate the digitalization of upstream and downstream industry chains, combining new technologies and service application scenarios to help brands upgrade traditional business models[51](index=51&type=chunk) [Loans to Other Entities](index=19&type=section&id=Loans%20to%20Other%20Entities) The Group provides loans to independent third parties and individuals at annual interest rates ranging from 6.0% to 8.0% for periods of 12 to 36 months, aligning with its long-term interests, with some loans guaranteed by A-share listed companies and others by individuals [Third-Party Loans](index=19&type=section&id=Third-Party%20Loans) The Group provided loans to Nanjing Qianyu Information Technology Co., Ltd. and Beijing Hongwei Technology Co., Ltd. at annual interest rates of 6% and 8% respectively, generating cumulative interest income Third-Party Loan Details | No. | Related Company Name | Amount Borrowed (RMB) | Annual Interest Rate | Loan Period | Investment Guarantee | Fair Value (RMB) | % of Total Assets | Cumulative Interest Income (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Nanjing Qianyu Information Technology Co., Ltd. | 12,000,000.00 | 6% | 36 months | Guaranteed by an A-share listed company | 11,734,400.00 | 4.12% | 3,240,000.00 | | 2 | Beijing Hongwei Technology Co., Ltd. | 4,000,000.00 | 8% | 24 months | Not applicable | 4,232,500.00 | 1.49% | 1,496,986.30 | [Individual Loans](index=19&type=section&id=Individual%20Loans) The Group provided loans to several individuals, originating from Shenzhen Feishikang Technology Co., Ltd.'s debt, guaranteed by individual shareholders and repaid in installments; as of June 30, 2022, RMB 480,000 has been received, with RMB 580,000 remaining Individual Loan Details | No. | Related Person Name | Amount Borrowed (RMB) | Loan Period | Investment Guarantee | Carrying Value (RMB) | % of Total Assets | Cumulative Interest Income (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Gu Nengguo | 326,000.00 | 42 months | Not applicable | 299,228.5 | 0.11% | 0.00 | | 2 | Wang Hongbin | 130,800.00 | 18 months | Not applicable | 120,058.55 | 0.04% | 0.00 | | 3 | Ma Yanjie | 76,000.00 | 18 months | Not applicable | 69,758.79 | 0.02% | 0.00 | | 4 | Zhang Weineng | 47,200.00 | 18 months | Not applicable | 43,323.88 | 0.02% | 0.00 | - The Group signed a repayment agreement with shareholders of Shenzhen Feishikang Technology Co., Ltd., stipulating that 7 shareholders would repay the principal and interest of **RMB 1.06 million** within five years; as of June 30, 2022, **RMB 480,000** has been received, with **RMB 580,000** remaining to be collected[54](index=54&type=chunk) [Issue of Convertible Bonds Under General Mandate](index=20&type=section&id=Issue%20of%20Convertible%20Bonds%20Under%20General%20Mandate) The Company entered into an agreement with investors to issue convertible bonds with a principal amount not exceeding HKD 35 million, which was subsequently revised to HKD 14.5 million, with the maturity date extended to April 30, 2023, and the initial conversion price adjusted to HKD 0.095 per share - The Company entered into an agreement with investors to issue convertible bonds with a principal amount not exceeding **HKD 35 million**, with an initial conversion price of **HKD 0.24** per share[55](index=55&type=chunk) - Following a revised and restated deed, the principal amount was reduced to **HKD 14.5 million**, the maturity date extended to **April 30, 2023**, and the initial conversion price adjusted to **HKD 0.095** per share[55](index=55&type=chunk) - As of December 31, 2021, all proceeds were fully utilized for business expansion in China and Southeast Asia, technology project investments, advertising, back-office technology, marketing, and general working capital purposes[56](index=56&type=chunk) [Investment Objectives and Policies](index=21&type=section&id=Investment%20Objectives%20and%20Policies) As a vertical online platform for the maternal, infant, and child market, the Group aims to address the needs of new-generation family consumers using internet technology and expand into new social retail, family healthcare, family education, and internet technology through external empowerment - The Group's family-related businesses will adhere to the maternal, infant, and child platform user base, extending traditional single maternal and infant services to multiple areas such as health, education, and entertainment, expanding user acquisition, and prolonging user life cycles[58](index=58&type=chunk) - The Company aims to invest in companies primarily engaged in the maternal, infant, and child and family-related business chain and related technology R&D, preferring long-term investments, typically for more than one year in the target entity[59](index=59&type=chunk) - To minimize operational and management involvement in investments, the Company's investment in target entities generally does not exceed **20%** of the target entity's equity[59](index=59&type=chunk) - Directors expect investments to create synergistic effects for the Group's business, requiring investee companies to share relevant technology, content, user data, and networks to enhance operational efficiency, user experience, and user base[60](index=60&type=chunk) [Use of Proceeds](index=22&type=section&id=Use%20of%20Proceeds) The net proceeds from the Company's listing were approximately HKD 276.4 million, of which approximately HKD 270.8 million had been utilized as of June 30, 2022, with an unutilized net amount of approximately HKD 5.6 million, primarily for expanding e-commerce business in China, expected to be used within 2022 Use of Net Proceeds from Listing | Use of Net Proceeds | Original Allocation (million HKD) | Amount Used as of June 30, 2022 (million HKD) | Amount Unused as of June 30, 2022 (million HKD) | Expected Timeline for Using Remaining Proceeds | | :--- | :--- | :--- | :--- | :--- | | Enhance R&D capabilities | 55.3 | - | - | - | | Strengthen user base and internet traffic of our platform | 55.3 | - | - | - | | Develop our e-commerce business and related O2O business | 55.3 | - | - | - | | Acquire or invest in other companies engaged in O2O and maternal and infant-related businesses | 55.3 | - | - | - | | Enhance marketing and promotion services | 27.6 | 24.9 | - | - | | Working capital and other general corporate purposes | 27.6 | 24.9 | - | - | | Provide loan financing | - | - | - | - | | Acquire property or land for the construction of the Company's headquarters | - | 18.6 | - | - | | Acquire or invest in companies engaged in maternal, infant, and family-related industry chain and technology R&D businesses | - | 166.6 | - | - | | Expand e-commerce business in China | - | 35.8 | 5.6 | Within 2022 | | **Total** | **276.4** | **270.8** | **5.6** | - | Corporate Governance and Other Information This section details the company's corporate governance practices, including directors' and major shareholders' interests, share option schemes, compliance with regulations, and risk management [Directors' and Chief Executives' Interests and/or Short Positions in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation](index=23&type=section&id=Directors'%20and%20Chief%20Executives'%20Interests%20and%2For%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) This chapter discloses the interests of the Company's directors and chief executives in the Company's shares and subsidiaries as of June 30, 2022, with Ms. Li Juan and Mr. Cheng Li jointly holding approximately 37.73% of the shares through controlled corporations and acting-in-concert agreements Directors' and Chief Executives' Interests | Director Name | Nature of Interest | Number of Shares or Underlying Shares | Approximate Percentage of Equity | | :--- | :--- | :--- | :--- | | Ms. Li Juan | Interest in controlled corporation | 266,953,022 | 37.73% | | | Acting-in-concert interest | 120,000,000 | | | Mr. Wu Haiming | Spouse's interest | 386,953,022 | 37.73% | | Mr. Cheng Li | Interest in controlled corporation | 120,000,000 | 37.73% | | | Acting-in-concert interest | 266,953,022 | | - **Ms. Li Juan** and **Mr. Cheng Li** entered into an acting-in-concert agreement and are therefore deemed to have an interest in each other's interests[66](index=66&type=chunk) - **Mr. Wu Haiming**, a non-executive director, is the spouse of **Ms. Li Juan** and is therefore deemed to have an interest in Ms. Li Juan's interests[66](index=66&type=chunk) [Interests and/or Short Positions of Substantial Shareholders and Other Persons in the Shares and Underlying Shares of the Company](index=25&type=section&id=Interests%20and%2For%20Short%20Positions%20of%20Substantial%20Shareholders%20and%20Other%20Persons%20in%20the%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) This chapter discloses the interests of substantial shareholders and other persons in the Company's shares as of June 30, 2022, with Zhonglian Management Co., Ltd., Guanwang Holdings Limited, and Victory Glory Holdings Limited identified as major shareholders Substantial Shareholders' Interests | Name | Nature of Interest | Number of Shares or Underlying Shares | Approximate Percentage of Equity | | :--- | :--- | :--- | :--- | | Zhonglian | Beneficial owner | 147,351,410 | 14.37% | | Guanwang | Beneficial owner | 119,601,612 | 11.66% | | Victory Glory | Beneficial owner | 120,000,000 | 11.70% | | Fucheng | Beneficial owner | 51,600,000 | 5.03% | | TMF Trust (HK) Limited | Trustee | 51,600,000 | 5.03% | - **Zhonglian** and **Guanwang** are wholly owned by **Ms. Li Juan**, and **Victory Glory** is wholly owned by **Mr. Cheng Li**[71](index=71&type=chunk) [Share Option Scheme](index=26&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on June 19, 2015, to provide incentives or rewards to eligible persons, effective for ten years from the listing date, with a maximum issuance of 100,000,000 shares, and no options granted as of June 30, 2022 - The share option scheme aims to provide incentives or rewards to eligible persons, including directors, employees, and consultants[74](index=74&type=chunk) - The scheme is effective for **ten years** from July 8, 2015, with a maximum of **100,000,000 shares** that can be issued, representing approximately **9.75%** of the issued shares as of the report date[75](index=75&type=chunk) - As of June 30, 2022, no share options had been granted, thus there were no outstanding share options under the scheme[77](index=77&type=chunk) [Directors' Rights to Acquire Shares](index=27&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares) As of June 30, 2022, no rights to acquire benefits by purchasing shares or debentures of the Company were granted to any director, their spouse, or children under 18, nor were any such rights exercised - As of June 30, 2022, no rights to acquire benefits by purchasing shares or debentures of the Company were granted to any director or their respective spouses or children under 18, nor were any such rights exercised[79](index=79&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[80](index=80&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=27&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules, and all directors confirmed compliance with its standards during the period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules as the code of conduct for all directors' dealings in the Company's securities[81](index=81&type=chunk) - Following specific enquiries made to all directors, all directors confirmed compliance with the standards set out in the Model Code during the period[81](index=81&type=chunk) [Non-Competition Undertaking](index=27&type=section&id=Non-Competition%20Undertaking) The Company's controlling shareholders entered into a non-competition deed on June 19, 2015, undertaking not to engage in businesses that compete or may compete with the Group's business, and as of the report date, no terms of the deed have been breached - The Company's controlling shareholders entered into a non-competition deed on June 19, 2015, undertaking not to engage in businesses that compete or may compete with the Group's business[82](index=82&type=chunk) - As of the report date, the controlling shareholders have not breached any terms under the non-competition deed[82](index=82&type=chunk) [Share Award Scheme](index=27&type=section&id=Share%20Award%20Scheme) The Board adopted a share award scheme on July 6, 2016, to recognize and reward eligible employees for their contributions to the Group's growth and development, with no shares awarded under the scheme as of the report date - The Board of Directors adopted a share award scheme on July 6, 2016, to recognize and reward any eligible employees for their contributions to the Group's growth and development from time to time[83](index=83&type=chunk) - As of the report date, no shares have been awarded to eligible employees under this scheme[84](index=84&type=chunk) [Compliance with Qualification Requirements and Laws and Regulations](index=28&type=section&id=Compliance%20with%20Qualification%20Requirements%20and%20Laws%20and%20Regulations) The Group's primary business, value-added telecommunications services, is subject to significant restrictions under Chinese laws and regulations, which the Company addresses through contractual arrangements with Nanjing Xihui and Nanjing Xinchuang to control their operations and ensure compliance - The Group's primary business, value-added telecommunications services, is subject to significant restrictions under current Chinese laws and regulations[86](index=86&type=chunk) - The Company entered into a series of contractual arrangements (**"Structured Contracts"**) with Nanjing Xihui and Nanjing Xinchuang and their respective registered shareholders to control their operations and enjoy economic benefits[86](index=86&type=chunk) - The Company mitigates legal risks through regular reviews of internal control systems, clear segregation of duties, legal and regulatory training, and engagement of legal advisors[87](index=87&type=chunk) [Competing Interests](index=28&type=section&id=Competing%20Interests) As of the report date, no director or controlling shareholder, nor their close associates, held any significant interest in businesses that compete or may compete with the Group's business, or had any other conflicts of interest with the Group - As of the report date, no director or controlling shareholder, nor their respective close associates, held any significant interest in businesses that compete or may compete with the Group's business, or had any other conflicts of interest with the Group[88](index=88&type=chunk) [Audit Committee and Review of Financial Statements](index=28&type=section&id=Audit%20Committee%20and%20Review%20of%20Financial%20Statements) The Company has established an Audit Committee responsible for reviewing annual and interim reports, financial reports, risk management, and internal control systems, which has reviewed the Group's unaudited interim results and interim report for the current period - The Audit Committee's primary responsibilities include reviewing the Company's annual reports and accounts and interim reports, the Group's financial reporting, risk management, and internal control systems, and providing recommendations to the Board[89](index=89&type=chunk) - The Audit Committee comprises two independent non-executive directors (**Mr. Hu Zemin**, **Mr. Ge Ning**) and one non-executive director (**Ms. Li Juan**)[89](index=89&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim results and interim report for the current period[89](index=89&type=chunk) [Risks and Uncertainties](index=29&type=section&id=Risks%20and%20Uncertainties) The Group faces multiple risks and uncertainties, including compliance with contractual arrangements, reliance on sales and promotion services, uncertainties in new business development, investment management risks, and the ongoing impact of the COVID-19 pandemic - The Group cannot guarantee that its contractual arrangements with Chinese contractual entities will be deemed compliant with current or future Chinese laws and regulations by relevant government and judicial authorities[91](index=91&type=chunk) - The Group's revenue is highly dependent on the sales and promotion services provided, and new businesses may not be successfully developed and introduced on a sustained basis[91](index=91&type=chunk) - The Company's investment scale is expanding, and untimely or ineffective management may affect the realization of investment expectations[93](index=93&type=chunk) - The Group anticipates that the **COVID-19 pandemic** will impact some of its customers, and the overall future impact is difficult to estimate[93](index=93&type=chunk) [Corporate Governance Code](index=30&type=section&id=Corporate%20Governance%20Code) The Company has adopted the principles and code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules and complied with all code provisions during the period - The Company has adopted the principles and code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules[95](index=95&type=chunk) - To the best knowledge of the directors, the Company has complied with all code provisions contained in the Corporate Governance Code during the period[95](index=95&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=31&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2022, the Group's revenue decreased by 19.81% year-on-year, but by controlling cost of sales, selling and distribution expenses, administrative expenses, and R&D costs, the loss for the period significantly narrowed by 34.04% Interim Condensed Consolidated Statement of Profit or Loss | Indicator | June 30, 2022 (thousand RMB) | June 30, 2021 (thousand RMB) | | :--- | :--- | :--- | | Revenue | 33,560 | 41,911 | | Cost of Sales | (25,578) | (31,652) | | Gross Profit | 7,982 | 10,259 | | Other Income and Gains | 1,639 | 3,083 | | Selling and Distribution Expenses | (5,149) | (8,041) | | Administrative Expenses | (4,108) | (5,710) | | Research and Development Costs | (4,109) | (8,003) | | Reversal of (Impairment Loss) on Financial and Contract Assets, Net | 123 | (440) | | Fair Value Change of Financial Assets at Fair Value Through Profit or Loss | (1,341) | 789 | | Finance Costs | (2,036) | (1,225) | | Loss Before Tax | (6,199) | (9,339) | | Income Tax Expense | (24) | (72) | | **Loss for the Period** | **(6,223)** | **(9,411)** | | Loss Attributable to Owners of the Parent | (5,858) | (9,068) | | Loss Attributable to Non-controlling Interests | (365) | (343) | | Basic and Diluted Loss Per Share (RMB cents) | (0.57) | (0.88) | [Interim Condensed Consolidated Statement of Comprehensive Income](index=32&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2022, the Group's total comprehensive expense for the period was RMB (42,323) thousand, a significant increase from RMB (20,326) thousand in the prior period, primarily due to a substantial increase in expenses from fair value changes of financial assets designated at fair value through other comprehensive income Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | June 30, 2022 (thousand RMB) | June 30, 2021 (thousand RMB) | | :--- | :--- | :--- | | Loss for the Period | (6,223) | (9,411) | | Financial Assets Designated at Fair Value Through Other Comprehensive Income: Fair Value Change | (37,527) | (10,859) | | Exchange Differences Arising from Translation of Overseas Operations | 1,427 | (481) | | Other Comprehensive Expense for the Period, Net of Tax | (36,100) | (10,915) | | **Total Comprehensive Expense for the Period** | **(42,323)** | **(20,326)** | | Total Comprehensive Expense for the Period Attributable to Owners of the Company | (41,958) | (19,983) | | Total Comprehensive Expense for the Period Attributable to Non-controlling Interests | (365) | (343) | [Interim Condensed Consolidated Statement of Financial Position](index=33&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2022, the Group's total assets less current liabilities were RMB 227,077 thousand, a decrease from RMB 269,852 thousand as of December 31, 2021, with both non-current and current assets declining, notably a significant reduction in cash and cash equivalents Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2022 (thousand RMB) | December 31, 2021 (thousand RMB) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 8,001 | 8,002 | | Right-of-use Assets | 7,515 | 8,479 | | Long-term Receivables | 2,720 | 2,917 | | Deposits for Property, Plant and Equipment | 2,712 | 2,712 | | Other Financial Assets | 174,236 | 211,149 | | **Subtotal** | **195,184** | **233,259** | | **Current Assets** | | | | Inventories | 22 | 1,465 | | Trade and Bills Receivables | 14,534 | 15,620 | | Contract Assets | 5,214 | 7,266 | | Prepayments, Deposits and Other Receivables | 23,068 | 20,112 | | Other Financial Assets | 40,170 | 39,820 | | Cash and Cash Equivalents | 6,356 | 27,851 | | **Subtotal** | **89,364** | **112,134** | | **Current Liabilities** | | | | Trade Payables | 437 | 1,745 | | Contract Liabilities | 642 | 600 | | Other Payables and Accruals | 13,306 | 16,695 | | Other Borrowings | 4,756 | - | | Lease Liabilities | 1,465 | 1,755 | | Interest-bearing Bank Borrowings | 18,500 | 22,500 | | Convertible Bonds | 12,497 | 26,378 | | Tax Payable | 5,868 | 5,868 | | **Subtotal** | **57,471** | **75,541** | | **Net Current Assets** | **31,893** | **36,593** | | **Total Assets Less Current Liabilities** | **227,077** | **269,852** | | **Non-current Liabilities** | | | | Lease Liabilities | 1,164 | 1,616 | | **Net Assets** | **225,913** | **268,236** | | **Total Equity** | **225,913** | **268,236** | [Interim Condensed Consolidated Statement of Changes in Equity](index=35&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2022, equity attributable to owners of the Company decreased from RMB 268,472 thousand at the beginning of the period to RMB 226,514 thousand at the end, primarily due to the loss for the period and fair value changes of financial assets designated at fair value through other comprehensive income Interim Condensed Consolidated Statement of Changes in Equity | Indicator | January 1, 2022 (thousand RMB) | Loss for the Period (thousand RMB) | Other Comprehensive (Expense) Income for the Period (thousand RMB) | Amendment to Convertible Bonds (thousand RMB) | Lapse of Convertible Bonds (thousand RMB) | June 30, 2022 (thousand RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Share Capital | 8,090 | - | - | - | - | 8,090 | | Share Premium | 224,688 | - | - | - | - | 224,688 | | Reserve Fund | 20,310 | - | - | - | - | 20,310 | | Other Reserves | 16,842 | - | - | - | - | 16,842 | | Exchange Fluctuation Reserve | 17,941 | - | 1,427 | - | - | 19,368 | | Fair Value Reserve | (31,637) | - | (37,527) | - | - | (69,164) | | Convertible Bond Equity Reserve | 1,502 | - | - | (459) | (821) | 222 | | Retained Profits | 10,736 | (5,858) | - | 459 | 821 | 6,158 | | **Subtotal Attributable to Owners of the Company** | **268,472** | **(5,858)** | **(36,100)** | **-** | **-** | **226,514** | | Non-controlling Interests | (236) | (365) | - | - | - | (601) | | **Total Equity** | **268,236** | **(6,223)** | **(36,100)** | **-** | **-** | **225,913** | [Interim Condensed Consolidated Statement of Cash Flows](index=36&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2022, the Group's net cash used in operating activities was RMB (7,095) thousand, net cash used in financing activities was RMB (15,184) thousand, and net cash generated from investing activities was RMB 925 thousand, leading to a significant decrease in cash and cash equivalents at period-end Interim Condensed Consolidated Statement of Cash Flows | Activity Category | June 30, 2022 (thousand RMB) | June 30, 2021 (thousand RMB) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (7,095) | (26,366) | | Net Cash Generated from Investing Activities | 925 | 1,307 | | Net Cash (Used in) Generated from Financing Activities | (15,184) | 25,672 | | Net (Decrease) Increase in Cash and Cash Equivalents | (21,354) | 613 | | Cash and Cash Equivalents at Beginning of Period | 27,851 | 44,090 | | Effect of Exchange Rate Changes, Net | (141) | (292) | | **Cash and Cash Equivalents at End of Period** | **6,356** | **44,411** | [Notes to the Interim Condensed Consolidated Financial Statements](index=37&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the interim condensed consolidated financial statements, covering company information, accounting policies, revenue, expenses, financial instruments, and commitments [1 Company and Group Information](index=37&type=section&id=1%20Company%20and%20Group%20Information) The Company was incorporated in the Cayman Islands and listed on the Main Board of the Hong Kong Stock Exchange, with the Group primarily engaged in marketing and promotion services and sales of goods in China, and Ms. Li Juan, Mr. Cheng Li, and Mr. Wu Haiming among its controlling shareholders - The Company was incorporated in the Cayman Islands on **October 13, 2014**, and its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[108](index=108&type=chunk) - The Group is principally engaged in providing marketing and promotion services and sales of goods in China, with no significant changes in its principal activities during the period[108](index=108&type=chunk) - **Ms. Li Juan**, **Mr. Cheng Li**, **Mr. Wu Haiming**, Zhonglian Management Co., Ltd., Guanwang Holdings Limited, and Victory Glory Holdings Limited are the controlling shareholders of the Company[108](index=108&type=chunk) [2.1 Basis of Preparation](index=37&type=section&id=2.1%20Basis%20of%20Preparation) The interim condensed consolidated financial statements for the six months ended June 30, 2022, have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and reviewed by the Audit Committee, though not audited by the Company's auditor - The interim condensed consolidated financial statements have been prepared in accordance with **International Accounting Standard 34 "Interim Financial Reporting"**[109](index=109&type=chunk) - The unaudited consolidated results for the six months ended June 30, 2022, have not been audited by the Company's auditor but have been reviewed by the Company's Audit Committee[110](index=110&type=chunk) [2.2 Changes in Accounting Policies](index=37&type=section&id=2.2%20Changes%20in%20Accounting%20Policies) The Group first adopted several revised International Financial Reporting Standards for accounting periods beginning January 1, 2022, but these revisions did not have a significant impact on the Group's performance or financial position for the current or prior periods - The Group has initially adopted amendments to **IFRS 3, IFRS 37, IFRS 16**, and Annual Improvements to IFRS 2018-2020[111](index=111&type=chunk) - These amendments did not have a significant impact on the Group's performance or financial position for the current or prior periods presented in the unaudited interim condensed consolidated financial information[111](index=111&type=chunk) [3 Revenue and Segment Information](index=38&type=section&id=3%20Revenue%20and%20Segment%20Information) The Group's revenue primarily derives from marketing and promotion services and sales of goods, with total revenue decreasing year-on-year for the six months ended June 30, 2022, and segment results are presented by gross profit, without segment assets, liabilities, or geographical information [Revenue Disaggregation](index=38&type=section&id=Revenue%20Disaggregation) The Group's revenue from contracts with customers is primarily disaggregated into marketing and promotion services and sales of goods, totaling RMB 13,957 thousand and RMB 19,603 thousand respectively, for the six months ended June 30, 2022 Revenue by Category | Revenue Category | June 30, 2022 (thousand RMB) | June 30, 2021 (thousand RMB) | | :--- | :--- | :--- | | Marketing and Promotion Services | 13,957 | 22,983 | | Sales of Goods | 19,603 | 18,928 | | **Total** | **33,560** | **41,911** | [Segment Results](index=39&type=section&id=Segment%20Results) The Group's operating segments are identified as marketing and promotion services and sales of goods, with segment results for the six months ended June 30, 2022, being RMB 6,363 thousand and RMB 1,619 thousand respectively, totaling RMB 7,982 thousand Segment Revenue and Results | Segment | June 30, 2022 (thousand RMB) | June 30, 2021 (thousand RMB) | | :--- | :--- | :--- | | Marketing and Promotion Services Revenue | 13,957 | 22,983 | | Sales of Goods Revenue | 19,603 | 18,928 | | **Total Segment Revenue** | **33,560** | **41,911** | | Marketing and Promotion Services Results | 6,363 | 9,885 | | Sales of Goods Results | 1,619 | 374 | | **Total Segment Results** | **7,982** | **10,259** | [Segment Assets and Liabilities](index=40&type=section&id=Segment%20Assets%20and%20Liabilities) Segment assets, segment liabilities, and other segment information are not presented because these amounts are not reviewed by the Group's chief operating decision-maker for resource allocation and performance assessment, or are not regularly provided to them for other reasons - Segment assets, segment liabilities, and other segment information are not presented because these amounts are not reviewed by the Group's chief operating decision-maker for resource allocation and performance assessment[119](index=119&type=chunk) [Geographical Information](index=40&type=section&id=Geographical%20Information) During the period, the Group operated in only one geographical segment, as the vast majority of its revenue originated from Mainland China, and all its long-term assets/capital expenditures were also located in or generated from Mainland China, thus no geographical segment information is presented - The Group operates in only one geographical segment, with the vast majority of its revenue and all its long-term assets/capital expenditures originating from Mainland China[120](index=120&type=chunk) [4 Other Income and Gains](index=41&type=section&id=4%20Other%20Income%20and%20Gains) For the six months ended June 30, 2022, the Group's other income and gains amounted to RMB 1,639 thousand, a decrease from RMB 3,083 thousand in the prior period, primarily due to reduced government subsidies Other Income and Gains Breakdown | Income Category | June 30, 2022 (thousand RMB) | June 30, 2021 (thousand RMB) | | :--- | :--- | :--- | | Bank Interest Income | 12 | 117 | | Other Interest Income | 610 | 698 | | Exchange Gain, Net | 4 | - | | Government Grants | 605 | 1,450 | | Investment Income from Bank Products | 108 | 259 | | Other Income | 300 | 559 | | **Total** | **1,639** | **3,083** | - Government grants are primarily received from the Mainland Chinese government to encourage the Group's efforts in development and innovation[122](index=122&type=chunk) [5 Loss Before Tax](index=41&type=section&id=5%20Loss%20Before%20Tax) The Group's loss before tax is derived after deducting various expenses, including cost of goods sold, cost of services provided, depreciation, R&D costs, employee benefit expenses, and net reversal of impairment losses on financial and contract assets, with R&D costs and employee benefit expenses significantly decreasing Components of Loss Before Tax | Expense Category | June 30, 2022 (thousand RMB) | June 30, 2021 (thousand RMB) | | :--- | :--- | :--- | | Cost of Goods Sold | 17,983 | 17,759 | | Cost of Services Provided | 7,594 | 13,098 | | Depreciation of Property, Plant and Equipment | 11 | 79 | | Depreciation of Right-of-use Assets | 1,057 | 1,017 | | Research and Development Costs | 4,109 | 8,003 | | Employee Benefit Expenses (excluding directors' and chief executives' remuneration) | 7,644 | 12,232 | | Impairment Loss (Reversal) on Financial and Contract Assets, Net | (123) | 440 | | Fair Value Change of Financial Assets at Fair Value Through Profit or Loss | 1,341 | (789) | | Exchange (Gain) Loss, Net | (4) | 33 | [6 Finance Costs](index=42&type=section&id=6%20Finance%20Costs) For the six months ended June 30, 2022, the Group's finance costs were RMB 2,036 thousand, an increase from RMB 1,225 thousand in the prior period, primarily due to increased imputed interest on convertible bonds Finance Costs Breakdown | Cost Category | June 30, 2022 (thousand RMB) | June 30, 2021 (thousand RMB) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 473 | 376 | | Imputed Interest on Convertible Bonds | 1,419 | 806 | | Imputed Interest on Other Borrowings | 51 | - | | Imputed Interest on Lease Liabilities | 93 | 43 | | **Total** | **2,036** | **1,225** | [7 Income Tax Expense](index=42&type=section&id=7%20Income%20Tax%20Expense) The Group's income tax expense for the six months ended June 30, 2022, was RMB 24 thousand, a decrease from RMB 72 thousand in the prior period, with Mainland China subsidiaries subject to a 25% statutory tax rate, while some software and high-tech enterprises enjoy preferential rates of 12.5% or 15% Income Tax Expense Details | Tax Category | June 30, 2022 (thousand RMB) | June 30, 2021 (thousand RMB) | | :--- | :--- | :--- | | Current Tax — Mainland China: Underprovision in Prior Years | 24 | - | | Deferred Tax: Current Period | - | 72 | | **Total Tax Expense for the Period** | **24** | **72** | - Mainland China subsidiaries are subject to income tax at a statutory rate of **25%** on their assessable income[126](index=126&type=chunk) - Nanjing Xibai was recognized as a high-tech enterprise from December 6, 2019, and enjoys a preferential income tax rate of **15%** for 2020 to 2022[126](index=126&type=chunk) [8 Dividends](index=43&type=section&id=8%20Dividends) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2022, and 2021 - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2022, and 2021[130](index=130&type=chunk) [9 Loss Per Share Attributable to Owners of the Company](index=44&type=section&id=9%20Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) For the six months ended June 30, 2022, basic and diluted loss per share attributable to owners of the Company was RMB (0.57) cents, a narrowing from RMB (0.88) cents in the prior period, with diluted loss per share equal to basic loss per share as conversion of convertible bonds would reduce the loss per share Loss Per Share | Indicator | June 30, 2022 (RMB cents) | June 30, 2021 (RMB cents) | | :--- | :--- | :--- | | Loss Per Share Attributable to Owners of the Company — Basic and Diluted | (0.57) | (0.88) | - The basic loss per share is calculated based on the loss attributable to owners of the Company and the **1,025,662,000** ordinary shares outstanding for the six months ended June 30, 2022, and 2021[132](index=132&type=chunk) - No adjustments were made for diluted loss per share, as the conversion of convertible bonds would result in a reduction in loss per share, thus the diluted loss per share is equal to the basic loss per share[132](index=132&type=chunk) [10 Property, Plant and Equipment](index=44&type=section&id=10%20Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2022, the Group's cost of asset acquisitions was approximately RMB 5,000, a significant decrease from RMB 39,000 in the prior period Asset Acquisition Costs | Indicator | June 30, 2022 (RMB) | June 30, 2021 (RMB) | | :--- | :--- | :--- | | Cost of Asset Acquisitions | 5,000 | 39,000 | [11 Long-term Receivables](index=45&type=section&id=11%20Long-term%20Receivables) As of June 30, 2022, the Group's total long-term receivables amounted to RMB 2,720 thousand, comprising rental deposits, interest-free loans to employees, and interest-bearing loans to third parties Long-term Receivables Breakdown | Category | June 30, 2022 (thousand RMB) | December 31, 2021 (thousand RMB) | | :--- | :--- | :--- | | Rental Deposits | 950 | 841 | | Loans to Employees | 1,450 | 1,756 | | Loans to Third Parties | 320 | 320 | | **Total** | **2,720** | **2,917** | - Interest-free loans to employees (including key management personnel) are repayable within **two to five years**[135](index=135&type=chunk) - Loans to third parties are unsecured, bear interest at an effective annual rate of **6%**, and are repayable within **two to five years**[135](index=135&type=chunk) [12 Other Financial Assets](index=45&type=section&id=12%20Other%20Financial%20Assets) As of June 30, 2022, the Group's total other financial assets amounted to RMB 214,406 thousand, primarily consisting of unlisted equity securities designated at fair value through other comprehensive income and unlisted equity securities and convertible loans at fair value through profit or loss Other Financial Assets Breakdown | Category | June 30, 2022 (thousand RMB) | December 31, 2021 (thousand RMB) | | :--- | :--- | :--- | | Financial Assets Designated at Fair Value Through Other Comprehensive Income — Unlisted Equity Securities | 158,269 | 195,790 | | Financial Assets at Fair Value Through Profit or Loss — Unlisted Equity Securities | 40,170 | 39,820 | | Financial Assets at Fair Value Through Profit or Loss — Convertible Loans to Third Parties | 15,967 | 15,359 | | **Total** | **214,406** | **250,969** | | Analyzed as: Non-current portion | 174,236 | 211,149 | | Analyzed as: Current portion | 40,170 | 39,820 | [13 Trade and Bills Receivables](index=46&type=section&id=13%20Trade%20and%20Bills%20Receivables) As of June 30, 2022, the Group's total trade and bills receivables amounted to RMB 14,534 thousand, a decrease from RMB 15,620 thousand as of December 31, 2021, with credit terms generally ranging from 90 to 180 days and overdue balances strictly controlled Trade and Bills Receivables | Category | June 30, 2022 (thousand RMB) | December 31, 2021 (thousand RMB) | | :--- | :--- | :--- | | Trade Receivables | 14,605 | 14,884 | | Less: Impairment Provision | (71) | (95) | | **Subtotal** | **14,534** | **14,789** | | Bills Receivables | - | 831 | | **Total** | **14,534** | **15,620** | - The Group's trade terms with customers are primarily on credit, with credit periods generally ranging from **90 to 180 days** after the invoice date[137](index=137&type=chunk) Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2022 (thousand RMB) | December 31, 2021 (thousand RMB) | | :--- | :--- | :--- | | Within 3 months | 4,123 | 7,274 | | 3 to 6 months | 2,042 | 2,631 | | 6 months to 1 year | 7,581 | 5,566 | | 1 to 2 years | 666 | 149 | | 2 to 3 years | 122 | - | | **Total** | **14,534** | **15,620** | [14 Contract Assets](index=47&type=section&id=14%20Contract%20Assets) As of June 30, 2022, the Group's net contract assets amounted to RMB 5,214 thousand, a decrease from RMB 7,266 thousand as of December 31, 2021, primarily arising from marketing and promotion services, with all contract assets expected to be recovered or settled within one year Contract Assets Breakdown | Category | June 30, 2022 (thousand RMB) | December 31, 2021 (thousand RMB) | | :--- | :--- | :--- | | Contract Assets Arising from Marketing and Promotion Services | 5,228 | 7,293 | | Less: Impairment Provision | (14) | (27) | | **Net** | **5,214** | **7,266** | - Contract assets are initially recognized for revenue earned from marketing and promotion services because consideration is only collectible upon successful completion of services[140](index=140&type=chunk) - At the end of the reporting period, the expected time for recovery or settlement of contract assets is **within one year**[141](index=141&type=chunk) [15 Prepayments, Deposits and Other Receivables](index=48&type=section&id=15%20Prepayments%2C%20Deposits%20and%20Other%20Receivables) As of June 30, 2022, the Group's net prepayments, deposits, and other receivables amounted to RMB 23,068 thousand, an increase from RMB 20,112 thousand as of December 31, 2021, primarily due to an increase in prepayments Prepayments, Deposits and Other Receivables Breakdown | Category | June 30, 2022 (thousand RMB) | December 31, 2021 (thousand RMB) | | :--- | :--- | :--- | | Advances to Suppliers | 241 | 589 | | Prepayments | 19,149 | 12,755 | | Advances to Employees | 31 | 95 | | Rental Deposits | 62 | 38 | | Other Receivables | 2,080 | 4,672 | | Loans to Third Parties | 200 | 240 | | Loans to Employees | 1,504 | 2,008 | | **Subtotal** | **23,267** | **20,397** | | Less: Impairment Provision | (199) | (285) | | **Net** | **23,068** | **20,112** | - Prepayments include **RMB 5,986,000** for technology licensing services, **RMB 3,550,000** for system solution services, and **RMB 6,900,000** for technical services[143](index=143&type=chunk) - Approximately **RMB 1,785,000** included in other receivables represents other tax rece

Annual Report 2021 年報 目 錄 | | 頁次 | | --- | --- | | 公司資料 | 2 | | 摘要 | 4 | | 主席報告書 | 5 | | 管理層討論與分析 | 6 | | 董事及高級管理層簡介 | 24 | | 企業管治報告 | 28 | | 董事會報告書 | 44 | | 環境、社會及管治報告 | 71 | | 獨立核數師報告 | 95 | | 綜合損益表 | 101 | | 綜合全面收益表 | 102 | | 綜合財務狀況表 | 103 | | 綜合權益變動表 | 105 | | 綜合現金流量表 | 106 | | 綜合財務報表附註 | 108 | | 五年財務概要 | 178 | 公司資料 董事會 執行董事 Zhang Lake Mozi 先生 （主席） 程力先生 胡慶楊先生 非執行董事 李娟女士 吳海明先生 張海華先生 獨立非執行董事 提名委員會 Zhang Lake Mozi 先生 （主席） 趙臻先生 葛寧先生 薪酬委員會 葛寧先生 （主席） 趙臻先生 程力先生 公司秘書 胡澤民先生 趙臻先生 葛寧先生 董事委員會 審核委員會 胡澤民先生 （主席） 李娟女士 ...