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 ...

Financial Performance - The company's revenue for the six months ended June 30, 2021, was RMB 41,911,000, representing a 30% increase compared to RMB 32,206,000 in the same period last year[8]. - Gross profit for the same period was RMB 10,259,000, up from RMB 6,279,000, indicating a significant improvement in profitability[8]. - The net loss for the period decreased by approximately 71.6%, from RMB 33,096,000 to RMB 9,411,000[8]. - The company's revenue for the six months ended June 30, 2021, was approximately RMB 41.9 million, an increase of about 30.12% compared to RMB 32.2 million for the same period in 2020[22]. - Gross profit for the six months ended June 30, 2021, was approximately RMB 10.3 million, a significant increase of about 63.49% from RMB 6.3 million in 2020, with the gross margin rising from approximately 19.5% to 24.5%[24]. - The company's loss for the six months ended June 30, 2021, was approximately RMB 9.4 million, a reduction of about 71.6% compared to a loss of RMB 33.1 million in the same period of 2020[31]. - The company reported a total revenue of RMB 41,911 thousand for the six months ended June 30, 2021, compared to RMB 32,206 thousand for the same period in 2020, representing a growth of 30%[132]. - The group reported a loss before tax of RMB 9,339,000 for the six months ended June 30, 2021, a significant improvement compared to a loss of RMB 32,929,000 in the same period of 2020[136]. - The total comprehensive loss for the period was RMB 20,326,000, down from RMB 32,675,000 in the previous year, indicating a 37.6% reduction in total comprehensive losses[109]. User Engagement and Market Strategy - Monthly Active Users (MAU) and Daily Active Users (DAU) for the company's main mobile apps reached 16.52 million and 3.62 million, respectively, reflecting increases of 9.6% and 8.42% year-over-year[8][12]. - The company is focusing on a "smart family lifestyle" strategy, enhancing products and services while expanding its digital ecosystem across various traffic channels[9][12]. - The company is leveraging big data to enhance user engagement and improve transaction conversion rates within the maternal and infant industry[11]. - The overall market for maternal and infant services is expanding, driven by younger and more specialized consumer demands[12]. - The company is actively addressing challenges in user acquisition costs and market competition through precision marketing solutions[11]. Research and Development - Research and development costs increased by approximately 45.45% to RMB 8.0 million from RMB 5.5 million, driven by an increase in R&D personnel and technology development investments[28]. - Research and development costs for the six months ended June 30, 2021, were RMB 8,003,000, up from RMB 5,455,000 in 2020, indicating a year-on-year increase of 46.5%[142]. Financial Position and Assets - As of June 30, 2021, the group's net current assets were approximately RMB 353 million, down from RMB 473 million as of December 31, 2020[33]. - Cash and cash equivalents amounted to approximately RMB 444 million, slightly up from RMB 441 million as of December 31, 2020[33]. - The asset-liability ratio as of June 30, 2021, was 18%, up from 12% on December 31, 2020[32]. - Non-current assets decreased slightly to RMB 274,674,000 as of June 30, 2021, from RMB 281,898,000 at the end of 2020[111]. - Current assets increased to RMB 101,867,000 from RMB 89,828,000, reflecting a 13.5% growth in current assets[111]. - The company's equity attributable to owners decreased to RMB 303,850,000 from RMB 322,357,000, a decline of 5.7%[112]. Investments and Acquisitions - The company has established an investment team to monitor market influences and technological developments in the maternal and child business chain[62]. - The company aims to invest in technology projects and expand its business in China and Southeast Asia, focusing on vertical advertising in the maternal and child industry[58]. - The company has committed HKD 60.0 million for acquiring property or land for its headquarters, with HKD 18.6 million already spent and HKD 41.4 million expected to be used in 2023[67]. - The total area of the target land for the new headquarters is approximately 3,210 square meters, with a total floor area of about 8,358 square meters[68]. Shareholder Information - As of June 30, 2021, the company’s directors and key executives hold a combined 48.40% stake in the company[70]. - Major shareholders include Guan Wang with 216,000,000 shares (21.06%) and Zhong Lian with 160,451,007 shares (15.64%) as of June 30, 2021[75]. - The company has adopted a share option scheme since June 19, 2015, with a maximum potential issuance of 100,000,000 shares, representing approximately 9.75% of the total shares issued as of the report date[80]. Compliance and Governance - The company has established a risk management and internal control system to monitor investment risks and ensure compliance with relevant regulations[102]. - The audit committee has reviewed the interim financial statements and provided recommendations to the board of directors[95]. - The company has confirmed compliance with the standard code of conduct for securities trading by all directors during the reporting period[87]. Cash Flow and Financing - The net cash used in operating activities for the first half of 2021 was RMB 26,366,000, compared to RMB 16,739,000 in the same period of 2020, indicating an increase in cash outflow[116]. - The financing activities resulted in a net cash inflow of RMB 25,672,000 for the first half of 2021, compared to a net cash outflow of RMB 31,189,000 in the same period of 2020[117]. - The company issued convertible bonds amounting to RMB 25,296,000 during the period, which was not present in the previous year[111]. Other Financial Metrics - The company recorded a foreign exchange loss of RMB 481,000 during the period, compared to a gain of RMB 34,000 in the previous year[114]. - The fair value change of financial assets recognized in other comprehensive income was a loss of RMB 10,434,000, compared to a gain of RMB 388,000 in the prior year[114]. - The company has not declared an interim dividend for the six months ended June 30, 2021, consistent with the previous year[151].

Annual Report 2020 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 | 7 | | 董事及高級管理層簡介 | 28 | | 企業管治報告 | 32 | | 董事會報告書 | 48 | | 環境、社會及管治報告 | 76 | | 獨立核數師報告 | 96 | | 綜合損益表 | 104 | | 綜合全面收益表 | 105 | | 綜合財務狀況表 | 106 | | 綜合權益變動表 | 108 | | 綜合現金流量表 | 109 | | 綜合財務報表附註 | 111 | | 五年財務概要 | 184 | 公司資料 董事會 執行董事 Zhang Lake Mozi 先生 （ 1 主席） 程力先生 胡慶楊先生 非執行董事 李娟女士2 吳海明先生 張海華先生3 謝坤澤先生4 獨立非執行董事 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 葛寧先生 提名委員會 Zhang Lake Mozi 先生 （ 1 主席） 趙臻先生 葛寧先生 薪酬委員會 葛寧先生 ...

中期報 告 ( 於開曼群島註冊成立的有限責任公司) 股份代號： INTERIM REPORT 2020 中期報告 China Parenting Network Holdings Limited 中國育兒網絡控股有限公司 目 錄 | | 頁次 | | --- | --- | | 公司資料 | 02 | | 摘要 | 04 | | 管理層討論與分析 | 05 | | 企業管治及其他資料 | 23 | | 中期簡明綜合損益表 | 31 | | 中期簡明綜合全面收益表 | 32 | | 中期簡明綜合財務狀況表 | 33 | | 中期簡明綜合權益變動表 | 34 | | 中期簡明綜合現金流量表 | 35 | | 中期簡明綜合財務報表附註 | 37 | 公司資料 董事會 執行董事 程力先生 胡慶楊先生 Zhang Lake Mozi先生 （主席） 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 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 葛寧先生 提名委員會 Zhang Lake Mozi先生 （主席） （於二零二零年七月三十一日獲委任） 趙臻先生 葛寧先生 李 ...

Financial Performance - For the year ended December 31, 2019, the company's revenue was RMB 94.294 million, a decrease of approximately 14.06% from RMB 109.713 million in 2018[9] - Gross profit for the same period was RMB 46.894 million, down 39.83% from RMB 78.041 million in 2018[9] - The net profit for the year was RMB 2.412 million, a significant decline from RMB 31.649 million in 2018[9] - The cost of sales for the year ended December 31, 2019, was approximately RMB 47.4 million, an increase of about 49.7% from RMB 31.7 million in the previous year, primarily due to increased marketing efforts for the parenting network and related apps[42] - Gross profit for the year ended December 31, 2019, was approximately RMB 46.9 million, a decrease of about 39.9% from RMB 78.0 million in 2018, resulting in a gross margin decline from approximately 71.1% to 49.7%[43] - The net profit for the year ended December 31, 2019, was approximately RMB 2.4 million, a decrease of about 92.4% compared to RMB 31.6 million in the previous year[50] - The company reported a loss per share of approximately RMB 0.0013 for 2019, a decrease of about 104.4% from a profit of RMB 0.0294 per share in 2018[51] - Other income and gains for the year ended December 31, 2019, were approximately RMB 8.7 million, an increase of about 5.9% from RMB 8.3 million in 2018, mainly due to local government subsidies[44] User Engagement and Market Trends - The mobile app's monthly active users (MAU) reached 12.73 million, an increase of approximately 15.73%, while daily active users (DAU) were 2.8 million, up 17.65% compared to the previous year[10] - The PC platform's MAU and DAU were 87.95 million and 3.52 million, respectively, reflecting a decline of about 20.05% and 19.63% year-over-year[10] - The online maternal and infant market has been continuously growing over the past three years, particularly in small towns and rural areas, where growth rates exceed those of first- and second-tier cities[20] - The number of post-95 mothers is increasing annually, becoming a significant force in the maternal and infant consumption market, favoring professional knowledge from the internet[21] - The company reported a significant increase in user engagement, with a 25% year-over-year growth in active users[93] Strategic Initiatives and Business Development - The company is transitioning from a single maternal and infant channel to a comprehensive platform, enhancing its ecosystem with self-owned traffic pools and data platforms[11] - The company aims to expand its service offerings across various sectors, including health, education, and new retail, to better serve the maternal and infant community[10] - The company has transformed from a single maternal and infant channel to a comprehensive ecosystem platform, extending services to pregnancy, health, education, new retail, and parent-child travel[23] - The company is actively expanding its e-commerce business and O2O services, leveraging its mobile apps and third-party platforms to sell maternity and infant products[35] - The company aims to provide diversified maternal and infant life services to the population in third- and fourth-tier cities through online and offline integration[25] - The company is focusing on expanding its investments in AI technology and cloud services, as seen in its stakes in various tech firms[72][73] Corporate Governance - The board consists of nine directors, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[109] - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange, demonstrating its commitment to transparency and accountability[103] - The independent non-executive directors play a crucial role in providing unbiased opinions on the company's strategy and performance, ensuring shareholder interests are considered[115] - The company has established written guidelines for employees regarding securities trading to prevent insider trading violations[106] - The board has three independent non-executive directors, meeting the requirement of at least one-third of the board's composition[115] Risk Management and Internal Controls - The company emphasizes the importance of effective risk management and internal controls for long-term sustainability[152] - The risk management framework aims to enhance risk management and internal controls in accordance with listing rules[153] - The internal control system is based on the COSO framework, focusing on control environment, risk assessment, control activities, information and communication, and monitoring[155] - The board and audit committee review the effectiveness of the risk management and internal control systems semi-annually[156] Investment Strategy - The investment strategy focuses on long-term investments, typically exceeding one year, with a preference for equity investments not exceeding 20% of the target entity[86] - The company aims to leverage its investments in AI and cloud technology to enhance its service offerings and market presence in the future[72][73] - The overall performance of the company's investments in 2019 shows a mix of increases and decreases in fair value, indicating a need for strategic adjustments in portfolio management[72][73] Future Outlook - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by 2025[93] - New product launches are expected to contribute an additional $30 million in revenue next year[93] - The management has provided guidance for the next quarter, projecting a revenue increase of 10%[93] - The company aims to improve operational efficiency, targeting a 5% reduction in operational costs by the end of the fiscal year[93]

Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 50,857,000, an increase of 9.5% compared to RMB 46,320,000 for the same period in 2018[8]. - Gross profit for the same period was RMB 30,905,000, down 13.1% from RMB 35,501,000 in 2018[8]. - Profit for the period was RMB 12,483,000, a decrease of 30.5% compared to RMB 17,977,000 in the previous year[8]. - The company's revenue for the six months ended June 30, 2019, was approximately RMB 50.9 million, an increase of about 10% compared to RMB 46.3 million for the same period in 2018[25]. - Gross profit for the six months ended June 30, 2019, was approximately RMB 30.9 million, a decrease of about 13% from RMB 35.5 million in the prior year, with the gross margin dropping from approximately 76.6% to 60.8% due to higher promotional expenses[27]. - Net profit for the six months ended June 30, 2019, was approximately RMB 12.5 million, a decrease of about 30% compared to RMB 18.0 million for the same period in 2018[34]. - Basic and diluted earnings per share for the period were RMB 1.22, down from RMB 1.77 in the previous year[100]. - Total comprehensive income for the period was RMB 11,525,000, down from RMB 18,732,000 in the previous year, indicating a decline of about 38.5%[107]. - Operating cash flow for the six months ended June 30, 2019, was RMB 2,640,000, a decrease from RMB 7,732,000 in the same period of 2018, reflecting a decline of approximately 65.8%[108]. - The company reported a profit of RMB 12,530,000 for the six months ended June 30, 2019, compared to RMB 18,167,000 for the same period in 2018, representing a decrease of approximately 30.2%[105]. Marketing and Business Strategy - The company aims to expand its service offerings centered around family needs, enhancing its brand customer base and capabilities in serving the maternal and infant population[14]. - The company is focusing on integrating its own traffic, content matrix, and data technology platform to create a mature external empowerment model for brands[14]. - The company has strengthened partnerships with major e-commerce platforms like JD.com to provide comprehensive marketing solutions from consumption scenarios to decision-making[11]. - The company is leveraging its large data accumulation to optimize user interfaces and refine operations for segmented audiences[11]. - The company is innovating offline scene interactions to connect merchants and consumers, providing new intelligent marketing service solutions[12]. - The company is enhancing its core competitiveness through continuous improvement of its full-platform ecosystem and collaborative efforts with brand partners[10]. - The company is committed to creating more potential value for users and the industry through effective marketing promotion services and precise solutions[14]. - The company is expanding its e-commerce business through self-developed mobile apps and third-party platforms, focusing on the parenting and child-related services and products[21]. - The company is actively pursuing acquisitions or investments in other O2O companies related to parenting and child-related businesses to expand its operations[21]. - The company is increasing its marketing and promotional efforts, including collaborations with media, celebrities, and influencers to enhance visibility and impact[23]. Expenses and Costs - The sales cost for the same period was approximately RMB 20.0 million, an increase of about 85% from RMB 10.8 million in the previous year, primarily due to increased promotional efforts for the parenting website and related apps[26]. - Sales and distribution expenses for the six months ended June 30, 2019, were approximately RMB 8.6 million, an increase of about 89% compared to RMB 4.6 million for the same period in 2018[29]. - Administrative expenses for the six months ended June 30, 2019, were approximately RMB 8.7 million, an increase of about 13% from RMB 7.7 million for the same period in 2018[30]. - Research and development costs for the six months ended June 30, 2019, were approximately RMB 5.0 million, a decrease of about 21% from RMB 6.4 million for the same period in 2018[31]. - The company’s administrative expenses increased to RMB 8,679,000 from RMB 7,711,000 in the previous year, reflecting a rise of 12.6%[100]. Investments and Acquisitions - The company made equity investments in various technology firms, including RMB 5.0 million for a 10% stake in Nanjing Deep Element AI Technology R&D Co., Ltd.[45]. - The company invested RMB 13 million in Nanjing Duozan Health Technology Co., acquiring 17.20% of its registered capital, focusing on maternal health management and online medical services[48]. - The company acquired 10% of Nanjing Zhiren Cloud Information Technology Co. for RMB 5 million, which operates a microservices-based cloud management platform[48]. - An investment of RMB 13 million was made in Nanjing Hurricane Engine Information Technology Co., representing 18.10% of its registered capital, aimed at supporting blockchain-based applications[48]. - The company purchased 10% of Nanjing Free Chain Information Technology Co. for RMB 5 million, which enables decentralized internet connectivity across regions[49]. - An investment of RMB 16 million was made in Nanjing Duomai Information Technology Co., acquiring 18.16% of its registered capital, focusing on services for maternal and infant businesses[49]. - The company acquired 15% of Nanjing Luobo Information Technology Co. for RMB 12 million, enhancing its capabilities in customer education and marketing for large infant product retailers[50]. - The company invested RMB 10 million in Nanjing Yuncurvature Network Technology Co., acquiring 17.20% of its registered capital, which serves as an incubator for maternal and infant startups[52]. - The company purchased 19.5% of Beijing Changsheng Clinic for RMB 5 million, providing comprehensive family medical services in urban areas[53]. - The company invested RMB 0.5 million in DEEPFOLIO PTY LTD for 18.0% equity, focusing on AI-enabled quantitative investment solutions[55]. Financial Position and Assets - The debt-to-asset ratio as of June 30, 2019, was 14%, up from 5% as of June 30, 2018[35]. - As of June 30, 2019, net current assets were approximately RMB 141.7 million, down from RMB 253.9 million as of June 30, 2018[36]. - Total assets as of June 30, 2019, were RMB 641,064,000, compared to RMB 592,910,000 as of December 31, 2018[103]. - The company reported a significant increase in trade receivables, which rose to RMB 42,693,000 from RMB 22,495,000 in the previous year[103]. - The company’s total equity attributable to owners increased to RMB 433,519,000 as of June 30, 2019, up from RMB 399,526,000 as of June 30, 2018, representing an increase of approximately 8.5%[105]. - The company’s cash and cash equivalents at the end of the period were RMB 53,631,000, down from RMB 74,847,000 at the end of the same period in 2018, indicating a decrease of about 28.3%[108]. - The company’s total financial assets as of June 30, 2019, were RMB 494,153,000, compared to RMB 454,046,000 as of December 31, 2018, indicating an increase of 8.82%[168]. - The company's financial liabilities, including interest-bearing bank borrowings, totaled RMB 44,260,000 as of June 30, 2019, up from RMB 14,590,000 as of December 31, 2018[169]. Compliance and Governance - The company has adopted the corporate governance code as per the listing rules and has complied with all relevant provisions during the reporting period[97]. - The company has confirmed that there are no significant interests held by directors or controlling shareholders in any competing businesses as of the report date[93]. - The company has implemented various management and monitoring mechanisms to mitigate potential legal risks, including regular reviews of internal control systems[92]. - The company is subject to significant restrictions on foreign investment in its main business, which is value-added telecommunications services, due to current Chinese laws and regulations[91]. - The company has entered into contractual arrangements with Nanjing Silicon Valley and Nanjing Chip Creation to control operations and enjoy economic benefits, as direct acquisition is not permitted[91]. Accounting and Reporting - The company has consistently applied accounting policies in preparing the interim financial statements, except for the new standards adopted[115]. - The impact of the new accounting standards has been assessed and does not affect the financial statements significantly, except for IFRS 16[116]. - The company has not early adopted any other standards, amendments, or interpretations that have been issued but are not yet effective[120]. - The company adopted the revised retrospective method for the initial application of IFRS 16, adjusting the opening balance to recognize lease liabilities[165]. - The total lease liabilities as of June 30, 2019, were RMB 4,148,000, a reduction from RMB 5,393,000 at the beginning of the year, representing a decrease of 23.1%[127].