Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 18,147,000, a decrease of 22% compared to RMB 23,425,000 for the same period in 2023[2] - Gross profit for the same period was RMB 3,432,000, down from RMB 6,348,000, reflecting a gross margin decline[2] - Loss before tax increased to RMB 5,262,000 from RMB 2,684,000 year-on-year[2] - The net loss attributable to owners of the company was RMB 2,348,000, compared to RMB 3,252,000 in the previous year, indicating a reduction in losses[2] - Total revenue for the group decreased by about 22.5%, from RMB 23.4 million in the six months ended June 30, 2023, to approximately RMB 18.1 million in the same period of 2024[37] - Gross profit fell from RMB 6.3 million to RMB 3.4 million, a decrease of RMB 2.9 million or about 45.9%, with gross margin dropping from 27.1% to 18.9%[40] - The loss attributable to owners of the company decreased from approximately RMB 3.3 million to approximately RMB 2.3 million, resulting in a loss margin of 12.9% for the six months ended June 30, 2024, compared to 13.9% for the same period in 2023[40] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 209,031,000, slightly up from RMB 205,695,000 at the end of 2023[3] - Current assets net increased to RMB 86,638,000 from RMB 77,104,000, showing improved liquidity[3] - Non-current liabilities remained stable at RMB 16,201,000 compared to RMB 16,126,000 in the previous year[4] - The company's equity attributable to owners increased to RMB 192,830,000 from RMB 189,569,000, reflecting a positive trend in shareholder value[4] - As of June 30, 2024, the total value of property, plant, and equipment is RMB 137,723 thousand, a decrease from RMB 139,581 thousand as of December 31, 2023[22] - The company's total interest-bearing borrowings amounted to approximately RMB 45.2 million, down from RMB 54.2 million as of December 31, 2023[58] Revenue Breakdown - Revenue from driving training services for the six months ended June 30, 2024, was RMB 18,147,000, a decrease of 22% compared to RMB 23,425,000 for the same period in 2023[10] - Standard course revenue increased significantly to RMB 10,263,000 from RMB 560,000, while advanced course revenue decreased to RMB 7,713,000 from RMB 22,646,000[10] - Revenue from large vehicle driving training services decreased by approximately RMB 5.2 million or 27.6%, from RMB 18.8 million to RMB 13.6 million, primarily due to a reduction in student numbers from 2,861 to 2,306[41] - Revenue from small vehicle driving training services slightly decreased by RMB 0.1 million or 2.2%, from RMB 4.6 million to RMB 4.5 million, despite an increase in actual training hours from 57,124 to 60,280 hours[42] - Revenue from large vehicle driving courses accounted for approximately 75.0% of total revenue for the six months ended June 30, 2024[35] - Revenue from standard courses for large vehicles generated approximately RMB 9.9 million, representing 54.5% of total revenue from large vehicles[37] Enrollment and Training Services - Total course enrollment decreased by 12.4% from 5,404 to 4,736 for the six months ended June 30, 2024, compared to the same period in 2023[35] - The number of students enrolled in Shun Da Driving School dropped by 40.8% to 511, down from 863 in the same period last year[35] - The number of students enrolled in Tong Tai Driving School slightly decreased by 7.0% to 4,225, compared to 4,541 in the previous year[35] - Total enrollment in driving courses decreased by approximately 12.0%, from 6,213 students in the six months ended June 30, 2023, to 5,469 students in the same period of 2024[37] Expenses and Financial Management - Total financial expenses for the six months ended June 30, 2024, were RMB 1,848,000, down from RMB 2,290,000 in the same period of 2023[15] - Employee benefits expenses decreased by RMB 1.7 million or 27.8%, from RMB 6.1 million to RMB 4.4 million, due to a reduction in training hours[44] - Fuel expenses decreased by RMB 1.5 million or 34.1%, from RMB 4.4 million to RMB 2.9 million, consistent with the decrease in actual training hours[44] - Depreciation of property, plant, and equipment increased by RMB 0.8 million or 15.7%, from RMB 5.2 million to RMB 6.0 million, due to fixed depreciation of training facilities and vehicles[44] - Sales and marketing expenses decreased by approximately RMB 0.1 million or 7.8% to RMB 0.9 million for the six months ending June 30, 2024, down from RMB 1.0 million for the same period in 2023[47] - Administrative expenses decreased by approximately RMB 0.3 million or 4.3% to RMB 6.4 million for the six months ending June 30, 2024, compared to RMB 6.7 million for the same period in 2023[48] Future Outlook and Strategic Plans - Future outlook remains cautious due to market conditions, with no specific guidance provided for the upcoming quarters[5] - The company plans to enhance service quality and invest in infrastructure to implement smart teaching, aiming to reduce training costs and maintain profit margins[39] - The company is exploring potential acquisitions and partnerships to expand enrollment, including discussions with local driving schools in Gansu and Xinjiang provinces[39] - The company has reached a cooperation agreement with a technical school in Wuwei City, Gansu Province, to attract students for large vehicle driving training[39] - The company aims to optimize training and examination services while focusing on enrollment growth to achieve better results in the second half of 2024[39] Compliance and Governance - The company has adopted the corporate governance code and has complied with all applicable provisions for the six months ending June 30, 2024[70] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated financial statements and found them compliant with applicable accounting standards and regulations[72] - The mid-term report for the six months ending June 30, 2024, will be published on the Hong Kong Stock Exchange and the company's website[73]

Enrollment Trends - The overall number of course enrollments declined due to decreased demand for driving courses, particularly for large vehicles, which accounted for approximately 74.2% of total revenue for the year ended December 31, 2023[16]. - The company recorded an increase in standard course enrollments for both small and large vehicles in 2023, despite the overall decline in enrollments[16]. - In 2023, the overall number of course enrollments and trainees attending driving courses declined, resulting in negative growth compared to 2022[32]. - The total number of course enrollments decreased by 3.8% from 9,670 in 2022 to 9,304 in 2023, with both Tong Tai School and Shun Da School experiencing negative growth[35][37]. - Shun Da School's enrollments amounted to 1,368, a decrease of approximately 1.8%, while Tong Tai School's enrollments were 7,936, reflecting a decrease of approximately 4.1%[35][37]. - The overall number of trainees attending driving courses decreased by approximately 13.4%, from 12,509 in 2022 to 10,832 in 2023[43][44]. - The number of trainees for Large Vehicles decreased from 5,692 in 2022 to 4,342 in 2023, with training hours dropping from 307,968 to 257,796[55][57]. - The number of trainees for Small Vehicles decreased from 6,817 in 2022 to 6,490 in 2023, with training hours dropping from 136,972 to 127,783[58]. Revenue Performance - Total revenue for the Group decreased by approximately 16.4%, amounting to approximately RMB 39.9 million in 2023 compared to RMB 47.7 million in 2022[43][44]. - Revenue from driving courses for Large Vehicles accounted for approximately 74.2% of total revenue in 2023, down from 79.4% in 2022[43][44]. - Revenue from premium courses contributed approximately 91.9% of total revenue in 2023, down from 94.5% in 2022[43][44]. - Revenue from Large Vehicles training services decreased by approximately RMB8.3 million, or 22.0%, from RMB37.9 million in 2022 to RMB29.6 million in 2023, accounting for approximately 74.2% of total revenue[54][57]. - Revenue from Small Vehicles training services increased by approximately RMB0.5 million, or 4.8%, from RMB9.8 million in 2022 to RMB10.3 million in 2023[58]. - The decline in revenue was primarily due to decreased demand for driving courses, particularly for Large Vehicles, amid ongoing US-China trade tensions affecting the logistics industry[54]. Cost and Profitability - Gross profit decreased by RMB2.7 million, or 24.3%, from RMB11.3 million in 2022 to RMB8.6 million in 2023, with a gross profit margin decline of 2.2 percentage points to 21.5%[49][50]. - Gross profit for large vehicle training services decreased by approximately RMB4.7 million, or about 48.0%, from approximately RMB9.8 million for the year ended December 31, 2022, to approximately RMB5.1 million for the year ended December 31, 2023[68]. - Gross profit margin for large vehicle training services decreased by approximately 8.6 percentage points from approximately 25.9% for the year ended December 31, 2022, to approximately 17.3% for the year ended December 31, 2023[68]. - Gross profit for small vehicle training services increased by approximately RMB2.0 million, or about 133.5%, from approximately RMB1.5 million for the year ended December 31, 2022, to approximately RMB3.5 million for the year ended December 31, 2023[69]. - Gross profit margin for small vehicle training services increased by approximately 18.4 percentage points from approximately 15.1% for the year ended December 31, 2022, to approximately 33.5% for the year ended December 31, 2023[69]. Strategic Initiatives - The company aims to enhance marketing strategies to meet enrollment targets and will launch preferential policies and campaigns to improve brand reputation and influence[16]. - The company plans to enhance teaching quality in 2024 by implementing stricter standards and developing an integrated online and offline training model[22]. - A commitment to increasing course enrollment efforts is emphasized, with a focus on marketing strategies and partnerships, particularly with Tiktok, to attract more trainees[22]. - The company aims to expand its business into other provinces, cities, and counties in China, targeting both Large and Small Vehicles markets[22]. - In January 2024, staff were assigned to research remote provinces to establish cooperative relationships with local driving training providers and related industries[26]. Financial Position - As of 31 December 2023, the Group's bank balances and cash decreased from approximately RMB182.3 million to approximately RMB152.4 million, primarily due to decreased operating cash flows[87]. - The current ratio of the Group as of 31 December 2023 was 1.93, compared to 1.86 as of 31 December 2022[88]. - As of 31 December 2023, the Group had aggregate interest-bearing borrowings of approximately RMB45.2 million, a decrease from approximately RMB55.2 million as of 31 December 2022[89]. - The gearing ratio of the Group as of 31 December 2023 was approximately 0.30 times, unchanged from 31 December 2022[92]. - The total employee benefit expenses incurred by the group for the year ended December 31, 2023, were approximately RMB 13.3 million, down from approximately RMB 18.2 million for the year ended December 31, 2022[110]. Corporate Governance - The company has complied with all provisions of the Corporate Governance Code for the year ended December 31, 2023[129]. - The Board held four meetings during the year, adhering to the requirement of at least four meetings annually[132]. - The Board composition includes two executive directors, one non-executive director, and three independent non-executive directors, meeting the Listing Rules requirements[143]. - The roles of Chairman and Chief Executive Officer are held separately by Mr. Qi Xiangzhong and Ms. Zhao Yuxia, ensuring a balance of power[137]. - The company received written annual confirmations of independence from all independent non-executive directors, affirming their compliance with independence guidelines[139]. Audit and Risk Management - The Audit Committee reviewed the audited consolidated financial statements for the financial year ended December 31, 2023, and recommended them for approval at the AGM[180]. - The Board agreed to the re-appointment of Moore CPA Limited as the external auditor for the year ending December 31, 2024, pending shareholder approval[181]. - The Audit Committee's duties include overseeing financial reporting, financial control, internal control, and risk management systems of the Group[175]. - The Company engaged an external professional consultant to enhance the effectiveness of the risk management and internal control systems of the Group during the year ended December 31, 2023[173].

Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 39,884,000, a decrease of 16.4% compared to RMB 47,734,000 in 2022[3] - The gross profit for the same period was RMB 8,560,000, down 24.2% from RMB 11,301,000 in the previous year[3] - The net loss attributable to the owners of the company was RMB 8,443,000, slightly improved from a loss of RMB 8,667,000 in 2022[3] - Basic and diluted loss per share for the year was RMB 2.11, compared to RMB 2.17 in 2022[3] - The group reported a net loss before tax of RMB 16,184,000 for 2023, down from RMB 19,764,000 in 2022, indicating an improvement of 13.1%[26] - The total comprehensive loss for the year ended December 31, 2023, was approximately RMB 8.4 million, compared to RMB 8.7 million for the year ended December 31, 2022, resulting in a net loss margin of 21.2% for 2023 and 18.2% for 2022[85] Assets and Liabilities - Non-current assets increased to RMB 128,591,000 in 2023 from RMB 122,132,000 in 2022, reflecting a growth of 5.5%[4] - Current assets decreased to RMB 159,761,000 in 2023 from RMB 183,096,000 in 2022, a decline of 13.0%[4] - Total liabilities decreased from RMB 98,475,000 in 2022 to RMB 82,657,000 in 2023, a reduction of 16.0%[4] - The company's net asset value as of December 31, 2023, was RMB 189,569,000, down from RMB 198,012,000 in 2022[4] - Cash and bank balances decreased from approximately RMB 182.3 million as of December 31, 2022, to approximately RMB 152.4 million as of December 31, 2023, primarily due to reduced operating cash flow and increased investment cash flow[86] - Current assets as of December 31, 2023, were approximately RMB 159.8 million, with current liabilities of approximately RMB 82.7 million, resulting in a current ratio of 1.93, up from 1.86 as of December 31, 2022[88] Revenue Breakdown - Revenue from standard driving training courses increased to RMB 2,824,000 in 2023 from RMB 2,006,000 in 2022, representing a growth of 40.9%[19] - Revenue from advanced driving training courses decreased to RMB 36,659,000 in 2023 from RMB 45,085,000 in 2022, a decline of 18.6%[19] - Revenue from large vehicle driving training services fell from approximately RMB 37.9 million to RMB 29.6 million, a decrease of about RMB 8.3 million or 22.0%[69] - Revenue from small vehicle driving training services increased slightly from approximately RMB 9.8 million to RMB 10.3 million, an increase of about RMB 0.5 million or 4.8%[71] Enrollment and Training Services - Total course enrollment decreased by 3.8% from 9,670 to 9,304 students as of December 31, 2023[48] - The total number of students participating in driving training courses decreased by approximately 13.4%, from 12,509 to 10,832 students[52] - The number of participants in large vehicle training courses for 2023 was 4,342, generating revenue of RMB 29.6 million, compared to 5,692 participants and RMB 37.9 million in 2022, reflecting a decrease of 23.8% in participants and 21.5% in revenue[53] - The number of participants in small vehicle training courses for 2023 was 6,490, generating revenue of RMB 10.3 million, compared to 6,817 participants and RMB 9.8 million in 2022, indicating a decrease of 4.8% in participants but an increase of 4.9% in revenue[53] Cost Management - Cost of services provided decreased from approximately RMB 36.4 million to RMB 31.3 million, a reduction of about RMB 5.1 million or 14.0%[72] - Selling and marketing expenses decreased from approximately RMB 3.4 million to RMB 1.6 million, a reduction of about RMB 1.8 million or 52.8%[80] - Administrative expenses decreased from approximately RMB 15.1 million to RMB 13.9 million, a decline of about RMB 1.2 million or 8.2%[81] - Financial expenses decreased from approximately RMB 4.6 million to RMB 4.2 million, a reduction of about RMB 0.4 million or 7.8%[83] Future Plans and Strategies - The company is focused on expanding its driving training services in China, with plans for future growth and potential new product developments[5] - The company aims to enhance brand influence and attract more students through targeted marketing strategies, including partnerships with Douyin for advertising[62] - The company plans to leverage new technologies such as virtual reality and intelligent driving systems to improve training effectiveness and create competitive advantages[60] - The company intends to maintain revenue growth in 2024 despite competitive pressures, driven by increasing demand for driving licenses and professional training services[60] Corporate Governance - The board is committed to maintaining high corporate governance standards, ensuring compliance with applicable codes and regulations[108] - The audit committee reviewed the consolidated financial statements for the year ending December 31, 2023, and found them compliant with applicable accounting standards[112] - The independent auditor confirmed that the financial figures reported align with the audited consolidated financial statements for the year ending December 31, 2023[113] Employee and Operational Changes - Employee benefit expenses for the year ended December 31, 2023, totaled approximately RMB 13.3 million, down from RMB 18.2 million for the year ended December 31, 2022[99] - The company had a total of 210 employees as of December 31, 2023, a decrease from 295 employees as of December 31, 2022[97] Rights Issue and Financial Management - The company plans to raise up to approximately HKD 40 million through a rights issue at a subscription price of HKD 0.20 per share[101] - The net proceeds from the rights issue, after deducting related expenses, are intended to be used for repaying part of the outstanding bank borrowings[101] - The group utilized approximately HKD 39.5 million for various purposes as of December 31, 2023, with a total of HKD 108.418 million net proceeds from the initial public offering[104]

Enrollment Trends - Total course enrollments decreased by 7.6% from 5,846 for the six months ended June 30, 2022, to 5,404 for the six months ended June 30, 2023[12]. - Shun Da School's total course enrollments amounted to 863, representing a decrease of approximately 12.9% compared to 991 for the same period in 2022[12]. - Tong Tai School's total course enrollments amounted to 4,541, representing a decrease of approximately 6.5% compared to 4,855 for the same period in 2022[12]. - The overall number of course enrollments for standard courses of Small Vehicles decreased by approximately 13.6% from 1,254 to 1,083 for the same period[13]. - Both driving schools, Shun Da and Tong Tai, experienced negative growth in course enrollments for the six months ended June 30, 2023[12]. - The total number of trainees attending driving courses decreased to 6,213 for the six months ended June 30, 2023, down approximately 29.3% from 8,788 in the same period of 2022[19]. Revenue Performance - Total revenue for the Group was approximately RMB 23.4 million for the six months ended June 30, 2023, representing a decrease of approximately 25.5% from approximately RMB 31.5 million in the same period of 2022[19]. - Revenue from large vehicle training services accounted for approximately 80.2% of total revenue, down from 82.1% in the same period of 2022[19]. - Revenue generated from premium courses contributed approximately 96.6% of total revenue, an increase from 93.1% in the same period of 2022[19]. - The company recorded a total revenue decline of RMB8.0 million (approximately 25.5%) from RMB31.5 million in the first half of 2022 to RMB23.4 million in the first half of 2023[43]. - Revenue from driving training services for Large Vehicles decreased by approximately RMB7.1 million (approximately 27.3%) from RMB25.8 million in the first half of 2022 to RMB18.8 million in the first half of 2023[49]. - Revenue from small vehicle driving training services decreased by approximately RMB1.0 million or approximately 17.3%, from RMB5.6 million to RMB4.6 million for the same periods[53]. Profitability and Loss - Gross profit decreased by RMB4.0 million (approximately 38.8%) from RMB10.4 million in the first half of 2022 to RMB6.3 million in the first half of 2023, with a gross profit margin drop of 5.9 percentage points from 33.0% to 27.1%[43]. - The net loss attributable to the owners of the company was approximately RMB3.3 million for the first half of 2023, compared to a net profit of approximately RMB59,000 in the same period of 2022[44]. - The company reported a loss before income tax of RMB2,684,000, compared to a profit of RMB258,000 for the same period in 2022[161]. - Total comprehensive loss attributable to owners of the company for the period was RMB3,252,000, compared to a profit of RMB59,000 in the prior year[161]. - Basic and diluted loss per share was RMB (0.81) cents, compared to earnings of RMB 0.01 cents per share in the previous year[161]. Operational Challenges - The decline in course enrollments is attributed to decreased demand for driving courses due to deteriorating market conditions in the logistics industry, influenced by ongoing US-China trade tensions[11]. - The overall business performance reflects a negative growth trend, indicating challenges in the current market environment[11]. - The company aims to enhance marketing efforts and implement preferential policies to boost course enrollments, which were less than half of the target in the first half of 2023[32]. - The company is determined to overcome the loss-making situation in 2023 despite the downturn in market conditions and increased competition[40]. Future Plans and Strategies - The company aims to expand its business scale and enhance operational effectiveness to better meet trainees' needs and achieve improved business results[25]. - Plans for the second half of 2023 include replacing old vehicles and optimizing the driving learning environment to improve service quality[38]. - The company intends to expand its business to other provinces and cities in China, utilizing online marketing strategies to reach potential trainees[34]. - Significant improvements in teaching management and quality were noted, with a focus on integrating online and offline teaching methods[26]. - The company is committed to optimizing curriculum, instructor staffing, and examination services to ensure high-quality service for trainees[27]. Financial Position - The current ratio of the Group was 1.84 as of June 30, 2023, slightly down from 1.86 as of December 31, 2022[82]. - Aggregate interest-bearing borrowings decreased to approximately RMB54.2 million as of June 30, 2023, down from approximately RMB55.2 million as of December 31, 2022[83]. - As of June 30, 2023, the Group's current assets were approximately RMB 186.9 million, including cash and bank balances of about RMB 175.8 million[85]. - The Group's current liabilities were approximately RMB 101.5 million, with borrowings of RMB 54.2 million due within one year[85]. - The total employee benefit expenses for the six months ended June 30, 2023, were approximately RMB 9.0 million, down from approximately RMB 11.3 million for the same period in 2022[105]. Corporate Governance and Compliance - The Company complied with all applicable code provisions set out in the Corporate Governance Code during the six months ended June 30, 2023[146]. - The Audit Committee reviewed the unaudited consolidated financial statements for the six months ended June 30, 2023, confirming compliance with applicable accounting standards[153]. - The board composition now includes two executive directors, one non-executive director, and three independent non-executive directors, fulfilling the requirements under the Listing Rules[156]. Shareholder Information - The company holds a long position in shares, with Mr. Qi Xiangzhong owning 206.4 million shares, representing 51.6% of the total shareholding[125]. - Significant shareholders include Alpha Leap, which holds 206.4 million shares (51.6%), and Cosmic Hero with 39.6 million shares (9.9%) as of June 30, 2023[131]. - The Company did not purchase, sell, or redeem any listed securities during the six months ended June 30, 2023[135].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或 任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 China Oriented International Holdings Limited （於開曼群島註冊成立的有限公司） 1871 （股份代號： ） 2023 6 30 截至 年 月 日止六個月之中期業績公告 業績 2023 6 30 董事會欣然公佈本集團截至 年 月 日止六個月之未經審核綜合中期業績，連 2022 6 30 同截至 年 月 日止六個月之比較數字。專有詞彙及若干技術詞彙具有本公告 「釋義及技術詞彙」一段所界定的涵義。「我們」一詞指本公司，倘文義另有所指， 則指本集團。 ...

Enrollment and Training Trends - In 2022, the overall number of course enrollments and trainees attending driving courses declined, resulting in negative growth compared to 2021 due to COVID-19 restrictions [21]. - The total number of course enrollments decreased by 25.8% from 13,040 in the year ended December 31, 2021, to 9,670 in the year ended December 31, 2022 [24]. - Shun Da School's course enrollments dropped significantly by approximately 57.3%, from 3,264 in 2021 to 1,393 in 2022 [24]. - Tong Tai School's course enrollments decreased by approximately 15.3%, from 9,776 in 2021 to 8,277 in 2022 [24]. - The overall number of trainees attending driving courses fell by approximately 17.6%, from 15,183 in 2021 to 12,509 in 2022 [32]. - The actual number of training hours for Small Vehicles decreased from 171,742 hours in 2021 to 136,972 hours in 2022, despite an increase in the number of trainees from 6,524 to 6,817 [48]. Revenue and Financial Performance - Total revenue for the year ended December 31, 2022, was approximately RMB 47.7 million, a decrease of approximately 28.9% from RMB 67.2 million in 2021 [32]. - Revenue from Large Vehicles accounted for approximately 79.4% of total revenue in 2022, down from 82.7% in 2021 [32]. - Premium courses contributed approximately 94.5% of total revenue in 2022, compared to 92.7% in 2021 [32]. - Revenue from driving training services for Small Vehicles decreased by approximately RMB 1.8 million for the year ended December 31, 2022 [43]. - Gross profit decreased by RMB 11.4 million, or approximately 50.1%, from RMB 22.7 million in 2021 to RMB 11.3 million in 2022, with a gross profit margin decline of 10.0 percentage points to 23.7% [38]. - The net loss attributable to the owners of the Company was approximately RMB 8.7 million for the year ended December 31, 2022, compared to a net loss of approximately RMB 3.5 million in 2021 [39]. Operational Adjustments and Future Plans - The company established C6 test sites and optimized training facilities to accommodate an expected increase in trainee enrollment following the relaxation of urban traffic bans [10]. - In 2023, the company plans to focus on trainee enrollment and improve service attitudes through a campaign aimed at enhancing instructor dedication [14]. - The company aims to expand its market presence beyond Henan Province to regions such as Xinjiang, Hainan, Sichuan, Gansu, and Guizhou [15]. - The company will enhance online publicity for trainee enrollment through various media channels to boost visibility and attract more trainees [15]. - The company plans to improve the working environment and prioritize safety and health for employees in the post-epidemic era [14]. Corporate Governance and Board Structure - The Company has complied with all code provisions set out in the Corporate Governance Code for the year ended December 31, 2022 [115]. - The Board comprises two executive Directors, one non-executive Director, and three independent non-executive Directors as of April 20, 2023, fulfilling the requirements under rules 3.10(1) and 3.21 of the Listing Rules [132]. - The roles of Chairman and Chief Executive Officer are held separately by Mr. Qi Xiangzhong and Ms. Zhao Yuxia, respectively, ensuring a balance of power and authority [126]. - The Company received written annual confirmation from each independent non-executive Director regarding their independence, in accordance with the independence guidelines [128]. - The Company has established mechanisms to ensure that at least one-third of the Board members are independent non-executive Directors, ensuring independent views and input [186]. Financial Position and Borrowings - As of 31 December 2022, the Group's bank balances and cash increased to approximately RMB 182.3 million from RMB 175.2 million in 2021, primarily due to increased cash flows from financing activities [6][77]. - The current ratio of the Group as of 31 December 2022 was 1.86, down from 2.11 in 2021 [6][80]. - Aggregate interest-bearing borrowings increased to approximately RMB 55.2 million as of 31 December 2022, compared to RMB 32.8 million in 2021 [6][81]. - The gearing ratio of the Group was approximately 0.30 times as of 31 December 2022, up from 0.21 times in 2021 [6][82]. - The Group's debt-to-equity ratio was approximately 0.30 times as of December 31, 2022, compared to 0.21 times as of December 31, 2021 [85]. Employee and Cost Management - Employee benefit expenses decreased by approximately RMB 5.2 million, or approximately 29.0%, from approximately RMB 18.0 million in 2021 to approximately RMB 12.8 million in 2022 [53]. - The number of employees decreased to 295 as of December 31, 2022, from 423 as of December 31, 2021 [97]. - Cost of services rendered decreased by approximately RMB 8.1 million, or approximately 18.1%, from approximately RMB 44.5 million in 2021 to approximately RMB 36.4 million in 2022 [49]. Risk Management and Compliance - The Company engaged an external professional consultant to enhance the effectiveness of its risk management and internal control systems [162]. - The Audit Committee reviewed the audited consolidated financial statements for the financial year ended December 31, 2022, and recommended them for approval at the AGM [169]. - The Company engaged Hong Kong legal advisers for corporate secretarial and compliance services in accordance with the Listing Rules [162]. - The Company will continue to ensure that independent non-executive Directors do not receive equity-based remuneration with performance-related elements to maintain their objectivity [186].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或 任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 China Oriented International Holdings Limited （於開曼群島註冊成立的有限公司） 1871 （股份代號： ） 2022 12 31 截至 年 月 日止年度之全年業績公告 業績 2022 12 31 董事會欣然公佈本集團截至 年 月 日止年度之經審核綜合業績，連同截至 2021 12 31 2021 年 月 日止年度之比較數字，該等比較數字乃摘錄自本公司 年年報所 載之本集團經審核綜合財務報表。 綜合損益及其他全面收益表 2022 12 31 截至 年 月 日止年度 2022 2021 年 年 附註 人民幣千元 人民幣千元 4 47,734 67,151 收益 (36,433) (44,488) 已提供服務成本 11,301 22,663 毛利 6 1,602 2,595 其他收入及虧損，淨額 – 40 ...

Enrolment Trends - The total number of course enrolments decreased by 27.8% from 8,097 for the six months ended June 30, 2021, to 5,846 for the same period in 2022[10] - Shun Da School's course enrolments dropped significantly by approximately 55.4%, from 2,220 to 991[10] - Tong Tai School's course enrolments decreased by approximately 17.4%, from 5,877 to 4,855[10] - The overall decline in enrolments is attributed to sporadic COVID-19 outbreaks leading to travel restrictions in Zhumadian City[8] - The total number of trainees attending driving courses decreased to 8,788 for the six months ended June 30, 2022, down approximately 15.0% from 10,334 in the same period of 2021[21] Course Performance - Premium courses for Small Vehicles saw a slight growth of approximately 17.8%, increasing from 1,845 to 2,173[14] - Enrolments for premium courses of Large Vehicles decreased by approximately 40.2%, from 3,872 to 2,314[14] - Standard courses for Large Vehicles experienced a significant decrease of approximately 60.2%, from 264 to 105[14] - Standard courses for Small Vehicles also saw a significant decrease of approximately 40.7%, from 2,116 to 1,254[14] - The number of enrolments in small vehicle standard courses increased to 543, a significant rise from 148, representing an increase of approximately 267.6%[18] Financial Performance - Total revenue for the Group was approximately RMB 31.5 million for the six months ended June 30, 2022, representing a decrease of approximately 11.3% from RMB 35.5 million in the same period of 2021[21] - The company's total revenue decreased by RMB4.0 million, or approximately 11.3%, from RMB35.5 million for the six months ended June 30, 2021, to RMB31.5 million for the six months ended June 30, 2022[45] - Gross profit decreased by RMB2.6 million, or approximately 20.3%, from RMB13.0 million for the six months ended June 30, 2021, to RMB10.4 million for the six months ended June 30, 2022[45] - The net profit attributable to the owners of the company was approximately RMB59,000 for the six months ended June 30, 2022, compared to RMB4.0 million for the same period in 2021, resulting in a net profit margin of 0.2%[45] - Profit before tax was RMB 258,000, significantly lower than RMB 4,426,000 in the previous year, indicating a decrease of 94.2%[148] Operational Challenges - The actual number of training hours provided by the Group decreased during the six months ended June 30, 2022, impacting business performance negatively[8] - The entire driving training system in Henan province was temporarily suspended due to COVID-19, affecting overall business operations[8] - The overall business performance was adversely affected by sporadic COVID-19 outbreaks, leading to a decline in enrolments and necessitating a reduction in course fees[34] - The company expects to face continued adverse impacts from sporadic COVID-19 outbreaks in the second half of 2022 but is committed to regaining market share through enhanced marketing efforts[40] Marketing and Expansion Plans - The introduction of new PRC regulations on driving tests and licenses on April 1, 2022, is expected to provide opportunities for market expansion in other provinces[35] - The company plans to develop the market for C6 vehicle training, which is expected to have higher course fees compared to other small vehicles[36] - Marketing efforts will be strengthened in Zhumadian City and nearby cities to increase enrolments for large vehicle courses[37] - The company intends to expand its marketing channels using new media technologies to reach a wider customer base[37] - The company plans to promote driving courses for C6 vehicles to gain market share in this potential new revenue source[40] Cost and Expense Management - Employee benefit expenses decreased by approximately RMB1.6 million, or approximately 16.6%, from approximately RMB9.3 million for the six months ended June 30, 2021, to approximately RMB7.8 million for the six months ended June 30, 2022[56] - Cost of services rendered decreased by approximately RMB1.4 million, or approximately 6.2%, from approximately RMB22.5 million for the six months ended June 30, 2021, to approximately RMB21.1 million for the six months ended June 30, 2022[56] - Selling and marketing expenses increased by approximately RMB0.4 million, or approximately 30.0%, from approximately RMB1.3 million to approximately RMB1.6 million for the six months ended June 30, 2022[64] - Finance costs increased by approximately RMB0.5 million, or approximately 25.7%, from approximately RMB1.9 million to approximately RMB2.3 million for the six months ended June 30, 2022[66] Assets and Liabilities - As of June 30, 2022, the Group's bank balances and cash increased to approximately RMB178.1 million from RMB175.2 million as of December 31, 2021, primarily due to increased operating cash flows[10] - The current assets of the Group amounted to approximately RMB181.3 million, while current liabilities were approximately RMB93.2 million, resulting in a current ratio of 1.94 as of June 30, 2022[10] - The Group's total interest-bearing borrowings increased to approximately RMB55.3 million as of June 30, 2022, compared to approximately RMB41.8 million as of December 31, 2021[14] - The gearing ratio of the Group was approximately 0.29 times as of June 30, 2022, up from 0.19 times as of December 31, 2021[76] Shareholder Information - Mr. Qi Xiangzhong holds a 51.6% interest in the company through a controlled corporation, Alpha Leap[109] - As of June 30, 2022, Alpha Leap holds a beneficial ownership of 206,400,000 shares, representing 51.60% of the total shareholding[116] - Cosmic Hero has a beneficial ownership of 39,600,000 shares, accounting for 9.90% of the total shareholding[116] - Great Sino holds 42,000,000 shares, which is 10.50% of the total shareholding[116] Corporate Governance - The company has complied with all applicable code provisions set out in the Corporate Governance Code during the reporting period[128] - The Audit Committee reviewed the unaudited consolidated financial statements and confirmed compliance with applicable accounting standards[135] - The company plans to continue reviewing and monitoring its corporate governance practices to maintain high standards[128]

Economic Impact and Market Conditions - The overall economy of Henan province was adversely impacted in the second half of 2021 due to sporadic Covid-19 outbreaks, extreme weather, and flooding, leading to a temporary suspension of the driving training system[6]. - The overall improvement in business performance was attributed to the steady recovery of market conditions in the PRC throughout 2021, despite challenges from extreme weather and COVID-19[28]. Regulatory Changes and Competition - Regulatory changes in the PRC lowered the threshold for existing Small Vehicles driving schools to provide Large Vehicles training, intensifying competition in the driving training services market[6]. Company Strategies and Market Expansion - The company adopted strategies such as expanding market reach to natural villages and enhancing operational capacity through new training vehicles and facilities[6][8]. - Marketing strategies were revised to penetrate markets outside Henan province, focusing on Xinjiang, Hunan, Hainan, and Zhejiang to increase course enrolment[13]. - The company plans to enhance marketing efforts outside Henan province to expand market share in other regions of China[20]. - Online enrolment efforts will be intensified to complement offline market development, facilitating interactions between online and offline channels[20]. - For 2022, the company plans to extend its market reach from Zhumadian City to surrounding areas to maintain its leading position[17]. Course Enrolment and Performance - The total number of course enrolments for the year ended 31 December 2021 increased by 3.1% to 13,040 from 12,645 in the previous year[29]. - Shun Da School's course enrolments rose by approximately 9.1%, reaching 3,264 compared to 2,993 in the year ended 31 December 2020[30]. - Tong Tai School's course enrolments saw a slight increase of approximately 1.3%, totaling 9,776, up from 9,652 in the previous year[30]. - Enrolments for premium courses of Large Vehicles increased by approximately 3.2% to 6,365 from 6,168 in the previous year[31]. - Enrolments for premium courses of Small Vehicles decreased by approximately 19.1%, falling to 3,018 from 3,730[31]. - Standard course enrolments for Large Vehicles decreased by approximately 26.8% to 447 from 611[31]. - Standard course enrolments for Small Vehicles improved by approximately 50.3%, increasing to 3,210 from 2,136[31]. - The total number of trainees attending driving courses increased to 15,183 in 2021, a slight increase of approximately 0.9% from 15,046 in 2020[39]. Financial Performance - Total revenue for the year ended December 31, 2021, was approximately RMB 67.2 million, representing a slight decrease of approximately 1.2% from RMB 68.0 million in 2020[39]. - Revenue from large vehicle training services accounted for approximately 82.7% of total revenue in 2021, up from 78.6% in 2020[39]. - Revenue from premium courses contributed approximately 92.7% of total revenue in 2021, down from 94.3% in 2020[39]. - The number of trainees for large vehicle premium courses was 8,111, generating revenue of RMB 53.985 million, which accounted for 80.4% of large vehicle revenue[43]. - The number of trainees for small vehicle standard courses was 2,761, generating revenue of RMB 2.987 million, which accounted for 4.4% of total revenue[43]. - The total revenue from small vehicles was RMB 11.636 million, representing 17.3% of total revenue in 2021[43]. - The total number of trainees for small vehicle premium courses was 3,763, generating revenue of RMB 8.244 million, which accounted for 12.3% of total revenue[43]. - The overall revenue from driving training services for large vehicles was RMB 55.515 million, up from RMB 53.394 million in 2020[43]. Profitability and Losses - Gross profit decreased by RMB7.1 million (or approximately 23.9%) from RMB29.8 million for the year ended 31 December 2020 to RMB22.7 million for the year ended 31 December 2021[48]. - Net loss attributable to the owners of the Company was approximately RMB3.5 million for the year ended 31 December 2021, compared to a net profit of approximately RMB6.8 million for the year ended 31 December 2020[48]. - Net loss margin attributable to the owners of the Company was 5.1% for the year ended 31 December 2021, compared to a net profit margin of 10.0% for the year ended 31 December 2020[48]. Cost and Expense Management - Cost of services rendered increased by approximately RMB6.3 million (or approximately 16.6%) from approximately RMB38.2 million for the year ended 31 December 2020 to approximately RMB44.5 million for the year ended 31 December 2021[55]. - Employee benefit expenses increased by approximately RMB0.9 million (or approximately 5.0%), from approximately RMB17.2 million for the year ended 31 December 2020 to approximately RMB18.0 million for the year ended 31 December 2021[59]. - Fuel expenses increased by approximately RMB3.5 million (or approximately 47.5%), from approximately RMB7.3 million for the year ended 31 December 2020 to approximately RMB10.8 million for the year ended 31 December 2021[60]. - Depreciation and amortisation charges increased by approximately RMB1.7 million (or approximately 17.8%), from approximately RMB9.3 million for the year ended 31 December 2020 to approximately RMB11.0 million for the year ended 31 December 2021[61]. Governance and Compliance - The Board comprised six Directors, including two executive Directors, one non-executive Director, and three independent non-executive Directors[123]. - The Company has complied with all code provisions set out in the Corporate Governance Code for the year ended December 31, 2021[116]. - The Company received written annual confirmations of independence from each independent non-executive Director[130]. - The Audit Committee held four meetings during the year ended December 31, 2021, and will continue to hold at least two meetings each subsequent year[162]. - The Nomination Committee held one meeting during the year ended December 31, 2021, and will continue to hold at least one meeting each subsequent year[175]. - The Remuneration Committee is responsible for reviewing and approving remuneration proposals with reference to corporate goals and objectives[195]. Future Outlook and Investments - The company provided a forward guidance of 8% revenue growth for the next fiscal year, anticipating continued market expansion[200]. - The company is investing HKD 1 billion in research and development for new technologies over the next two years[200]. - The company plans to enter two new international markets by the end of the next fiscal year, targeting a revenue contribution of HKD 500 million from these markets[200].