Financial Performance - The total revenue for the year ended December 31, 2022, slightly decreased to RMB 765 million from RMB 775 million in the previous year, representing a decline of approximately 1.29%[7] - The loss attributable to the owners of the company significantly reduced to RMB 39.5 million from RMB 137.5 million in the previous year, marking a decrease of about 71.2%[7] - The gross profit from information system development services increased to RMB 3.9 million, compared to a gross loss of RMB 1.8 million in the previous year, indicating a turnaround in profitability[7] - The overall gross profit for the year was RMB 136.01 million, up from RMB 80.61 million in the previous year, with a gross margin increase from 10.3% to 17.8%[44][45] - The gross profit from information system development services was RMB 39.95 million, a significant improvement from a gross loss of RMB 18.13 million in the previous year[44] - The company experienced a significant net loss of RMB 40.7 million in the current year, a substantial decrease from the RMB 137.5 million loss in the previous year, primarily due to improved management of receivables and the maturation of business operations[19] Revenue Diversification - The company has diversified its revenue sources by launching new businesses, including sales of health products and digital asset products, contributing to its overall revenue growth[8] - The company has begun distributing and selling health products, including NMN longevity supplements and liver detox products, with plans to expand into overseas markets[8] - The gross profit from new business initiatives, including IT products and health supplements, has positively impacted the company's financial performance[7] - The company is diversifying its revenue streams by entering the health product market, including NMN longevity supplements and liver detox products, in response to increasing consumer awareness of health[19] - The company launched a new business segment selling IT products, generating revenue of RMB 5.5 million in 2022[37] - Health product sales reached RMB 5.0 million in 2022, marking the entry into the health product market[38] Strategic Initiatives - The company invested in a travel consulting service provider to enhance its access to upstream resources, indicating a strategic move towards vertical integration[8] - The company is leveraging digital technology to explore new business avenues, including the sale of alcoholic beverages and digital asset products, bridging the gap between physical and digital assets[16] - The company has adopted a "digital + physical" model to explore opportunities in liquor sales and digital asset products, reflecting its commitment to leveraging new technologies[8] - The company plans to sell nutritional products through various platforms, including its own brand website and WeChat mini-programs, with future expansion into overseas e-commerce platforms[8] - The company is focusing on the development of virtual reality technologies, aiming to capitalize on the anticipated growth in the metaverse sector, with a target of 25 million VR device shipments by 2026[14] Market Outlook - The Chinese tourism industry is projected to recover significantly in 2023, with an expected 73% year-on-year increase in domestic travel to over 4.55 billion trips, and a revenue growth of approximately 95% to around RMB 4 trillion[20] - The company anticipates that the outbound tourism market will see a twofold increase in traveler numbers in 2023, reaching over 90 million, recovering to 31.5% of pre-pandemic levels[21] - The company reported a strong rebound in orders following the relaxation of cross-province travel restrictions in December 2022, indicating a recovery in travel demand[15] - The company expects significant recovery in the tourism industry as COVID-19 impacts diminish, enhancing profitability and resource acquisition capabilities[83] Risk Management - The company is closely monitoring the developments of the COVID-19 pandemic and its impact on operations and financial performance, demonstrating a proactive risk management approach[8] - The ongoing COVID-19 pandemic continues to pose uncertainties for the travel industry, prompting the group to prepare for potential risks and challenges[23] - The company faced increased credit risk due to delayed settlements of trade receivables and prepayments, exacerbated by the COVID-19 pandemic[51] - The company recorded an expected credit loss reversal of RMB 7.4 million for the year, reflecting a decrease in credit risk after successful legal actions against certain debtors[52] Corporate Governance - The company has adopted the principles of the Corporate Governance Code as a benchmark for its governance practices[118] - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors[125] - The company has complied with all applicable code provisions of the Corporate Governance Code for the year ended December 31, 2022, except for one[118] - The company emphasizes the importance of good corporate governance standards to protect shareholder interests and enhance corporate value[118] - The board regularly reviews the contributions of directors to ensure they dedicate sufficient time to their responsibilities[124] Sustainability and ESG - The company emphasizes its commitment to sustainable development, aiming to create long-term value for shareholders and communities through quality tourism services[197] - The sustainable development strategy includes four key dimensions: quality service, employee care, green office practices, and community contribution[198] - The board of directors is responsible for assessing and managing significant environmental, social, and governance (ESG) issues, ensuring risk management is integrated into daily operations[199] - The company conducts annual stakeholder importance assessments to prioritize ESG issues that are deemed significant by both internal and external stakeholders[199] Future Plans - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by market expansion and new product launches[97] - Market expansion plans include entering three new international markets by the end of 2023, aiming to increase market share by 10%[99] - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its service offerings[100] - A new product line is set to launch in Q2 2023, expected to contribute an additional $5 million in revenue[101]

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。 Feiyang International Holdings Group Limited 飛 揚 國 際 控 股（ 集 團 ）有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1901） 截 至2022年12月31日 止 年 度 的 年 度 業 績 公 告 財務摘要 截至12月31日止年度 2022年 2021年 人民幣千元 人民幣千元 收益 76,477 77,471 毛利 13,601 7,961 年內虧損 (40,714) (137,477) • 由於COVID-19爆發導致本集團若干業務營運暫停及所有出境旅行團 持續暫停，收益同比減少人民幣1.0百萬元或1.3%。 ...

Financial Performance - For the six months ended June 30, 2022, the company reported revenue of RMB 6,966,000, a decrease of RMB 29,700,000 or 81.0% compared to RMB 36,619,000 in the same period of 2021[7]. - Gross profit for the same period was RMB 2,719,000, down RMB 1,300,000 or 32.2% from RMB 4,009,000 in 2021[8]. - The company recorded a net loss of RMB 20,031,000 for the six months ended June 30, 2022, compared to a net loss of RMB 76,203,000 in the same period of 2021[9]. - The total comprehensive loss for the period was RMB 15,298,000, significantly reduced from RMB 76,753,000 in the previous year[18]. - The basic and diluted loss per share for the period was RMB 2.88, compared to RMB 15.24 in the same period of 2021[18]. - The decline in revenue was primarily attributed to the impact of COVID-19, which led to the suspension of outbound travel tours and a decrease in sales of "flight + hotel booking" products[7]. - The company reported other income and gains of RMB 978,000, down from RMB 1,996,000 in the previous year[13]. - Administrative expenses increased to RMB 10,988,000 from RMB 8,004,000 in 2021, reflecting higher operational costs[13]. - The company experienced a foreign exchange gain of RMB 4,733,000 during the period, compared to a loss of RMB 550,000 in the same period of 2021[13]. - The group reported a decrease in the cost of services provided to RMB 3,565,000 from RMB 32,610,000 in the previous year[43]. - The group recorded a total compensation of RMB 762 million for key management personnel, up from RMB 510 million in the previous year[99]. - The group recorded a pre-tax loss for the six months ended June 30, 2022, of RMB 19,527,000, compared to a loss of RMB 76,203,000 in 2021[51]. Cash Flow and Financial Position - The company reported a net cash flow from operating activities of RMB (42,782) thousand for the six months ended June 30, 2022, compared to RMB 6,056 thousand in the same period of 2021[25]. - The net cash flow used in investing activities was RMB (36,221) thousand for the first half of 2022, compared to RMB (2,987) thousand in the previous year[25]. - The net cash flow from financing activities increased significantly to RMB 82,142 thousand in the first half of 2022, up from RMB 890 thousand in the same period of 2021[25]. - The total equity of the company as of June 30, 2022, was RMB 93,002 thousand, reflecting an increase from RMB 88,470 thousand at the end of 2021[22]. - The company’s cash and cash equivalents at the end of June 2022 amounted to RMB 49,606 thousand, compared to RMB 25,515 thousand at the end of June 2021[25]. - The company’s total non-current assets were valued at RMB 139,833 thousand, while current assets totaled RMB 234,904 thousand as of June 30, 2022[21]. - The company’s total liabilities amounted to RMB 266,022 thousand, with current liabilities making up RMB 199,913 thousand of this total[21]. - The capital debt ratio decreased to 215.0% as of June 30, 2022, from 843.3% as of December 31, 2021, primarily due to the completion of a rights issue that increased equity[158]. - The group's cash and bank balance increased to RMB 49.6 million as of June 30, 2022, up from RMB 43.1 million as of December 31, 2021[158]. Shareholder Information - The company’s major shareholder, Mr. He, holds 40.96% of the shares, amounting to 327,690,700 shares[182]. - Ms. Qian also holds 327,690,700 shares, equivalent to 40.96% of the total issued share capital, indicating a strong concentration of ownership[194]. - The company has not granted any share options under its share option scheme since its adoption on June 11, 2019[199]. - The shareholding structure indicates a high level of control by a few major shareholders, which may impact corporate governance and decision-making[194]. - As of June 30, 2022, Mr. He directly owns 9,172,000 shares, approximately 1.15% of the issued share capital, and is deemed to have interests in a total of 288,654,700 shares, or about 36.08%[197]. - Ms. Qian is deemed to have interests in 288,654,700 shares, approximately 36.08% of the issued share capital, alongside her direct ownership of 29,864,000 shares, or about 3.73%[198]. Business Operations and Strategy - The group is actively exploring new business opportunities, including the sale of nutritional products like NMN supplements, to diversify revenue streams[104]. - The group launched the "Flying Metaverse" digital cultural collectibles platform, focusing on the combination of digital and physical products, with the first original IP collectible released in May 2022[102]. - The board remains cautiously optimistic about the future market development, believing that the tourism industry will rebound strongly once the pandemic subsides[108]. - The group plans to enhance its digital information technology applications and expand its market reach in digital services[102]. - The company has entered into a non-binding memorandum of understanding to establish a joint venture with Tinian Real Estate Development, LLC, with a proposed total investment not exceeding USD 15 million[180]. - The company plans to establish a joint venture in China to provide a metaverse platform, with a total investment not exceeding RMB 148 million[179]. Impairment and Provisions - The company has adopted a prudent estimate for impairment provisions due to increased credit risk from COVID-19 related disruptions[153]. - Impairment provisions for trade receivables and prepayments amounted to RMB 73.2 million and RMB 87.7 million as of June 30, 2022[151]. - The group has reduced financial asset impairment losses to RMB 1.4 million from RMB 53.7 million in the previous year, indicating improved financial health[104]. Employee and Compensation - The total employee compensation for the period was RMB 6.9 million, down from RMB 8.1 million in the previous year, with a total headcount of 147 employees as of June 30, 2022[175]. - The group’s employee count decreased from 189 as of December 31, 2021, to 147 as of June 30, 2022[175]. Legal and Regulatory Matters - The group has taken legal actions against certain debtors to recover impaired balances, including asset seizures from winning cases[157]. - The company has not entered into any formal agreements regarding the proposed joint ventures as of the report date[180].

Financial Performance - Total revenue for the year ended December 31, 2021, decreased by RMB 66.0 million or 46.0% to RMB 77.5 million compared to RMB 143.5 million in the previous year[9]. - The company recorded a loss attributable to owners of RMB 137.5 million for the year, compared to a loss of RMB 86.4 million in the previous year[9]. - The company recorded a net loss of RMB 137.5 million for the year, compared to a net loss of RMB 86.4 million in the previous year, primarily due to an increase in expected credit losses from trade and other receivables from RMB 73.0 million to RMB 96.2 million[19]. - Total revenue decreased significantly by RMB 66.0 million or 46.0% to RMB 77.5 million from RMB 143.5 million in the previous year, mainly due to the suspension of several business operations and all outbound tours caused by the COVID-19 pandemic[26]. - Overall gross profit decreased from RMB 31.28 million in 2020 to RMB 7.96 million in 2021, with a gross margin of 10.3% compared to 21.8% in the previous year[43]. - Other income and gains fell from RMB 14.9 million in 2020 to RMB 3.8 million in 2021, primarily due to a reduction in government subsidies[46]. - The company reported a significant increase in revenue, achieving a total of $X million for the fiscal year, representing a Y% growth compared to the previous year[112]. - The company reported a net profit margin of I%, reflecting improved operational efficiency and cost management[112]. Business Development and Strategy - The company has signed travel service agreements with over ten Chinese universities for its newly launched SaaS system, aiming to expand its market share in the university travel service sector[10]. - The company established a joint venture with a state-owned enterprise in Ningbo for the renovation and operation management of the Jiufeng Mountain Scenic Area, which is expected to contribute to stable revenue growth[10]. - The company is focusing on diversifying its business into the cultural tourism sector, leveraging its experience in travel market operations[9]. - The company has launched the "Feiyang Metaverse" digital cultural collection platform, focusing on distributing and selling cultural collectibles in China through a "digital + physical" model[13]. - The company is actively exploring opportunities in the digital economy and metaverse sectors to enhance its business model[13]. - The company aims to build a solid foundation for future expansion and upgrades by diversifying into digital information technology-based cultural tourism[14]. - The company plans to enhance its digital information technology applications and expand its market presence in the digital information application business[22]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the G sector[112]. Market Outlook - The board believes that the tourism industry will rebound post-pandemic, and the company aims to provide enjoyable travel experiences for customers[14]. - The company anticipates a cautious yet positive outlook for market development in 2022, closely monitoring the evolving COVID-19 situation and government measures[24]. - Domestic tourism in China is projected to reach 4 billion trips in 2022, with tourism revenue expected to reach RMB 3.8 trillion, representing a growth of 16% and 27% respectively compared to the previous year[23]. Revenue Breakdown - The company’s revenue from tour sales was RMB 70.3 million, accounting for 90.7% of total revenue, while revenue from independent travel products was RMB 4.7 million, representing 6.1%[26]. - Customized travel sales increased from RMB 27.97 million in 2020 to RMB 48.20 million in 2021, accounting for 68.6% of total travel sales[29]. - Traditional group travel sales decreased from RMB 41.77 million in 2020 to RMB 22.09 million in 2021, representing 31.4% of total travel sales[29]. - Total travel sales remained stable at RMB 70.29 million in 2021 compared to RMB 69.74 million in 2020[29]. - Total ticket sales revenue decreased from RMB 265.82 million in 2020 to RMB 91.13 million in 2021, a decline of 65.7%[35]. Cost Management - Sales cost decreased from RMB 112.2 million in 2020 to RMB 69.5 million in 2021, aligning with the overall revenue decline[42]. - Sales and distribution expenses decreased by RMB 3.4 million or 20.5% from RMB 16.8 million to RMB 13.4 million, primarily due to reduced employee costs and marketing expenses related to travel restrictions[47]. - Administrative expenses decreased by RMB 7.3 million or 24.8% from RMB 29.6 million to RMB 22.2 million, mainly due to a reduction in legal and professional fees and employee costs[48]. Management and Governance - The company has appointed new executives to strengthen its management team, including Mr. Xiong as financial director and Mr. He as chairman and general manager[100][98]. - The board consists of nine members, including six executive directors and three independent non-executive directors[131]. - The company has adopted a written guideline for employees regarding the trading of securities, ensuring compliance with the standard code of conduct[128]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules, ensuring a balanced board[137]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific written terms of reference[147]. Risk Management - The company has established a risk management and internal control system to identify, assess, and manage significant risks, ensuring compliance with relevant laws and regulations[173]. - The board is responsible for evaluating the nature and extent of risks acceptable to the company in achieving strategic objectives[169]. - The company has implemented control procedures to prevent unauthorized access to and use of insider information[176]. Shareholder Relations - The company has established a shareholder communication policy to ensure that shareholder opinions and inquiries are properly addressed[189]. - The board maintains ongoing dialogue with shareholders, particularly through annual general meetings[167]. - Shareholder resolutions are proposed individually at general meetings to protect shareholder rights and interests[184].

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 36.619 million, a decrease of RMB 69.341 million or 65.4% compared to RMB 105.960 million in the same period of 2020[9]. - Gross profit for the same period was RMB 4.009 million, down RMB 24.697 million or 86.0% from RMB 28.706 million in 2020[10]. - The net loss for the period was RMB 76.203 million, compared to a net loss of RMB 16.986 million in the prior year[11]. - The company recorded a total comprehensive loss of RMB 76.753 million for the period, compared to RMB 16.843 million in the same period of 2020[14]. - Basic and diluted loss per share for the period was RMB 15.24, compared to RMB 3.40 in the previous year[16]. - The decline in revenue was primarily attributed to the impact of the COVID-19 pandemic, which led to the suspension of outbound travel tours and related sales[9]. - Other income and gains for the period were RMB 1.996 million, down from RMB 3.515 million in 2020[9]. - The company experienced a significant increase in financial asset impairment losses, totaling RMB 53.743 million compared to RMB 22.240 million in 2020[9]. - The group reported a pre-tax loss of RMB 46,640 thousand for the six months ended June 30, 2021, compared to a pre-tax loss of RMB 12,700 thousand for the same period in 2020[52]. - The company reported a net loss of RMB 76.2 million for the six months ended June 30, 2021, compared to a net loss of RMB 17.0 million for the same period in 2020, primarily due to a revenue decrease of RMB 693 million caused by COVID-19 disruptions[76]. Assets and Liabilities - Total non-current assets amounted to RMB 102,299,000, with investment properties valued at RMB 8,485,000 and right-of-use assets at RMB 18,273,000[20]. - Current assets totaled RMB 239,683,000, including trade receivables of RMB 26,098,000 and cash and cash equivalents of RMB 25,515,000[20]. - Total liabilities reached RMB 294,398,000, with current liabilities including interest-bearing bank borrowings of RMB 206,500,000[20]. - The company's net assets stood at RMB 29,322,000, reflecting a decrease from the previous period[20]. - The total equity attributable to owners of the parent was RMB 29,322,000, with issued share capital of RMB 4,398,000[20]. - Trade receivables increased to RMB 86.3 million as of June 30, 2021, from RMB 84.1 million as of December 31, 2020, with a provision for impairment of RMB 60.2 million[63]. - The aging analysis of trade receivables showed that RMB 56.2 million was overdue between 1 to 2 years as of June 30, 2021, compared to RMB 49.9 million as of December 31, 2020[64]. - Total trade payables increased to RMB 29.5 million as of June 30, 2021, from RMB 13.1 million as of December 31, 2020[65]. - Interest-bearing bank borrowings amounted to RMB 206.5 million as of June 30, 2021, compared to RMB 187.8 million as of December 31, 2020[67]. - As of June 30, 2021, the group's current assets and current liabilities were RMB 239.7 million and RMB 294.4 million, respectively, with a cash and bank balance of RMB 25.5 million[114]. - The capital debt ratio increased to 704.2% as of June 30, 2021, compared to 177.0% on December 31, 2020, primarily due to losses during the period[114]. Cash Flow - The company reported a net cash inflow from operating activities of RMB 6,056,000, compared to a net outflow of RMB 3,379,000 in the previous year[33]. - The company’s investment activities resulted in a net cash outflow of RMB 2,987,000, significantly lower than the previous year's outflow of RMB 48,896,000[33]. - The company’s financing activities generated a cash inflow of RMB 890,000, compared to RMB 13,945,000 in the previous year[33]. - The company experienced a net increase in cash and cash equivalents of RMB 3,959,000 during the period[33]. - The group maintained unutilized bank financing of approximately RMB 32.5 million as of June 30, 2021, sufficient to meet current operational and working capital needs[114]. Operational Strategies - The company is focused on recovery strategies post-COVID-19 to enhance operational performance and regain market share[9]. - The company has resumed some local travel group operations and sales of "flight + hotel booking" products, while all outbound travel groups remain suspended due to COVID-19[75]. - The group has signed travel service agreements with nine Chinese universities, expanding its market share in the higher education travel service sector[81]. - The establishment of a joint venture in Ningbo is expected to provide stable income from tourism projects in China[81]. - The group launched an intelligent travel SaaS system for Chinese universities in July 2021, aiming to meet the rebound in travel demand[81]. - The group will closely monitor the development of the COVID-19 pandemic and implement necessary measures and strategies[79]. Shareholder Information - Mr. He holds 336,628,700 shares, representing 67.3257% of the issued share capital of the company[140]. - Mr. He directly owns 8,988,000 shares, approximately 1.7976% of the issued share capital[142]. - Mr. Wu directly owns 440,000 shares, representing 0.9434% of the issued share capital[134]. - Ms. Qian directly owns 29,864,000 shares, approximately 5.9728% of the issued share capital[143]. - The major shareholders include HHR Group and Michael Group, both holding 336,628,700 shares, which is 67.3257% of the issued share capital[140]. - The company has a significant concentration of ownership, with Mr. He and Ms. Qian acting in concert, controlling a substantial portion of the shares[142]. Corporate Governance - The company has complied with the corporate governance code, except for a deviation regarding the separation of the roles of Chairman and CEO[150]. - The company has established a balance of power and authority within the board to ensure effective management and business development[150]. - The board of directors has undergone changes, with Mr. Zhang resigning and Mr. Xiong appointed as the new executive director and CFO[146]. Compliance and Regulations - The company has adopted the revised Hong Kong Financial Reporting Standards with no impact on its financial position and performance[40]. - The company has confirmed that there have been no significant changes in the nature of its business during the reporting period[154]. - The company plans to continue monitoring developments in foreign investment laws and update its compliance measures accordingly[156]. Expenses and Cost Management - Administrative expenses for the period were RMB 8.004 million, a decrease from RMB 16.098 million in the previous year[9]. - Selling and distribution expenses decreased by 24.5% to RMB 63 million, primarily due to layoffs and reduced marketing expenses during the period[98]. - Administrative expenses were reduced by 50.3% to RMB 8.1 million, mainly due to layoffs resulting from business operations being suspended[99]. - Other expenses increased to RMB 53.9 million, primarily due to provisions for impairment of trade receivables and other receivables[101]. - The company's financing costs decreased due to a decline in the average interest rate on bank borrowings during the period[102]. Market Performance - The group’s total revenue from travel package products and services sales was RMB 936 thousand for the six months ended June 30, 2021, compared to RMB 514 thousand in 2020, indicating an increase of 82.2%[50]. - The group’s tour sales amounted to RMB 33.8 million, representing 92.3% of total revenue, a decrease of RMB 8.7 million or 20.5% from RMB 42.5 million in the same period of 2020[84]. - The marginal income from free travel products was RMB 1.9 million, a significant decrease of RMB 17.8 million or 90.4% from RMB 19.7 million in the same period of 2020[87]. - The total sales of free travel products, including ticket and hotel sales, were not recognized during the period due to COVID-19, compared to RMB 43.2 million for the six months ended June 30, 2020[93]. - The revenue from free travel product sales decreased significantly, contributing only 5.2% to total revenue in the current period, down from 18.6% in the previous period[96].

Financial Performance - Total revenue for the year ended December 31, 2020, decreased by 79.1% to RMB 143.5 million from RMB 685.9 million in the previous year[9]. - The company recorded a loss attributable to owners of RMB 86.4 million for the year, compared to a profit of RMB 16.4 million in the previous year[9]. - The company recorded a net loss of RMB 86.4 million in 2020, compared to a net profit of RMB 16.4 million in the previous year, primarily due to the suspension of local tour operations and increased credit risk leading to impairment losses of RMB 73.0 million on financial assets[17]. - Total revenue decreased significantly by 79.1% from RMB 685.9 million in 2019 to RMB 143.5 million in 2020, mainly due to the operational suspension caused by COVID-19[27]. - Revenue from tour sales dropped by 87.7% from RMB 568.7 million to RMB 69.7 million, with traditional group tours and customized tours accounting for 59.9% and 40.1% of total tour sales respectively[29]. - The gross profit for the year was RMB 31.3 million, down from RMB 118.3 million in 2019, while the gross profit margin increased from 17.2% to 21.8%[43]. - Selling and distribution expenses decreased by RMB 19.2 million or 53.3% to RMB 16.8 million, mainly due to cost-saving measures in response to COVID-19[47]. - Administrative expenses were reduced by RMB 24.4 million or 45.3% to RMB 29.6 million, attributed to the absence of listing expenses and cost-saving measures[48]. - Other income and gains remained stable at RMB 14.9 million for both years, primarily consisting of government subsidies[46]. - Interest expenses increased by RMB 4.2 million to RMB 13.2 million due to an increase in average bank loans[50]. Business Strategy and Operations - The company has adjusted its business strategy to mitigate the financial impact of COVID-19, including cost-saving measures such as workflow simplification and reducing advertising expenses[10]. - In 2020, the company began focusing on the development and management of tourist attractions in China, forming joint ventures for tourism management and development in Ningbo[10]. - The company aims to diversify its business towards a digital information technology-based model in the cultural tourism sector[12]. - The company plans to enhance its digital information technology applications and expand its market presence in this area[11]. - The company established a joint venture in June 2020 for the management and development of tourist attractions in China, aiming to diversify revenue sources[21]. - The company aims to expand its sales network and customer base through the establishment of joint ventures in the tourism sector[21]. - The company plans to utilize proceeds from its listing to further invest in the management and development of tourist attractions in China[22]. - The company will closely monitor the development of COVID-19 and related government measures to adapt its strategies accordingly[23]. Market Outlook - The board believes that the domestic tourism demand will remain a key driver for the tourism industry, with expectations for outbound travel to resume in the second half of 2021[12]. - Domestic tourism in China is projected to reach 4.1 billion trips in 2021, with tourism revenue expected to reach RMB 3.3 trillion, representing growth of 42% and 48% respectively compared to the previous year[22]. - The board expresses confidence that the tourism sector will rebound post-pandemic, presenting new opportunities for growth[12]. Risk Management - The company has taken measures to manage operational risks and uncertainties arising from the COVID-19 pandemic[11]. - The company recognized impairment losses on financial assets amounting to RMB 73.0 million, a significant increase from RMB 4.6 million in the previous year, due to increased credit risk from COVID-19[49]. - The company recognized an impairment provision of RMB 231 million for prepayments, deposits, and other receivables due to increased potential credit risk from outstanding balances[60]. - The average turnover days for trade receivables increased to 251.1 days in the current year from 70.5 days in the previous year, primarily due to delays in settlement caused by COVID-19[62]. Corporate Governance - The company is led by Mr. He Bin Feng, who serves as both Chairman and CEO, ensuring effective management and business development[115]. - The board consists of three independent non-executive directors, all confirmed to be independent according to the listing rules[116]. - The audit committee, composed of three independent non-executive directors, held three meetings during the year to review financial performance and reporting[129]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific written terms of reference[127]. - Continuous professional development is encouraged for all directors to ensure they understand their responsibilities and the company's operations[121]. - The company has adopted a board diversity policy, emphasizing the importance of diverse board members for maintaining competitive advantage[136]. - The board will consider setting measurable targets for implementing the board diversity policy and will review these targets periodically[136]. Employee and Stakeholder Relations - The total number of employees decreased from 539 on December 31, 2019, to 278 on December 31, 2020, with total employee costs amounting to RMB 235 million, down from RMB 502 million in the previous year[68]. - The board of directors emphasizes the importance of maintaining good relationships with employees, customers, suppliers, and other stakeholders for sustainable development[175]. Future Guidance - Future guidance indicates expected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion[88]. - The company provided guidance for the next fiscal year, projecting revenue growth of 25% to $625 million[99]. - Overall, the company remains optimistic about future growth, citing strong demand and a robust pipeline of new products[99].

Financial Performance - Revenue for the six months ended June 30, 2020, decreased by RMB 196.6 million or 65.0% compared to the same period in 2019, primarily due to the impact of COVID-19 on local tour operations and the suspension of outbound tours [20]. - Gross profit for the same period decreased by RMB 27.5 million or 49.0%, attributed to the decline in revenue [21]. - The company recorded a net loss of RMB 17.0 million for the six months ended June 30, 2020, compared to a profit of RMB 1.2 million in the same period of 2019 [22]. - Total comprehensive loss for the period amounted to RMB 16.8 million, compared to a total comprehensive income of RMB 1.2 million in the prior year [30]. - Basic and diluted loss per share for the period was RMB (3.40), compared to earnings of RMB 0.33 per share in the previous year [33]. - The company reported a total revenue of RMB 178,512,000 as of June 30, 2019, compared to RMB 195,040,000 as of January 1, 2020 [49][50]. - For the six months ended June 30, 2020, customer contract revenue was RMB 105,960,000, a decrease of 65% compared to RMB 302,591,000 for the same period in 2019 [76]. - The group reported a pre-tax loss of RMB 16,986,000 for the six months ended June 30, 2020, compared to a profit of RMB 1,233,000 in the same period of 2019 [87]. - The financing costs for the six months ended June 30, 2020, amounted to RMB 6,812,000, an increase of 88% from RMB 3,625,000 in 2019 [80]. - The group incurred a service cost of RMB 77,254,000 for the six months ended June 30, 2020, down 69% from RMB 246,338,000 in 2019 [81]. - The company incurred a loss of RMB 17,000,000 during the first half of 2020 due to the impact of COVID-19 on its operations [116]. - The company anticipates continued adverse effects on its financial performance in the second half of 2020 due to the ongoing COVID-19 pandemic [118]. Assets and Liabilities - Total assets as of June 30, 2020, were RMB 426.2 million, a decrease from RMB 461.8 million as of December 31, 2019 [36]. - Current liabilities increased to RMB 353.3 million as of June 30, 2020, compared to RMB 310.6 million at the end of 2019 [36]. - The company’s total liabilities as of June 30, 2020, were RMB 178,197,000 [56]. - The company’s total reserves as of June 30, 2020, were RMB 173,799,000, down from RMB 190,642,000 as of December 31, 2019 [58]. - As of June 30, 2020, current assets and current liabilities were RMB 426.2 million and RMB 353.3 million, respectively, with cash and bank balances of RMB 63.1 million [152]. - The capital debt ratio increased to 118.7% as of June 30, 2020, from 97.3% as of December 31, 2019, primarily due to losses during the period [152]. Cash Flow - The net cash flow used in operating activities was RMB (35,626,000), while the net cash flow from financing activities was RMB 132,042,000 [60]. - As of June 30, 2020, cash and cash equivalents amounted to RMB 138,947,000, a decrease of RMB 38,330,000 from the previous period [60]. - The company’s investment activities resulted in a net cash outflow of RMB 48,896,000 [60]. Revenue Breakdown - Sales from ticket and hotel accommodation amounted to RMB 43,227,000, accounting for 40.8% of total revenue [124]. - Group travel sales were RMB 42,516,000, representing 40.1% of total revenue, a significant decrease from RMB 272,046,000 in the previous year [125]. - The marginal income from free travel products was RMB 19,703,000, which accounted for 18.6% of total revenue [126]. - Ticket and hotel accommodation sales amounted to RMB 43.2 million for the six months ended June 30, 2020, compared to RMB 0 for the same period in 2019 [130]. - Group's tour sales decreased by RMB 229.5 million or 84.4% to RMB 42.5 million for the six months ended June 30, 2020, from RMB 272.0 million in the same period of 2019 [133]. - The marginal income from free travel products decreased by RMB 6.6 million or 25.1% to RMB 19.7 million for the six months ended June 30, 2020, compared to RMB 26.3 million for the same period in 2019 [137]. - The sales of travel-related products and services dropped by RMB 3.8 million or 88.3% to RMB 0.5 million for the six months ended June 30, 2020, from RMB 4.3 million in the same period of 2019 [140]. Expenses - Selling and distribution expenses decreased by RMB 8.0 million or 48.8% to RMB 8.4 million for the six months ended June 30, 2020, primarily due to staff cost reductions and decreased advertising expenses [146]. - Administrative expenses decreased by RMB 19.5 million or 54.7% during the period due to the absence of listing expenses [147]. - Other expenses increased from RMB 1.6 million to RMB 22.5 million, primarily due to provisions for impairment of trade receivables and prepayments [148]. - Financing costs increased due to higher bank borrowings during the period [149]. Shareholder Information - The company reported a significant ownership structure, with Mr. He and Ms. Qian collectively holding 71.83% of the shares, amounting to 359,150,000 shares [172]. - The company has a stock option plan approved by shareholders on June 11, 2019, but no options have been granted under this plan since its adoption [183]. - As of June 30, 2020, Mr. He directly owned approximately 1.80% of the issued share capital, while his associated entities collectively held about 64.06% [181]. - The company has multiple controlled entities, including HHR Group and Michael Group, which together hold significant shares in the company [181]. - The company disclosed that there were no other individuals, apart from directors, holding 10% or more of the voting rights in any class of shares [182]. - The company has a total of 44,440,000 shares held by controlled entities, representing 95.2830% of certain subsidiaries [166]. - The company’s major shareholders include Mr. He and Ms. Qian, who are considered concert parties, influencing the overall shareholding structure [181]. Strategic Initiatives - The company has implemented cost-saving measures, including streamlining workflows and reducing advertising expenses, to mitigate the financial impact of COVID-19 [117]. - A joint venture, Ningbo Zhengjiang Feiyang Cultural Tourism Development Co., Ltd., was established to manage and develop tourism attractions in China, aiming to generate stable income [118]. - The company is actively seeking suitable investment or business opportunities to diversify its operations and expand revenue sources [196]. - The establishment of the joint venture is expected to enhance the sales network and customer base in China, providing more business opportunities for the group [196]. - The board believes that the demand for local tourist attractions is increasing due to COVID-19 travel restrictions, presenting opportunities for the joint venture [196]. Market and Product Development - The company has not reported any new product launches or technological advancements during this period [20]. - There are no updates on market expansion or mergers and acquisitions mentioned in the report [20]. - The company has not disclosed any new product developments or market expansion strategies during the reporting period [183]. - No other significant investments, acquisitions, or disposals occurred during the reporting period [200].

Financial Performance - The total revenue for the year ended December 31, 2019, increased by RMB 193.0 million or 39.2% to RMB 685.9 million from RMB 492.9 million for the year ended December 31, 2018[9]. - The sales revenue from travel packages increased by RMB 148.3 million or 35.3% to RMB 568.7 million for the year ended December 31, 2019, compared to RMB 420.4 million for the year ended December 31, 2018[10]. - The total revenue from ticket sales rose by RMB 814.7 million or 28.9% to RMB 3,632.7 million for the year ended December 31, 2019, from RMB 2,818.0 million for the year ended December 31, 2018[9]. - Total revenue increased by RMB 193 million or 39.2% from RMB 492.9 million in 2018 to RMB 685.9 million in 2019, primarily driven by growth in tour sales[20]. - Tour sales revenue reached RMB 568.7 million in 2019, a 35.3% increase from RMB 420.4 million in 2018, with traditional group tours accounting for 74.9% of total tour sales[26]. - The gross profit for the group was RMB 118.3 million in 2019, with a gross profit margin of 17.2%, down from 21.6% in 2018[39]. - The cost of sales rose to RMB 567.6 million in 2019, an increase of RMB 181.4 million from RMB 386.2 million in 2018, aligning with the overall revenue growth[38]. - The gross margin for tour sales decreased from 11.8% in 2018 to 10.0% in 2019 due to lower margins from sales to travel agencies compared to direct sales to corporate clients[39]. - The company’s profit attributable to owners for the year was RMB 16.4 million, with adjusted profit increasing to RMB 35.5 million excluding listing expenses[51]. - The company reported a significant increase in revenue, achieving a total of $150 million for the fiscal year, representing a 25% growth compared to the previous year[99]. Impact of COVID-19 - The outbreak of COVID-19 has negatively impacted the tourism industry, leading to the suspension of local tour operations and ticket + hotel booking products since January 2020[11]. - The company will continue to assess the impact of COVID-19 on its operations and financial performance, taking necessary measures to mitigate risks[11]. - The outbreak of COVID-19 is expected to negatively impact the company's operations and financial performance in the first quarter of 2020[53]. Market Outlook and Strategy - The company remains optimistic about the development of China's tourism industry, citing factors such as increasing income levels and government policies favorable to tourism[10]. - The company plans to closely monitor market trends and develop new travel itineraries to meet changing customer preferences[10]. - The company aims to provide a wide range of selected travel products and services to meet diverse customer needs[10]. - The company attributes overall growth to increased disposable income and higher per capita travel spending among Chinese tourists[20]. - The company plans to start selling tours to other travel agencies in the current year, aiming to capitalize on the growing demand for travel services[25]. - The company plans to continue developing new travel products and services to meet changing customer preferences and enhance its competitive advantage[52]. Corporate Governance - The company emphasized its focus on improving corporate governance standards to enhance shareholder value and transparency[100]. - The board of directors consists of nine members, including six executive directors and three independent non-executive directors, ensuring diverse oversight[106]. - The company has adopted the corporate governance code as a benchmark for its governance practices, aiming for compliance and best practices[101]. - The company is led by Mr. He Binrong as both Chairman and CEO, ensuring effective management and business development post-listing[111]. - The audit committee, composed of three independent non-executive directors, assists the board in reviewing financial information and internal controls[123]. - The remuneration committee, including independent and executive directors, determines and reviews the compensation of individual directors and senior management[124]. - The company has established a robust internal control and risk management system, monitored by the board and its committees[116]. - Continuous professional development for all directors is encouraged to ensure compliance with regulatory requirements and enhance governance standards[118]. - The company has a structured approach to decision-making, with significant matters requiring board consultation to maintain checks and balances[117]. Employee and Operational Insights - Total employee count increased to 539 as of December 31, 2019, compared to 506 in the previous year, with total employee costs amounting to RMB 50.2 million[63]. - The company has established a favorable working environment and offers various benefits and career development opportunities to its employees[182]. Financial Position and Capital Management - As of December 31, 2019, current assets and current liabilities were RMB 461.8 million and RMB 310.6 million, respectively, with a current ratio of 1.5 times[56]. - The company's total borrowings amounted to RMB 189.7 million, up from RMB 110.0 million in 2018, resulting in a debt-to-equity ratio of 97.3%[56]. - The company has a shareholder communication policy to ensure that shareholder opinions and inquiries are addressed effectively[171]. - The company has implemented control procedures to prevent unauthorized access to insider information[155]. - The company did not declare any final dividends for the year ended December 31, 2019, consistent with the previous year[64]. - The company did not recommend any dividend payment for the current year, while a total dividend of RMB 25,652,000 was paid to shareholders in the previous year[183]. Research and Development - New product development initiatives are underway, with an investment of $DD million allocated for R&D in innovative technologies[90]. - Research and development expenses increased by 10%, reflecting the company's commitment to innovation and technology advancement[99]. Strategic Acquisitions and Market Expansion - A strategic acquisition was announced, with the company acquiring a competitor for $FF million to enhance its market share[84]. - The company is expanding its market presence in Southeast Asia, targeting a 15% market share within the next two years[99].

Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 302,591 thousand, an increase of 26.9% compared to RMB 238,382 thousand in the same period of 2018[7] - Gross profit increased by RMB 7,481 thousand or 15.3%, reaching RMB 56,253 thousand due to the rise in revenue[8] - Profit for the period decreased significantly by 91.8% to RMB 1,233 thousand from RMB 15,022 thousand in the previous year[7] - Adjusted net profit, excluding listing expenses, increased by RMB 5,309 thousand or 35.2%, totaling RMB 20,309 thousand[9] - The company reported a basic and diluted earnings per share of RMB 0.33, down from RMB 4.01 in the previous period[16] - The company reported a total comprehensive income of RMB 1,249 thousand for the period, which includes other comprehensive income of RMB 1,233 thousand[20] - The company’s total equity attributable to ordinary shareholders decreased significantly, reflecting the decline in profit attributable to shareholders[64] - Basic earnings per share for the six months ended June 30, 2019, was RMB 0.33, a significant decline of 91.8% from RMB 4.01 for the same period in 2018[65] Cash Flow and Liquidity - For the six months ended June 30, 2019, the net cash flow used in operating activities was RMB (35,626) thousand, an improvement from RMB (40,783) thousand in the same period of 2018[23] - The net cash flow from financing activities for the same period was RMB 132,042 thousand, significantly higher than RMB 22,031 thousand in 2018, indicating strong financing support[23] - The total cash and cash equivalents at the end of the period reached RMB 138,947 thousand, compared to RMB 31,570 thousand at the end of June 2018, reflecting a substantial increase[23] - The group’s cash and bank balances increased to RMB 138.9 million as of June 30, 2019, up from RMB 39.4 million as of December 31, 2018[118] Assets and Liabilities - Trade receivables rose to RMB 147,241 thousand, up from RMB 99,112 thousand as of December 31, 2018[19] - Current assets increased to RMB 428,411 thousand from RMB 249,499 thousand, indicating strong liquidity[19] - Total equity increased to RMB 178,512 thousand from RMB 76,794 thousand, reflecting improved financial stability[19] - The total liabilities increased by RMB 28,425 thousand due to the recognition of lease liabilities under the new standard[43] - Trade receivables increased to RMB 150,316,000 as of June 30, 2019, up 48.5% from RMB 101,178,000 as of December 31, 2018[69] - Trade payables rose to RMB 61,805,000 as of June 30, 2019, compared to RMB 40,012,000 as of December 31, 2018, marking a 54.4% increase[72] Expenses - The company experienced a significant increase in administrative expenses, which rose to RMB 35,559 thousand from RMB 15,404 thousand[12] - The group recognized a depreciation expense of RMB 2,539,000 for right-of-use assets during the period, with total operating costs amounting to RMB 246,338,000, compared to RMB 189,610,000 in the prior year[60] - The group incurred a total financing cost of RMB 3,625,000, which includes RMB 2,935,000 in bank loan interest and RMB 690,000 in lease liability interest[59] - Sales and distribution expenses rose from RMB 13.8 million to RMB 16.4 million, an increase of RMB 2.6 million due to higher employee costs and increased advertising expenditures[107] Market and Business Strategy - The company plans to continue expanding its market presence and enhancing its product offerings in response to growing demand for travel-related services[7] - The overall growth trend is attributed to increased demand for travel-related products and services due to rising disposable income among Chinese residents[92] - The company anticipates continued stable growth in travel-related product and service sales due to rising income levels and favorable government policies[117] Corporate Governance and Shareholding - The company has complied with the corporate governance code as per the listing rules, except for a deviation regarding the separation of the roles of Chairman and CEO[151][152] - The company holds a significant stake in its associated entities, with Mr. He owning 44,440,000 shares, representing approximately 95.2830%[132] - The company has a total of 350,162,000 shares held by major shareholders, accounting for about 70.0324% of the issued share capital[141] - The company has not granted any share options under its share option scheme since its adoption on June 11, 2019[147] Regulatory and Compliance - The company has implemented necessary measures to meet the qualification requirements for foreign investors in the telecommunications sector[160] - The board confirmed that there were no significant events after the reporting period[162] - The company has maintained high corporate governance standards and continues to review its practices[151]