Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 420.97 million, a decrease of 12.0% compared to RMB 478.56 million for the same period in 2023[1] - Gross profit for the same period was RMB 25.02 million, down 18.7% from RMB 30.77 million year-on-year[1] - The net loss for the period was RMB 16.32 million, compared to a profit of RMB 15.90 million in the same period last year[1] - The basic loss per share for the period was RMB (1.78), compared to earnings per share of RMB 1.40 in the same period last year[3] - The company reported a basic loss attributable to shareholders of RMB (14,848) thousand for the current period, compared to a profit of RMB 11,219 thousand in the previous year[21] - The group recorded a net loss of RMB 16.3 million, primarily due to financial asset impairment losses of RMB 18.0 million and increased selling and distribution expenses of RMB 4.6 million and RMB 4.8 million respectively[28] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 491.62 million, an increase from RMB 432.85 million as of December 31, 2023[5] - The company's total net assets decreased from RMB 80,176,000 as of December 31, 2023, to RMB 75,014,000 as of June 30, 2024, representing a decline of about 6.5%[7] - Non-current lease liabilities decreased from RMB 7,956,000 to RMB 7,330,000, a reduction of approximately 7.8%[7] - The company's equity attributable to owners decreased from RMB 77,416,000 to RMB 73,732,000, a decline of about 4.4%[7] - The group's outstanding bank and other borrowings amounted to RMB 243.6 million as of June 30, 2024, an increase from RMB 194.9 million as of December 31, 2023[62] Revenue Breakdown - Revenue from external customers for the six months ended June 30, 2024, was RMB 420,970,000, a decrease of 12.0% compared to RMB 478,560,000 for the same period in 2023[14] - Revenue from mainland China was RMB 409,721,000, down 11.8% from RMB 464,529,000 year-over-year[14] - Revenue from Hong Kong was RMB 11,249,000, a decrease of 20.0% compared to RMB 14,031,000 in the previous year[14] - Total income from customer contracts for the six months ended June 30, 2024, was RMB 420,872,000, down 12.1% from RMB 478,560,000 in 2023[16] - Revenue from health products sales was RMB 10.12 million, an increase from RMB 4.73 million in the previous year[31] Expenses and Costs - The company reported a significant increase in administrative expenses, rising to RMB 24.14 million from RMB 19.38 million in the previous year[2] - The financial cost for the period was RMB 4.99 million, slightly down from RMB 5.58 million in the same period last year[2] - The cost of services provided for the six months ended June 30, 2024, was RMB 387,182,000, a decrease of 11.5% from RMB 437,724,000 in 2023[18] - The group’s sales and distribution expenses increased by RMB 4.6 million or 62.7% to RMB 12.0 million, mainly due to the expansion of the core service network nationwide[49] - Administrative expenses rose by RMB 4.8 million or 24.6%, attributed to increased employee costs and depreciation from new property and equipment[50] Cash Flow and Liquidity - Cash and cash equivalents increased to RMB 86.65 million from RMB 56.50 million as of December 31, 2023[5] - The company is actively negotiating with banks to renew its short-term borrowings, indicating a focus on maintaining liquidity[11] - The average turnover days for trade receivables increased to 80.7 days from 45.6 days year-on-year, primarily due to slower settlement by debtors[62] - The average turnover days for trade payables decreased to 3.1 days from 32.0 days year-on-year, indicating faster settlement of trade payables[62] Strategic Initiatives - The company is implementing various measures to enhance its overall sales network and effective cost control to improve profit margins and cash flow[11] - The group anticipates that domestic tourism consumption in China will reach new highs, exceeding pre-pandemic levels, with an expected 6 billion domestic travelers in 2024[27] - The establishment of a joint venture, Anhui Feiyang Aviation Development Co., Ltd., aims to enhance airport operation services and expand the aviation market[29] - In January 2024, the group established a joint venture in Xinjiang to provide tourism-related services, aiming to diversify revenue sources[67] - The group formed another joint venture in Anhui to enhance airport operation services, with a registered capital of RMB 10 million[67] Employee and Governance - The group had a total of 267 employees as of June 30, 2024, compared to 189 employees as of December 31, 2023, indicating a growth of approximately 41.4% in workforce[72] - Employee costs, including director remuneration, amounted to RMB 17.7 million for the period, up from RMB 11.5 million in the same period last year, representing a year-over-year increase of approximately 54.8%[72] - The audit committee consists of three independent non-executive directors, ensuring a robust oversight of financial reporting and internal controls[74] - The company has maintained compliance with corporate governance standards, with a deviation from the requirement that the roles of Chairman and CEO should be separate[75] Market Conditions - The Chinese government is actively promoting domestic tourism as a key driver of economic growth, with significant investments in transportation infrastructure[29] - The overall travel industry recovery has led to increased demand for group travel, contributing to the significant growth in traditional group travel sales[35]

Financial Performance - The total revenue for the fiscal year ending December 31, 2023, increased significantly to RMB 534.3 million from RMB 765 million in the previous year, marking a growth of approximately 600%[6] - The net loss for the fiscal year decreased to RMB 11.6 million from RMB 40.7 million in the previous year, indicating an improvement in financial performance[6] - The company recorded a significant increase in total revenue from RMB 765 million in the previous year to RMB 5,343 million this year, representing a growth of RMB 4,578 million or 598.6%[25] - The gross margin from travel group sales increased to RMB 183.9 million, accounting for 34.4% of total revenue, compared to RMB 51.1 million or 66.9% in the previous year[24] - Gross profit for the year was RMB 54.3 million, with a gross margin of 10.2%, compared to RMB 13.6 million and 17.8% in the previous year[49] - The overall gross margin decreased from 17.8% in the previous year to 10.2% this year, primarily due to changes in the product and service structure[50] Tourism Industry Recovery - Domestic tourism in China is expected to generate over RMB 4 trillion in total revenue, with a growth rate of 96% compared to previous years[6] - Domestic tourism revenue during the Golden Week reached RMB 753.43 billion, an increase of 1.5% compared to 2019, reflecting a strong recovery in the tourism sector[15] - The number of domestic tourists and revenue has more than doubled year-on-year, recovering to over 80% of 2019 levels[15] - During the 2024 Lunar New Year period, domestic tourism numbers reached 474 million, a significant increase of 34.4% compared to the same period in 2023, indicating a strong recovery trend[19] - The company expects domestic tourism in China to grow significantly in 2024, with an estimated 6 billion trips and revenue reaching RMB 6 trillion[20] Product and Service Expansion - The company has launched a series of travel-related products, focusing on independent travel products and attractive tour packages to capture emerging trends[7] - Sales from travel-related products and services increased due to the recovery of the Chinese tourism industry, with total income from free travel products amounting to RMB 3,142.5 million this year, compared to zero in the previous year[28] - The company is actively expanding its revenue base through online platforms and has entered into a strategic cooperation agreement with hotel management and e-commerce companies[10] - The company plans to expand its user base and enhance its information system development services while diversifying into cultural tourism based on digital information technology[20] - The company has begun offering financing leasing services to further diversify its revenue streams[20] Strategic Partnerships and Ventures - A joint venture has been established to provide tourism-related services in Xinjiang, aiming to diversify revenue sources and explore market potential[10] - The company has established strategic partnerships to diversify revenue sources, including a joint venture fund management company in Hong Kong and a strategic cooperation agreement with Shanghai E-commerce for cross-border supply chain services[16] - A cooperation agreement was signed to establish a joint venture fund management company in Hong Kong, with expected fundraising not exceeding HKD 1 billion[92] - A strategic cooperation agreement was established for cross-border e-commerce supply chain collaboration, aiming to expand the business scale[93] Cost and Expense Management - The group's sales cost rose dramatically by RMB 417.1 million or 663.4% to RMB 480.0 million, primarily due to the recovery of the tourism industry post-COVID-19[46] - Selling and distribution expenses increased by 135.4% from RMB 9.1 million to RMB 21.5 million, primarily due to increased employee costs[53] - Administrative expenses rose by 75.2% from RMB 24.1 million to RMB 42.2 million, largely due to increased staff costs and depreciation from new business operations[54] - Financial costs increased from RMB 8.3 million to RMB 10.8 million, attributed to a rise in average borrowings[60] Governance and Compliance - The company has adopted the principles of the Corporate Governance Code as a benchmark for its corporate governance practices, ensuring compliance with all applicable provisions for the year ending December 31, 2023[129] - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[137] - The audit committee is composed entirely of independent non-executive directors, ensuring unbiased oversight of financial reporting[144] - The company has established channels for independent non-executive directors to express their views confidentially when necessary, promoting transparency[144] - The company has implemented remedial measures to address non-compliance with listing rules regarding transactions with suppliers, ensuring ongoing compliance processes are effective[129] Shareholder Communication and Capital Management - The company is committed to effective communication with shareholders through various channels, including annual and interim reports[199] - The company has established a shareholder communication policy to ensure shareholder opinions and questions are properly addressed[200] - The board believes that the shareholder communication policy was effective during the review year[200] - The management team is focused on expanding the shareholder base and capital base through strategic placements and operational enhancements[101] Employee and Board Diversity - The board consists of 7 male directors and 2 female directors, achieving a gender diversity representation[169] - As of December 31, 2023, the employee gender ratio is approximately 33% male and 67% female, indicating a commitment to gender diversity[169] - The company does not discriminate in its hiring practices, focusing on merit-based selection[169] Risk Management - The company has established a risk management and internal control system to identify, assess, and manage significant risks[182] - The internal audit function reviews the adequacy and effectiveness of the risk management and internal control system annually, with a focus on compliance and operational monitoring[185] - The board is responsible for evaluating the effectiveness of risk management and internal control systems, aiming to manage risks associated with achieving business objectives[179]

Financial Performance - Revenue for the year ended December 31, 2023, reached RMB 534.3 million, an increase of RMB 457.8 million or 598.6% compared to RMB 76.5 million in 2022[2] - Gross profit for the same period was RMB 54.3 million, up RMB 40.7 million or 299.5% from RMB 13.6 million in the previous year[2] - The company recorded a net loss of RMB 11.6 million for the year, a significant improvement from a net loss of RMB 40.7 million in 2022[2] - The company reported a total comprehensive loss of RMB 43.7 million for the year, compared to RMB 20.1 million in 2022[7] - Basic loss per share for the year was RMB 1.17, improving from RMB 5.20 in the previous year[7] - The group reported a pre-tax loss of RMB 463,857 thousand for 2023, compared to RMB 47,779 thousand in 2022, indicating a significant increase in losses[32] - The group recorded a net loss of RMB 11.6 million in the current year, compared to a net loss of RMB 40.7 million in the previous year[56] Revenue Sources - The increase in revenue was attributed to the recovery of the tourism industry in China, leading to higher sales of travel-related products and services[2] - Revenue from travel-related products and services accounted for RMB 512.2 million, which is 95.8% of total revenue, compared to 69.7% in the previous year[64] - Total sales from free travel products reached RMB 314.3 million in 2023, a substantial increase from zero in the previous year[66] - Revenue from external customers in China reached RMB 514,034 thousand for the year ended December 31, 2023, compared to RMB 534,303 thousand in 2022, representing a decrease of approximately 3.5%[24] - Revenue from external customers in Hong Kong was RMB 20,269 thousand for the year ended December 31, 2023, compared to RMB 15,029 thousand in 2022, indicating an increase of approximately 35.0%[24] - The group generated RMB 314,251 thousand from product sales in 2023, with a notable contribution from system development services amounting to RMB 4,801 thousand[28] Expenses and Costs - Selling and distribution expenses increased to RMB 21.5 million from RMB 9.1 million in 2022, reflecting the company's efforts to expand its market presence[5] - Administrative expenses rose to RMB 42.2 million, up from RMB 24.1 million in the previous year, indicating increased operational costs[5] - Financial costs increased to RMB 10,832,000 from RMB 8,348,000 year-over-year, reflecting higher interest expenses[31] - The group recorded impairment losses of RMB 17.8 million for trade receivables, RMB 1.1 million for prepayments, and RMB 96,000 for finance lease receivables, reflecting a significant increase in expected credit losses[93] - Sales costs increased significantly by RMB 417.1 million or 663.4% to RMB 480.0 million, driven by the recovery of the Chinese tourism industry and changes in revenue recognition[82][83] Assets and Liabilities - Total assets decreased from RMB 432,853,000 to RMB 238,497,000, a decline of approximately 45%[9] - Total liabilities increased from RMB 478,751,000 to RMB 281,251,000, an increase of about 70%[9] - The company reported a significant increase in inventory from RMB 5,250,000 to RMB 4,817,000, an increase of about 9%[9] - The net amount of deposits and other receivables decreased from RMB 787.43 million as of December 31, 2022, to RMB 664.10 million as of December 31, 2023, primarily due to a reduction in ticket booking deposits by RMB 449 million[105] - The group’s cash and bank balances increased to RMB 56.5 million from RMB 43.8 million year-on-year[112] Future Outlook and Strategy - The company plans to continue focusing on the development of new products and technologies to enhance its market position[2] - The group anticipates that domestic tourism will significantly increase in 2024, with an estimated 6 billion domestic tourist trips and revenue reaching RMB 6 trillion[59] - The group is focusing on diversifying its revenue sources through online platforms and partnerships to meet changing consumer demands post-COVID-19[55] - The group plans to establish a joint venture fund management company in Hong Kong to invest in high-end hotels and quality lodging assets in China, Japan, and Southeast Asia[53] - A strategic cooperation agreement was signed with Shanghai E-commerce to expand cross-border e-commerce supply chain services, enhancing the group's business scale[55] Corporate Governance and Compliance - The company has adhered to the corporate governance code as of December 31, 2023, except for a deviation regarding the roles of the Chairman and CEO[144] - The audit committee consists of three independent non-executive directors, ensuring a wealth of business experience in financial and legal matters[149] - The company is committed to maintaining high corporate governance standards and will continue to review the separation of the roles of Chairman and CEO as appropriate[145] Shareholder and Capital Management - The issued share capital increased to 832,000,000 shares in 2023 from 800,000,000 shares in 2022, representing a growth of 4%[49] - The company raised approximately RMB 100 million through a rights issue in April 2022, issuing 200,000,000 shares at a price of RMB 0.50 per share[50] - The proceeds from the share placement are allocated as follows: 27% for repaying trade payables and bank loans (HKD 10,457,000), 55% for developing tourism-related businesses (HKD 21,302,000), and 18% for general corporate and operational funding (HKD 6,971,000)[140]

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 478.56 million, a significant increase of RMB 471.6 million or 6,769.9% compared to RMB 6.966 million in the same period of 2022[6]. - Gross profit for the same period rose to RMB 30.77 million, an increase of RMB 28.0 million or 1,031.5% from RMB 2.719 million in 2022[7]. - The company recorded a net profit of RMB 15.9 million for the period, compared to a net loss of RMB 20.03 million in the previous year[8]. - The company reported a total comprehensive income of RMB 3.08 million for the period, compared to a loss of RMB 15.3 million in 2022[11]. - Earnings per share for the period were RMB 1.40, a recovery from a loss of RMB 2.71 per share in the previous year[11]. - The company reported a significant increase in inventory, which rose to RMB 6,453 thousand as of June 30, 2023, from RMB 4,817 thousand as of December 31, 2022[13]. - The company reported a pre-tax profit of RMB 11,219,000 for the six months ended June 30, 2023, compared to a loss of RMB 19,527,000 in the same period of 2022[43]. - The group recorded a profit attributable to owners of the company of RMB 11.2 million, a turnaround from a loss of RMB 19.5 million in the same period last year[95]. Revenue Sources - Revenue from external customers for the six months ended June 30, 2023, was RMB 478,560,000, a significant increase from RMB 6,966,000 for the same period in 2022[33]. - The group generated RMB 464,529,000 in revenue from mainland China for the six months ended June 30, 2023, compared to RMB 6,966,000 for the same period in 2022[33]. - Revenue from external customers in Hong Kong for the same period was RMB 14,031,000, with no revenue reported in the previous year[33]. - The total income from customer contracts for the six months ended June 30, 2023, was RMB 478,560,000, with significant contributions from various product sales including domestic tours and free travel products[38]. - Total tour sales increased by RMB 62.3 million or 2,471.3% from RMB 2.52 million in the same period last year to RMB 64.82 million, driven by increased demand following the easing of COVID-19 restrictions[76]. - Total revenue from free travel products reached RMB 396.2 million, a significant increase from zero in the same period last year[77]. - Traditional group tours generated revenue of RMB 54.33 million, accounting for 83.8% of total tour sales, while customized tours accounted for 16.2% with revenue of RMB 10.49 million[74]. Expenses and Costs - The company experienced a foreign exchange loss of RMB 12.82 million during the period, compared to a gain of RMB 4.73 million in the same period last year[10]. - The company’s administrative expenses increased to RMB 19.38 million from RMB 10.99 million in the previous year, reflecting higher operational costs[10]. - Sales costs surged to RMB 447.8 million, an increase of RMB 443.5 million or 10,443.8% from RMB 4.2 million in the previous year, due to the recovery of the tourism industry[86]. - The gross profit margin for the overall business was 6.4%, down from 39.0% in the previous year[87]. - Selling and distribution expenses increased by 68.7% to RMB 7.4 million, primarily due to a rise in employee costs as business operations resumed[90]. - Administrative expenses surged by 76.3% to RMB 19.4 million, driven by increased depreciation and higher employee costs from new business initiatives[91]. Assets and Liabilities - As of June 30, 2023, total assets amounted to RMB 457,580 thousand, a decrease from RMB 459,820 thousand as of December 31, 2022[13]. - The company reported a net loss of RMB 19,527 thousand for the six months ended June 30, 2023, compared to a net loss of RMB 42,782 thousand for the same period in 2022[14]. - Cash and cash equivalents decreased to RMB 18,109 thousand as of June 30, 2023, down from RMB 43,795 thousand at the beginning of the period[16]. - Trade receivables increased significantly to RMB 101,140 thousand as of June 30, 2023, from RMB 18,430 thousand as of December 31, 2022[13]. - The company's total equity as of June 30, 2023, was RMB 91,522 thousand, an increase from RMB 88,210 thousand as of December 31, 2022[13]. - The group recorded a share of losses from associates amounting to RMB 1.7 million during the period, compared to RMB 0.5 million in the same period last year[123]. - As of June 30, 2023, the group's current assets and current liabilities were RMB 323.1 million and RMB 358.2 million, respectively, with a current ratio of 0.9 times[111]. Business Strategy and Future Outlook - The company plans to continue expanding its travel-related products and services in response to the recovery of the tourism industry in China[6]. - The company plans to expand its health product sales, including NMN supplements, and will begin selling these products through its online platform[68]. - The company aims to open offline stores in Hong Kong to enhance the synergy between tourism and shopping[68]. - The company is diversifying its business by providing information system development services and selling digital asset products[68]. - The company anticipates continued improvement in tourism-related business performance in the second half of 2023[67]. - The travel market in China is expected to contribute over 150% growth to the GDP in 2023, indicating a strong recovery[67]. Corporate Governance - The audit committee consists of three independent non-executive directors, ensuring robust oversight of financial reporting and compliance[142]. - The company has adhered to the corporate governance code, with the exception of a deviation regarding the separation of the roles of Chairman and CEO[144]. - The company maintains a high standard of corporate governance, regularly reviewing and enhancing its practices[144]. - The board believes that the current arrangement of Mr. He serving as both Chairman and CEO is in the best interest of the company for effective management[145]. Shareholder Information - The company’s directors and senior management held a total of 328,574,700 shares, representing approximately 41.07% of the company's issued share capital as of June 30, 2023[129]. - The company has not granted any share options under the share option scheme since its adoption on June 11, 2019[139]. - The company has established a share option plan approved by shareholders, but no options have been granted to date[139]. - The major shareholders include Mr. He with 41.0718% and Ms. Qian with 41.0718% of the company's shares[136].

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2023年6月30日 止 六 個 月 的 中 期 業 績 公 告 財務摘要 截至6月30日止六個月 2023年 2022年 人民幣千元 人民幣千元 （未經審核） （未經審核） 收益 478,560 6,966 毛利 30,766 2,719 期內收益╱（虧損） 15,899 (20,031) • 本 期 間 收 益 大 幅 增 加 人 民 幣471.6百 萬 元 或6,769.9%，乃 主 要 由 於 隨 ...

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].