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]