Group 1 - The core point of the article is the significant stock price volatility of Youju Holdings (01948.HK) after its resumption of trading, with a peak increase of over 300% and a final closing increase of 150% to HKD 3 per share following the announcement of a major shareholder's stake sale [1] - Supreme Development sold 50.62% of its stake, approximately 304 million shares, to Autumn Harvest Ltd for HKD 213 million, equating to a price of HKD 0.7 per share, which represents a 41.67% discount compared to the closing price before the suspension [1] - The offeror and its concert parties will hold 72.71% of the company's equity post-transaction and are required to make a mandatory general offer at HKD 0.7 per share [1] Group 2 - Youju Holdings primarily provides online marketing solutions, including traffic acquisition from top media platforms, content creation, big data analysis, and advertising campaign optimization [2] - Since its listing on November 8, 2021, the company's stock price has cumulatively decreased by 49.57% [2] - For the fiscal year 2024, the company reported total revenue of HKD 9.156 billion, a year-on-year increase of 29.32%, and a net profit attributable to shareholders of HKD 93.873 million, a growth of 3.66% [2] - The company experienced a negative net cash flow from operating activities of HKD -298.54 million, a significant decrease from HKD 812 million in the previous year, with a year-on-year reduction in operating cash flow of HKD 842 million [2]

Core Viewpoint - The significant surge in the stock price of Youju Holdings (01948) is primarily driven by a recent acquisition announcement, leading to a change in control and a mandatory cash offer at a substantial discount to the previous trading price [1][3][4]. Group 1: Stock Performance - On May 8, Youju Holdings' stock price soared over 300% upon resuming trading, reaching a high of 4.8 HKD before settling around 3.5 HKD [1]. - The company had been struggling since its IPO in November 2021, where it debuted at 6.7 HKD and has since seen its stock price languish around 1 HKD for an extended period [1][4]. Group 2: Acquisition Details - The original major shareholder, Supreme Development, sold a 50.62% stake (approximately 304 million shares) to a third party, Autumn Harvest Ltd, for 213 million HKD, equating to 0.7 HKD per share, which represents a 41.67% discount from the last trading price [4]. - The new controlling party, led by Cheng and Ma, has significant experience in the internet industry and aims to maintain the company's listing and continue its current operations [4][5]. Group 3: Business Operations and Financials - Youju Holdings specializes in providing integrated cross-media online marketing solutions, particularly in short video marketing, and has a strategic partnership with ByteDance's Feishu [3][5]. - The company has shown slight revenue growth but significant profit decline, with total revenue for 2024 at 9.156 billion HKD, a 29.32% increase year-on-year, while net profit was 93.87 million HKD, a 3.66% increase [6]. - The company has a high dependency on ByteDance, with major suppliers accounting for a significant portion of its service and sales costs [5][6].

Financial Performance - In 2024, UJU Holding Limited achieved total revenue of approximately RMB 9.1533 billion, representing a growth of about 29.4% compared to approximately RMB 7.076 billion in 2023[11] - The net profit for the year increased by approximately 2.2% to around RMB 93 million, up from approximately RMB 91 million in the previous year[11] - The advertising business recorded a total billing of approximately RMB 12.9763 billion, with a growing proportion from direct advertisers, enhancing operational efficiency and financial stability[11] - Revenue for the year ending December 31, 2024, was RMB 9,153.3 million, representing a year-on-year increase of 29.4% from RMB 7,076.0 million in 2023[21] - The company's pre-tax profit decreased by 3.4% to RMB 113.3 million in 2024 from RMB 117.2 million in 2023[21] - The revenue from online marketing solutions increased by approximately 29.6% to RMB 9,082.5 million in 2024, accounting for 99.2% of total revenue[26] - The live e-commerce business generated revenue of RMB 68.1 million in 2024, up from RMB 61.9 million in 2023, continuing to serve as a second growth curve for the company[26] - The company achieved a profit attributable to owners of the company of RMB 93.9 million for the year ending December 31, 2024, a 3.7% increase from RMB 90.6 million in 2023[21] Strategic Initiatives - The company established a three-pronged strategy of "technology x content x data" to drive digital marketing transformation, significantly improving the automation rate of core business processes[12] - UJU Holding Limited upgraded its video base in Wuhan to a service delivery center and talent training base, leveraging local educational resources for high-quality talent[12] - The company developed differentiated content generation engines for various industries, reducing content production cycles by 57%[15] - UJU Holding Limited aims to build a customer demand forecasting model and a creative effect pre-evaluation system to optimize resource allocation[15] - UJU Holding Limited plans to deepen the synergy of "technology x industry x data" to drive customer value enhancement and promote innovation in the digital marketing sector[15] - The company successfully expanded its self-operated e-commerce model into the North American market, enhancing its operational solutions through partnerships with platforms like TikTok[18] - The company plans to decisively adjust its e-commerce operational solutions business and explore expansion into the B2B sector in the second half of 2024[18] Operational Efficiency - User acquisition and monitoring costs for the year ended December 31, 2024, were approximately RMB 8,712.3 million, representing 98.3% of total service and sales costs[33] - Gross profit for the year ended December 31, 2024, was approximately RMB 287.7 million, a slight increase of 0.6% from RMB 286.0 million for the year ended December 31, 2023, with a gross margin decrease from 4.0% to 3.1%[34] - Sales expenses increased by approximately 10.9% to RMB 33.9 million for the year ended December 31, 2024, primarily due to increased employee benefits[35] - General and administrative expenses rose by approximately 11.8% to RMB 82.8 million for the year ended December 31, 2024, driven by higher employee benefits and professional service fees[38] - Research and development expenses increased by approximately 9.4% to RMB 9.6 million for the year ended December 31, 2024, mainly due to higher employee benefits[39] - Net impairment losses on financial assets decreased by approximately 34.7% to RMB 30.0 million for the year ended December 31, 2024, due to effective credit risk management[40] - Other income decreased by approximately 39.7% to RMB 2.5 million for the year ended December 31, 2024, primarily due to reduced government subsidies[41] - Net financial costs decreased by approximately 72.6% to RMB 2.3 million for the year ended December 31, 2024, attributed to increased interest income from bank deposits[42] Corporate Governance - The company has appointed Mr. Li Nian as Co-CEO effective February 28, 2025, bringing 14 years of experience in the media advertising industry[66] - The board has committed to high standards of corporate governance, ensuring compliance with the Corporate Governance Code, with a focus on transparency and accountability[71] - The company has maintained compliance with the listing rules regarding the appointment of independent non-executive directors, with at least three independent directors on the board[77] - The board currently consists of a balanced mix of executive and independent non-executive directors, ensuring effective oversight and independent judgment in decision-making[76] - The company has implemented a formal service agreement for all directors, with a term of three years and eligibility for re-election[74] - The company has adopted a code of conduct for securities trading, ensuring all directors comply with the established standards[73] - The company will continue to review and monitor its corporate governance practices to meet increasing regulatory requirements and shareholder expectations[72] - The company has confirmed that all independent non-executive directors meet the independence criteria as per the listing rules[77] - The company has experienced changes in its board composition, with new independent directors appointed on October 8, 2024[76] - The company emphasizes the importance of separating the roles of Chairman and CEO, with Mr. Peng Liang serving as both since March 28, 2024, due to his extensive operational experience[71] Risk Management and Compliance - The company has established an effective risk management and internal control system, which is reviewed annually[117] - The internal control system aims to ensure operational effectiveness, financial statement reliability, and compliance with applicable laws and regulations[120] - The company has not established an internal audit department, as the board believes that management's close involvement in daily operations provides sufficient risk management and internal control[121] - The board is responsible for ensuring that financial statements are prepared in accordance with statutory requirements and applicable accounting standards[116] - The company has implemented measures to ensure the confidentiality of potential inside information and compliance with disclosure regulations[120] - The risk management system includes risk identification, assessment, and management strategies to mitigate operational risks[118] - The independent auditor's fees for the year ending December 31, 2024, total RMB 2,620,000, with RMB 2,450,000 for audit services and RMB 170,000 for non-audit services related to environmental, social, and governance reporting[124] Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes its commitment to ESG management, integrating it into daily operations and promoting green practices[145] - The board regularly reviews the progress of environmental and social goals, ensuring alignment with business objectives[144] - The company has established an ESG working committee for daily management and reporting to the board[143] - The company adheres to the ESG Reporting Guidelines, ensuring the accuracy and reliability of disclosed data[141] - Stakeholder engagement is prioritized, with various communication channels established to gather feedback and assess ESG performance[146] - The company has identified key ESG issues through stakeholder communication and macro policy trends, creating an importance assessment matrix[150] - The company implements energy-saving measures and emission control to promote low-carbon development and enhance employee environmental awareness[151] - The company has set specific environmental and social targets linked to its business operations[144] Employee Management and Development - Total number of employees is 826, with 699 under labor contracts and 127 interns[167] - Employee turnover rate is 16.90%, with male turnover at 17.76% and female turnover at 16.30%[167] - The company has not experienced any work-related fatalities from 2021 to 2024, with zero incidents reported[170] - The company provides comprehensive benefits, including social insurance and housing fund contributions for all employees[169] - The company has implemented a systematic training program covering management systems, company culture, and job-specific skills[173] - The company has a diverse recruitment strategy, ensuring fair treatment regardless of race, age, gender, or other factors[166] - The company has established a clear promotion pathway with two tracks: professional (P series) and management (M series)[171] - The company has a comprehensive overtime management system to protect employee rights[169] Product Quality and Customer Service - The company has established a comprehensive internal review mechanism to ensure product content compliance and safety[184] - The company has implemented a strict product quality management system to adhere to national regulations and protect intellectual property[181] - The company focuses on continuous product quality optimization and innovation in online short video marketing solutions[180] - An emergency response mechanism is in place to address sudden public relations issues and platform failures[185] - The company provides targeted training plans for management trainees to foster talent development and integration into company culture[177] - The company has established an online short video research center to study the structure, elements, and consumer profiles of popular online short videos, aiming to develop high-quality content that aligns with trends and user needs[187] - In 2024, the company received 35 customer complaints, achieving a 100% resolution and follow-up rate[194] - The company has a dedicated customer service team to actively listen and respond to customer feedback, ensuring service experience improvement[194] Technology and Innovation - The company utilizes AI tools to enhance advertising material effectiveness, including digital humans and voice cloning technologies, ensuring a high-quality and immersive experience[191] - The company emphasizes responsible AI application, ensuring inclusivity and security in data collection, processing, and storage[191] - The company has implemented a comprehensive internal management system for copyright material procurement, usage, and infringement penalties[194] - The company regularly analyzes user behavior data to optimize content structure and accurately target customized products, continuously launching popular short videos[192] - The company employs multiple technical measures to ensure compliance with advertising laws and ethical standards during the review of advertising materials[193] Supply Chain Management - The company prioritizes responsible procurement and ESG risk management in its supply chain, focusing on sustainable supply chain construction with suppliers[199] - The company has set targeted admission requirements for different categories of suppliers, emphasizing social responsibility and environmental contributions in supplier selection[199] - Regular on-site audits of suppliers are conducted to ensure service quality and effectiveness, with ongoing communication to monitor their operational performance[200] - The company collaborates long-term with high-quality, responsive suppliers while eliminating those that fail to meet demands over time[200]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 9,153.3 million, representing a 29.4% increase from RMB 7,076.0 million in 2023[3] - The company's net profit attributable to shareholders for the year was RMB 93.9 million, a 3.7% increase compared to RMB 90.6 million in the previous year[3] - Gross profit for the year ending December 31, 2024, was approximately RMB 287.7 million, a slight increase of 0.6% from RMB 286.0 million in 2023[20] - The company's net profit margin decreased from 1.3% for the year ended December 31, 2023, to 1.0% for the year ending December 31, 2024[29] - Basic earnings per share for the year ended December 31, 2024, was RMB 0.16, an increase of 6.7% from RMB 0.15 in 2023[63] Revenue Breakdown - The advertising business recorded a total billing of RMB 12,976.3 million for the year, with direct advertiser business increasing its share, enhancing operational efficiency and financial stability[5] - The online marketing solutions business generated revenue of RMB 9,082.5 million, accounting for 99.2% of total revenue, compared to RMB 7,008.5 million or 99.0% in 2023[11] - Revenue from live e-commerce business rose from RMB 61.9 million for the year ended December 31, 2023, to RMB 68.1 million for the year ending December 31, 2024[12] - E-commerce sector generated revenue of RMB 4,763.6 million, representing 52.5% of total revenue from direct advertisers for the year ending December 31, 2024, up from RMB 3,747.6 million in 2023[15][16] - Revenue recognized at a point in time was RMB 8,023,227,000 for 2024, compared to RMB 6,079,506,000 for 2023, reflecting a growth of 32.0%[51] Cost and Expenses - Total service and sales costs increased to RMB 8,865.6 million for the year ending December 31, 2024, from RMB 6,790.0 million in 2023[17] - Employee benefits expenses rose by approximately 25.9%, from RMB 72.5 million in 2023 to RMB 91.2 million in 2024[19] - The total operating expenses for the year ended December 31, 2024, amounted to RMB 8,991,933,000, compared to RMB 6,903,409,000 in 2023, marking an increase of 30.2%[53] Assets and Liabilities - Total assets increased from RMB 3,441.4 million as of December 31, 2023, to RMB 4,596.5 million as of December 31, 2024[38] - The net accounts receivable increased to RMB 3,168,584,000 in 2024, up 43.5% from RMB 2,210,071,000 in 2023[65] - The total accounts receivable as of December 31, 2024, was RMB 3,284,262,000, compared to RMB 2,301,820,000 in 2023, reflecting a growth of 42.7%[67] - The accounts payable increased to RMB 2,095,504,000 in 2024, up from RMB 1,433,800,000 in 2023, reflecting a growth of 46.2%[68] Tax and Impairment - Income tax expenses decreased by approximately 22.7%, from RMB 26.2 million in 2023 to RMB 20.3 million in 2024, with the effective tax rate dropping from 22.4% to 17.9%[28] - Financial asset impairment losses decreased by approximately 34.7%, from RMB 45.9 million in 2023 to RMB 30.0 million in 2024[24] - The net impairment loss on financial assets decreased to RMB 29,973,000 in 2024 from RMB 45,909,000 in 2023, showing a reduction of 34.7%[53] Strategic Initiatives - The company has established a three-dimensional AI-enabled system in digital marketing, focusing on technology, content, and data integration[8] - The company aims to build a customer demand forecasting model and a creative effect pre-assessment system to enhance data-driven decision-making[9] - The company has developed differentiated content generation engines for various industries, reducing content production cycles by 57%[8] - The company plans to upgrade its video base in Wuhan to a service delivery center and talent training base, leveraging local educational resources for talent acquisition[6] Cash Flow and Financing - Cash and cash equivalents increased from approximately RMB 719.4 million as of December 31, 2023, to approximately RMB 782.0 million as of December 31, 2024[31] - The company has a financing agreement with Beijing Bank for a revolving credit facility of up to RMB 30,000,000, with a term of 30 months[72] - The net proceeds from the global offering amount to approximately HKD 748.5 million (equivalent to approximately RMB 615.1 million) after deducting underwriting fees, commissions, and expenses[74] Dividend and Shareholder Returns - The company declared a final dividend of approximately RMB 27,187,000 for the year ended December 31, 2023, significantly higher than RMB 11,064,000 in 2022, representing a 145.1% increase[61] - The board has proposed a final dividend of HKD 0.04 per share for the year ending December 31, 2024, subject to approval at the annual general meeting on May 30, 2025[80] Governance and Compliance - The company has adopted the Corporate Governance Code as per the listing rules and has complied with its provisions, with a noted exception regarding the roles of the Chairman and CEO[83] - The audit committee was established on October 8, 2021, in accordance with the listing rules, consisting of three independent non-executive directors[87] - The financial performance for the year ending December 31, 2024, has been reviewed and is based on audited consolidated financial statements[88]

Financial Performance - For the six months ended June 30, 2024, the company reported total revenue of approximately RMB 3,867.1 million, an increase of 7.1% compared to RMB 3,609.9 million for the same period in 2023[4]. - The company's net profit attributable to shareholders for the same period was approximately RMB 43.4 million, reflecting a growth of 3.7% from RMB 41.9 million in the prior year[4]. - Online marketing solutions revenue for the six months ended June 30, 2024, reached RMB 3,828.6 million, a 7.0% increase from RMB 3,578.0 million for the same period in 2023[14]. - Live e-commerce business revenue increased by 28.5%, from RMB 28.8 million in the six months ended June 30, 2023, to RMB 37.0 million in the same period of 2024[14]. - The gross profit for the six months ended June 30, 2024, was approximately RMB 150.8 million, a slight increase of 0.2% from RMB 150.5 million for the same period in 2023[18]. - The gross margin decreased from 4.2% for the six months ended June 30, 2023, to 3.9% for the same period in 2024, due to revenue growth being slightly lower than the increase in service costs[18]. - Operating profit decreased to RMB 50,023 thousand from RMB 60,774 thousand, reflecting a decline of 17.5% year-over-year[60]. - The company reported a net profit for the period of RMB 43,153 thousand, compared to RMB 41,869 thousand in the previous year, showing a growth of 3.1%[60]. - The company’s total comprehensive income for the six months ended June 30, 2024, was RMB 44,870 thousand, compared to RMB 51,571 thousand for the same period in 2023, reflecting a decrease of 12.9%[64]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 4,004.8 million, representing a 16.4% increase from RMB 3,441.4 million as of December 31, 2023[5]. - Total liabilities increased by 26.5% to RMB 2,601.2 million as of June 30, 2024, compared to RMB 2,055.5 million at the end of 2023[5]. - The company's cash and cash equivalents decreased from RMB 719.4 million to RMB 409.3 million, primarily due to net cash outflows from operating activities[26]. - The leverage ratio as of June 30, 2024, was 0.01, down from 0.02 as of December 31, 2023, indicating a stable financial position[26]. - The accounts receivable net amount as of June 30, 2024, was RMB 3,149,280 million, an increase of 42.5% from RMB 2,210,071 million as of December 31, 2023[104]. - The total amount of non-financial liabilities decreased to RMB 157,909,000 from RMB 224,533,000, a reduction of 29.6%[116]. Operational Highlights - The company provided live streaming operation services to 20 brand clients, achieving a total gross merchandise value (GMV) of approximately RMB 539.2 million, significantly up from RMB 231.9 million in the same period last year[11]. - The self-operated e-commerce business generated revenue of approximately RMB 16.5 million during the first half of 2024[11]. - The company successfully expanded its live e-commerce operations into the North American market, leveraging its experience from domestic operations[9]. - The application of AI technology in media has enhanced content production efficiency, with significant improvements noted in the use of generative AI content tools[8]. - The company maintained close cooperation with 20 media partners to provide comprehensive marketing solutions, focusing on AI technology collaboration[8]. Cost and Expenses - Cost of services for the six months ended June 30, 2024, totaled RMB 3,716.3 million, an increase from RMB 3,459.5 million in 2023[17]. - Traffic acquisition and monitoring costs were RMB 3,645.8 million, accounting for approximately 98.1% of total service costs in the first half of 2024[17]. - Employee benefits expenses rose to RMB 41.2 million, representing 1.1% of total service costs, compared to 1.0% in the previous year[17]. - Selling expenses rose from approximately RMB 10.5 million to RMB 16.1 million, primarily due to higher live streaming costs associated with the expansion of the self-operated e-commerce business[18]. - General and administrative expenses increased by approximately 19.7% from RMB 35.0 million to RMB 41.9 million, mainly due to rising employee benefits and professional service fees[18]. Shareholder Information - As of June 30, 2024, major shareholders include Mr. Ma Xiaohui with 436,045,400 shares (72.7%) and Ms. Yu Juan with the same number of shares due to spousal interest[53]. - Supreme Development and Infinity Investment hold 303,695,400 shares (50.6%) each, indicating significant control over the company[53]. - The board did not declare any interim dividend for the six months ending June 30, 2024[56]. - The company maintained the required public float as per listing rules during the reporting period[56]. Governance and Compliance - The company adhered to corporate governance standards, with a commitment to high levels of accountability and shareholder value[38]. - The Audit Committee was established on October 8, 2021, and consists of three members as of June 30, 2024, ensuring compliance with applicable accounting standards and regulations[40]. - The interim financial information has been reviewed in accordance with international standards, ensuring compliance with relevant regulations[58]. Future Outlook and Strategy - The company aims to further expand its market presence and deepen partnerships with core clients and media channels[14]. - The group allocated 40.3% of the net proceeds, approximately HKD 302.1 million, for exploring new business opportunities with new advertisers and online media platforms[34]. - The group plans to utilize 16.0% of the net proceeds, approximately HKD 119.9 million, for strategic investments and acquisitions, which remain unutilized as of June 30, 2024[35].

Financial Performance - For the six months ended June 30, 2024, the company reported total revenue of approximately RMB 3,867.1 million, representing a 7.1% increase from RMB 3,609.9 million for the same period in 2023[1]. - The company's gross profit for the same period was RMB 150.8 million, a slight increase of 0.2% compared to RMB 150.5 million in the previous year[1]. - The profit attributable to the company's owners for the six months ended June 30, 2024, was RMB 43.4 million, up 3.7% from RMB 41.9 million in the prior year[1]. - The overall net profit for the first half of 2024 was approximately RMB 43.2 million, reflecting a 3.1% increase from RMB 41.9 million in the same period of 2023[2]. - The net profit margin for the six months ended June 30, 2024, was 1.1%, slightly down from 1.2% in the same period of 2023[22]. - The company's operating profit for the six months ended June 30, 2024, was RMB 50.0 million, down from RMB 60.8 million in the same period of 2023[24]. - The company reported a net loss of RMB 7,673,000 for the six months ended June 30, 2024, compared to RMB 8,227,000 for the same period in 2023, indicating a decrease of approximately 6.7%[39]. - The income tax expense for the six months ended June 30, 2024, was RMB 8,738,000, a slight decrease from RMB 9,338,000 in the same period of 2023, reflecting a reduction of about 6.4%[40]. Revenue Breakdown - The online marketing solutions business generated revenue of approximately RMB 3,828.6 million, accounting for 99.0% of total revenue, reflecting a 7.0% increase from RMB 3,577.9 million in the same period last year[6]. - E-commerce sector contributed RMB 2,082.8 million, accounting for 54.8% of total revenue, up from RMB 1,658.4 million (46.6%) in the previous year[9]. - Revenue from the one-stop online marketing solutions service was RMB 3,806,587,000, up 6.9% from RMB 3,559,688,000 in the previous year[34]. - The company’s revenue from live e-commerce services reached RMB 36,965,000, representing a 28.5% increase from RMB 28,765,000 in the prior year[34]. Expenses and Costs - Service costs totaled approximately RMB 3,716.3 million for the six months ended June 30, 2024, compared to RMB 3,459.5 million for the same period in 2023, reflecting an increase of 7.4%[11]. - Selling expenses rose to approximately RMB 16.1 million, up from RMB 10.5 million in the previous year, primarily due to higher live streaming costs associated with e-commerce expansion[13]. - General and administrative expenses increased by 19.7% to approximately RMB 41.9 million, driven by higher employee benefits and professional service fees[14]. - Total expenses for the six months ended June 30, 2024, amounted to RMB 3,778,689,000, an increase of 7.7% from RMB 3,509,558,000 in the previous year[37]. Assets and Liabilities - Total assets increased to RMB 4,004.8 million as of June 30, 2024, compared to RMB 3,441.4 million as of December 31, 2023[27]. - The total liabilities increased to RMB 2,601.2 million as of June 30, 2024, from RMB 2,055.5 million as of December 31, 2023[27]. - Accounts receivable net amount increased to RMB 3,149,280,000 as of June 30, 2024, from RMB 2,210,071,000 as of December 31, 2023, marking an increase of approximately 42.4%[49]. - The company’s total accounts payable as of June 30, 2024, was RMB 1,920,578,000, up from RMB 1,433,800,000 as of December 31, 2023, indicating an increase of about 34%[51]. Market and Strategic Developments - The company successfully expanded its live e-commerce solutions into the North American market, enhancing international cooperation opportunities[4]. - The application of AI technology, particularly in AIGC, has significantly improved content production efficiency, with the company integrating these tools into its marketing strategies[5]. - The company continues to focus on expanding its one-stop online marketing solutions and live e-commerce services as part of its growth strategy[34]. Employee and Compensation - The company has 645 employees as of June 30, 2024, up from 576 employees as of December 31, 2023[60]. - Employee costs for the six months ended June 30, 2024, totaled approximately RMB 82.7 million, an increase from RMB 70.1 million for the same period in 2023[60]. - The company emphasizes maintaining high recruitment standards and competitive compensation for employees, with a focus on training and retention[60]. Cash Flow and Financial Position - As of June 30, 2024, the company's cash and cash equivalents decreased to approximately RMB 409.3 million from RMB 719.4 million as of December 31, 2023, primarily due to net cash outflows from operating activities[21]. - The company's leverage ratio as of June 30, 2024, was 0.01, a decrease from 0.02 as of December 31, 2023[22]. - The company maintained a prudent treasury policy, ensuring a robust liquidity position throughout the review period[52]. Accounting and Compliance - The company has adopted new accounting standards effective from January 1, 2024, but these have not had a significant impact on the financial statements[30]. - The company has adopted accounting principles and practices that comply with applicable accounting standards and regulations as of June 30, 2024[66]. - The interim financial data for the six months ending June 30, 2024, has been reviewed by the company's auditors according to international review standards[67].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 7,076,001 thousand, a decrease of 15.1% compared to RMB 8,336,069 thousand in 2022[28]. - Gross profit increased to RMB 286,018 thousand, up 30.0% from RMB 219,826 thousand in the previous year[28]. - Operating profit for the year was RMB 125,482 thousand, down 23.9% from RMB 164,775 thousand in 2022[28]. - Net profit for the year was RMB 90,972 thousand, a decrease of 20.0% compared to RMB 113,579 thousand in 2022[28]. - Basic and diluted earnings per share for the year were both RMB 0.15, down from RMB 0.19 in the previous year[29]. - Total comprehensive income for the year was RMB 95,914 thousand, down 31.7% from RMB 140,492 thousand in 2022[29]. - Research and development expenses decreased to RMB 8,816 thousand, down 49.7% from RMB 17,506 thousand in 2022[28]. - Financial income increased to RMB 12,523 thousand, compared to RMB 5,349 thousand in the previous year[28]. - The company reported a net loss from financial assets impairment of RMB 45,909 thousand, compared to RMB 21,550 thousand in 2022[28]. - The company experienced a foreign exchange loss of RMB 7,763 thousand from overseas operations, compared to a loss of RMB 45,406 thousand in the previous year[29]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 3,441,409 thousand, a decrease of 13.7% from RMB 3,988,951 thousand in 2022[32]. - Current assets totaled RMB 3,378,713 thousand, down 13.6% from RMB 3,914,966 thousand in the previous year[32]. - Accounts receivable decreased significantly to RMB 2,210,071 thousand, a decline of 18.3% from RMB 2,704,930 thousand in 2022[32]. - Cash and cash equivalents increased to RMB 719,445 thousand, up 149.5% from RMB 288,660 thousand in the prior year[32]. - Total liabilities decreased to RMB 2,055,529 thousand, down 23% from RMB 2,665,159 thousand in 2022[32]. - Current liabilities totaled RMB 2,050,806 thousand, a reduction of 22.7% from RMB 2,654,003 thousand in the previous year[32]. - Non-current assets amounted to RMB 62,696 thousand, a decrease of 15.2% from RMB 73,985 thousand in 2022[32]. - Inventory increased slightly to RMB 10,729 thousand, up 2.8% from RMB 10,435 thousand in the previous year[32]. Corporate Governance - The company’s financial reporting process is overseen by the audit committee, ensuring compliance with international financial reporting standards[17]. - The management is responsible for preparing true and fair consolidated financial statements and assessing the group's ability to continue as a going concern[16]. - The company has appointed new representatives and committee chairs effective March 28, 2024, indicating a potential shift in governance structure[5]. - The company has implemented strong corporate governance practices to enhance accountability and shareholder value[34]. - The board of directors is committed to maintaining compliance with corporate governance standards and has established clear divisions of authority between the board and management[38]. - The Nomination Committee consists of four members, including one executive director and three independent non-executive directors, ensuring diverse skills and experiences[48]. - The board diversity policy was adopted on October 8, 2021, emphasizing the importance of diversity in achieving strategic goals and sustainable development[49]. - The Remuneration Committee held one meeting from January 1, 2023, to December 31, 2023, and reviewed the adoption of a share incentive plan[53]. - The company has complied with the corporate governance code and established effective risk management and internal control systems as of December 31, 2023[83]. Risk Management and Compliance - The company has implemented a risk management system to manage risks related to its business and operations, including an internal control system[55]. - The company emphasizes effective internal and external communication to provide necessary information for daily monitoring[56]. - The company strictly adheres to laws regarding anti-corruption, anti-money laundering, and fair competition, ensuring a transparent and compliant business environment[166]. - The company has a clear conflict of interest reporting mechanism, requiring employees to declare any potential conflicts to mitigate corruption risks[161]. - In 2023, the company did not experience any significant violations related to corruption, bribery, fraud, or money laundering, and there were no lawsuits regarding corruption[186]. Environmental, Social, and Governance (ESG) - The board regularly reviews the ESG management strategy to assess its potential impact on overall strategy[68]. - The company has established a stakeholder engagement process to identify and analyze ESG issues based on communication results and macro policies[70]. - The company promotes energy-saving practices, such as ensuring air conditioning efficiency and reducing standby time for electronic devices[72]. - The company encourages water conservation and the use of energy-efficient fixtures to manage water resources effectively[72]. - The company advocates for reducing paper usage by promoting online office processes and double-sided printing[72]. - The company has established clear environmental goals and implemented continuous monitoring and review mechanisms to optimize resource allocation and promote energy conservation and carbon reduction[75]. - The company actively seeks low-carbon transformation opportunities in response to climate change risks and aims to promote sustainable development[104]. - The greenhouse gas emissions for the year amount to 472.79 tons of CO2 equivalent, with scope 1 emissions at 16.14 tons and scope 2 emissions at 456.66 tons[132]. - The company achieved all environmental goals for 2023, including the procurement of energy-efficient equipment and 100% waste classification by employees[131]. - The total amount of non-hazardous waste generated is 49.61 tons, with a density of 0.005 tons/m²[132]. - The company has implemented energy-saving measures, including the use of energy-efficient faucets and toilets, as part of its resource conservation efforts[106]. Employee and Training - The employee turnover rate is 25.87%, with male turnover at 26.36% and female turnover at 25.50%[111]. - The company has a total of 576 employees, with 243 males and 333 females[137]. - The percentage of employees trained by gender in 2023: 60.91% for males and 68.77% for females[144]. - The average training hours per employee by gender: 2.34 hours for males and 2.69 hours for females[144]. - The average training hours per employee by job level: 1.26 hours for management and 2.82 hours for other employees[144]. - The company has implemented a comprehensive training program for new employees and management[117]. - The company has established a multi-channel communication mechanism to address employee concerns effectively[139]. - The company promotes a healthy lifestyle among employees, encouraging outdoor activities to improve physical and mental well-being[144]. Customer Relations and Marketing - The company has established a professional customer service team to actively listen to customer feedback and respond promptly[176]. - In 2023, the company received 39 customer complaints, achieving a complaint resolution rate and follow-up rate of 100%[176]. - The company focuses on high-quality online short video marketing solutions, emphasizing product quality and customer-centric approaches[146]. - The company actively analyzes advertising content effectiveness to balance production costs and time, ensuring high-quality and innovative production ideas[152]. - The company has implemented a comprehensive internal review mechanism to ensure content safety and compliance with positive values in its marketing materials[171]. - The company has developed an AI-driven online advertising platform, "Youliang Engine," to enhance data collection, analysis, and optimize marketing strategies[174]. Supply Chain Management - The company emphasizes responsible procurement and ESG risk management in its supply chain, fostering close communication and mutually beneficial cooperation with suppliers[181]. - All 376 suppliers complied with the company's supplier admission requirements during the reporting period[158]. - The company has established a standardized supplier audit system to ensure service quality and effectiveness, maintaining regular communication with suppliers[182]. - The company has a total of 376 suppliers in 2023, with 357 located in mainland China, 6 in Hong Kong, Macau, and Taiwan, and 13 overseas[184]. Community Engagement - The company is committed to community investment and corporate social responsibility, engaging in various public welfare activities[162]. - The company signed a strategic agreement with Wuhan Media Academy to invest in a 1,200 square meter student practice training platform, enhancing local employment and regional economic prosperity[188]. - The digital imaging media experimental class has been established with three sessions completed by the end of 2023, aiming to cultivate composite talents through diverse courses[188].

Financial Performance - For the year ended December 31, 2023, the company's revenue was RMB 7,076.0 million, a decrease of 15.1% compared to RMB 8,336.1 million in 2022[29]. - The gross profit for the same period was RMB 286.0 million, representing a 30.1% increase from RMB 219.8 million in the previous year[29]. - Profit before tax decreased by 21.2% to RMB 117.2 million from RMB 148.7 million in 2022[29]. - The profit attributable to the owners of the company was RMB 90.6 million, down 20.3% from RMB 113.6 million in the prior year[29]. - Operating cash inflow for the year ending December 31, 2023, was approximately RMB 812.2 million, despite a decline in business scale due to risk management measures[31]. - Net profit for the year ending December 31, 2023, was approximately RMB 91.0 million, down about 19.9% from approximately RMB 113.6 million for the year ending December 31, 2022[31]. - The operating profit for the year was approximately RMB 125.5 million, down from RMB 164.8 million in the previous year, reflecting a decrease of about 23.9%[71]. - The company's advertising revenue from distribution services was approximately RMB 11.3 million in 2023, down from RMB 25.2 million in 2022, reflecting a decline of about 55.2%[53]. - Other income significantly decreased by approximately 96.5% from RMB 115.8 million in 2022 to RMB 4.1 million in 2023, primarily due to reduced government subsidies[90]. - The total income tax expense for the year ended December 31, 2023, was RMB 26,249, down from RMB 35,167 in 2022[147]. Revenue Breakdown - Revenue from online marketing solutions decreased by approximately 15.4% to about RMB 700.9 million for the year ending December 31, 2023, from approximately RMB 828.8 million for the year ending December 31, 2022[39]. - E-commerce revenue accounted for 53.6% of total revenue in 2023, up from 46.3% in 2022, with e-commerce revenue at approximately RMB 374.8 million[41]. - In 2023, the online marketing solutions business generated revenue of RMB 7,008.5 million, accounting for 99.0% of total revenue, a decrease from RMB 8,288.1 million in 2022, which accounted for 99.4%[77]. - Revenue from live e-commerce business increased from RMB 38.4 million in 2022 to RMB 61.9 million in 2023, indicating rapid growth and potential as a second growth curve for the company[78]. - The e-commerce sector remains the largest client group, generating approximately RMB 3,747.6 million in revenue for the year ended December 31, 2023, slightly down from RMB 3,827.7 million in 2022[80]. - Revenue from one-stop online marketing solutions service for the year ended December 31, 2023, was RMB 6,997,239, a decrease of 15.3% from RMB 8,262,846 in 2022[138]. Cost Management - The total employee cost for the year was approximately RMB 147.4 million, down from RMB 195.6 million in 2022, with a total of 576 employees as of December 31, 2023[20]. - Employee benefits expenses decreased by approximately 29.6% from RMB 102.9 million in 2022 to RMB 72.5 million in 2023, attributed to improved efficiency from the upgraded platform[82]. - The total sales expenses increased by approximately 24.0%, from RMB 24.7 million in 2022 to RMB 30.6 million in 2023, mainly due to the rapid expansion of the self-operated e-commerce business[59]. - Total costs for user acquisition and monitoring decreased from RMB 7,951.8 million in 2022 to RMB 6,657.2 million in 2023[81]. - The total cost of traffic acquisition and monitoring decreased to RMB 6,657,207, a reduction of approximately 16.3% from RMB 7,951,800 in 2022[168]. Financial Position - As of December 31, 2023, the company had utilized approximately RMB 607.1 million of the net proceeds from the global offering, with RMB 141.4 million remaining in banks[8]. - Cash and cash equivalents increased significantly from RMB 288.7 million at the end of 2022 to RMB 719.4 million at the end of 2023, primarily due to net cash inflows from operating activities[67]. - The liquidity ratio improved slightly, with a current ratio of 1.6 in 2023 compared to 1.5 in 2022[68]. - The company's leverage ratio decreased to 0.02 as of December 31, 2023, down from 0.3 in 2022, indicating improved financial stability[95]. - Current liabilities decreased to RMB 2,050.8 million in 2023 from RMB 2,654.0 million in 2022, a reduction of 22.7%[106]. - Total assets as of December 31, 2023, were RMB 3,441.4 million, down from RMB 3,988.9 million in 2022, representing a decrease of 13.8%[106]. - The company's net accounts receivable as of December 31, 2023, was RMB 2,210,071, a decrease from RMB 2,704,930 in 2022[152]. - The company reported a total of RMB 2,210.1 million in accounts receivable as of December 31, 2023, down from RMB 2,704.9 million in 2022, a decrease of 18.3%[105]. Strategic Initiatives - The company plans to continue exploring partnerships with new advertisers and online media[6]. - The company plans to expand its live e-commerce services into North America in 2024, leveraging its experience in live operations and supply chain development[50]. - The company plans to establish its own product brands to enhance market influence and drive business growth in the long term[35]. - The company became a partner of Bing China in early 2024, aiming to leverage this partnership to create new quality traffic sources for advertising clients[35]. - AI technology is being integrated into marketing strategies, enhancing content creation and advertising effectiveness, with a focus on personalized and emotional advertising[34]. Shareholder Returns - The board proposed a final dividend of HKD 0.05 per share for the year ended December 31, 2023, subject to approval at the annual general meeting[11]. - The company proposed a final dividend of HKD 0.05 per share, totaling approximately HKD 30 million, equivalent to about RMB 27.2 million[149]. - Basic earnings per share for the year ended December 31, 2023, was RMB 0.15, down from RMB 0.19 in 2022, indicating a decline of 21.1%[103]. - The company declared a final dividend of RMB 11,064,000 for the year ended December 31, 2022, down from RMB 50,184,000 in the previous year[173]. Research and Development - Research and development expenses decreased by approximately 49.6%, from RMB 17.5 million in 2022 to RMB 8.8 million in 2023, due to a reduction in the number of employees dedicated to SaaS technology development[61]. Market Environment - The company has not utilized any funds for strategic investments and acquisitions as of December 31, 2023, due to a cautious approach in a complex market environment[187]. - The effective corporate income tax rate for the company's main subsidiaries in China is 25%, with certain subsidiaries enjoying reduced rates of 15% and 20%[171]. - The group's operations are primarily located in China, with most transactions denominated and settled in Renminbi[198]. - Foreign exchange risk is identified as a potential loss due to fluctuations in exchange rates[198].

Financial Performance - For the six months ended June 30, 2023, the total revenue was RMB 3,609,923,000, a decrease of 14.6% compared to RMB 4,229,924,000 for the same period in 2022[81]. - Gross profit for the same period was RMB 150,451,000, down 30% from RMB 214,878,000 year-on-year[115]. - Operating profit decreased to RMB 60,774,000, a decline of 61.7% compared to RMB 158,647,000 in the previous year[115]. - Net profit attributable to the owners of the company was RMB 41,869,000, down 65.1% from RMB 119,948,000 in the prior year[115]. - Basic and diluted earnings per share for the period were RMB 0.07, compared to RMB 0.20 for the same period last year[115]. - Profit before tax decreased by 66.2% to RMB 51.2 million, compared to RMB 151.7 million in the previous year[187]. - The total comprehensive income amounted to RMB 51,571,000, compared to RMB 133,963,000 for the same period in 2022, representing a decrease of approximately 61.5%[127]. Revenue Breakdown - The online marketing solutions business accounted for 99.1% of total revenue in the first half of 2023, while the live e-commerce business contributed 0.8%[81]. - Revenue from the live e-commerce business grew rapidly from approximately RMB 141 million for the six months ended June 30, 2022, to approximately RMB 288 million for the six months ended June 30, 2023, indicating a significant growth trajectory[8]. - The revenue from the one-stop online marketing solution services was RMB 3,559,688,000, down from RMB 4,149,415,000, reflecting a decline of 14.2% year-over-year[170]. - The live e-commerce business revenue increased to RMB 28,765,000 from RMB 14,072,000, representing a growth of 104.5% year-over-year[170]. - The advertising distribution services revenue decreased significantly to RMB 18,269,000 from RMB 59,283,000, a decline of 69.1%[170]. Expenses and Profitability - The company's gross profit for the six months ended June 30, 2023, was approximately RMB 150.5 million, down 30.0% from approximately RMB 214.9 million for the six months ended June 30, 2022, with a gross margin decrease from 5.1% to 4.2%[12]. - The company's net profit margin for the six months ended June 30, 2023, was 1.2%, down from 2.8% for the six months ended June 30, 2022[30]. - The company's return on equity for the six months ended June 30, 2023, was 6.2%, down from 8.6% as of December 31, 2022[55]. - The company's return on assets for the six months ended June 30, 2023, was 2.4%, compared to 2.8% as of December 31, 2022[55]. - The company is focusing on improving profitability and optimizing operational efficiency to achieve gross margin growth[82]. Tax and Liabilities - The company's income tax expense decreased from approximately RMB 31.7 million for the six months ended June 30, 2022, to approximately RMB 9.3 million for the six months ended June 30, 2023, with the effective tax rate declining from 20.9% to 18.2%[29]. - The company's total liabilities decreased to RMB 2,178,579,000 as of June 30, 2023, compared to RMB 2,665,159,000 at the end of 2022, reflecting a reduction of about 18.3%[130]. - The company's bank and other borrowings were approximately RMB 313.3 million as of June 30, 2023, down from approximately RMB 340.1 million as of December 31, 2022[5]. Strategic Initiatives - The company aims to enhance its supply chain integration capabilities and expand its operational capacity in the e-commerce and local life sectors, focusing on a self-operated model[25]. - The company adjusted its customer portfolio strategically, with a stable proportion of clients in the e-commerce and internet services sectors, while the gaming sector saw a decline and the financial services sector experienced growth[10]. - The company plans to explore strategic investments and acquisitions, with a budget of RMB 119.9 million by December 31, 2024[52]. - The group is committed to leveraging digital tools to create a digital "soul" in the internet marketing industry, positioning itself as a pioneer in industry transformation[76]. Shareholder and Governance - Major shareholders include Supreme Development with a 41.3% stake and Vast Business with a 22.1% stake in the company[102][103]. - The company has not held any significant equity investments in other companies during the six months ended June 30, 2023[56]. - The audit committee has reviewed the accounting principles and practices adopted by the group, ensuring compliance with applicable accounting standards and regulations[63]. - The group will continue to review and monitor its corporate governance practices to ensure compliance with the corporate governance code[62]. Cash Flow and Assets - Cash and cash equivalents at the end of the period were RMB 661,698,000, significantly higher than RMB 288,660,000 at the beginning of the period, indicating an increase of 129.5%[135]. - Operating cash flow for the six months ended June 30, 2023, was RMB 474,937,000, a substantial recovery from a cash outflow of RMB 58,751,000 in the same period of 2022[135]. - Total assets decreased to RMB 3,523,516,000 as of June 30, 2023, down from RMB 3,988,951,000 at the end of 2022, representing a decline of approximately 11.7%[130]. - The inventory level as of June 30, 2023, was RMB 7,753,000, down from RMB 10,435,000 at the end of 2022, indicating a decrease of approximately 25.7%[130]. - The accounts receivable decreased to RMB 2,271,383,000 as of June 30, 2023, from RMB 2,704,930,000 at the end of 2022, representing a decline of about 16.0%[130]. Employee and Incentive Plans - The stock option plan adopted on October 8, 2021, aims to incentivize participants for their future contributions and efficiency, with a maximum limit of 10% of the total issued shares at the time of listing (60,000,000 shares)[64][65]. - The company has adopted a share award plan on May 22, 2023, which is effective for ten years from the adoption date[72][67]. - No rewards were granted under the share incentive plan for the six months ended June 30, 2023[93]. - The maximum number of shares that can be granted under the share incentive plan in any 12-month period shall not exceed 1% of the company's issued share capital[90].

Financial Performance - For the first half of 2023, the total advertising business billings amounted to approximately RMB 4.5 billion, a decrease of 30.7% compared to RMB 6.49 billion in the same period of 2022[8]. - The total revenue for the first half of 2023 was approximately RMB 3.61 billion, down 14.7% from RMB 4.23 billion in the same period of 2022[8]. - Net profit for the first half of 2023 was approximately RMB 41.9 million, a decline of 65.1% compared to RMB 119.9 million in the same period of 2022[8]. - Gross profit for the same period was RMB 150.5 million, down 30.0% from RMB 214.9 million in the previous year[46]. - Profit before tax decreased by 66.2% to RMB 51.2 million from RMB 151.7 million year-on-year[31]. - The company's profit attributable to owners for the six months ended June 30, 2023, was RMB 41,869,000, a decrease of 65% compared to RMB 119,948,000 for the same period in 2022[132]. - Basic earnings per share for the six months ended June 30, 2023, was RMB 0.07, down from RMB 0.20 in the same period of 2022, representing a 65% decline[132]. Revenue Breakdown - The online marketing solutions business revenue for the first half of 2023 was RMB 3.577 billion, accounting for 99.1% of total revenue, compared to RMB 4.209 billion and 99.5% in the same period of 2022[15]. - The e-commerce sector accounted for 46.6% of the online marketing solutions business revenue in the first half of 2023, with revenue of RMB 1.658 billion, compared to 42.2% in the same period of 2022[21]. - Revenue from the live e-commerce business grew rapidly to RMB 28.8 million, up from RMB 14.1 million year-on-year[41]. - The e-commerce sector remained the largest client group, generating revenue of approximately RMB 1,658.4 million, down from RMB 1,753.2 million in the same period last year[44]. - Revenue from one-stop online marketing solutions service was RMB 3,559,688,000, down 14.2% from RMB 4,149,415,000 in the previous year[111]. Cost and Expenses - The total cost of sales for the six months ended June 30, 2023, was approximately RMB 3,459.5 million, down from RMB 4,015.0 million in the previous year[45]. - Total expenses for the six months ended June 30, 2023, were RMB 3,509,558,000, a decrease of 13.9% from RMB 4,073,225,000 in the same period of 2022[124]. - Employee benefits expenses for the first half of 2023 were approximately RMB 344 million, representing 1.0% of total service costs, down from RMB 568 million and 1.4% in the same period of 2022[23]. - The total employee cost for the six months ended June 30, 2023, was approximately RMB 70.1 million, down from RMB 100.5 million for the same period in 2022[162]. Asset and Liabilities - As of June 30, 2023, total assets amounted to RMB 3,523,516 thousand, a decrease from RMB 3,988,951 thousand as of December 31, 2022, representing a decline of approximately 11.7%[91]. - Total liabilities decreased to RMB 2,178,579 thousand from RMB 2,665,159 thousand, marking a decline of about 18.2%[104]. - The company's cash and cash equivalents increased from approximately RMB 288.7 million as of December 31, 2022, to RMB 661.7 million as of June 30, 2023, primarily due to net cash inflows from operating activities[56]. - As of June 30, 2023, net accounts receivable amounted to RMB 2,271,383,000, a decrease from RMB 2,704,930,000 as of December 31, 2022[133]. Strategic Adjustments - Financial services clients increased, while the gaming sector client base decreased, indicating a strategic adjustment in the customer portfolio to better adapt to market changes[21]. - The company is actively exploring the application of AIGC tools to enhance operational efficiency and improve marketing solutions[39]. - The company is exploring strategic investments and acquisitions, with an allocation of HKD 119.9 million expected to be utilized by December 31, 2023[1]. Market and Client Concentration - The company reported a significant concentration of credit risk, with two major customers contributing approximately 43% and 14% of total revenue for the six months ended June 30, 2023, compared to 39% and 2% in the same period of 2022[101]. - The company has not identified any individual customer contributing over 10% of total revenue, aside from major customers A and B[123]. Research and Development - Research and development expenses significantly decreased by 60.7% to RMB 4.5 million, down from RMB 11.6 million in the previous year, primarily due to a reduction in the number of employees dedicated to developing SaaS technology[73]. Dividends and Shareholder Returns - The company declared dividends of RMB 11,064,000 for the six months ended June 30, 2023, compared to RMB 50,184,000 in the previous year[118]. - The company did not declare any interim dividend for the six months ended June 30, 2023[144]. Financial Ratios - Gross margin decreased to 4.2% for the six months ended June 30, 2023, compared to 5.1% for the same period in 2022[184]. - Net profit margin fell to 1.2% for the six months ended June 30, 2023, down from 2.8% in the prior year[184]. - Return on equity (ROE) was 6.2% for the six months ended June 30, 2023, compared to 8.6% for the same period in 2022[184]. - Return on assets (ROA) decreased to 2.4% for the six months ended June 30, 2023, from 2.8% in 2022[184]. - Current ratio improved to 1.6 as of June 30, 2023, compared to 1.5 as of December 31, 2022[184]. - Leverage ratio decreased to 0.2 as of June 30, 2023, down from 0.3 in the previous year[184].