Company Overview - Readboy Education Holding Company Limited was listed on the Stock Exchange on July 12, 2022, marking a significant milestone for the company[2]. - As of June 2022, Readboy had accumulated over 5.5 million registered users, with an average of over 1.4 million monthly active users in the past 12 months[4]. - The company ranked second among China's smart learning device service providers in terms of total retail market value and fifth in total device shipments in 2021, according to a Frost & Sullivan report[3]. - Readboy has established a nationwide offline distribution network with 129 contracted distributors controlling 4,608 points of sale across 344 cities in 31 provinces and autonomous regions in China as of June 30, 2022[5]. - The company focuses on the design, development, manufacturing, and selling of smart learning devices embedded with digital educational resources for primary and secondary students, parents, and teachers in China[2]. - Readboy's brand is recognized as a reputable technology-powered education brand in China[3]. Financial Performance - The company's revenue decreased by approximately 26.9% from RMB 355.2 million in 2021 Interim to RMB 259.8 million in 2022 Interim[37]. - Revenue from personal student tablets decreased by approximately 23.1% from RMB299.6 million in 2021 Interim to RMB230.5 million in 2022 Interim due to COVID-19 impacts[14]. - Revenue from smart classroom solutions decreased by approximately 36.7% from RMB8.1 million in 2021 Interim to RMB5.1 million in 2022 Interim, primarily due to promotional delays caused by COVID-19[17]. - Revenue from wearable products decreased by 61.5% from RMB34.1 million in 2021 Interim to RMB13.1 million in 2022 Interim, affected by pandemic control measures[19]. - Revenue from advertisement and content licensing decreased from approximately RMB5.9 million in 2021 Interim to approximately RMB3.0 million in 2022 Interim due to regulatory changes affecting third-party online education institutions[25]. - Sales of personal student tablets accounted for RMB 230.5 million, representing 88.7% of total revenue in 2022 Interim, down from RMB 299.6 million or 84.3% in 2021 Interim[39]. - Gross profit decreased by approximately 24.5% from RMB88.1 million in 2021 Interim to RMB66.5 million in 2022 Interim, while gross profit margin increased from 24.8% to 25.6%[42]. - The net loss for the period was RMB42.4 million in 2022 Interim, compared to a net profit of RMB29.1 million in 2021 Interim, mainly due to a revenue decrease of approximately RMB95.4 million[44]. Strategic Focus and Future Plans - The company aims to expand its market presence and enhance its product offerings through technology-driven innovations[3]. - Readboy is committed to improving user engagement and retention through its educational products and services[4]. - The company plans to leverage its established distribution network to further penetrate the Chinese education market[5]. - Readboy's strategic focus includes continuous investment in research and development for new products and technologies[3]. - The Group anticipates a challenging market environment in the second half of 2022, with expected inflation in input costs and ongoing uncertainty due to COVID-19 impacts[53]. - The Group aims to enhance educational resources through localized content and special teaching functions for customized smart classroom solutions[53]. Shareholder Information - Mr. Chen holds a total of 120,386,719 shares, representing 34.20% of the Company[56]. - Mr. Qin has interests in a controlled corporation with 98,929,717 shares, equating to 28.11%[56]. - Ms. Liu Zhilan holds 6,664,555 shares, representing 1.89% of the Company[56]. - The controlling shareholders of the company, including Kimlan Limited and Mr. Chen, collectively hold 62.31% of the company's shares[58]. Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with all applicable provisions, except for the separation of the roles of chairman and chief executive officer[100]. - The company maintains effective control over Zhuhai Readboy through Contractual Arrangements due to PRC laws restricting foreign ownership in value-added telecommunications services[102]. - The Board has confirmed that there has been no material change in the Contractual Arrangements since the last review[103]. - The company has confirmed compliance with the Contractual Arrangements in all material respects as of June 30, 2022[106]. Market Challenges - The decrease in revenue was primarily due to stringent COVID-19 preventive measures affecting production schedules and offline distributor operations[37]. - The Group continues to monitor developments in relevant laws and regulations regarding foreign investment[107]. - There have been no updates on the Foreign Investment Law or any non-compliance issues with relevant PRC laws[107]. Cash Flow and Assets - As of June 30, 2022, the Group had cash and cash equivalents of RMB 317.7 million, a decrease from RMB 333.3 million as of December 31, 2021[51]. - The Group's gearing ratio increased to 70.9% as of June 30, 2022, compared to 68.1% at the end of 2021, indicating a higher level of financial leverage[51]. - The Group had unutilized banking facilities of approximately RMB 160.0 million as of June 30, 2022[49]. - Total non-current assets increased to RMB 108,392,000 as of June 30, 2022, compared to RMB 105,637,000 as of December 31, 2021, reflecting a growth of 2.3%[118]. Research and Development - The company established the Readboy Institute of Education Technology in 2017 to enhance educational resource development[31]. - Research and development expenses decreased by 13.7% from RMB18.8 million in 2021 Interim to RMB16.2 million in 2022 Interim, primarily due to a reduction in the number of research and development staff[42]. - Research and development expenses amounted to RMB 16,194,000, indicating the company's commitment to innovation and product development[141].