Financial Performance - For the fiscal year ending December 31, 2022, the company reported a net profit of RMB 4.9 million, a significant decrease of approximately 94.0% compared to RMB 82.1 million in 2021[8]. - The company's total revenue decreased by approximately 25.6% from RMB 813.2 million in 2021 to RMB 605.2 million in 2022, primarily due to a decline in sales of personal tablets and wearable products impacted by COVID-19 restrictions[39]. - The pre-tax profit dropped significantly from RMB 72.0 million in 2021 to RMB 10.7 million in 2022[30]. - The income tax expense for 2022 was RMB 5.9 million, compared to a tax credit of RMB 10.1 million in 2021[32]. - The total profit for the year was RMB 4,856 million, a significant decrease from RMB 82,146 million in the previous year[56]. - Net profit attributable to the owners of the company for 2022 was RMB 5,209 thousand, significantly lower than RMB 82,146 thousand in 2021, representing a decrease of 93.7%[117]. - The company reported a deferred tax expense of RMB 5,873 thousand in 2022, compared to a deferred tax benefit of RMB 10,417 thousand in 2021[144]. Revenue Breakdown - The company's revenue from student personal tablets was RMB 522.2 million, accounting for 86.3% of total revenue, while revenue from smart campus solutions was RMB 15.3 million, representing 2.5%[3]. - Sales revenue for student personal tablets decreased by approximately 25.9% from RMB 705.0 million in 2021 to RMB 522.2 million in 2022, primarily due to the impact of COVID-19 and supply chain disruptions[45]. - Sales revenue for wearable products fell by 49.7% from RMB 53.7 million in 2021 to RMB 27.0 million in 2022, also attributed to COVID-19 related challenges[47]. - Revenue from smart campus solutions decreased by about 35.1% from RMB 23.6 million in 2021 to RMB 15.3 million in 2022, due to delays in promotional activities caused by the pandemic[67]. - Revenue from advertising and content licensing dropped from approximately RMB 13.0 million in 2021 to about RMB 11.7 million in 2022, mainly due to the "double reduction" policy affecting user purchases[71]. - Revenue from digital educational resources and services was RMB 130,734 thousand in 2022, slightly down from RMB 137,676 thousand in 2021, a decrease of about 5.3%[133]. Expenses and Costs - Research and development expenses decreased by 13.6% to RMB 37.9 million in 2022 from RMB 43.9 million in 2021, primarily due to reduced professional service fees and material costs[7]. - Sales and distribution expenses increased by approximately 32.0% to RMB 96.4 million in 2022 from RMB 73.1 million in 2021, driven by increased marketing efforts and new product launches[23]. - Administrative expenses rose by approximately 27.4% to RMB 56.1 million in 2022 from RMB 44.0 million in 2021, mainly due to increased professional service fees post-IPO[24]. - The cost of sales decreased by approximately 26.9% to RMB 471.0 million in 2022 from RMB 644.0 million in 2021, primarily due to reduced tablet sales[19]. - The cost of goods sold for equipment, wearable products, and other products was RMB 427,677 thousand in 2022, down from RMB 596,061 thousand in 2021, reflecting a reduction of approximately 28.3%[139]. Assets and Liabilities - The company's cash and cash equivalents as of December 31, 2022, were RMB 149.0 million, a decrease from RMB 333.3 million as of December 31, 2021[6]. - The asset-liability ratio decreased from 68.1% in 2021 to 27.3% in 2022, mainly due to a reduction in total liabilities[33]. - As of December 31, 2022, total assets minus current liabilities amounted to RMB 732,098 thousand, an increase from RMB 420,958 thousand in 2021[90]. - The company's total equity as of December 31, 2022, was RMB 699,579 thousand, up from RMB 258,938 thousand in 2021, indicating a growth of 170.5%[121]. - The company reported a significant reduction in trade receivables, which decreased to RMB 28,330 thousand from RMB 47,551 thousand in 2021, a decline of 40.5%[90]. Strategic Focus and Future Plans - The company focuses on developing and marketing digital educational resources for Chinese students, leveraging internal R&D capabilities[43]. - The company aims to enhance digital teaching methods and improve teaching quality and efficiency through its smart campus solutions targeting primary and secondary schools[45]. - The company plans to enhance its smart campus solutions and develop localized educational content to better meet user needs[112]. - The company aims to expand its distribution network and penetrate more lower-tier cities to accelerate network restructuring[112]. - The company will continue to explore suitable business and investment opportunities to drive growth[84]. Other Information - The company has no significant contingent liabilities, guarantees, or major lawsuits as of December 31, 2022[34]. - The company has no significant direct foreign exchange risk as its operations are primarily conducted in RMB[81]. - The company operates solely in China, with all revenue and long-term assets generated from this region[154]. - The company operates five reportable segments based on its product classifications[127]. - The company did not propose any dividend for the year, consistent with the previous year[166].

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].