Business Operations - The company focuses on health and wellness tourism, managing hot spring resorts and hotels, and has developed and sold seven tourism property projects[4]. - The flagship Gudou Hot Spring Resort is a national AAAA-level tourist attraction located in Jiangmen, Guangdong Province[4]. - The company provides consulting services to third-party hot spring resorts and hotel operators[4]. - The company has a commitment to managing and operating hot spring resorts to revitalize guests' physical and mental well-being[4]. - The company has established a significant presence in the tourism property market, including villas, apartments, and commercial units[4]. - The company is primarily engaged in the operation and management of hot spring resorts and the development and sale of tourism properties in Guangdong Province[88]. - The company aims to expand its management services to third-party resorts and hotel operators as part of its growth strategy[92]. - The company has adopted standardized development procedures to enhance efficiency and control costs in tourism property development[102]. - The company plans to continue promoting the "Gu Dou" brand through various marketing events, including the opening of the Gu Dou Tian Ji Hot Spring Hotel in August 2022[103]. Financial Performance - Revenue for the year ended December 31, 2022, was RMB 41,900,000, a decrease of 34.5% compared to RMB 63,964,000 in 2021[10]. - Operating loss increased to RMB (133,667,000) in 2022 from RMB (52,253,000) in 2021, representing a 155.8% increase[10]. - Adjusted EBITDAF for 2022 was RMB 3,416,000, a significant improvement from RMB (333,000) in 2021, indicating a 1,125.8% change[16]. - Net loss for the year was RMB (132,693,000), an increase of 92.4% compared to RMB (68,950,000) in 2021[10]. - The company reported a significant increase in adjusted net loss to RMB (128,682,000) from RMB (68,763,000) in the previous year, marking an 87.1% increase[16]. - Revenue from the hot spring resort and hotel operations decreased by approximately 31.9% to RMB 41,500,000, primarily due to the resurgence of COVID-19 impacting recovery[36]. - The company recorded a gross loss of approximately RMB 41,100,000, with a gross loss margin of about 98.1%, compared to a gross profit margin of 0.1% in the previous year[38]. - The company recorded a revenue of approximately RMB 41,900,000 for the year, a decrease of about 34.5% compared to RMB 64,000,000 in the previous year[36]. - Revenue from tourism property development decreased by approximately 86.1% to around RMB 400,000, primarily due to weak demand in the real estate market[93]. Market Conditions - Average occupancy rate for luxury resorts dropped to 30% in 2022 from 45% in 2021, while city hotels decreased to 46% from 65%[17]. - Average room rate for luxury resorts decreased to RMB 675 in 2022 from RMB 780 in 2021[17]. - Total revenue per available room (RevPAR) for luxury resorts fell to RMB 206 in 2022 from RMB 347 in 2021[17]. - The decrease in revenue was mainly attributed to the impact of COVID-19 measures, including travel restrictions and mandatory quarantine[91]. - The occupancy rate of the company's nine themed hotels decreased from approximately 27% to about 26% due to strict pandemic prevention and quarantine policies[92]. - The average room rate for the nine themed hotels decreased from approximately RMB 286.4 to about RMB 276.6, primarily due to a reduction in rates for mid-range resort and city hotels[92]. - The company has faced challenges in its tourism property development business due to weak demand in the general real estate market[91]. Governance and Compliance - The company has a diverse board of directors with recent changes in executive positions, ensuring governance and compliance[7]. - The company has implemented internal monitoring systems to ensure compliance with necessary permits and licenses for business operations[108]. - The independent auditor raised concerns regarding the financial data of a joint venture, indicating a lack of cooperation from the partner in providing necessary information[61]. - An independent review revealed doubts about the existence of a RMB 15 million loan under a commitment letter, highlighting internal control deficiencies[62]. - The audit committee believes that once a ruling is made regarding the joint venture rights, there will be no further disputes with Guangdong Aoyuan[64]. - The company has adopted a standard code of conduct for securities trading, which is not less stringent than the GEM listing rules[160]. - The company has confirmed the independence of its independent non-executive directors in accordance with GEM listing rules[152]. - The company has established four board committees: audit, nomination, remuneration, and compliance, to assist the board in fulfilling its responsibilities[168]. Future Outlook - The company is optimistic about 2023, viewing it as a year for recovery and innovation in the tourism sector, supported by favorable government policies[33]. - The company anticipates that the tourism industry will recover as global conditions improve, with a focus on health and wellness[94]. - The company plans to continue investing in the renovation of its resort properties, which significantly impacts its cost structure and financial performance[13]. - The company expects the sales of the Gu Dou Yi Shui Ming Ting and Guan Shan Yue Gong Guan projects to continue into 2023, with deliveries starting in the same year[102]. - The management expects that the audit opinion can be removed within 2 to 3 years after the auditor performs alternative audit procedures[63]. Shareholder Information - The total reserves available for distribution to shareholders as of December 31, 2022, amounted to approximately RMB 310.7 million, an increase from RMB 303.4 million in 2021[116]. - The company did not recommend any final dividend for the year, with no final dividend paid during the year[115]. - The company has not issued any shares, bonds, or similar rights during the reporting period[112]. - The company has granted stock options totaling 54.3 million shares at an exercise price of HKD 0.1742 on June 20, 2022, with a remaining balance of 49.35 million shares after cancellations[127]. - The total number of stock options granted during the period was 39.2 million, with 14.35 million options exercised or forfeited[130]. - Major shareholders include Mr. Li with 97,500,000 shares (9.80%) and Sky Success Ventures with 143,000,000 shares (14.37%)[139]. Risk Management - The company is dependent on existing hot spring water sources, and any adverse geological changes could significantly impact its business[110]. - The company may face risks related to the operation of hot spring resorts, including accidents and environmental issues, which could negatively affect the brand reputation[110]. - The company has implemented internal control and risk management systems, which are monitored by the audit committee[169]. - The board reviews the overall risk management system at least annually to ensure adequate monitoring and management of significant risks[196]. - The company has adopted a risk management system that includes identifying risk ownership and assessing the potential impact on business objectives[197]. Employee and Operational Costs - Employee costs for the fiscal years ending December 31, 2021, and December 31, 2022, were approximately RMB 35.8 million and RMB 23.9 million, respectively[57]. - The group employed 256 full-time employees as of December 31, 2022, with about 97.3% based in China[57]. - The company has implemented cost-saving measures that have led to a reduction in material and energy costs despite an increase in employee costs[37]. - Administrative expenses decreased slightly by about 0.4% to RMB 28,800,000, primarily due to reduced professional fees[43].

Financial Performance - For the nine months ended September 30, 2023, the revenue was RMB 34,074,000, an increase of 13.8% compared to RMB 29,954,000 for the same period in 2022[4] - The gross loss for the nine months ended September 30, 2023, was RMB 4,132,000, a decrease in loss of 20% from RMB 5,157,000 in the same period of 2022[4] - Operating loss for the nine months ended September 30, 2023, was RMB 68,485,000, which is an increase of 130% compared to RMB 29,753,000 in the previous year[4] - The net loss for the nine months ended September 30, 2023, was RMB 67,507,000, compared to RMB 40,400,000 for the same period in 2022, reflecting a 67% increase in loss[4] - The total comprehensive loss for the nine months ended September 30, 2023, was RMB 68,367,000, compared to RMB 42,007,000 in the same period of 2022, indicating a 62.6% increase[7] - The company reported a basic and diluted loss per share of RMB 6.2 for the nine months ended September 30, 2023, compared to RMB 4.1 for the same period in 2022[7] - The fair value loss on investment properties for the nine months ended September 30, 2023, was RMB 45,150,000, significantly higher than RMB 2,420,000 in the previous year[4] - The group's pre-tax loss increased by approximately RMB 37.7 million to about RMB 78.8 million compared to the same period in 2022, primarily due to increased fair value losses on investment properties[38] - The group's net loss for the period rose by approximately RMB 27.1 million to about RMB 67.5 million, influenced by increased fair value losses on investment properties and higher tax credits[40] - The group reported a tax credit of approximately RMB 11.3 million, a decrease of about 15 times compared to RMB 700,000 for the nine months ended September 30, 2022, mainly due to increased deferred tax credits[39] Revenue Sources - The company's revenue for the nine months ended September 30, 2023, was approximately RMB 34,100,000, an increase of about 13.8% compared to RMB 30,000,000 for the same period in 2022[30] - Revenue from the operation of hot spring resorts and hotels increased by approximately RMB 4,500,000 or about 15.4% to approximately RMB 29,500,000 for the current period[34] - Admission ticket revenue increased by approximately 22.1% to about RMB 7,300,000 compared to the same period last year[31] - Restaurant revenue rose by approximately 29.1% to about RMB 6,700,000[31] - The gross loss for the current period was approximately RMB 4,100,000, a decrease from RMB 5,200,000 in the same period last year[35] - The gross loss margin for the nine months ended September 30, 2023, was approximately 12.1%, compared to 17.2% for the same period in 2022[35] - The company did not record any revenue from tourism property development during the current period, while it generated approximately RMB 400,000 in the same period last year[34] - The cost of sales for the current period was approximately RMB 38,200,000, an increase of about 8.8% from RMB 35,100,000 in the previous year[35] Corporate Governance and Compliance - The company has adopted a code of conduct for directors regarding securities trading, confirming compliance with trading standards during the period[45] - There are no interests held by directors or major shareholders in any competing businesses as of September 30, 2023[46] - The company has adhered to corporate governance codes, with the exception of the dual role of the chairman and CEO, which is under regular review[49] - The audit committee reviewed the unaudited condensed consolidated financial results for the nine months ending September 30, 2023, ensuring compliance with applicable accounting standards[55] Stock Options and Employee Incentives - The company has a stock option plan that was conditionally adopted on November 18, 2016, and became unconditional on December 9, 2016, lasting for 10 years[50] - The company granted stock options on April 5, 2017, and June 20, 2022, with a total of 83,038,000 options granted, of which 60,331,100 remain as of September 30, 2023[52] - The exercise price for the options granted in 2017 was HKD 0.62, while the exercise price for those granted in 2022 was HKD 0.1742[52] - As of September 30, 2023, a total of 15,813,800 options were canceled, and 6,893,100 options expired during the period[52] - The total number of stock options exercised during the period was zero, indicating no options were exercised[52] - The company has a total of 11,670,000 stock options available for employees as of September 30, 2023[52] - The company has a stock option plan approved on November 18, 2016, aimed at incentivizing employees and aligning their interests with shareholders[59] Business Strategy and Market Focus - The company continues to focus on the development and management of the Gudou Hot Spring Resort and related consulting services, aiming for market expansion in Guangdong Province[15] - The company remains cautious about the travel market and aims to leverage the "Gu Dou" brand to explore new business opportunities despite challenges in the real estate market[44] - The company has no plans to expand its property development business in the near future, focusing instead on tourism-related properties in Guangdong Province[44] - The company is focused on expanding its tourism property projects, including the development of the Guoshan Yue Pavilion and other related properties[59] - The company is committed to enhancing its operational efficiency and customer experience through ongoing renovations and maintenance of its facilities[60] - The company plans to continue its market expansion efforts in the Guangdong region, leveraging its existing assets and partnerships[59] - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its offerings[59] - The company aims to maintain a strong financial position while pursuing growth opportunities in the tourism sector[59] - The company is dedicated to developing new products and technologies to enhance its service offerings and attract more visitors[59]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 23,382,000, an increase of 16.4% compared to RMB 20,049,000 for the same period in 2022[4]. - Gross loss for the six months ended June 30, 2023, was RMB 2,239,000, a significant improvement from a gross loss of RMB 4,246,000 in the same period of 2022[4]. - Operating loss for the six months ended June 30, 2023, was RMB 47,525,000, compared to RMB 21,474,000 for the same period in 2022, indicating a deterioration in operational performance[4]. - Total comprehensive loss for the six months ended June 30, 2023, was RMB 47,051,000, compared to RMB 29,611,000 for the same period in 2022, reflecting increased financial challenges[7]. - Basic and diluted loss per share for the six months ended June 30, 2023, was RMB 4.4, compared to RMB 3.0 for the same period in 2022, indicating a worsening loss per share[7]. - The company reported a significant fair value loss on investment properties of RMB 33,350,000 for the six months ended June 30, 2023, compared to RMB 1,490,000 for the same period in 2022[4]. - The company reported a total comprehensive loss of RMB 29,611 thousand for the six months ended June 30, 2023, compared to a loss of RMB 29,049 thousand in the same period of 2022[18]. - For the six months ended June 30, 2023, the total revenue was RMB 23,382,000, while the total loss was RMB (46,380,000), compared to a total revenue of RMB 20,049,000 and a total loss of RMB (29,049,000) for the same period in 2022[34][36]. - The loss before tax for the six months ended June 30, 2023, was RMB (54,717,000), which includes a fair value loss on investment properties of RMB (13,770,000) and financing costs of RMB (7,192,000)[34]. Assets and Liabilities - Non-current assets as of June 30, 2023, totaled RMB 760,793,000, a decrease from RMB 805,268,000 as of December 31, 2022[9]. - Current assets increased to RMB 148,185,000 as of June 30, 2023, compared to RMB 132,665,000 as of December 31, 2022, showing improved liquidity[9]. - Total liabilities as of June 30, 2023, were RMB 677,139,000, a slight decrease from RMB 684,392,000 as of December 31, 2022[10]. - Total equity as of June 30, 2023, was RMB 231,839,000, down from RMB 253,001,000 as of December 31, 2022, indicating a decline in shareholder value[10]. - As of June 30, 2023, total assets amounted to RMB 908,978,000, with total liabilities of RMB 677,139,000, compared to total assets of RMB 937,933,000 and total liabilities of RMB 684,932,000 as of December 31, 2022[34][36]. - The net receivables as of June 30, 2023, were RMB 3,566,000, down from RMB 4,850,000 as of December 31, 2022, indicating a decrease in collectible amounts[46]. - The company’s bank loans as of June 30, 2023, were RMB 237,808,000, with a repayment schedule showing RMB 138,403,000 due within one year[48]. - As of June 30, 2023, the group had outstanding bank loans of approximately RMB 238,200,000, with about RMB 126,300,000 at fixed interest rates[83]. Cash Flow and Financing - The net cash generated from operating activities for the six months ended June 30, 2023, was a loss of RMB 4,935 thousand, compared to a gain of RMB 1,189 thousand in the same period of 2022[20]. - The company experienced a significant increase in financing activities, with net cash used amounting to RMB 17,419 thousand for the six months ended June 30, 2023, compared to a net cash outflow of RMB 15,380 thousand in the same period of 2022[20]. - The cash and cash equivalents at the end of the period increased to RMB 15,155 thousand from RMB 2,348 thousand at the end of June 30, 2022[20]. - The group had cash and bank balances of approximately RMB 15,200,000 as of June 30, 2023[80]. Revenue Sources and Growth - The company generated RMB 5,015 thousand in ticket revenue from the "Yuanquan Valley" for the six months ended June 30, 2023, up from RMB 4,082 thousand in the same period of 2022, representing a growth of 23%[28]. - The company’s rental income for the six months ended June 30, 2023, was RMB 1,873 thousand, an increase of 71% from RMB 1,093 thousand in the same period of 2022[28]. - The company’s interest income for the six months ended June 30, 2023, was RMB 11 thousand, compared to RMB 5 thousand in the same period of 2022, reflecting a 120% increase[30]. - The company reported a significant increase in revenue from its largest customer, which contributed RMB 3,900,000, accounting for 16.6% of total revenue, up from RMB 2,200,000 or 11.1% in the previous year[38]. - Revenue from the group's hotel and resort operations increased by approximately 19.1% to about RMB 23,400,000, driven by a 17.5% increase in room revenue from themed hotels to approximately RMB 10,400,000[73]. - The average room rate increased from approximately RMB 302 to RMB 311, attributed to the cessation of operations in lower-rent urban areas[73]. Strategic Plans and Market Position - The company plans to continue expanding its operations in the tourism property sector within Guangdong Province, focusing on resort management and consulting services[22]. - The company aims to expand its tourism property development business by adopting standardized development procedures for more efficient resource utilization[64]. - The company plans to continue enhancing its position in the hot spring and hotel industry by replicating its business model and providing management services to other hot spring resorts[64]. - The company believes that the demand for health and wellness services will continue to increase post-COVID-19, as people become more health-conscious[90]. - The company aims to enhance its brand recognition and service quality, focusing on traditional Chinese wellness principles to expand its beauty and spa services[90]. - The company plans to diversify its revenue sources by expanding its hotel portfolio domestically[90]. - The group anticipates continued sales and delivery of the Gu Dou Yi Shui Ming Ting project in the second half of 2023, despite no sales recorded in the first half of 2023 due to a sluggish real estate market[72]. Corporate Governance and Compliance - The company has adopted a code of conduct for directors regarding securities trading, confirming compliance during the reporting period[92]. - There were no interests held by directors or major shareholders in any competing businesses during the six months ended June 30, 2023[93]. - The company has not entered into any significant management contracts during the reporting period[94]. - The company is committed to high standards of corporate governance, although the same individual currently holds the positions of Chairman and CEO[95]. - The audit committee reviewed the report and confirmed that the financial performance for the six months ended June 30, 2023, was prepared in accordance with applicable accounting standards[101]. Stock Options and Employee Compensation - The stock option plan adopted in November 2016 remains in effect, with a total of 63,228,000 options granted, of which 40,821,100 remain outstanding after adjustments[97]. - The total number of stock options granted during the period was 83,038,000, with 15,813,800 exercised and 6,893,100 cancelled or expired, leaving a balance of 60,331,100 options[98]. - The fair value of the stock options estimated at the grant date was approximately HKD 5,000,000, equivalent to about HKD 0.09 per option[99]. - The company’s management compensation for the six months ended June 30, 2023, was RMB 1,909,000, a decrease from RMB 5,096,000 in the same period of 2022[59].

Financial Performance - Revenue for the first quarter ended March 31, 2023, was RMB 14,683,000, an increase of 13.6% compared to RMB 12,925,000 in the same period of 2022[4] - Gross profit for the first quarter was RMB 1,662,000, compared to a gross loss of RMB 1,291,000 in the previous year, indicating a significant improvement[4] - Operating loss for the first quarter was RMB 33,687,000, compared to RMB 9,312,000 in the same period of 2022, reflecting increased operational challenges[4] - The company reported a loss before tax of RMB 37,027,000, up from RMB 13,357,000 in the prior year, highlighting ongoing financial difficulties[4] - The total comprehensive loss for the period was RMB 29,331,000, compared to RMB 13,023,000 in the same quarter of 2022[4] - Basic and diluted loss per share for the first quarter was RMB 2.95, compared to RMB 1.35 in the same period last year[4] - The company recorded a loss attributable to owners of approximately RMB 29,500,000 for the three months ended March 31, 2023, compared to a loss of approximately RMB 13,200,000 for the same period in 2022[22] - The company reported a loss before tax of approximately RMB 33,700,000 for the period, compared to a loss of approximately RMB 9,300,000 for the same period in 2022[29] Revenue Sources - Revenue from the resort and hotel operations increased by approximately 13.6% to about RMB 14,700,000, driven by the recovery of economic activities post-pandemic[23] - The company did not record any revenue from property sales during the period, with expectations for sales of joint development projects to continue into 2023[24] - The company recorded other income of RMB 620,000, significantly higher than RMB 34,000 in the previous year, indicating potential growth in ancillary revenue streams[4] Cost Management - The company's cost of sales for the period was approximately RMB 13,000,000, a decrease of about 8.4% from RMB 14,200,000 for the same period in 2022[27] - Administrative expenses decreased to RMB 5,482,000 from RMB 6,452,000, indicating some cost control measures were implemented[4] - The gross profit for the period was approximately RMB 1,700,000, with a gross profit margin of about 11.3%, compared to a gross loss margin of approximately 10.0% in the previous year[28] Tax and Financial Credits - The income tax credit for the period was approximately RMB 7,500,000, significantly higher than the tax expense of about RMB 200,000 for the same period in 2022[30] Corporate Governance - The company has complied with the applicable corporate governance code provisions, except for the dual role of Mr. Han as both Chairman and CEO, which the board believes enhances business planning and decision-making efficiency[37] - The company plans to regularly review the necessity of appointing different individuals for the roles of Chairman and CEO to maintain good corporate governance[37] - The company emphasizes the importance of high standards of corporate governance for sustainable growth and shareholder value[37] Stock Options - As of March 31, 2023, the company granted stock options under its plan, with a total of 63,228,000 options outstanding, of which 54,938,000 remain after accounting for cancellations[39] - The total number of stock options granted to directors and employees amounts to 83,038,000, with 74,448,000 remaining after adjustments[39] - The exercise price for stock options granted in 2017 was HKD 0.62, while the price for options granted in 2022 was HKD 0.1742, reflecting a significant decrease in the latter[39] - The stock options vesting schedule allows for 25% of the total shares to be issued during specified periods from 2018 to 2021[41] Market Expansion and Development - The company aims to expand its hotel portfolio domestically and enhance its product offerings focused on health and wellness to diversify revenue sources[32] - The company has established a cooperation agreement with Guangdong Aoyuan for land development, indicating ongoing market expansion efforts[44] - The company is focused on expanding its tourism property projects, including the Guanshan Yue Pavilion and Gudou Yishui Mingting, under cooperative agreements[46] - The company aims to enhance its market presence through strategic expansions and potential acquisitions in the tourism industry[46] - The company is committed to developing new products and technologies to enhance its offerings in the tourism sector[46] Operational Details - The average room revenue for the company's seven themed hotels decreased from approximately RMB 337 to RMB 326, while the occupancy rate increased from 26.1% to 28.0%[23] - The total number of available room nights for rental is approximately 67,860.7 square meters across five plots of land owned by Guangdong Gudou[46] - The occupancy rate for the hotel during the reporting period was not specified, but it is calculated as the total number of rented room nights divided by the total available room nights[46] - The company operates the Gudou Hot Spring Resort located in Jiangmen, Guangdong Province, China[46] - The new themed hotel, Yuequan Lake Resort, commenced operations in July 2019[46] Leadership - The board of directors includes executive directors Han Zhiming, Huang Zhanxiong, Wang Jun, and Liang Juquan, indicating a strong leadership team[47] - The company has a stock option plan approved on November 18, 2016, to incentivize key personnel[46] Compliance and Audit - The audit committee reviewed the unaudited consolidated financial performance for the three months ending March 31, 2023, ensuring compliance with applicable accounting standards[42] - The company has not purchased, redeemed, or sold any of its securities during the three months ending March 31, 2023[41]

Financial Performance - The total revenue for the year ended December 31, 2022, was RMB 41,900,000, a decrease of 34.5% compared to RMB 63,964,000 in 2021[4] - The gross loss for the year was RMB 41,112,000, compared to a gross profit of RMB 73,000 in the previous year[4] - The operating loss increased to RMB 133,667,000 from RMB 52,253,000 in 2021, reflecting a significant decline in operational performance[4] - The net loss attributable to owners of the company for the year was RMB 132,693,000, compared to RMB 68,950,000 in 2021, representing an increase of 92.5%[4] - The company reported a net loss before tax of RMB 148,399,000, up from RMB 71,046,000 in the previous year[4] - The basic and diluted loss per share for the year was RMB 13.51, compared to RMB 7.04 in the previous year[4] - Total revenue for the year ended December 31, 2022, was RMB 41,481,000, a decrease of 31.9% from RMB 60,944,000 in 2021[27] - Revenue from hotel and resort operations was RMB 20,932,000, down 25.5% from RMB 28,059,000 in the previous year[27] - The company reported a net loss attributable to owners of RMB 132,693,000 for the year ended December 31, 2022, compared to a loss of RMB 68,950,000 in 2021, representing an increase in loss of 92.5%[33] - Basic loss per share for the year was RMB 13.51, compared to RMB 7.04 in 2021, indicating a significant increase in loss per share[33] - The company’s income from property sales was RMB 419,000, a decrease of 83.7% from RMB 2,562,000 in 2021[27] - The company did not declare or propose any dividends for the year ended December 31, 2022, consistent with the previous year[30] Liquidity and Financial Position - Current liabilities exceeded current assets by approximately RMB 193,246,000, highlighting liquidity concerns[12] - The company’s cash and bank balances were approximately RMB 3,356,000, indicating limited liquidity[12] - As of December 31, 2022, the group had bank loans of RMB 112,706,000 and RMB 85,366,000, with plans to renew approximately RMB 65,040,000 in financing due in 2024[15] - The group has established a new uncommitted bank financing facility of RMB 230,000,000, which can be drawn upon as needed[15] - The board believes that the group will have sufficient working capital to meet its financial obligations until March 31, 2025, despite significant uncertainties[17] - The group continues to implement measures to control capital and operating expenditures while generating cash flow from hotel and resort operations[18] - The company’s bank and cash balance as of December 31, 2022, was approximately RMB 3,400,000[109] - The company’s total outstanding bank loans amounted to RMB 239,000,000, with approximately RMB 127,400,000 being fixed-rate borrowings[109] - The capital debt ratio increased to approximately 0.97 as of December 31, 2022, due to a decrease in total capital[109] Impact of COVID-19 - In 2022, the COVID-19 pandemic significantly impacted the group's hotel and resort operations, which have not fully recovered as of now[14] - The company faced significant operational challenges due to the negative impact of the COVID-19 pandemic on hotel and resort operations, which have not fully recovered[76] - Revenue from the resort and hotel operations decreased due to multiple measures implemented by the Chinese government to curb the COVID-19 pandemic, including travel restrictions and mandatory quarantine[80] - The occupancy rate of the group's nine themed hotels dropped from approximately 27% for the year ended December 31, 2021, to about 26% for the current year, primarily due to strict epidemic prevention and isolation policies affecting overall travel demand[81] - Revenue from tourism property development decreased by approximately 86.1% from about RMB 3,000,000 to approximately RMB 400,000, mainly due to weak demand in the general real estate market[82] Joint Venture and Development Issues - Following the termination of the joint venture, the group is primarily responsible for property development projects, with outstanding costs owed by the joint venture partner amounting to approximately RMB 31,000,000[18] - The group has received claims from contractors for unpaid construction and other costs amounting to RMB 31,000,000 after the dissolution of the joint venture[50] - The group has been unable to obtain complete accounting records from the joint venture due to ongoing disputes with Guangdong Aoyuan[50] - The group continues to rely on limited information to account for transactions related to the joint venture due to incomplete records[50] - The joint venture's development has faced delays since the second half of 2022, with no further development on five remaining plots of land[43] Cost Management and Operational Efficiency - The group continues to implement measures to control capital and operating expenditures while generating cash flow from hotel and resort operations[18] - The company has implemented cost-saving measures, resulting in a reduction of material costs and energy expenses despite an increase in employee costs[98] - Selling expenses decreased by approximately 59.9% to RMB 4,400,000, mainly due to reduced advertising expenses for resort and hotel operations[103] Future Outlook - The group anticipates a gradual recovery in its hotel and resort business in 2023, with a cautiously optimistic outlook for the leisure travel market in 2024[18] - The group is committed to expanding its hotel footprint in China and diversifying its revenue sources, focusing on health and wellness as a core business priority[83] - The group is actively exploring opportunities to provide management services to third-party owned hot spring resorts, aiming to replicate its business model[88] - The group anticipates continued sales and delivery of the Gu Dou Yi Shui Ming Ting and the Guan Shan Yue Gong Guan projects into 2023[89] Accounting and Compliance - The adoption of revised accounting standards is not expected to have a significant impact on the group's consolidated financial information[20] - The company is evaluating the adoption of new accounting standards and amendments, which will be implemented when they come into effect[25] - The audit committee, composed entirely of independent non-executive directors, has reviewed the group's annual performance[127]

Financial Performance - For the three months ended September 30, 2022, the revenue was RMB 9,905,000, a decrease of 12.6% compared to RMB 11,333,000 for the same period in 2021[4]. - The gross loss for the nine months ended September 30, 2022, was RMB 5,157,000, compared to a gross loss of RMB 3,694,000 for the same period in 2021, indicating a worsening performance[4]. - The operating loss for the nine months ended September 30, 2022, was RMB 29,753,000, an increase from RMB 24,330,000 in the same period of 2021, reflecting higher operational challenges[4]. - The total comprehensive loss for the nine months ended September 30, 2022, was RMB 42,007,000, compared to RMB 38,495,000 for the same period in 2021, showing a continued trend of losses[6]. - The company reported a net loss of RMB 40,400,000 for the nine months ended September 30, 2022, compared to RMB 38,293,000 for the same period in 2021[4]. - The financing costs for the nine months ended September 30, 2022, were RMB 11,348,000, down from RMB 13,011,000 in the same period of 2021, indicating some improvement in financing efficiency[4]. - The company recorded other income of RMB 965,000 for the nine months ended September 30, 2022, compared to RMB 3,767,000 for the same period in 2021, reflecting a significant decline[4]. - The company incurred administrative expenses of RMB 21,045,000 for the nine months ended September 30, 2022, slightly down from RMB 22,777,000 in the same period of 2021, indicating cost control efforts[4]. - The company reported a loss per share of RMB 4.1 for the nine months ended September 30, 2022, compared to RMB 3.9 for the same period in 2021, indicating a deterioration in shareholder value[6]. - The company experienced a foreign exchange loss of RMB 1,607,000 for the nine months ended September 30, 2022, compared to a gain of RMB 198,000 in the same period of 2021, highlighting currency volatility impacts[6]. - The company's revenue for the nine months ended September 30, 2022, was approximately RMB 30 million, a decrease of about 33.2% compared to RMB 44.8 million for the same period in 2021[26]. - The net loss for the nine months ended September 30, 2022, was approximately RMB 40.4 million, compared to a net loss of approximately RMB 38.3 million for the same period in 2021[26]. - The group's total revenue for the period was approximately RMB 30,000,000, a decrease of about 33.2% from RMB 44,800,000 in the same period last year, mainly due to reduced income from hotel and resort operations and tourism property development[29]. - The group's gross loss for the period was approximately RMB 5,200,000, an increase of about RMB 1,500,000 compared to a gross loss of approximately RMB 3,700,000 in the same period last year, with a gross loss margin of approximately 17.2%[33]. - The group's loss before tax increased by approximately RMB 3,800,000 to about RMB 41,100,000 compared to a loss of approximately RMB 37,300,000 in the same period last year, primarily due to decreased revenue levels and reduced gross profit[34]. - Net loss for the period increased by approximately RMB 2,100,000 to about RMB 40,400,000, aligning with the revenue decline[36]. Revenue Breakdown - Revenue from the resort and hotel operations decreased by approximately 27.7% to about RMB 29.5 million during the period[27]. - Ticket revenue decreased by approximately 29.5% to about RMB 6 million compared to the previous year[27]. - Room revenue from themed hotels decreased by approximately 22.9% to about RMB 14.3 million compared to the previous year[27]. - Restaurant revenue decreased by approximately 33.0% to about RMB 5.2 million during the period[27]. - The average room rate increased slightly to approximately RMB 277.8 from RMB 273.9 in the previous year[27]. - The occupancy rate for the themed hotels slightly decreased to approximately 24.0% from 24.1% in the previous year[27]. - Revenue for the tourism property development business decreased by approximately 89.4% to about RMB 400,000 compared to RMB 4,000,000 for the nine months ended September 30, 2021, primarily due to a continued downturn in the overall real estate market[29][30]. - Revenue from the hot spring resort and hotel operations decreased by approximately RMB 11,300,000 or about 27.7% to approximately RMB 29,500,000, attributed to declines in room revenue, ticket sales, and dining income[29]. Shareholder Information - As of September 30, 2022, the company had a total of 980,000,000 shares issued, with Harvest Talent holding 336,500,000 shares, representing 34.34% of the issued share capital[46]. - Mrs. Han, as a spouse, holds rights to 350,900,000 shares, which is 35.81% of the total issued shares[46]. - Phoenix Virtue Limited and its controlling entities collectively hold 286,000,000 shares, accounting for 29.18% of the issued share capital[48]. - Fu An and Fu Nuo, as beneficial owners, hold 60,000,000 shares each, representing 6.12% of the total issued shares[49]. - Mr. Li Chao Wang has beneficial ownership of 97,500,000 shares, which is 9.95% of the total issued shares[49]. - Sky Success Ventures Limited and New Ray Developments Limited, both wholly owned by Mr. Tam Ka Wai, hold a combined total of 286,000,000 shares, representing 29.18% of the issued share capital[49]. Corporate Governance - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with GEM listing rules[50]. - The company has maintained high standards of corporate governance, although it currently does not comply with the requirement to have at least one director of a different gender[54]. - No significant management or administrative contracts have been established or are in effect as of September 30, 2022[53]. - There are no reported interests or potential conflicts of interest from directors or major shareholders in competing businesses as of September 30, 2022[52]. Stock Options and Expenses - The company adopted a stock option plan on November 18, 2016, which became unconditional after listing, with a term of 10 years starting from December 9, 2016[56]. - As of September 30, 2022, a total of 63,700,000 stock options were granted, with 39,200,000 options exercised during the period[59]. - The exercise price for options granted on June 20, 2022, was set at HKD 0.1742, with a total of 15,100,000 options exercised[63]. - The fair value of the stock options estimated at the grant date was approximately HKD 5,000,000, equivalent to about HKD 0.09 per option[63]. - The company reported total expenses of approximately RMB 4,300,000 for the nine months ended September 30, 2022[63]. - No purchases, redemptions, or sales of the company's securities were made by the company or its subsidiaries during the nine months ended September 30, 2022[65]. Audit and Compliance - The audit committee reviewed the report and confirmed that the financial performance for the nine months ended September 30, 2022, was prepared in accordance with applicable accounting standards[66]. Future Outlook and Strategy - The company plans to continue focusing on the hotel industry and closely monitor market performance, while not planning to expand its property development business in the near future due to challenging conditions in the Chinese real estate market[40]. - The company has no new strategies or market expansions reported in the current documents[68]. - The company aims to achieve a revenue growth target of 20% for the next fiscal year, driven by increased tourist arrivals and enhanced service offerings[89]. - Future outlook remains positive with anticipated growth in domestic tourism, supported by government initiatives to promote local travel[89]. - The company is investing in technology upgrades to enhance customer experience and operational efficiency within its resorts[89]. - A strategic partnership with Guangdong Aoyuan is expected to bolster the development of new tourism projects within the region[76].

Financial Performance - The company reported total revenue of RMB 20,049,000 for the six months ended June 30, 2022, a decrease of 17.5% compared to RMB 24,295,000 for the same period in 2021[4]. - The gross loss for the six months ended June 30, 2022, was RMB 1,333,000, compared to a gross loss of RMB 4,246,000 for the same period in 2021, indicating an improvement[4]. - Operating loss for the six months ended June 30, 2022, was RMB 18,047,000, a decrease of 16.5% from RMB 21,474,000 in the same period of 2021[4]. - The company recorded a net loss of RMB 26,918,000 for the six months ended June 30, 2022, compared to a net loss of RMB 29,049,000 for the same period in 2021, reflecting a reduction in losses[4]. - The company incurred a total comprehensive loss of RMB 29,611 thousand for the period, compared to a loss of RMB 27,158 thousand in the same period of 2021, indicating a 9.0% increase in losses[16]. - The company reported a loss of RMB 29,049 thousand for the period, compared to a loss of RMB 26,918 thousand in the same period of 2021, reflecting a 4.1% increase in losses[16]. - The group’s loss before tax for the period was approximately RMB 29,500,000, an increase of about 10.0% compared to RMB 26,700,000 in the same period last year, attributed to reduced fair value gains from investment properties, decreased revenue, and increased gross loss margin[94]. - The net loss for the period increased by approximately RMB 2,100,000 or 7.9% to approximately RMB 29,000,000 from RMB 26,900,000 in the same period last year, primarily due to reduced fair value gains from investment properties, decreased revenue, and increased gross loss margin, partially offset by a decrease in income tax expenses[96]. Revenue Breakdown - Room revenue for the six months ended June 30, 2022, was RMB 8,861 thousand, down 33.5% from RMB 13,407 thousand in the same period of 2021[25]. - Revenue from the resort and hotel operations decreased by approximately 33.9% to about RMB 19,600,000, with ticket revenue down by 32.9% to approximately RMB 4,100,000[86]. - Revenue from tourism property development dropped by approximately 89.0% to about RMB 400,000, primarily due to continued low demand in the real estate market[88]. - The company generated RMB 4,082 thousand from hot spring valley ticket sales for the six months ended June 30, 2022, a decrease of 32.9% compared to RMB 6,086 thousand in the same period of 2021[25]. - The company’s rental income for the six months ended June 30, 2022, was RMB 1,093 thousand, down 35.6% from RMB 1,697 thousand in the same period of 2021[25]. Assets and Liabilities - Total assets as of June 30, 2022, amounted to RMB 1,013,461,000, down from RMB 1,070,570,000 as of December 31, 2021[9]. - Total liabilities decreased to RMB 655,567,000 as of June 30, 2022, from RMB 687,221,000 as of December 31, 2021[11]. - The total accounts payable as of June 30, 2022, was RMB 41,528 thousand, down from RMB 44,417 thousand as of December 31, 2021, indicating a reduction of about 6.4%[58]. - Bank loans decreased to RMB 240,086 thousand as of June 30, 2022, compared to RMB 251,127 thousand as of December 31, 2021, reflecting a decrease of approximately 4.4%[60]. - The company’s cash and cash equivalents were RMB 165,845,000 as of June 30, 2022, down from RMB 181,301,000 as of December 31, 2021[9]. Cash Flow and Expenses - For the six months ended June 30, 2022, the company reported a net cash inflow from operating activities of RMB 1,189 thousand, a decrease of 95.2% compared to RMB 24,564 thousand in the same period of 2021[18]. - The company’s administrative expenses for the six months ended June 30, 2022, were RMB 15,197,000, a decrease from RMB 16,508,000 in the same period of 2021[4]. - The company’s financing activities resulted in a net cash outflow of RMB 15,380 thousand for the six months ended June 30, 2022, compared to an outflow of RMB 37,673 thousand in the same period of 2021, a reduction of 59.1%[18]. - The company’s total depreciation expense for the period was RMB 14,750 thousand, contributing to a cumulative depreciation of RMB 283,400 thousand as of June 30, 2022[56]. Shareholder Information - As of June 30, 2022, the company has issued a total of 980,000,000 shares, with major shareholders holding significant stakes[112]. - Mr. Han holds 336,500,000 shares, representing 34.34% of the total issued share capital[114]. - Mrs. Han, as a spouse, has rights to 350,900,000 shares, which is 35.81% of the total issued share capital[114]. - Phoenix Virtue Limited, fully owned by Add Hero Holdings Limited, holds 286,000,000 shares, accounting for 29.18% of the total issued share capital[117]. - Mr. Li holds 97,500,000 shares, which is 9.95% of the total issued share capital[114]. Corporate Governance - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with GEM listing rules[119]. - The company has complied with the corporate governance code, except for the dual role of Mr. Han as both Chairman and CEO, which is under review for compliance[123]. - The board aims to appoint at least one director of a different gender by December 31, 2024, to comply with GEM listing rules[123]. - The company plans to regularly review the necessity of separating the roles of Chairman and CEO to enhance governance[123]. Future Plans and Strategies - The company is considering developing five-star hotels and wellness facilities through self-use or leasing, which will be included in the hotel and resort operations segment[30]. - The company aims to continue enhancing its position in the hot spring and hotel industry, as stated in its business objectives[74]. - The company is actively pursuing strategic partnerships to bolster its growth and market expansion efforts[150]. - The company is focused on expanding its market presence through new product and technology development[150].

Financial Performance - Revenue for the first quarter of 2022 was RMB 12,925,000, a decrease of 28.2% compared to RMB 18,006,000 in 2021[5] - The company reported a gross loss of RMB (1,291,000), a decline of 155.8% from a gross profit of RMB 2,313,000 in the previous year[5] - Operating loss increased by 77.6% to RMB (9,312,000) from RMB (5,242,000) year-over-year[5] - Loss before tax rose by 39.5% to RMB (13,357,000) compared to RMB (9,576,000) in the same period last year[5] - Basic and diluted loss per share was RMB (1.35), an increase of 36.6% from RMB (0.99) in the prior year[5] - EBITDA for the first quarter was RMB (460,000), a decline of 114.5% from RMB 3,172,000 in the previous year[7] - EBITDAF was RMB 230,000, down 80.7% from RMB 1,192,000 in the same period last year[7] - Adjusted EBITDAF was RMB 230,000, a decrease of 83.3% from RMB 1,374,000 in the previous year[7] - For the three months ended March 31, 2022, the total comprehensive loss amounted to RMB 13,023 thousand, compared to a loss of RMB 9,808 thousand for the same period in 2021, representing a year-over-year increase of approximately 32.5%[20] - Basic and diluted loss per share for the three months ended March 31, 2022, was RMB (1.35), compared to RMB (0.99) for the same period in 2021, indicating a 36.4% increase in loss per share[20] - The group recorded a gross loss of approximately RMB 1,300,000, compared to a gross profit of about RMB 2,300,000 in the same period last year, reflecting the adverse effects of the COVID-19 outbreak[46] - The group's net loss increased by approximately RMB 3,500,000 or about 36.6% to approximately RMB 13,200,000, aligning with the revenue decline[50] - The group recorded a total comprehensive loss of RMB 13,186 thousand for the period, compared to RMB 9,656 thousand in the previous year, reflecting a significant increase in losses[37] Revenue Breakdown - Revenue from resort operations for the three months ended March 31, 2022, was RMB 12,925 thousand, down 35.1% from RMB 20,055 thousand in the same period of 2021[31] - Revenue from room sales decreased to RMB 5,688 thousand in Q1 2022, a decline of 35.5% compared to RMB 8,747 thousand in Q1 2021[31] - The income from dining services for the three months ended March 31, 2022, was RMB 2,040 thousand, down 40.4% from RMB 3,420 thousand in the same period of 2021[31] - The group's revenue for the three months ended March 31, 2022, was approximately RMB 12,900,000, a decrease of about 35.6% compared to RMB 20,100,000 for the same period in 2021[39] - Revenue from the group's hot spring resort and hotel operations decreased by approximately 28.2% to about RMB 12,900,000, primarily due to the impact of COVID-19 on local cultural tourism demand[40] Occupancy and Room Rates - Average occupancy rate for luxury resorts was 39.6%, down from 59.1% in the previous year[14] - Average room rate for luxury resorts was RMB 819, slightly down from RMB 845 in the previous year[14] - The average room rate for the group's theme hotels slightly decreased from approximately RMB 336.8 to RMB 336.6, mainly due to reduced rates in mid-range and luxury resorts[40] Shareholder Information - As of March 31, 2022, the company had a total of 980,000,000 shares issued, with major shareholders holding significant stakes[54][58] - Mr. Han holds 336,500,000 shares, representing 34.84% of the total issued share capital[53][54] - Harvest Talent, a related corporation, holds 336,500,000 shares, accounting for 34.34% of the total issued share capital[57][58] - Phoenix Virtue Limited, fully owned by Add Hero Holdings Limited, holds 286,000,000 shares, which is 29.18% of the total issued share capital[61] - Mr. Li holds 97,500,000 shares, representing 9.95% of the total issued share capital[62] - The total number of shares held by Mr. Han and his spouse amounts to 341,400,000 shares, which is 34.84% of the total issued share capital[57][60] Corporate Governance - The company has adhered to the corporate governance code, except for the dual role of the Chairman and CEO held by Mr. Han, which the board believes enhances business planning and decision-making efficiency[66] - The company is committed to high standards of corporate governance to ensure sustainable growth and maximize shareholder value[66] - The company plans to regularly review the necessity of appointing different individuals for the roles of Chairman and CEO to maintain good corporate governance[66] Stock Options - The company has a stock option plan, with details on the options and their changes available in the "Stock Option Plan" section[56] - As of March 31, 2022, a total of 46,060,000 stock options were granted under the stock option plan, with an exercise price of HKD 0.62[69] - The stock options granted are subject to a vesting schedule, with 25% of the total shares to be issued exercisable from April 5, 2018, to April 4, 2025[71] - The total number of stock options exercised during the reporting period was zero, indicating no options were exercised[69] Business Operations - The company has not indicated any new product launches or market expansion strategies during this reporting period[28] - The group did not record any revenue from tourism property development during the period, attributed to weak demand in the general real estate market[43] - The company has not entered into any management contracts related to its business during the three months ending March 31, 2022[65] - There were no reported interests in competing businesses by directors or major shareholders during the same period[63] - The company did not purchase, redeem, or sell any of its securities during the three months ended March 31, 2022[71] Future Outlook - The group anticipates continued demand for health and wellness services as public awareness of health increases post-COVID-19[51] - Management plans to enhance the quality and brand recognition of the group's offerings, focusing on health and wellness as core business areas[51] - The group aims to expand its hotel portfolio domestically to diversify revenue sources further[51] Miscellaneous - The foreign exchange difference for the period was RMB 163 thousand, compared to a loss of RMB (152) thousand in the same period of 2021[20] - The company's total rentable room nights available, excluding rooms under renovation or maintenance, were reported[100] - The total already rented room nights, including complimentary stays for guests and owners, were highlighted[101] - The company's audit committee reviewed the unaudited consolidated financial performance for the three months ended March 31, 2022, ensuring compliance with applicable accounting standards[72]

Hotel Operations and Expansion - Gudou Holdings Limited reported a significant expansion in its hotel operations, opening two new hotels in Jiangmen and Guangzhou in the first quarter of 2021[26]. - The company opened its third city hotel in April 2021, expanding its market presence[46]. - The company opened its third city hotel, the Spring Peak Yi Jiangmen Hotel, in the second quarter of 2021, continuing its investment in hotel projects[58]. - The third city hotel, Quan Feng Yi Jiang Men Hotel, opened in the second quarter of 2021[126]. Financial Performance - Revenue for the year ended December 31, 2021, was RMB 63,964,000, a decrease of 49.7% compared to RMB 127,249,000 in 2020[33]. - Gross profit for the same period was RMB 73,000, down 99.9% from RMB 57,860,000 in 2020[33]. - Operating loss for 2021 was RMB (52,909,000), a decline of 302.4% from a profit of RMB 26,135,000 in 2020[33]. - Net loss attributable to the company for the year was RMB (68,950,000), a significant drop of 2510.0% from a profit of RMB 2,861,000 in 2020[33]. - Revenue for the period was approximately RMB 64,000,000, a decrease of about 49.7% compared to RMB 127,200,000 in the previous year[62]. - Revenue from the hot spring resort and hotel operations decreased by approximately 44.8% to RMB 60,900,000, down from RMB 110,300,000 in the previous year due to the resurgence of COVID-19[62]. - Revenue from tourism property development dropped by approximately 82.4% to RMB 3,000,000, down from RMB 17,000,000 in the previous year, primarily due to a decrease in the total area delivered and sold[62]. - The company's cost of sales for the period was approximately RMB 63,900,000, a decrease of about 7.9% from RMB 69,400,000 in the previous year[63]. - The group recorded a revenue of approximately RMB 64,000,000, a decrease of about 49.7% compared to the previous year[119]. - The loss attributable to owners for the period was approximately RMB 69,000,000, compared to a profit of approximately RMB 2,900,000 for the year ended December 31, 2020[119]. Market Position and Strategy - The company emphasizes the importance of health and wellness, aligning its business model with the growing consumer demand for wellness tourism[26]. - Gudou Holdings Limited aims to enhance its market position through strategic expansions in urban hotel operations and wellness property developments[26]. - The company is positioned to leverage its established brand and operational expertise to capture market opportunities in the wellness tourism sector[26]. - The company plans to continue investing in its integrated resort facilities to enhance operational performance[35]. - The group plans to continue investing in hotel projects and optimizing facilities to create value for shareholders[126]. Health and Wellness Initiatives - The company has initiated a health and wellness food business focusing on local specialties, particularly Chenpi, to meet the growing demand for health-conscious products[55]. - The company is committed to maintaining a clean and safe environment for guests and employees, ensuring a "zero infection" status during the pandemic[58]. - The company believes that the demand for travel will increase post-pandemic, leading to a potential recovery in the tourism sector[58]. Governance and Compliance - The management team is committed to ensuring the accuracy and completeness of financial reporting, reflecting a strong governance framework[27]. - The company has established procedures to ensure a transparent and fair procurement process, focusing on sustainability in labor, health, safety, and environmental impact[139]. - The company has maintained an internal monitoring system to check the expiration dates of necessary qualifications and government approvals for its business operations[143]. - The company has not faced any significant administrative sanctions or penalties due to violations of environmental laws during the reporting period[89]. Employee Management - The company has a policy of recruiting employees based on market conditions and business expansion plans[88]. - New hotel employees must undergo a three-day reception training to maintain the brand image and service quality[88]. - The company provides different compensation schemes based on employee positions and service years[88]. - The company has a structured training program for hotel staff to enhance service quality and safety awareness[88]. - The group employed 352 full-time employees as of December 31, 2021, with employee costs for the years ending December 31, 2020, and 2021 being approximately RMB 30,100,000 and RMB 35,800,000, respectively[85]. Environmental Responsibility - The company is committed to social responsibility and environmental protection, aiming to reduce its business impact on the environment[149]. - The company incurred an annual cost of approximately RMB 49,000 for compliance with environmental laws, a decrease from RMB 104,000 in 2020[89]. - The company has not received any complaints regarding environmental issues from customers or others during the reporting period[89]. - There were no significant environmental incidents caused by manufacturing activities during the reporting period[89]. Shareholder Information - The total reserves available for distribution to shareholders as of December 31, 2021, amounted to approximately RMB 303,400,000, a decrease from RMB 311,300,000 in 2020[152]. - The estimated value of properties held for sale as of December 31, 2021, was approximately RMB 104,700,000, down from RMB 105,600,000 in 2020[156]. - The company did not recommend any final dividend for the period and did not pay any interim dividends[151]. - The company has a share option plan that allows for the issuance of a total of 92,120,000 shares, representing 9.4% of the total shares issued as of the report date[163]. - The maximum number of shares that can be issued under the plan within any 12-month period is limited to 1% of the total shares issued at that time, unless approved by shareholders[163].

Revenue Performance - Revenue from resort and hotel operations and consulting decreased by 75.3% to RMB 11,189,000 for the three months ended September 30, 2021, compared to RMB 45,282,000 in the same period of 2020[4] - Revenue from tourism property development dropped by 89.8% to RMB 144,000 for the three months ended September 30, 2021, down from RMB 1,412,000 in the previous year[4] - The total revenue for the nine months ended September 30, 2021, was RMB 44,828,000, a decrease from RMB 70,951,000 in the same period of 2020[17] - The company's revenue for the nine months ended September 30, 2021, was approximately RMB 44.8 million, a decrease of about 36.8% compared to RMB 71 million for the same period in 2020[39] - Revenue from the operation of hot spring resorts and hotel management services decreased by approximately 40.0% to about RMB 40.9 million for the nine months ended September 30, 2021[39] - The group generated RMB 11,333 thousand in revenue from various services for the three months ended September 30, 2021, compared to RMB 46,694 thousand in the same period of 2020[27] Financial Losses - The company reported a gross loss of RMB 2,361,000 for the three months ended September 30, 2021, compared to a gross profit of RMB 29,465,000 in the same period of 2020, marking a 108.0% decrease[4] - Operating loss for the three months ended September 30, 2021, was RMB 6,283,000, a decline of 124.4% from an operating profit of RMB 25,733,000 in the same period of 2020[4] - Loss before tax increased by 150.2% to RMB 10,599,000 for the three months ended September 30, 2021, compared to a profit of RMB 21,113,000 in the same period of 2020[4] - The net loss attributable to owners of the company for the three months ended September 30, 2021, was RMB 11,375,000, a 159.6% increase from a profit of RMB 19,073,000 in the same period of 2020[4] - The adjusted net loss for the nine months ended September 30, 2021, was RMB 38,103,000, compared to a loss of RMB 12,061,000 in the same period of 2020[11] - The company reported a net loss attributable to owners of RMB (38,293) thousand for the nine months ended September 30, 2021, compared to a loss of RMB (15,613) thousand for the same period in 2020[33] Occupancy and Room Rates - The average occupancy rate for luxury resorts was 36% in Q3 2021, down from 87% in Q3 2020, while the overall average occupancy rate decreased to 20% from 30% year-over-year[13] - The average room rate for luxury resorts was RMB 722 for Q3 2021, down from RMB 763 in Q3 2020[13] - The average occupancy rate of the nine themed hotels increased from approximately 19.5% for the nine months ended September 30, 2020, to about 24.1% for the same period in 2021[40] Corporate Governance and Shareholder Information - The company has complied with the corporate governance code, except for the deviation where the same individual holds both the Chairman and CEO positions, which the board believes enhances efficiency in decision-making[69] - As of September 30, 2021, the company had issued a total of 980,000,000 shares, with major shareholders holding significant stakes, including Harvest Talent with 34.34%[61] - The company’s major shareholder, Mr. Han, holds a beneficial interest in 341,400,000 shares, representing 34.84% of the issued share capital[57] - As of September 30, 2021, the company has not received any notification from any person (excluding directors or the highest executive officers) regarding ownership interests in the company's shares or related shares[67] Future Outlook and Strategic Initiatives - The company plans to explore the potential of the home economy driven by the pandemic by actively engaging customers through various online channels, including original content on WeChat and live streaming on Douyin[52] - The company is focused on transforming challenges into opportunities and expanding revenue sources through the "Gudu" brand[55] - The company plans to continue leveraging its brand to enhance revenue streams amid ongoing market challenges[55] - Future outlook includes plans for further expansion and potential acquisitions to strengthen market position[90] - The management team is actively exploring new strategies to drive growth and enhance shareholder value[90] Investments and Renovations - The company is undergoing substantial investments in the renovation of the Gu Dou Hot Spring Resort, which significantly impacts its cost structure and financial performance[6] - The company has developed new tourism property projects in collaboration with Guangdong Aoyuan, including the Gu Du Wen Quan Resort[90] - The company is focused on expanding its market presence through strategic partnerships and new developments in the tourism sector[90] - The company aims to enhance its service offerings and improve customer experience through ongoing renovations and upgrades[112] Tax and Expenses - The group incurred a tax expense of RMB 2,280 thousand for the nine months ended September 30, 2021, reflecting the 25% corporate tax rate applicable in China[30] - The company’s income tax expense decreased by approximately 64.4% to about RMB 1 million for the period, down from RMB 2.7 million in the same period of 2020[48] - The company incurred professional fees of RMB 2,104,000 related to the proposed transfer of listing in 2020[11] Compliance and Audit - The audit committee has reviewed the report and the unaudited consolidated financial performance for the nine months ending September 30, 2021, confirming compliance with applicable accounting standards[76] - No management or administrative contracts related to significant parts of the company's business have been established or are in effect during the nine months ending September 30, 2021[68] - The company has not purchased, redeemed, or sold any of its listed securities during the nine months ending September 30, 2021[75]