Financial Performance - Total revenue for the six months ended November 30, 2024, was RMB 2,186.6 million, a decrease compared to RMB 2,795.0 million in the same period last year[5] - Gross profit for the six months ended November 30, 2024, was RMB 735.1 million, down from RMB 1,094.1 million in the previous year[5] - Net loss attributable to the company's owners for the six months ended November 30, 2024, was RMB 96.8 million, compared to a net profit of RMB 249.2 million in the same period last year[5] - Adjusted net loss for the six months ended November 30, 2024, was RMB 1.6 million, compared to an adjusted net profit of RMB 523.5 million in the previous year[5] - Net revenue from continuing operations (self-operated products and live e-commerce business) decreased by 9.3% to RMB 2.2 billion for the six months ended November 30, 2024, compared to RMB 2.4 billion for the same period in 2023[12] - Net loss from continuing operations was RMB 96.5 million for the six months ended November 30, 2024, compared to a net profit of RMB 160.7 million for the same period in 2023[12] - Excluding the financial impact of the sale of Yuhui Tongxing, the net profit from continuing operations was RMB 32.7 million for the six months ended November 30, 2024[12] - Total revenue from continuing operations decreased by 9.3% from RMB 2.4 billion in the six months ended November 30, 2023, to RMB 2.2 billion in the six months ended November 30, 2024[27] - Excluding revenue from the "与辉同行"直播间, total revenue from continuing operations decreased by 18.0% from RMB 2.4 billion to RMB 2.0 billion[27] - Revenue from self-operated products and live e-commerce decreased by 9.3% from RMB 2.4 billion to RMB 2.2 billion, with self-operated products contributing approximately RMB 1.7 billion[28] - Gross profit from continuing operations decreased by 7.4% from RMB 794.2 million to RMB 735.1 million, while gross margin increased from 32.9% to 33.6%[30] - Net loss from continuing operations was RMB 96.5 million, compared to a net profit of RMB 160.7 million in the same period last year[37] - Adjusted net profit from continuing operations, excluding the financial impact of the sale of "与辉同行", was RMB 32.7 million[37] - Adjusted (loss)/profit for the period from continuing operations was RMB (1,609) thousand, compared to RMB 434,288 thousand in the same period last year[41] - Adjusted (LBITDA)/EBITDA for the period from continuing operations was RMB (68,223) thousand, compared to RMB 500,128 thousand in the same period last year[42] - Total revenue for the six months ended November 30, 2024, was RMB 2,186,636 thousand, a decrease from RMB 2,411,323 thousand in the same period in 2023[74] - Gross profit for the six months ended November 30, 2024, was RMB 735,143 thousand, down from RMB 794,150 thousand in 2023[74] - The company reported a net loss of RMB 96,503 thousand for the six months ended November 30, 2024, compared to a net profit of RMB 249,191 thousand in the same period in 2023[74] - The company reported a loss attributable to owners of RMB 96,799 thousand for the six months ended November 30, 2024, compared to a profit of RMB 249,191 thousand in the same period in 2023[96] - The basic and diluted loss per share for the six months ended November 30, 2024, was RMB 0.094, based on a weighted average of 1,032,195,755 shares[96] GMV and Sales Performance - GMV for the six months ended November 30, 2024, was RMB 4.8 billion, down from RMB 5.7 billion in the same period last year[9] - GMV for self-operated products and live e-commerce decreased by 16.2% to RMB 4.8 billion for the six months ended November 30, 2024, from RMB 5.7 billion for the same period in 2023[12] - The company's total GMV for the six months ended November 30, 2024, was RMB 4.8 billion, with 13.6% coming from the app[18] - The number of paid orders on Douyin for third-party and self-operated products reached 50.1 million for the six months ended November 30, 2024[18] - Paid orders on Douyin decreased to 50.1 million for the six months ended November 30, 2024, from 59.6 million in the same period last year[9] - The company's app has over 200,000 paid members, with self-operated products accounting for 28.9% of total GMV for the first half of fiscal year 2025, up from 16.8% in the first half of fiscal year 2024[22] - Self-operated products accounted for approximately 37% of total GMV for the six months ended November 30, 2024[15] User and Membership Metrics - Number of followers on Douyin increased to 46.0 million as of November 30, 2024, from 45.8 million in the previous year[9] - Paid membership subscriptions on the company's own app increased to 228.3 thousand as of November 30, 2024, from 123.8 thousand in the previous year[9] - User satisfaction on the company's app reached 98.6% in the first half of fiscal year 2025, up from 96.6% in the first half of fiscal year 2024[22] Expenses and Costs - Sales and marketing expenses increased by 24.3% from RMB 369.6 million to RMB 459.3 million[32] - R&D expenses increased by 11.9% from RMB 60.8 million to RMB 68.0 million[33] - Administrative expenses increased by 180.7% from RMB 139.6 million to RMB 391.9 million[34] - Sales and marketing expenses increased to RMB 459,304 thousand in 2024 from RMB 369,634 thousand in 2023[74] - Research and development expenses rose to RMB 68,000 thousand in 2024 from RMB 60,753 thousand in 2023[74] - Administrative expenses surged to RMB 391,916 thousand in 2024 from RMB 139,610 thousand in 2023[74] - Total employee compensation expenses (including share-based compensation) for the six months ended November 30, 2024, were RMB 532.8 million, a decrease of 14.7% compared to RMB 624.8 million in the same period last year[50] Cash Flow and Financial Position - Cash and cash equivalents as of November 30, 2024, were RMB 1.7 billion, compared to RMB 2.3 billion as of May 31, 2024, and RMB 1.3 billion as of November 30, 2023[43] - The company's asset-liability ratio was 17.4% as of November 30, 2024, compared to 30.3% as of November 30, 2023, and 24.0% as of May 31, 2024[44] - Capital expenditures for the six months ended November 30, 2024, were RMB 23.4 million, compared to RMB 19.0 million in the same period last year[45] - The company's total assets decreased to RMB 5,698,465 thousand as of November 30, 2024, from RMB 6,163,887 thousand as of May 31, 2024[78] - Cash and cash equivalents decreased to RMB 1,705,703 thousand as of November 30, 2024, from RMB 2,262,464 thousand as of May 31, 2024[78] - The company's equity attributable to owners of the company was RMB 4,946,983 thousand as of November 30, 2024, slightly down from RMB 4,969,216 thousand as of May 31, 2024[79] - The company had no bank loans or other borrowings during the reporting period and has no plans to incur any borrowings within the next 12 months[52] - The unused balance from the 2020 subscription proceeds was approximately HKD 514.2 million as of November 30, 2024, with a slight decrease to HKD 512.1 million by the announcement date[65] - The company allocated HKD 6.5 million for sales and marketing, HKD 7.2 million for business-related personnel, and no funds for technology infrastructure and working capital during the six months ending November 30, 2024[66] - The expected timeline for fully utilizing the remaining proceeds has been updated to start from January 21, 2025, extending the original three-year period from January 21, 2022[66] Business Strategy and Operations - The company continues to focus on its multi-platform strategy, selling products on platforms such as Taobao, JD.com, Pinduoduo, Xiaohongshu, and its own app[8] - The company aims to promote high-quality agricultural products and improve supply chain efficiency through direct cooperation with producers and local businesses[6] - The company has developed and launched 600 SKUs of self-operated products as of November 30, 2024, up from 488 SKUs in the previous fiscal year[15] - The company's main business is operating live e-commerce, selling self-owned products, and providing agency services[81] - The company completed the sale of its education business on March 1, 2024, as part of its business restructuring[83] - The company's operating segment is now solely focused on live-streaming e-commerce, following the termination of its education business[89] - The company's non-current assets are all located in China, and all revenue from continuing operations is derived from external customers in China[89] Other Income and Expenses - Other income, gains, and losses from continuing operations increased by 83.0% from RMB 62.3 million to RMB 113.9 million[31] - Interest income from continuing operations increased to RMB 42,545 thousand in 2024 from RMB 35,271 thousand in 2023[90] - Exchange gains from continuing operations rose to RMB 24,293 thousand in 2024 compared to RMB 9,274 thousand in 2023[90] - The company recorded a loss of RMB 7,566 thousand from the sale of a subsidiary in 2024[90] - Income tax expense for continuing operations decreased significantly to RMB 24,022 thousand in 2024 from RMB 124,929 thousand in 2023[91] Share Repurchase and Dividends - The company repurchased approximately 5,883,000 shares on the Hong Kong Stock Exchange during the reporting period, with a total consideration of HKD 98,742,235[61] - The company did not declare or pay any dividends for the six months ended November 30, 2024, consistent with the same period in 2023[100] Financial Assets and Liabilities - The fair value of financial assets at fair value through profit or loss (non-listed equity investments) decreased slightly from RMB 94,889 thousand as of May 31, 2024, to RMB 92,459 thousand as of November 30, 2024[101] - The company's financial products, classified as current assets, increased from RMB 1,250,338 thousand as of May 31, 2024, to RMB 1,688,489 thousand as of November 30, 2024, with expected annual returns ranging from 1.81% to 4.56%[101][102] - Inventory decreased from RMB 422,341 thousand as of May 31, 2024, to RMB 407,050 thousand as of November 30, 2024[103] - Trade and other receivables decreased significantly from RMB 893,582 thousand as of May 31, 2024, to RMB 241,899 thousand as of November 30, 2024, primarily due to the settlement of deferred consideration from the sale of the education business[104][105] - Contract liabilities increased from RMB 49,595 thousand as of May 31, 2024, to RMB 51,316 thousand as of November 30, 2024, driven by increases in membership fees and other services[106][109] - Trade payables decreased from RMB 611,886 thousand as of May 31, 2024, to RMB 492,253 thousand as of November 30, 2024, with the majority due within 90 days[111] Corporate Governance and Share Structure - The company completed a share subscription of 59,432,000 shares at HK0.00002 per share[118] - The company's GMV refers to the total value of merchandise sold[115] - The company's SKU refers to stock keeping units[118] - The company's application refers to software that enables computers, smartphones, or electronic mobile devices to perform tasks, particularly self-operated products and live e-commerce applications[114] - The company's audit committee is responsible for overseeing financial reporting and disclosure[114]
东方甄选(01797) - 2025 - 中期业绩