Revenue and Profit Performance - Revenue decreased by 9.8% year-on-year from approximately RMB 381.7 million in 2021 to approximately RMB 344.3 million in 2022, primarily due to the impact of tightened pandemic control policies on tourism consumption[5] - Net profit for 2022 was approximately RMB 37.5 million, compared to a loss of approximately RMB 549.6 million in 2021[6] - Adjusted net profit (non-GAAP) for 2022 was approximately RMB 89.4 million, compared to RMB 13.0 million in 2021[6] - Gross profit increased by 17.1% year-on-year from RMB 116.8 million in 2021 to RMB 136.8 million in 2022[8] - Adjusted net profit margin (non-GAAP) increased from 3.4% in 2021 to 26.0% in 2022[8] - Revenue from online travel platform sales of online electronic guides reached RMB 339.5 million in 2022, a slight decrease from RMB 339.9 million in 2021[22] - Revenue from sales of customized content dropped to RMB 4.74 million in 2022 from RMB 12.83 million in 2021[22] - Total revenue for 2022 was RMB 344.33 million, down from RMB 381.71 million in 2021[22] - Revenue decreased by 9.8% to approximately RMB 344.3 million in 2022 compared to the previous year[46] - Gross profit increased to RMB 136.8 million in 2022 from RMB 116.8 million in 2021[33] - The company achieved a net profit of RMB 37.5 million in 2022, compared to a net loss of RMB 549.6 million in 2021[33][46] - Revenue from customized content sales decreased by 63% to RMB 4.7 million in 2022[40] - Total revenue decreased by 9.8% from RMB 381.7 million in the same period last year to RMB 344.3 million in the reporting period[50] - Gross profit margin increased from 30.6% as of December 31, 2021, to 39.7% as of December 31, 2022[50] - Net profit for the reporting period was RMB 37.5 million, compared to a net loss of RMB 549.6 million in the same period last year[50] - Revenue from customized content sales decreased by 63.0% year-on-year to RMB 4.7 million (same period: RMB 12.8 million)[49] - Revenue for 2022 was RMB 344.328 million, a decrease from RMB 381.712 million in 2021[184] - Gross profit for 2022 was RMB 136.792 million, up from RMB 116.825 million in 2021[184] - Net profit for 2022 was RMB 37.537 million, compared to a net loss of RMB 549.617 million in 2021[184] - Basic and diluted earnings per share for 2022 were RMB 0.0256, compared to a loss per share of RMB 0.3755 in 2021[184] - Total comprehensive income for 2022 was RMB 66.769 million, compared to a comprehensive loss of RMB 557.172 million in 2021[187] Product and Service Development - The number of online electronic guides increased from 35,315 to 46,917, with Chinese tourist attractions covered rising from 22,502 to 33,660[6] - The company developed the SaaS product "Lvji Changyou Bao" to enhance digital marketing and operational services for scenic areas[9] - The company utilized XR technology to upgrade projects such as Guizhou's Xijiang Qianhu Miao Village and Guangxi's Guilin Tourism College[12] - The company is focusing on developing a cultural tourism full industry chain service platform, leveraging its core competitive advantages in technological innovation and strategic partnerships with online travel platforms[15] - The company is optimizing its "Lvji One-Machine Tour" product to enhance scenic area management, operation, and service capabilities, aiming to boost secondary sales revenue and long-term development[19] - The company is upgrading its SaaS business to build a multi-terminal, multi-channel smart tourism ecosystem, linking various consumer services such as dining, accommodation, transportation, entertainment, and shopping[19] - The company is enhancing its guide products by integrating XR and AI technologies, improving 3D hand-drawn maps, and focusing on creating a more interactive consumer experience[19] - The company successfully delivered multiple key projects of its smart scenic area management service system during the reporting period, aiding in the digital upgrade of scenic areas[28] - The number of covered Chinese tourist attractions increased by 11,158 to 33,660 in 2022[42] - The number of developed online electronic guides increased by 11,602 to 46,917 in 2022[42] - The company's SaaS product "Shujingtong" was iterated to enhance digital marketing and operational efficiency for tourist attractions[48] - The number of online electronic guides increased from 35,315 as of December 31, 2021, to 46,917 as of December 31, 2022[51] - The number of Chinese tourist attractions covered by online electronic guides increased from 22,502 as of December 31, 2021, to 33,660 as of December 31, 2022[51] - Registered users of the Lvji APP increased from 2,196,319 in 2021 to 2,236,027 in 2022[61] - The company covered 297 AAAAA-level tourist attractions, 2,734 AAAA-level tourist attractions, and 2,516 AAA-level tourist attractions as of December 31, 2022[54] - The company's content production team provides product services and technical support to online travel platforms, facilitating data transmission and verification between systems[135] Expenses and Cost Management - Sales and distribution expenses decreased significantly by 71.8% year-on-year[46] - Administrative expenses (excluding equity-settled share-based payment expenses) decreased by 27.2% year-on-year[46] - Employee compensation reached RMB 74.6 million in 2022, compared to RMB 30.5 million in 2021, representing a significant increase[69] - The company's operating expenses include hiring additional employees[99] - Intangible assets amortization decreased to RMB 35,088 thousand in 2022 from RMB 90,007 thousand in 2021[156] Strategic Initiatives and Future Plans - The company is closely monitoring the latest developments in overseas travel and adjusting its overseas online electronic guide business strategy accordingly[19] - The company is targeting the creation of national-level demonstration zones for comprehensive tourism, optimizing regional tourism systems and building a comprehensive big data service platform[19] - The company plans to continue attracting, training, and retaining more technical and R&D talent to strengthen and maintain technological innovation[107] - The company plans to diversify its customer base by engaging with local travel agents, end-users of the Lvji APP, local tourist attractions, and cultural heritage units[164] - The company is actively seeking merger and acquisition opportunities to expand its market size[164] - The company may need to obtain an ICP certificate or other additional licenses if there are changes in the interpretation of Chinese laws and regulations[165] - The company intends to amend its memorandum and articles of association to comply with the listing rules and corporate governance code effective from January 1, 2022[167] Financial Position and Cash Flow - Operating cash flow for 2022 was RMB 164,174 thousand, compared to RMB 81,679 thousand in 2021, showing a significant increase[156] - The company reported a pre-tax profit of RMB 47,012 thousand in 2022, a substantial improvement from a loss of RMB 541,944 thousand in 2021[156] - Investment activities used RMB 200,924 thousand in cash for 2022, a decrease from RMB 233,586 thousand in 2021[159] - Cash and cash equivalents decreased by RMB 39,382 thousand in 2022, compared to a decrease of RMB 154,816 thousand in 2021[159] - The company's cash and cash equivalents at the end of 2022 were RMB 320,404 thousand, down from RMB 359,665 thousand at the end of 2021[159] - Total equity as of December 31, 2022, was RMB 701.852 million, up from RMB 583.245 million at the end of 2021[190] - The company issued shares under the share incentive plan, amounting to RMB 51.838 million[190] Shareholder and Corporate Governance - The company adopted a share option plan on December 20, 2019, allowing the board to grant options to employees, directors, consultants, and other stakeholders under specified terms[71] - The share option plan stipulates that the exercise price of any option granted shall not be lower than the highest of: (i) the closing price on the grant date, (ii) the average closing price over the five preceding business days, or (iii) the nominal value of the shares on the grant date[74] - The company adopted a share award plan on January 21, 2022, with a remaining term of approximately 8 years and 9 months as of the annual report date[77][82] - No share awards were granted to directors, major shareholders, or their associates, or to participants exceeding 1% of the individual limit or 0.1% of the company’s issued shares in any 12-month period[80] - The company pledged bank deposits of RMB 0.5 million as collateral in 2022, primarily to government authorities for tourism-related business operations in China, compared to RMB 0.2 million in 2021[83] - Wang Lei, aged 39, was appointed as Vice Chairman of the Board on August 15, 2022, and has extensive experience in tourism and investment management[85] - Liu Hui, aged 44, was appointed as Executive Director and General Manager of the Smart Scenic Area Business Unit on July 7, 2021, with a background in operations and technology[86] - Zhang, an executive director at BOC International Infrastructure Fund Management Co., Ltd., has extensive experience in investment banking and asset management[87] - Gu Jianlu, aged 31, was appointed as an Independent Non-Executive Director on November 19, 2019, responsible for providing independent oversight to the board[88] - The company did not declare or pay any dividends for the year ended December 31, 2022, and the board recommended not paying a final dividend for the same period[93] - The company's top five online travel platforms accounted for approximately 98.6% of its total revenue for the year ended December 31, 2022, up from 89.0% in 2021[105] - The largest customer contributed approximately 34.8% of the company's total revenue for the year ended December 31, 2022, compared to 30.1% in 2021[105] - The top five suppliers accounted for approximately 66.3% of the company's total procurement amount for the year ended December 31, 2022, up from 46.9% in 2021[106] - The company's major shareholders include Fan Xiansheng with a 36.30% stake, Qifu Honglian BVI with a 3.09% stake, and Jieming Sanhao BVI with a 2.53% stake[148] - The company's operational management team is responsible for formulating business policies and strategies, and overseeing their execution[136] - The company has no distributable reserves as of December 31, 2022[125] - The company has no outstanding bank loans or other borrowings as of December 31, 2022[126] - The company's customer base includes online travel platforms, travel agents, Lvji APP users, tourist attraction management agencies, and government offices[134] - Qifu Honglian BVI directly holds 47,401,200 shares, representing a significant portion of the company's equity[177] - The company's total issued shares as of December 31, 2022, were 1,536,100,675[179] - The company, Lu Ji Technology Holdings Limited, was incorporated in the Cayman Islands on November 7, 2018, and its shares were listed on the Hong Kong Stock Exchange on January 17, 2020[195][196] - The company's subsidiaries primarily engage in providing online electronic guide services in China, with 100% ownership in key subsidiaries such as Zhonghexin Technology Holdings Limited and Guangzhou Zhixin Information Consulting Co., Ltd[197] - The registered capital of Guangzhou Zhixin Information Consulting Co., Ltd is RMB 300,000,000, and Lu Ji Technology Group Co., Ltd has a registered capital of RMB 128,272,396[197] - The company's financial statements for the year ended December 31, 2022, were approved by the board of directors on March 24, 2023[196] - The company's ultimate controlling shareholder and chairman is Mr. Zang Weizhong[196] Risks and Challenges - The company faces risks related to a small number of customers, including online travel platforms, contributing a significant portion of its revenue[108] - The company's user base and user engagement are critical to its success, with potential risks to profitability and market share if user engagement declines[140] - The online electronic guide industry is highly competitive, with potential increased competition from new entrants and existing players expanding into the industry[139] Environmental and Social Responsibility - The company's environmental policies and performance are outlined in the annual report[103] Capital and Investment - The company's unused net proceeds from share placements are deposited in licensed banks in Hong Kong and China[98] - The company's net proceeds from the IPO amounted to approximately HKD 580.0 million, with HKD 354.8 million (equivalent to approximately RMB 314.4 million) utilized as of December 31, 2021[128] - The expected timeline for the use of the net proceeds from the placement was extended to December 31, 2024, with no significant changes in the intended use as of December 31, 2022[131] - No significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures were made in 2022[68]
LVJI TECH(01745) - 2022 - 年度财报