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向中国际(01871) - 2023 - 年度财报
CHINA ORIENTEDCHINA ORIENTED(HK:01871)2024-04-29 08:56

Enrollment Trends - The overall number of course enrollments declined due to decreased demand for driving courses, particularly for large vehicles, which accounted for approximately 74.2% of total revenue for the year ended December 31, 2023[16]. - The company recorded an increase in standard course enrollments for both small and large vehicles in 2023, despite the overall decline in enrollments[16]. - In 2023, the overall number of course enrollments and trainees attending driving courses declined, resulting in negative growth compared to 2022[32]. - The total number of course enrollments decreased by 3.8% from 9,670 in 2022 to 9,304 in 2023, with both Tong Tai School and Shun Da School experiencing negative growth[35][37]. - Shun Da School's enrollments amounted to 1,368, a decrease of approximately 1.8%, while Tong Tai School's enrollments were 7,936, reflecting a decrease of approximately 4.1%[35][37]. - The overall number of trainees attending driving courses decreased by approximately 13.4%, from 12,509 in 2022 to 10,832 in 2023[43][44]. - The number of trainees for Large Vehicles decreased from 5,692 in 2022 to 4,342 in 2023, with training hours dropping from 307,968 to 257,796[55][57]. - The number of trainees for Small Vehicles decreased from 6,817 in 2022 to 6,490 in 2023, with training hours dropping from 136,972 to 127,783[58]. Revenue Performance - Total revenue for the Group decreased by approximately 16.4%, amounting to approximately RMB 39.9 million in 2023 compared to RMB 47.7 million in 2022[43][44]. - Revenue from driving courses for Large Vehicles accounted for approximately 74.2% of total revenue in 2023, down from 79.4% in 2022[43][44]. - Revenue from premium courses contributed approximately 91.9% of total revenue in 2023, down from 94.5% in 2022[43][44]. - Revenue from Large Vehicles training services decreased by approximately RMB8.3 million, or 22.0%, from RMB37.9 million in 2022 to RMB29.6 million in 2023, accounting for approximately 74.2% of total revenue[54][57]. - Revenue from Small Vehicles training services increased by approximately RMB0.5 million, or 4.8%, from RMB9.8 million in 2022 to RMB10.3 million in 2023[58]. - The decline in revenue was primarily due to decreased demand for driving courses, particularly for Large Vehicles, amid ongoing US-China trade tensions affecting the logistics industry[54]. Cost and Profitability - Gross profit decreased by RMB2.7 million, or 24.3%, from RMB11.3 million in 2022 to RMB8.6 million in 2023, with a gross profit margin decline of 2.2 percentage points to 21.5%[49][50]. - Gross profit for large vehicle training services decreased by approximately RMB4.7 million, or about 48.0%, from approximately RMB9.8 million for the year ended December 31, 2022, to approximately RMB5.1 million for the year ended December 31, 2023[68]. - Gross profit margin for large vehicle training services decreased by approximately 8.6 percentage points from approximately 25.9% for the year ended December 31, 2022, to approximately 17.3% for the year ended December 31, 2023[68]. - Gross profit for small vehicle training services increased by approximately RMB2.0 million, or about 133.5%, from approximately RMB1.5 million for the year ended December 31, 2022, to approximately RMB3.5 million for the year ended December 31, 2023[69]. - Gross profit margin for small vehicle training services increased by approximately 18.4 percentage points from approximately 15.1% for the year ended December 31, 2022, to approximately 33.5% for the year ended December 31, 2023[69]. Strategic Initiatives - The company aims to enhance marketing strategies to meet enrollment targets and will launch preferential policies and campaigns to improve brand reputation and influence[16]. - The company plans to enhance teaching quality in 2024 by implementing stricter standards and developing an integrated online and offline training model[22]. - A commitment to increasing course enrollment efforts is emphasized, with a focus on marketing strategies and partnerships, particularly with Tiktok, to attract more trainees[22]. - The company aims to expand its business into other provinces, cities, and counties in China, targeting both Large and Small Vehicles markets[22]. - In January 2024, staff were assigned to research remote provinces to establish cooperative relationships with local driving training providers and related industries[26]. Financial Position - As of 31 December 2023, the Group's bank balances and cash decreased from approximately RMB182.3 million to approximately RMB152.4 million, primarily due to decreased operating cash flows[87]. - The current ratio of the Group as of 31 December 2023 was 1.93, compared to 1.86 as of 31 December 2022[88]. - As of 31 December 2023, the Group had aggregate interest-bearing borrowings of approximately RMB45.2 million, a decrease from approximately RMB55.2 million as of 31 December 2022[89]. - The gearing ratio of the Group as of 31 December 2023 was approximately 0.30 times, unchanged from 31 December 2022[92]. - The total employee benefit expenses incurred by the group for the year ended December 31, 2023, were approximately RMB 13.3 million, down from approximately RMB 18.2 million for the year ended December 31, 2022[110]. Corporate Governance - The company has complied with all provisions of the Corporate Governance Code for the year ended December 31, 2023[129]. - The Board held four meetings during the year, adhering to the requirement of at least four meetings annually[132]. - The Board composition includes two executive directors, one non-executive director, and three independent non-executive directors, meeting the Listing Rules requirements[143]. - The roles of Chairman and Chief Executive Officer are held separately by Mr. Qi Xiangzhong and Ms. Zhao Yuxia, ensuring a balance of power[137]. - The company received written annual confirmations of independence from all independent non-executive directors, affirming their compliance with independence guidelines[139]. Audit and Risk Management - The Audit Committee reviewed the audited consolidated financial statements for the financial year ended December 31, 2023, and recommended them for approval at the AGM[180]. - The Board agreed to the re-appointment of Moore CPA Limited as the external auditor for the year ending December 31, 2024, pending shareholder approval[181]. - The Audit Committee's duties include overseeing financial reporting, financial control, internal control, and risk management systems of the Group[175]. - The Company engaged an external professional consultant to enhance the effectiveness of the risk management and internal control systems of the Group during the year ended December 31, 2023[173].