Event Operations and Marketing - The group successfully obtained the operation rights for the Tumushuke Marathon in May 2021, marking a significant achievement amidst ongoing pandemic challenges [11]. - The group plans to operate multiple large-scale marathons in the second half of 2021, including events in Nanchang, Shenzhen, Jinan, and Liu'an, maintaining its leading position in the domestic marathon operation sector [16]. - The group is actively communicating with local governments to explore new event opportunities and diversify its service offerings in response to the ongoing pandemic [12]. - The group emphasizes the importance of safety measures and health protocols in organizing events to ensure a safe experience for participants amid the pandemic [17]. - The group has strengthened its event safety measures in response to a tragic incident during a trail running event in Gansu Province in May 2021, highlighting the need for improved safety protocols [11]. - The group remains committed to enhancing its event execution capabilities to ensure high-quality and safe events for sports enthusiasts [15]. - The group aims to provide a variety of products and services to meet the growing demand for sports and health among consumers as the sports industry continues to develop [12]. Financial Performance - The group's revenue increased by approximately 20.0% from RMB 1.0 million for the six months ended June 30, 2020, to RMB 1.2 million for the six months ended June 30, 2021 [22]. - Revenue from the event operation and marketing segment rose from RMB 0 to RMB 0.8 million, attributed to corporate sponsorship income from online marathons held in the first half of 2021 [22]. - Revenue from the sports services segment decreased by approximately 60.0% from RMB 1.0 million to RMB 0.4 million, primarily due to the sale of a subsidiary in the second half of 2020 [22]. - The group's service costs decreased by approximately 77.4% from RMB 5.3 million to RMB 1.2 million, mainly due to the same subsidiary sale [24]. - The group recorded a gross profit of RMB 0 for the six months ended June 30, 2021, compared to a gross loss of approximately RMB 4.3 million for the same period in 2020, resulting in a gross profit margin of 0.0% [25]. - Other income increased by approximately 20.9% from RMB 6.7 million to RMB 8.1 million, mainly due to increased dividend income from a financial asset measured at fair value [28]. - The group's pre-tax loss decreased by approximately 10.0% from RMB 26.9 million to RMB 24.2 million for the six months ended June 30, 2021 [32]. - The total comprehensive income for the period was RMB (5,576) thousand, compared to RMB (15,455) thousand in the same period of 2020, showing an improvement of 63.9% [108]. - The total loss for the period was RMB 21,343,000, reflecting a slight improvement from the previous year's loss of RMB 22,984,000 [188]. Assets and Liabilities - Cash and cash equivalents were approximately RMB 136.8 million as of June 30, 2021, compared to RMB 137.7 million as of December 31, 2020 [35]. - The group's net current assets decreased by approximately 7.2% from RMB 319.8 million as of December 31, 2020, to RMB 296.8 million as of June 30, 2021 [36]. - Non-current assets totaled RMB 257,389 thousand as of June 30, 2021, an increase of 7.4% from RMB 239,979 thousand at the end of 2020 [112]. - Current assets decreased to RMB 340,807 thousand from RMB 367,922 thousand, reflecting a decline of 7.4% [112]. - The total assets of the company were RMB 598,196 thousand, down from RMB 607,901 thousand, indicating a decrease of 1.2% [112]. - Current liabilities totaled RMB 43,959 thousand, down from RMB 48,088 thousand, reflecting a decrease of 8.5% [115]. Investments and Acquisitions - The group completed the acquisition of a 49% stake in YTO Global Financial Group for HKD 53.41 million on March 26, 2021 [44][46]. - The group invested RMB 40.0 million in the Chang'an Trust Plan on April 7, 2020, and subsequently reinvested RMB 50.0 million on April 12, 2021 [47][49]. - The company invested RMB 50 million in a private equity fund managed by Ningbo Guanshi Investment Management Co., Ltd. on July 5, 2021 [93]. - On September 1, 2021, the company further invested RMB 12.5 million in another private equity fund managed by Ningbo Guanshi, indicating ongoing investment strategies [96]. Shareholder and Corporate Structure - As of June 30, 2021, the company’s major shareholder, Ren Wen, holds 602,780,000 shares, representing 37.84% of the total shares [60]. - The company has established a series of structural contracts to control Beijing Zhimei Media, as foreign investment in certain business activities is restricted under Chinese law [57]. - The company’s structural contracts transfer all economic benefits and risks from Beijing Zhimei Media to the group [57]. - The company’s major shareholders include Queen Media, which holds 602,780,000 shares, also representing 37.84% [71]. Cash Flow and Financial Management - The net cash used in operating activities was RMB (8,073) thousand, a significant improvement from RMB (30,425) thousand in the same period of 2020, representing a reduction of approximately 73% [121]. - The net cash generated from investing activities was RMB 8,118 thousand, compared to a net cash used of RMB (114,184) thousand in the prior year, indicating a turnaround in investment cash flow [121]. - The company maintains a prudent financial management policy to ensure strong liquidity for daily operations and future development [39]. - The company has not faced any significant operational or liquidity issues due to exchange rate fluctuations as of June 30, 2021 [40]. Legal and Compliance - The company is involved in ongoing legal proceedings with claims totaling approximately RMB 38 million against a subsidiary, reflecting potential financial risks [97]. - The company has received exemptions from the Stock Exchange regarding strict compliance with certain listing rules related to the structural contracts [57]. Stock Options and Dividends - The company did not declare or pay any dividends for the six months ended June 30, 2021 [89]. - As of June 30, 2021, there were no shares issued or repurchased under the stock option plan during the six months [80]. - The maximum number of shares that can be issued under the stock option plan is 160,000,000, which represents 10.04% of the total issued shares as of the mid-term report date [75].
智美体育(01661) - 2021 - 中期财报