Financial Performance - Revenue decreased by approximately 56.1% to RMB 80.3 million from RMB 183.0 million for the same period of 2019[12]. - Results for the period decreased by approximately 254.1% to a loss of RMB 80.0 million from a profit of RMB 51.9 million for the same period of 2019[12]. - Adjusted loss for the period (a non-GAAP measure) amounted to RMB 40.4 million compared to adjusted profit of RMB 56.3 million for the same period of 2019[12]. - Gross profit for the first half of 2020 was RMB 3.7 million, a decline of 95.2% compared to RMB 76.4 million in the first half of 2019[20]. - The net loss for the period was RMB 79.96 million, compared to a profit of RMB 51.88 million in the same period of 2019, representing a year-over-year change of 254.1%[20]. - The adjusted net loss margin (excluding listing expenses) was approximately 50.3% for the first half of 2020, down from 30.7% in the first half of 2019, a decrease of 81.1 percentage points[20]. - Revenue for the six months ended June 30, 2020, decreased by approximately 56.1% to RMB 80.3 million from RMB 183.0 million for the same period in 2019[46]. - Gross profit for the six months ended June 30, 2020, was RMB 3.7 million, a significant decline from RMB 76.4 million in the same period of 2019[42]. - The company reported a loss before tax of RMB 79,955,000 for the six months ended June 30, 2020, compared to a profit of RMB 60,565,000 in 2019[158]. - The loss per share attributable to ordinary equity holders of the parent was RMB (0.06) for the six months ended June 30, 2020, compared to earnings of RMB 0.05 in 2019[158]. Operational Metrics - Number of online tour guides developed increased by approximately 70.7% year-to-year to 22,044 from 12,913 for the same period of 2019[12]. - Number of tourist attractions in China covered by the Group's online tour guides increased by approximately 40.6% year-to-year to 11,674 from 8,304 for the same period of 2019[12]. - The number of online tour guides developed increased by approximately 70.7% year-over-year to 22,044 as of June 30, 2020, compared to 12,913 in 2019[15]. - The number of tourist attractions covered in China rose to 11,674, marking a 40.6% increase from 8,304 in 2019[15]. - The number of AA tourist attractions covered increased from 167 to 312 during the same period, indicating a significant expansion in coverage[34][37]. - The number of tourism attractions for which customized online tour guide content was created increased from 485 to 621, indicating an expansion in service offerings[59]. Strategic Initiatives - The company adopted a cost-saving operation mode immediately after the COVID-19 outbreak, which contributed to a flexible operations strategy[20]. - The company focused on customized demands from customers and increased online coverage of products during the epidemic[24]. - Innovative sales and marketing strategies were developed, including "Tour Guides + Fuel Cards" and community marketing initiatives, to enhance revenue opportunities[24]. - The company collaborated with local governments to revitalize the post-epidemic tourism market as signs of recovery emerged[24]. - The company has established in-depth cooperation with multiple domestic tourism bureaus to transform the service model of the tourism industry and enhance travel experiences[29]. - The company launched a platform called "The Academy of Culture and Tourism" and introduced various programs and products to meet evolving tourism needs[35][38]. - The company is focused on cost-saving operations while actively seeking opportunities for growth in the post-epidemic recovery phase[36][39]. - The company plans to leverage AR and AI technologies to build a digital marketing platform focused on ticket sales for tourist destinations[40]. - The company aims to expand its tourist attraction coverage in China and explore new cooperation opportunities with tourist attractions[40]. - The company is dedicated to improving user experience and empowering partners' business capabilities to build a more efficient online tourism ecosystem[40]. Financial Position and Cash Flow - As of June 30, 2020, the company had cash and cash equivalents of approximately RMB 128.6 million, an increase from RMB 77.3 million as of December 31, 2019[73]. - The current ratio was approximately 11.71 times as of June 30, 2020, compared to 2.76 times as of December 31, 2019[73]. - The company's net cash used in operating activities for the six months ended June 30, 2020 was approximately RMB 14.5 million, resulting from a loss before tax of approximately RMB 80.0 million[80]. - The net cash used in investing activities for the same period was approximately RMB 501.8 million, primarily due to additions of approximately RMB 421.5 million to time deposits[81]. - The net cash generated from financing activities was approximately RMB 563.7 million, mainly due to proceeds from the company's listing[82]. - Total equity as of June 30, 2020 was approximately RMB 1,153.4 million, compared to RMB 664.7 million as of December 31, 2019[77]. - The company maintained a healthy liquidity position throughout the first half of 2020, with no bank borrowings reported[79]. - Cash generated from operations was negative at RMB 15,440,000, a stark contrast to the positive cash flow of RMB 85,673,000 in the prior year[177]. - The financing activities generated a net cash inflow of RMB 563,678,000, primarily from the issuance of new shares amounting to RMB 585,950,000[179]. - Cash and cash equivalents at the end of the period stood at RMB 128,608,000, an increase from RMB 91,060,000 at the end of the previous year[179]. Shareholding and Corporate Governance - As of June 30, 2020, Mr. Zang holds a long position of 547,748,500 shares, representing approximately 38.84% of the company's shareholding[106]. - As of June 30, 2020, Lu Jia Technology held approximately 38.84% of the total issued share capital of the Company[111]. - The company has multiple substantial shareholders with interests in controlled corporations[120]. - The company has complied with the Corporate Governance Code, except for the deviation from code provision A.2.1, which states that the roles of chairman and chief executive should be separate[142]. - The company has adopted the Model Code for securities transactions and confirmed compliance by all Directors from the Listing Date up to June 30, 2020[138][140]. - The company will continue to review and monitor its corporate governance practices to ensure compliance with the Corporate Governance Code[142]. Employee and Development Policies - The company maintains a good working relationship with employees and did not experience any significant labor disputes for the six months ended June 30, 2020[93]. - The company has adopted robust internal training policies for employee development, utilizing both in-house trainers and third-party consultants[92]. - Employee benefits are mandated by PRC laws, including contributions to various social insurance funds based on specified percentages of salaries and bonuses[90]. Market and Regulatory Environment - The Group is primarily an online tour guide provider in Mainland China[197]. - The majority of the Group's revenue and operating profit were generated from online tour guide and customized content sales in Mainland China[198]. - All identifiable assets and liabilities of the Group are located in Mainland China, with no overseas income exceeding 10% of total revenue[198]. - No single end user, travel agency, tourist attraction administrator, or government office contributed 10% or more to the total revenue during the period[199].
LVJI TECH(01745) - 2020 - 中期财报