Financial Performance - Revenue for the six months ended June 30, 2021, increased by approximately 118.1% to RMB 175.1 million, compared to RMB 80.3 million for the same period in 2020[14]. - Gross profit surged by 1,219.1% to RMB 48.8 million, with a gross margin of 27.9%, compared to a gross margin of 4.6% in the same period of 2020[14]. - The company recorded a profit of RMB 0.9 million for the period, a turnaround from a loss of RMB 80.0 million in the same period of 2020[14]. - The adjusted profit for the period, excluding listing expenses, was RMB 0.88 million, compared to a loss of RMB 40.4 million in the same period of 2020[16]. - Gross profit for the same period was RMB 48,819,000, compared to RMB 3,701,000 in 2020, indicating a significant improvement[104]. - The company reported a net profit of RMB 880,000 for the six months ended June 30, 2021, recovering from a loss of RMB 79,955,000 in the previous year[104]. - The group’s profit before tax for the six months ended June 30, 2021, was RMB 85,268,000, compared to RMB 39,289,000 for the same period in 2020, representing an increase of 117%[137]. Revenue Sources - Revenue from online electronic guides amounted to approximately RMB 170.8 million, an increase of 117.0% compared to the same period in 2020, driven by a strong recovery in the travel market since March 2021[18]. - Revenue from customized content increased approximately 174.2% year-on-year, rising from about RMB 1.6 million for the six months ended June 30, 2020, to approximately RMB 4.3 million for the six months ended June 30, 2021[23]. - Revenue from online electronic guides sold through online travel platforms accounted for approximately 97.1% of total revenue, increasing from RMB 78.6 million to approximately RMB 170.1 million, a growth of about 116.5%[33]. - Revenue from sales to travel agents increased by approximately 2,785.0% to RMB 577,000 from RMB 20,000, driven by the recovery of the travel industry[38]. Market Recovery and Strategy - The travel market in China has shown significant recovery since March 2021, with a notable release of pent-up travel demand during the Qingming and Labor Day holidays[25]. - The company anticipates continued growth in domestic travel demand, supported by widespread vaccination efforts and the gradual establishment of immunity barriers[25]. - The company aims to strengthen its market leadership in online electronic guides and enhance user experience while expanding coverage in popular travel areas[19]. - The company has strategically increased its coverage of electronic guides in suburban tourist areas to adapt to changing market demands, particularly for short-distance and nearby travel[21]. Research and Development - The company continues to invest in R&D to optimize electronic guide content and meet the changing travel market demands post-pandemic[19]. - The company plans to enhance innovation and R&D capabilities to meet the demand for digital upgrades in scenic areas[27]. - Research and development costs for the six months ended June 30, 2021, were RMB 5,119,000, down from RMB 7,365,000 in 2020, indicating a decrease of 30%[137]. Financial Position and Cash Flow - As of June 30, 2021, the company's cash and cash equivalents amounted to approximately RMB 389.5 million, a decrease from RMB 516.4 million as of December 31, 2020[54]. - The net cash used in operating activities for the six months ended June 30, 2021, was approximately RMB 29.6 million, compared to RMB 14.5 million for the same period in 2020[55]. - The net cash used in investing activities was approximately RMB 97.9 million, primarily due to an increase in other intangible assets by approximately RMB 97.3 million[57]. - The company's current ratio as of June 30, 2021, was approximately 8.67 times, down from 10.75 times as of December 31, 2020[54]. - The company reported a decrease in other payables to RMB 13,384 thousand as of June 30, 2021, down from RMB 15,002 thousand as of December 31, 2020, a reduction of 10.8%[159]. Shareholder Information - As of June 30, 2021, Mr. Zang and Mr. Fan each hold 547,748,500 shares, representing approximately 37.42% of the company’s shares[71]. - Lu Jia Technology directly holds 399,995,400 shares, fully owned by Mr. Zang, who is deemed to have an interest in these shares[71]. - Invest Profit directly holds 61,444,900 shares, fully owned by Mr. Fan, who is also deemed to have an interest in these shares[72]. - The company plans to establish a share incentive plan comprising 114,117,300 shares, accounting for approximately 7.8% of the issued share capital[5]. Corporate Governance - The company has adopted the corporate governance code and has complied with its principles and provisions, except for a deviation regarding the roles of the Chairman and CEO[9]. - The company continues to review and monitor its corporate governance practices to ensure compliance with the corporate governance code[90]. - The audit committee has reviewed the interim financial results for the six months ending June 30, 2021, and found them compliant with relevant accounting standards[91]. Other Financial Metrics - The company reported other income and gains of RMB 7,285,000 for the six months ended June 30, 2021, compared to RMB 4,726,000 in 2020, reflecting growth in additional revenue streams[104]. - The company’s total equity as of June 30, 2021, was RMB 1,137,992,000, a slight decrease from RMB 1,140,417,000 at the end of 2020[108]. - The company reported a basic loss attributable to ordinary equity holders of RMB 880,000 for the six months ended June 30, 2021, compared to a loss of RMB 79,955,000 in 2020, showing a significant improvement[148].
LVJI TECH(01745) - 2021 - 中期财报