Financial Performance - Total revenue for the year ended December 31, 2020, decreased by 79.1% to RMB 143.5 million from RMB 685.9 million in the previous year[9]. - The company recorded a loss attributable to owners of RMB 86.4 million for the year, compared to a profit of RMB 16.4 million in the previous year[9]. - The company recorded a net loss of RMB 86.4 million in 2020, compared to a net profit of RMB 16.4 million in the previous year, primarily due to the suspension of local tour operations and increased credit risk leading to impairment losses of RMB 73.0 million on financial assets[17]. - Total revenue decreased significantly by 79.1% from RMB 685.9 million in 2019 to RMB 143.5 million in 2020, mainly due to the operational suspension caused by COVID-19[27]. - Revenue from tour sales dropped by 87.7% from RMB 568.7 million to RMB 69.7 million, with traditional group tours and customized tours accounting for 59.9% and 40.1% of total tour sales respectively[29]. - The gross profit for the year was RMB 31.3 million, down from RMB 118.3 million in 2019, while the gross profit margin increased from 17.2% to 21.8%[43]. - Selling and distribution expenses decreased by RMB 19.2 million or 53.3% to RMB 16.8 million, mainly due to cost-saving measures in response to COVID-19[47]. - Administrative expenses were reduced by RMB 24.4 million or 45.3% to RMB 29.6 million, attributed to the absence of listing expenses and cost-saving measures[48]. - Other income and gains remained stable at RMB 14.9 million for both years, primarily consisting of government subsidies[46]. - Interest expenses increased by RMB 4.2 million to RMB 13.2 million due to an increase in average bank loans[50]. Business Strategy and Operations - The company has adjusted its business strategy to mitigate the financial impact of COVID-19, including cost-saving measures such as workflow simplification and reducing advertising expenses[10]. - In 2020, the company began focusing on the development and management of tourist attractions in China, forming joint ventures for tourism management and development in Ningbo[10]. - The company aims to diversify its business towards a digital information technology-based model in the cultural tourism sector[12]. - The company plans to enhance its digital information technology applications and expand its market presence in this area[11]. - The company established a joint venture in June 2020 for the management and development of tourist attractions in China, aiming to diversify revenue sources[21]. - The company aims to expand its sales network and customer base through the establishment of joint ventures in the tourism sector[21]. - The company plans to utilize proceeds from its listing to further invest in the management and development of tourist attractions in China[22]. - The company will closely monitor the development of COVID-19 and related government measures to adapt its strategies accordingly[23]. Market Outlook - The board believes that the domestic tourism demand will remain a key driver for the tourism industry, with expectations for outbound travel to resume in the second half of 2021[12]. - Domestic tourism in China is projected to reach 4.1 billion trips in 2021, with tourism revenue expected to reach RMB 3.3 trillion, representing growth of 42% and 48% respectively compared to the previous year[22]. - The board expresses confidence that the tourism sector will rebound post-pandemic, presenting new opportunities for growth[12]. Risk Management - The company has taken measures to manage operational risks and uncertainties arising from the COVID-19 pandemic[11]. - The company recognized impairment losses on financial assets amounting to RMB 73.0 million, a significant increase from RMB 4.6 million in the previous year, due to increased credit risk from COVID-19[49]. - The company recognized an impairment provision of RMB 231 million for prepayments, deposits, and other receivables due to increased potential credit risk from outstanding balances[60]. - The average turnover days for trade receivables increased to 251.1 days in the current year from 70.5 days in the previous year, primarily due to delays in settlement caused by COVID-19[62]. Corporate Governance - The company is led by Mr. He Bin Feng, who serves as both Chairman and CEO, ensuring effective management and business development[115]. - The board consists of three independent non-executive directors, all confirmed to be independent according to the listing rules[116]. - The audit committee, composed of three independent non-executive directors, held three meetings during the year to review financial performance and reporting[129]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific written terms of reference[127]. - Continuous professional development is encouraged for all directors to ensure they understand their responsibilities and the company's operations[121]. - The company has adopted a board diversity policy, emphasizing the importance of diverse board members for maintaining competitive advantage[136]. - The board will consider setting measurable targets for implementing the board diversity policy and will review these targets periodically[136]. Employee and Stakeholder Relations - The total number of employees decreased from 539 on December 31, 2019, to 278 on December 31, 2020, with total employee costs amounting to RMB 235 million, down from RMB 502 million in the previous year[68]. - The board of directors emphasizes the importance of maintaining good relationships with employees, customers, suppliers, and other stakeholders for sustainable development[175]. Future Guidance - Future guidance indicates expected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion[88]. - The company provided guidance for the next fiscal year, projecting revenue growth of 25% to $625 million[99]. - Overall, the company remains optimistic about future growth, citing strong demand and a robust pipeline of new products[99].
飞扬集团(01901) - 2020 - 年度财报