Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 36.619 million, a decrease of RMB 69.341 million or 65.4% compared to RMB 105.960 million in the same period of 2020[9]. - Gross profit for the same period was RMB 4.009 million, down RMB 24.697 million or 86.0% from RMB 28.706 million in 2020[10]. - The net loss for the period was RMB 76.203 million, compared to a net loss of RMB 16.986 million in the prior year[11]. - The company recorded a total comprehensive loss of RMB 76.753 million for the period, compared to RMB 16.843 million in the same period of 2020[14]. - Basic and diluted loss per share for the period was RMB 15.24, compared to RMB 3.40 in the previous year[16]. - The decline in revenue was primarily attributed to the impact of the COVID-19 pandemic, which led to the suspension of outbound travel tours and related sales[9]. - Other income and gains for the period were RMB 1.996 million, down from RMB 3.515 million in 2020[9]. - The company experienced a significant increase in financial asset impairment losses, totaling RMB 53.743 million compared to RMB 22.240 million in 2020[9]. - The group reported a pre-tax loss of RMB 46,640 thousand for the six months ended June 30, 2021, compared to a pre-tax loss of RMB 12,700 thousand for the same period in 2020[52]. - The company reported a net loss of RMB 76.2 million for the six months ended June 30, 2021, compared to a net loss of RMB 17.0 million for the same period in 2020, primarily due to a revenue decrease of RMB 693 million caused by COVID-19 disruptions[76]. Assets and Liabilities - Total non-current assets amounted to RMB 102,299,000, with investment properties valued at RMB 8,485,000 and right-of-use assets at RMB 18,273,000[20]. - Current assets totaled RMB 239,683,000, including trade receivables of RMB 26,098,000 and cash and cash equivalents of RMB 25,515,000[20]. - Total liabilities reached RMB 294,398,000, with current liabilities including interest-bearing bank borrowings of RMB 206,500,000[20]. - The company's net assets stood at RMB 29,322,000, reflecting a decrease from the previous period[20]. - The total equity attributable to owners of the parent was RMB 29,322,000, with issued share capital of RMB 4,398,000[20]. - Trade receivables increased to RMB 86.3 million as of June 30, 2021, from RMB 84.1 million as of December 31, 2020, with a provision for impairment of RMB 60.2 million[63]. - The aging analysis of trade receivables showed that RMB 56.2 million was overdue between 1 to 2 years as of June 30, 2021, compared to RMB 49.9 million as of December 31, 2020[64]. - Total trade payables increased to RMB 29.5 million as of June 30, 2021, from RMB 13.1 million as of December 31, 2020[65]. - Interest-bearing bank borrowings amounted to RMB 206.5 million as of June 30, 2021, compared to RMB 187.8 million as of December 31, 2020[67]. - As of June 30, 2021, the group's current assets and current liabilities were RMB 239.7 million and RMB 294.4 million, respectively, with a cash and bank balance of RMB 25.5 million[114]. - The capital debt ratio increased to 704.2% as of June 30, 2021, compared to 177.0% on December 31, 2020, primarily due to losses during the period[114]. Cash Flow - The company reported a net cash inflow from operating activities of RMB 6,056,000, compared to a net outflow of RMB 3,379,000 in the previous year[33]. - The company’s investment activities resulted in a net cash outflow of RMB 2,987,000, significantly lower than the previous year's outflow of RMB 48,896,000[33]. - The company’s financing activities generated a cash inflow of RMB 890,000, compared to RMB 13,945,000 in the previous year[33]. - The company experienced a net increase in cash and cash equivalents of RMB 3,959,000 during the period[33]. - The group maintained unutilized bank financing of approximately RMB 32.5 million as of June 30, 2021, sufficient to meet current operational and working capital needs[114]. Operational Strategies - The company is focused on recovery strategies post-COVID-19 to enhance operational performance and regain market share[9]. - The company has resumed some local travel group operations and sales of "flight + hotel booking" products, while all outbound travel groups remain suspended due to COVID-19[75]. - The group has signed travel service agreements with nine Chinese universities, expanding its market share in the higher education travel service sector[81]. - The establishment of a joint venture in Ningbo is expected to provide stable income from tourism projects in China[81]. - The group launched an intelligent travel SaaS system for Chinese universities in July 2021, aiming to meet the rebound in travel demand[81]. - The group will closely monitor the development of the COVID-19 pandemic and implement necessary measures and strategies[79]. Shareholder Information - Mr. He holds 336,628,700 shares, representing 67.3257% of the issued share capital of the company[140]. - Mr. He directly owns 8,988,000 shares, approximately 1.7976% of the issued share capital[142]. - Mr. Wu directly owns 440,000 shares, representing 0.9434% of the issued share capital[134]. - Ms. Qian directly owns 29,864,000 shares, approximately 5.9728% of the issued share capital[143]. - The major shareholders include HHR Group and Michael Group, both holding 336,628,700 shares, which is 67.3257% of the issued share capital[140]. - The company has a significant concentration of ownership, with Mr. He and Ms. Qian acting in concert, controlling a substantial portion of the shares[142]. Corporate Governance - The company has complied with the corporate governance code, except for a deviation regarding the separation of the roles of Chairman and CEO[150]. - The company has established a balance of power and authority within the board to ensure effective management and business development[150]. - The board of directors has undergone changes, with Mr. Zhang resigning and Mr. Xiong appointed as the new executive director and CFO[146]. Compliance and Regulations - The company has adopted the revised Hong Kong Financial Reporting Standards with no impact on its financial position and performance[40]. - The company has confirmed that there have been no significant changes in the nature of its business during the reporting period[154]. - The company plans to continue monitoring developments in foreign investment laws and update its compliance measures accordingly[156]. Expenses and Cost Management - Administrative expenses for the period were RMB 8.004 million, a decrease from RMB 16.098 million in the previous year[9]. - Selling and distribution expenses decreased by 24.5% to RMB 63 million, primarily due to layoffs and reduced marketing expenses during the period[98]. - Administrative expenses were reduced by 50.3% to RMB 8.1 million, mainly due to layoffs resulting from business operations being suspended[99]. - Other expenses increased to RMB 53.9 million, primarily due to provisions for impairment of trade receivables and other receivables[101]. - The company's financing costs decreased due to a decline in the average interest rate on bank borrowings during the period[102]. Market Performance - The group’s total revenue from travel package products and services sales was RMB 936 thousand for the six months ended June 30, 2021, compared to RMB 514 thousand in 2020, indicating an increase of 82.2%[50]. - The group’s tour sales amounted to RMB 33.8 million, representing 92.3% of total revenue, a decrease of RMB 8.7 million or 20.5% from RMB 42.5 million in the same period of 2020[84]. - The marginal income from free travel products was RMB 1.9 million, a significant decrease of RMB 17.8 million or 90.4% from RMB 19.7 million in the same period of 2020[87]. - The total sales of free travel products, including ticket and hotel sales, were not recognized during the period due to COVID-19, compared to RMB 43.2 million for the six months ended June 30, 2020[93]. - The revenue from free travel product sales decreased significantly, contributing only 5.2% to total revenue in the current period, down from 18.6% in the previous period[96].
飞扬集团(01901) - 2021 - 中期财报