天平道合(08403) - 2020 - 中期财报

Company Information This chapter lists the executive, non-executive, and independent non-executive directors, along with the composition of the Audit, Remuneration, and Nomination Committees Board of Directors and Committees This chapter lists the executive, non-executive, and independent non-executive directors, along with the composition of the Audit, Remuneration, and Nomination Committees - Executive Directors include Mr. Huang Xiaodi (Chairman of the Board and Chief Executive Officer), Mr. Ma Yong, and Mr. Yan Jinghui[5] - The Audit Committee Chairman is Mr. Yu Leung Fai, the Remuneration Committee Chairman is Mr. Gao Hongqi, and the Nomination Committee Chairman is Ms. Xu Shuang[5] Company Contact and Advisor Information This chapter provides key contact and professional service information, including company secretary, compliance officer, auditors, stock code, and principal places of business - The Company's stock code is 8403[5] - The auditor is PricewaterhouseCoopers, and the compliance adviser is Kingston Corporate Finance Limited[5][6] Chairman's Report Business Overview The Group is a comprehensive exhibition and event management service provider in China, focusing on design, planning, and management for international automotive brands across over 50 cities - The Group is a comprehensive exhibition and event management service provider in China, with operations covering over 50 cities nationwide[8] - It primarily provides integrated exhibition and event management services for internationally renowned automotive brands, both domestic and international[8] Operating Results for H1 2020 In H1 2020, revenue decreased by 55.27% to RMB 42.11 million, gross profit fell to RMB 1.80 million, and a net loss of RMB 2.97 million was recorded due to the pandemic, with no interim dividend recommended H1 2020 Key Financial Metrics | Metric | H1 2020 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | | Revenue | 42.11 | -55.27% | | Gross Profit | 1.80 | decreased by 3.45 million | | Net Loss | 2.97 | N/A (vs. Profit last year) | - The Board does not recommend the payment of an interim dividend for the period[10] Future Outlook The Group will continue to prioritize customer-centric services, deepen exhibition and event management, expand its client base, strengthen brand building, and navigate a challenging economic and competitive environment - The Group will continue to deepen the development of its exhibition and showroom services, expand its customer base, and strengthen brand building[12] - It will closely deploy strategies to address the impact of the pandemic and industry competition, aiming to deliver strong performance to shareholders and investors[12] Management Discussion and Analysis Market and Business Review In 2019, China's exhibition industry led globally, with steady growth in automotive exhibitions, but H1 2020 saw reduced demand due to the pandemic, prompting the Group to diversify into advertising - In 2019, China's exhibition industry ranked first globally in scale, with the number and exhibition area of automotive industry exhibitions increasing by approximately 29% and 75.6% year-on-year, respectively[15] - In H1 2020, due to the pandemic, demand for exhibition and display services decreased or was postponed, leading the Group to diversify its business by expanding into advertising services, particularly mobile internet advertising[20] - During the period, the Group managed and coordinated 24 exhibition and event projects, one showroom project, and one advertising project[20] Financial Review In H1 2020, the Group's revenue significantly decreased by 55.27% to RMB 42.11 million due to the pandemic, leading to reduced gross profit and a net loss, while administrative expenses increased despite lower service costs Revenue Total revenue decreased by 55.27% to RMB 42.11 million, primarily due to the pandemic, with automotive-related exhibitions remaining the main source but declining, and advertising services contributing 24.77% for the first time Revenue Details (For the six months ended June 30) | Revenue Source | 2020 (RMB thousand) | Share | 2019 (RMB thousand) | Share | Y-o-Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Automotive-related Exhibitions and Events | 22,574 | 53.61% | 84,706 | 89.97% | -73.35% | | Non-automotive-related Exhibitions and Events | 3,245 | 7.70% | 6,433 | 6.83% | -49.56% | | Showroom-related Services | 5,860 | 13.92% | 3,011 | 3.20% | +94.62% | | Advertising-related Services | 10,430 | 24.77% | – | – | N/A | | Total | 42,109 | 100% | 94,150 | 100% | -55.27% | Cost of Services Cost of services decreased by 54.66% to RMB 40.31 million, mainly due to reduced demand in the exhibition industry and lower supplier service costs caused by the pandemic Cost of Services Details (For the six months ended June 30) | Cost Item | 2020 (RMB thousand) | 2019 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Cost of services provided by suppliers for exhibitions and events | 35,764 | 80,243 | -55.43% | | Staff Costs | 2,760 | 4,895 | -43.62% | | Travel and Entertainment Expenses | 220 | 1,759 | -87.50% | | Transportation and Logistics Expenses | 735 | 1,517 | -51.55% | | Total | 40,312 | 88,902 | -54.66% | Gross Profit and Gross Margin Gross profit decreased by RMB 3.45 million to RMB 1.80 million, with a gross margin of approximately 4.27%, primarily due to a significant revenue decline not matched by proportional reductions in labor and indirect costs Gross Profit and Gross Margin (For the six months ended June 30) | Metric | 2020 (RMB million) | 2019 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Gross Profit | 1.80 | 5.25 | -3.45 | | Gross Margin | 4.27% | 5.58% (calculated from 2019 data) | -1.31% | - The decrease in gross margin was primarily due to a decline in revenue, while labor costs and other project-related indirect costs did not decrease proportionally[31] Selling Expenses Selling expenses decreased by 49.68% to RMB 0.71 million, mainly attributable to lower staff costs and other selling expenses Selling Expense Details (For the six months ended June 30) | Selling Expense Item | 2020 (RMB thousand) | 2019 (RMB thousand) | | :--- | :--- | :--- | | Staff Costs | 376 | 722 | | Travel Expenses | N/A | 58 | | Office Supplies | N/A | 6 | | Entertainment Expenses | 282 | 317 | | Marketing Consulting Expenses | N/A | 20 | | Others | N/A | 294 | | Total | 713 | 1,417 | Administrative Expenses Administrative expenses increased by 14.32% to RMB 4.67 million, primarily due to higher staff severance payments, meeting and training expenses, and management consulting fees Administrative Expense Details (For the six months ended June 30) | Administrative Expense Item | 2020 (RMB thousand) | 2019 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Staff Costs | 2,295 | 1,801 | +27.43% | | Meeting and Training Expenses | 221