Financial Performance - The company reported revenue of RMB 333.0 million for the fiscal year 2020, a decrease of 13.2% compared to RMB 383.6 million in 2019[8]. - The profit before tax was RMB 4.7 million, down 91.8% from RMB 57.2 million in the previous year[8]. - The total comprehensive income for the year was RMB 2.1 million, a decline of 95.8% from RMB 49.0 million in 2019[8]. - The adjusted comprehensive income for the year, excluding listing expenses, was RMB 12.3 million, down 79.4% from RMB 59.5 million in 2019[8]. - Basic earnings per share decreased to RMB 0.30 from RMB 8.61, a drop of 96.5%[8]. - The diluted loss per share was RMB 1.75, compared to a profit of RMB 8.52 in the previous year, marking a 120.5% decline[8]. - Total revenue for the fiscal year 2020 was approximately RMB 333.0 million, a decrease of about RMB 50.6 million or 13.2% compared to RMB 383.6 million in fiscal year 2019[29]. - Tuition revenue from regular classes, premium classes, and VIP classes was RMB 304.6 million, accounting for 91.5% of total revenue, down from RMB 363.6 million or 94.8% in the previous year[32]. - Gross profit decreased to approximately RMB 109.0 million, a reduction of about RMB 60.6 million or 35.7% from RMB 169.7 million in fiscal year 2019, with a gross margin decline from 44.2% to 32.7%[36]. - The company recorded a net profit of approximately RMB 2.1 million, a decrease of about 95.8% or approximately RMB 46.9 million compared to RMB 49.0 million in fiscal year 2019[45]. Student Enrollment and Business Expansion - The number of enrolled students in the second half of fiscal year 2020 reached 116,989, representing a growth of approximately 1.2% compared to the same period in 2019[11]. - The total number of students enrolled in regular, boutique, and VIP classes reached 232,775, with a total tutoring duration of 5,769,582 hours in fiscal year 2020[20]. - The company established four new teaching centers in Zhengzhou during the fiscal year 2021, aiming to enhance its presence in urban clusters[14]. - The company signed lease agreements for 20 new self-operated teaching centers to expand its market presence in surrounding areas of Zhengzhou[11]. - The company anticipates continued expansion in urban clusters, with the penetration rate of after-school education services in Zhengzhou and Henan province still significantly lower than that of first-tier cities, which is between 50% to 60%[14]. Operational Adjustments and Recovery - The company experienced a V-shaped recovery in business performance in the second half of fiscal year 2020 after a significant impact from the COVID-19 pandemic[10]. - The group transitioned several in-person courses to online formats during the COVID-19 pandemic, minimizing operational impacts[22]. - The company is committed to enhancing its operational capabilities and adapting to the evolving educational landscape post-COVID-19, laying a solid foundation for sustainable growth in fiscal year 2021[18]. Investments and Future Plans - In the fiscal year 2020, the company invested approximately RMB 28.2 million in content and information technology research and training, accounting for about 8.5% of its revenue[13]. - The company plans to strengthen cooperation with other service providers (B-end) and develop integrated services to extend growth value in fiscal year 2021[15]. - The company aims to transition from data application to intelligent application on its OMO education platform, enhancing personalized learning experiences[16]. - The company plans to discuss future business development and performance analysis using key financial performance indicators in the annual report[81]. Shareholder and Governance Matters - The group adopted a share incentive plan on December 14, 2020, granting reward shares to 24 regional managers, aligning their interests with the company's[21]. - The company completed its IPO on July 15, 2020, issuing 200,000,000 shares at a price of HKD 1.25 per share, including 20,000,000 shares for public offering and 180,000,000 shares for placement[77]. - The company has established a remuneration committee to review its remuneration policy based on operational performance and market practices[115]. - The board of directors consists of 8 members, including 3 executive directors, 1 non-executive director, and 4 independent non-executive directors, ensuring a high level of independence[193]. - The company has arranged appropriate liability insurance for directors to cover legal liabilities arising from corporate activities, with annual reviews of coverage[192]. Compliance and Regulatory Matters - The company has not encountered any serious violations of applicable laws and regulations that would significantly impact its operations[85]. - The structural contracts carry risks, including potential invalidation if deemed non-compliant with Chinese laws, which could lead to significant consequences for the company[164]. - The company is subject to uncertainties regarding the interpretation and implementation of the Foreign Investment Law, which may impact its corporate structure and operational feasibility[165]. - The company commits to annual reviews of the overall performance and compliance of structural contracts to ensure effective business operations[165]. Employee and Management Information - As of December 31, 2020, the company had 1,433 employees, an increase from 1,393 in 2019, with total employee-related costs approximately RMB 122.1 million, down from RMB 128.8 million in 2019[118]. - The company provides comprehensive compensation packages, including salaries and performance bonuses, and participates in various employee social security plans[118]. - All independent non-executive directors confirmed their independence in accordance with the listing rules, ensuring compliance with governance standards[194].
大山教育(09986) - 2020 - 年度财报