奇点国峰(01280) - 2024 - 中期业绩

Financial Summary Condensed Consolidated Statement of Comprehensive Income Summary During the reporting period, the company's revenue increased by 23.2% to RMB 173.3 million, but a shift from net other income to net other loss, coupled with significant increases in selling and marketing and administrative expenses, resulted in a loss of RMB 37.9 million for the period, with basic loss per share of RMB 0.09 | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 173,335 | 140,737 | +23.2% | | Gross Profit | 32,705 | 24,392 | +34.0% | | Gross Profit Margin | 18.9% | 17.3% | +1.6pp | | (Loss)/Profit Before Tax | (37,940) | 85,556 | From profit to loss | | (Loss)/Profit for the Period | (37,935) | 85,520 | From profit to loss | | (Loss)/Profit for the Period Attributable to Owners of the Company | (32,579) | 86,612 | From profit to loss | | Basic (Loss)/Earnings Per Share (RMB) | (0.09) | 0.40 | From earnings to loss | Condensed Consolidated Financial Statements Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets decreased by 57.2% to RMB 134.267 million, with significant declines in both non-current and current assets, and an 81.9% reduction in cash and cash equivalents; total equity improved from negative RMB 416.102 million to negative RMB 257.654 million but remained negative, while net current liabilities shifted from a positive RMB 20.533 million to a negative RMB 102.763 million | Indicator | June 30, 2024 (RMB '000) | December 31, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Assets | | | | | Non-current Assets | 12,316 | 46,156 | -73.3% | | Current Assets | 121,951 | 267,506 | -54.4% | | Total Assets | 134,267 | 313,662 | -57.2% | | Equity | | | | | Share Capital and Reserves Attributable to Owners of the Company | (268,844) | (432,648) | +37.9% (Loss narrowed) | | Total Equity | (257,654) | (416,102) | +38.1% (Loss narrowed) | | Liabilities | | | | | Non-current Liabilities | 167,207 | 482,791 | -65.3% | | Current Liabilities | 224,714 | 246,973 | -9.0% | | Total Liabilities | 391,921 | 729,764 | -46.3% | | Net Current (Liabilities)/Assets | (102,763) | 20,533 | From net assets to net liabilities | Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2024, the Group's revenue increased by 23.2% to RMB 173.335 million, but significant increases in selling and marketing and administrative expenses, coupled with a shift from net other income to net other loss, resulted in an operating loss of RMB 28.524 million from a profit of RMB 97.579 million, with a net loss of RMB 37.935 million for the period | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 173,335 | 140,737 | +23.2% | | Cost of Sales | (140,630) | (116,345) | +20.9% | | Gross Profit | 32,705 | 24,392 | +34.0% | | Other Income | 4,111 | 4,018 | +2.3% | | Other (Losses)/Gains – Net | (2,223) | 103,405 | From gain to loss | | Selling and Marketing Expenses | (41,497) | (21,995) | +88.7% | | Administrative Expenses | (21,620) | (12,241) | +76.6% | | Operating (Loss)/Profit | (28,524) | 97,579 | From profit to loss | | Finance Costs – Net | (9,416) | (12,023) | -21.7% | | (Loss)/Profit Before Income Tax | (37,940) | 85,556 | From profit to loss | | (Loss)/Profit for the Period | (37,935) | 85,520 | From profit to loss | | (Loss)/Profit for the Period Attributable to Owners of the Company | (32,579) | 86,612 | From profit to loss | | Basic and Diluted (Loss)/Earnings Per Share (RMB) | (0.09) | 0.40 | From earnings to loss | Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2024, the Group reported a total comprehensive loss of RMB 37.935 million, compared to a total comprehensive profit of RMB 85.520 million in the prior period, primarily due to the loss attributable to owners of the Company | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Total Comprehensive (Loss)/Profit for the Period | (37,935) | 85,520 | From profit to loss | | Attributable to Owners of the Company | (32,579) | 86,612 | From profit to loss | | Attributable to Non-controlling Interests | (5,356) | (1,092) | Loss widened | Notes to the Condensed Consolidated Interim Financial Statements 1. General Information The Company, incorporated in the Cayman Islands, primarily engages in investment holding, with its subsidiaries operating diversified businesses in mainland China, including home appliance retail and services, liquor business, and education and training services - The company primarily engages in investment holding, with its subsidiaries operating diversified businesses in mainland China, including home appliance retail and services, liquor business, and education and training services[6] 2. Basis of Preparation and Principal Accounting Policies The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and presented in RMB, with the Board adopting the going concern assumption despite significant uncertainties related to net loss and net current liabilities, relying on cost control and major shareholder support Going Concern Assumption - The Group incurred a net loss of RMB 37.935 million for the six months ended June 30, 2024, and its current liabilities exceeded current assets by RMB 102.763 million, indicating significant uncertainty[7] - The Board prepared the financial statements on a going concern basis, planning to meet future financial obligations through cost control measures and financial support from major shareholders[7][8] Application of New and Revised HKFRSs - The Group adopted new and revised HKFRSs effective on or after January 1, 2024, with no material impact on financial performance or position[9] 3. Trade and Bills Receivables As of June 30, 2024, net trade receivables increased by 165.8% to RMB 9.995 million compared to December 31, 2023, with credit terms ranging from 30 to 90 days and RMB 0.428 million in overdue but not impaired receivables at period-end | Indicator | June 30, 2024 (RMB '000) | December 31, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Net Trade Receivables | 9,995 | 3,760 | +165.8% | | Impairment Provision | (667) | (715) | -6.7% | | Ageing | June 30, 2024 (RMB '000) | December 31, 2023 (RMB '000) | | :--- | :--- | :--- | | 0 to 90 Days | 9,567 | 3,289 | | 91 to 365 Days | 379 | 422 | | 1 to 2 Years | 49 | 49 | | 2 to 3 Years | — | — | | Over 3 Years | — | — | | Total | 9,995 | 3,760 | - As of June 30, 2024, the total carrying amount of trade receivables that were past due but not considered to be in default was RMB 0.428 million, a decrease from RMB 1.001 million as of December 31, 2023[11] 4. Share Capital of the Company As of June 30, 2024, the Company's issued and fully paid share capital increased to RMB 110.774 million, primarily through two new share issuances, while authorized share capital also increased by 733.33% to USD 100 million | Indicator | June 30, 2024 (RMB '000) | December 31, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Issued and Fully Paid Share Capital | 110,774 | 29,174 | +279.0% | | Number of Issued Ordinary Shares (Thousands) | 793,135.692 | 219,279.744 | +261.7% | - The authorized share capital increased by approximately 733.33% to USD 100 million (divided into 5,000,000,000 shares) on May 21, 2024, with shareholder approval[13] - On January 14, 2024, the company allotted and issued 43,855,948 new shares to A Yuelongte Limited, with net proceeds of HKD 29.96060412 million used for general working capital[13] - On March 18, 2024, the company allotted and issued 530,000,000 new shares to Shengxing International Group Limited, settling a shareholder loan of HKD 185.50 million by set-off, with no remaining net proceeds[14] 5. Trade and Bills Payables As of June 30, 2024, total trade and bills payables decreased by 33.6% to RMB 24.326 million compared to December 31, 2023, with most major suppliers requiring upfront payments and credit terms ranging from 15 to 60 days | Indicator | June 30, 2024 (RMB '000) | December 31, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade and Bills Payables | 24,326 | 36,557 | -33.6% | | Trade Payables | 19,051 | 27,847 | -31.6% | | Bills Payables | 5,275 | 8,710 | -39.5% | - As of June 30, 2024, bills payables were secured by bank deposits[15] - The ageing analysis of trade payables shows the highest proportion within 0 to 30 days, but the total amount has decreased[16] 6. Borrowings As of June 30, 2024, non-current other borrowings significantly decreased by 66.3% to RMB 158.909 million from RMB 471.192 million as of December 31, 2023 | Indicator | June 30, 2024 (RMB '000) | December 31, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Other Borrowings | 158,909 | 471,192 | -66.3% | 7. Revenue and Segment Information For the six months ended June 30, 2024, total revenue increased by 23.2% to RMB 173.335 million, with liquor sales revenue significantly growing by 110.7% to RMB 36.308 million, education services revenue emerging at RMB 18.535 million, and home appliance sales slightly decreasing | Category of Goods and Services | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Home Appliance Sales | 118,492 | 121,667 | -2.6% | | Liquor Sales | 36,308 | 17,235 | +110.7% | | Maintenance and Installation Services | — | 1,835 | -100.0% | | Provision of Education Services | 18,535 | — | New | | Total Revenue | 173,335 | 140,737 | +23.2% | | Timing of Revenue Recognition | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | | :--- | :--- | :--- | | At a point in time | 154,800 | 138,902 | | Over a period of time | 18,535 | 1,835 | 8. Other Income For the six months ended June 30, 2024, other income slightly increased by 2.5% to RMB 4.111 million, primarily from other income items, while rental income from investment properties and event income fluctuated | Other Income Category | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Rental Income from Investment Properties | 1,155 | 120 | +862.5% | | Event Income | 247 | 1,387 | -82.2% | | Others | 2,709 | 2,511 | +7.9% | | Total | 4,111 | 4,018 | +2.3% | 9. Other (Losses)/Gains – Net For the six months ended June 30, 2024, the Group recorded a net other loss of RMB 2.223 million, compared to a net gain of RMB 103.405 million in the prior period, mainly due to a significant decrease in gains from disposal of subsidiaries | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | (Loss)/Gain on Disposal of Subsidiaries | (3,313) | 104,185 | From gain to loss | | Gain on De-recognition of Subsidiaries | 219 | — | New | | Reversal of Impairment Provision for Trade Receivables | 48 | 182 | -73.6% | | Total | (2,223) | 103,405 | From gain to loss | 10. (Loss)/Profit Before Income Tax Loss before income tax was RMB 37.940 million, primarily impacted by increased cost of sales, employee benefit expenses, selling and marketing expenses, administrative expenses, and a shift to net other losses | Expense Category | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Goods Sold | 140,264 | 116,122 | +20.8% | | Employee Benefit Expenses | 21,163 | 17,061 | +24.0% | | Amortisation of Right-of-Use Assets | 2,592 | 283 | +815.9% | | Depreciation of Property, Plant and Equipment | 838 | 2,237 | -62.5% | 11. Finance Costs – Net For the six months ended June 30, 2024, net finance costs decreased by 21.7% to RMB 9.416 million, mainly due to reduced interest expenses on other borrowings and bonds payable, partially offset by increased net foreign exchange losses | Finance Cost Category | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Interest Expense on Other Borrowings | 7,347 | 9,861 | -25.5% | | Interest Expense on Bonds Payable | — | 562 | -100.0% | | Net Foreign Exchange Losses | 1,778 | 1,140 | +55.9% | | Interest Income from Bank Deposits | (292) | (128) | +128.1% | | Finance Costs – Net | 9,416 | 12,023 | -21.7% | 12. Income Tax (Credit)/Expense For the six months ended June 30, 2024, the Group recorded an income tax credit of RMB 0.005 million, compared to an income tax expense of RMB 0.036 million in the prior period, with mainland China subsidiaries subject to a 25% corporate income tax rate | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Income Tax (Credit)/Expense | (5) | 36 | From expense to credit | - The applicable corporate income tax rate for subsidiaries in mainland China is 25%[25] 13. (Loss)/Earnings Per Share For the six months ended June 30, 2024, basic and diluted loss per share was RMB 0.09, compared to earnings per share of RMB 0.40 in the prior period, primarily due to the loss attributable to owners of the Company | Indicator | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Change | | :--- | :--- | :--- | :--- | | (Loss)/Profit Attributable to Owners of the Company (RMB '000) | (32,579) | 86,612 | From profit to loss | | Weighted Average Number of Ordinary Shares (Thousands) | 370,662 | 219,280 | +69.0% | | Basic and Diluted (Loss)/Earnings Per Share (RMB) | (0.09) | 0.40 | From earnings to loss | 14. Interim Dividend The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2024 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2024[29] Management Discussion and Analysis Market Review In the first half of 2024, China's economy generally continued its recovery, but faced challenges such as insufficient effective demand and weak social expectations; the home appliance market was boosted by "trade-in" policies, while the liquor industry saw declining output but increasing sales revenue and profits, with significant market differentiation - In the first half of 2024, China's economy generally continued its recovery, but faced challenges such as insufficient effective demand and weak social expectations[30] - The home appliance market was boosted by "trade-in" policies, leading to counter-trend growth in white goods sales and a recovery in industry sentiment[31] - The liquor industry saw declining output, but increasing sales revenue and profits, with significant market differentiation and consumers becoming more rational[31] Business Review The Group continues to advance its diversified businesses, including home appliance retail, liquor, and training, focusing on marketing, leveraging emerging channel dividends, strengthening dealer networks to expand the sauce-flavor liquor market, and actively developing training services for new growth drivers Home Appliance Business - The "trade-in" policy effectively boosted domestic demand for home appliances, and the company enhanced retail performance by optimizing offline experience and integrating multi-channel marketing (live streaming, short videos, WeChat communities)[31][32] Liquor Business - The company actively promotes its sauce-flavor liquor business, exclusively customizing high-end Guofeng sauce-flavor liquor, with quality assurance from state-owned enterprise background consultants[33] - Guizhou Guofeng has established a multi-channel sales model including "offline dealers + online mall, live streaming, community group buying, and private domain e-commerce," and has organized multiple "Liquor Capital Capital Tours" and tasting and investment promotion events[33] - Yuanli Liquor (Shenzhen) Co., Ltd. continues to strengthen product design, operations, and marketing capabilities, with sauce-flavor liquor products launched as scheduled[33] Training Business - The company entered the training business last year, benefiting from national support policies for small and medium-sized enterprises, with the total number of private economic entities continuing to grow[32] - Shenzhen Qidian Qiuxue Technology Co., Ltd. (75% owned) acts as an agent for Beijing Shengshang's training courses and services for small and medium-sized enterprises, and provides training services such as capital market investment and financing[34] Marketing Strategy and Channel Transformation - The company focuses on refined operations and marketing, leveraging emerging online channels like Douyin and Xiaohongshu, and integrating offline channels with home furnishings and building materials[32] - The Group has renovated its stores to enhance the offline customer experience and accelerated the integration of multi-channel marketing, including live streaming, short videos, and WeChat communities[32] Dealer Network Development and Sauce-Flavor Liquor Market Expansion - The company closely monitors the development of the liquor industry and actively promotes its sauce-flavor liquor business by strengthening dealer networks, exclusively customizing high-end Guofeng sauce-flavor liquor, utilizing multi-channel online and offline sales, and organizing tasting and investment promotion events to expand the market and enhance sales and profitability[33] - Guizhou Guofeng has established a multi-channel sales model including "offline dealers + online mall, live streaming, community group buying, and private domain e-commerce," and successfully organized 8 "Liquor Capital Capital Tours" and 974 tasting and investment promotion events[33] Training Business Layout - While stabilizing existing businesses, the company is establishing new growth points by leveraging Shenzhen Qidian Qiuxue Technology Co., Ltd. (75% owned) to act as an agent for Beijing Shengshang's training courses and services for small and medium-sized enterprises, and providing capital market investment and financing training[34] Financial Review The Group's revenue increased by 23.2% during the reporting period, but significant increases in cost of sales, selling and marketing expenses, and administrative expenses, coupled with a shift from net other income to net other loss, resulted in an operating loss from a profit, with a net loss of RMB 32.6 million; cash and cash equivalents significantly decreased, and the gearing ratio increased Revenue | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 173,335 | 140,737 | +23.2% | | Home Appliance Sales | 118,492 | 121,667 | -2.6% | | Liquor Sales | 36,308 | 17,235 | +110.7% | | Education and Training Services | 18,535 | — | New | Cost of Sales | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 140,630 | 116,345 | +20.9% | Gross Profit | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 32,705 | 24,392 | +34.0% | | Gross Profit Margin | 18.9% | 17.3% | +1.6pp | Other Income | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 4,111 | 4,018 | +2.3% | Other (Losses)/Gains | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Other (Losses)/Gains | (2,223) | 103,405 | From gain to loss | Selling and Marketing Expenses | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 41,497 | 21,995 | +88.7% | Administrative Expenses | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 21,620 | 12,241 | +76.7% | Operating (Loss)/Profit | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Operating (Loss)/Profit | (28,524) | 97,579 | From profit to loss | Finance Costs – Net | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Net Finance Costs | 9,416 | 12,023 | -21.7% | Loss Before Income Tax | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | (Loss)/Profit Before Income Tax | (37,940) | 85,556 | From profit to loss | Income Tax Credit/(Expense) | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Income Tax Credit/(Expense) | 5 | (36) | From expense to credit | Loss Attributable to Owners of the Company | Indicator | Six Months Ended June 30, 2024 (RMB '000) | Six Months Ended June 30, 2023 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | (Loss)/Profit Attributable to Owners of the Company | (32,579) | 86,612 | From profit to loss | Cash and Cash Equivalents | Indicator | June 30, 2024 (RMB '000) | December 31, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 29,324 | 162,301 | -81.9% | Inventories | Indicator | June 30, 2024 (RMB '000) | December 31, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Inventories | 58,872 | 56,392 | +4.4% | Prepayments, Deposits and Other Receivables | Indicator | June 30, 2024 (RMB '000) | December 31, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Prepayments, Deposits and Other Receivables | 22,090 | 40,033 | -44.9% | Trade and Bills Receivables | Indicator | June 30, 2024 (RMB '000) | December 31, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade and Bills Receivables | 9,995 | 3,760 | +165.8% | Trade and Bills Payables | Indicator | June 30, 2024 (RMB '000) | December 31, 2023 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade and Bills Payables | 24,326 | 36,557 | -33.6% | Gearing Ratio and Basis of Calculation | Indicator | June 30, 2024 | December 31, 2023 | Change (pp) | | :--- | :--- | :--- | :--- | | Gearing Ratio | 291.9% | 232.7% | +59.2pp | Liquidity, Financial Resources and Capital As of June 30, 2024, the Group's cash and cash equivalents significantly decreased to RMB 29.3 million, with net current liabilities of RMB 102.7 million (compared to net current assets of RMB 20.5 million in the prior period); interest-bearing borrowings substantially decreased to RMB 158.9 million, with fixed interest rates ranging from 4.5% to 6.5% | Indicator | June 30, 2024 (RMB '000) | December 31, 2023 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 29,324 | 162,301 | -81.9% | | Net Current (Liabilities)/Assets | (102,763) | 20,533 | From net assets to net liabilities | | Interest-bearing Borrowings | 158,909 | 471,200 | -66.3% | - The Group's interest-bearing borrowings are denominated in RMB and HKD, with fixed interest rates ranging from 4.5% to 6.5%[48] Foreign Currency and Treasury Policy The Group's revenue and most expenses are denominated in RMB, and no forward contracts were entered into to hedge foreign exchange risks during the reporting period; currently, there is no foreign currency hedging policy, but the Board closely monitors and may consider adopting one in the future - The Group's revenue and most expenses are denominated in RMB, and no foreign exchange hedging was undertaken during the reporting period[49] - The Board closely monitors foreign exchange risks and may consider adopting a foreign currency hedging policy in the future[49] Litigation and Contingent Liabilities As of June 30, 2024, the Group had no significant contingent liabilities - As of June 30, 2024, the Group had no significant contingent liabilities[50] Interim Dividend The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2024 - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2024[51] Employment and Remuneration Policy The Group adopts a remuneration policy comparable to industry peers, including fixed basic salaries and discretionary performance bonuses, and participates in various social security schemes for its employees - The Group's remuneration policy is comparable to industry peers, including basic salaries and discretionary performance bonuses[51] - The Group participates in various social security schemes for its employees[51] Human Resources As of June 30, 2024, the Group had 349 employees, an increase of 16.3% compared to December 31, 2023 | Indicator | June 30, 2024 | December 31, 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Number of Employees | 349 | 300 | +16.3% | Significant Investments As of June 30, 2024, the Group held no significant investments whose fair value exceeded 5% of total assets - As of June 30, 2024, the Group held no significant investments whose fair value exceeded 5% of total assets[53] Future Material Investments and Capital Asset Plans As of June 30, 2024, the Group had no identified and legally binding future material investments or capital asset plans for the coming year - As of June 30, 2024, the Group had no identified and legally binding future material investments or capital asset plans for the coming year[54] Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures On June 19, 2024, the Company's indirect wholly-owned subsidiary disposed of its entire equity interest in Yangzhou Laihao Electrical Appliance Trading Co., Ltd. for RMB 29.3 million, primarily to offset loans - On June 19, 2024, Beijing Qidian New Commercial Technology Co., Ltd., an indirect wholly-owned subsidiary of the Company, disposed of its entire equity interest in Yangzhou Laihao Electrical Appliance Trading Co., Ltd. for a consideration of RMB 29.3 million[55] - The disposal consideration was primarily settled by offsetting outstanding principal and interest under a loan agreement, with the remaining outstanding amount of RMB 12.613 million to be repaid by June 13, 2025[55] Future Outlook Looking ahead to the second half of the year, China's economy is expected to continue its recovery; the Group will seize opportunities from "trade-in" policies, growing demand for smart home appliances, the potential of the sauce-flavor liquor market, and the recovery of the training market, optimizing marketing strategies, expanding online and offline channels, and deepening its training business to enhance performance and market share Home Appliance Market - The "trade-in" policy is expected to continue driving growth in home appliance consumption, and the company will optimize marketing strategies and increase sales efforts for large home appliances[57][58] - The smart home appliance market continues to grow, with increasing penetration rates, and the company will strengthen the sales and promotion of smart home appliance products[59][60] Sauce-Flavor Liquor Business - The sauce-flavor liquor industry is projected to reach RMB 255.6 billion in sales revenue by 2026, with an average annual growth of 6.50%, presenting development opportunities with economic recovery[61] - The company will leverage the high social and strong demand attributes of sauce-flavor liquor, utilizing multi-channel online and offline efforts to reshape consumption scenarios, expand customer base, innovate packaging design, and enhance brand operation and digital marketing capabilities[61] Training Market - With the domestic economic recovery, the vitality and service demand of small and medium-sized enterprises are gradually being released, bringing development potential to the training market[62] - The Group will deepen its five major training businesses—capital market investment and financing, family education, traditional Chinese studies, study tours, and new media—through its Shenzhen company, adopting a "precision marketing" strategy[62] Corporate Governance and Other Information Compliance with the Corporate Governance Code The Company complied with the Code Provisions of the HKEX Corporate Governance Code during the reporting period, with a previous deviation from C.2.1 (separation of Chairman and CEO roles) rectified by the appointment of Mr. Sun Yue as the new CEO on May 27, 2024, while Mr. Yuan Li continues as Chairman - The Company complied with the Code Provisions of the HKEX Corporate Governance Code during the reporting period, but previously deviated from C.2.1 (separation of Chairman and CEO roles)[64] - Effective May 27, 2024, Mr. Sun Yue was appointed as the new Chief Executive Officer, with Mr. Yuan Li continuing as Chairman, thereby complying with the Code requirements[64] Audit Committee The Audit Committee, comprising three independent non-executive directors, assists the Board in reviewing financial information, internal controls, risk management, and audit plans, and has reviewed the unaudited interim results for the six months ended June 30, 2024 - The Audit Committee comprises three independent non-executive directors, including one member with professional qualifications[65] - The Committee's primary responsibilities include reviewing financial information, internal controls, risk management, audit plans, and the relationship with external auditors[65] - The Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2024[65] Sufficiency of Public Float From January 1, 2024, to the date of this announcement, the Company has maintained a sufficient public float - The Company has maintained a sufficient public float from January 1, 2024, to the date of this announcement[66] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2024, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and there were no treasury shares - For the six months ended June 30, 2024, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[67] - As of June 30, 2024, the Company held no treasury shares[67] Significant Events After the Reporting Period After the reporting period, the Company completed two significant events in July 2024: the allotment and issuance of 158,627,138 shares to two subscribers, with net proceeds of HKD 80.917 million for debt repayment and general working capital; and the signing of an acquisition agreement to acquire the entire issued share capital of Shengshang Entrepreneurial Services Co., Ltd. for HKD 340 million in consideration shares (850 million shares) - On July 9, 2024, the company completed the allotment and issuance of 158,627,138 shares to two subscribers, with net proceeds of HKD 80.917 million used for debt repayment and general working capital[68] - On July 26, 2024, the company signed an agreement to acquire the entire issued share capital of Shengshang Entrepreneurial Services Co., Ltd. for a consideration of HKD 340 million, payable in 850,000,000 consideration shares[68] Change of Company Website The Company's website has been changed from "www.hyjd.com" to "www.qidianguofeng.cn" - The Company's website has been changed from "www.hyjd.com" to "www.qidianguofeng.cn"[69] Publication of Interim Results Announcement and Interim Report The Company's 2024 interim report will be dispatched to shareholders (upon request) and published on the HKEX website and the Company's new website in due course - The Company's 2024 interim report will be dispatched to shareholders (upon request) and published on the HKEX website and the Company's new website in due course[70]