Financial Performance - Revenue for the six months ended June 30, 2024, reached RMB 277.8 million, an increase of 13.3% compared to RMB 245.1 million in the same period of 2023[1] - Gross profit for the same period was RMB 114.8 million, slightly down from RMB 116.0 million, resulting in a gross margin of approximately 41.3%[1] - The company reported a profit before tax of RMB 5.2 million, a significant turnaround from a loss of RMB 14.6 million in the previous year[1] - The company reported a net profit of RMB 3.4 million for the six months ended June 30, 2024, compared to a net loss of RMB 12.8 million in the same period of 2023[39] - The group reported a pre-tax profit of RMB 18,007,000 for the six months ended June 30, 2024, compared to RMB 18,921,000 for the same period in 2023, indicating a decrease of 4.8%[53] - The company’s net profit attributable to ordinary shareholders for the six months ended June 30, 2024, was RMB 3,385,000, compared to a loss of RMB 12,856,000 for the same period in 2023[58] Revenue Breakdown - Digital marketing services generated revenue of RMB 156.6 million, reflecting a year-on-year growth of 28.9%[3] - Revenue from digital marketing services rose by 28.9% from RMB 121.5 million to RMB 156.6 million, attributed to a rebound in advertising demand from clients[10] - Revenue from online game publishing services increased by 25.1% from RMB 4.2 million to RMB 5.3 million, mainly due to new games launched overseas[10] - Revenue from other digital content services surged by 125.5% from RMB 4.5 million to RMB 10.1 million, driven by increased promotion of music and video digital content services[10] - Revenue from other digital content services grew by 125.5% year-on-year, reaching RMB 10.1 million[3] User Engagement - Cumulative registered users for the E-Sou reading products reached 45.4 million, with average monthly active users at 26.3 million[2] - The company aims to increase its user base for digital reading services by 10.0%, which corresponds to RMB 4.1 million of the net proceeds, expected by Q3 2026[37] Cost and Expenses - Total sales costs increased by 26.4% from RMB 129.0 million to RMB 163.1 million, primarily due to rising costs in digital marketing services[11] - Selling and distribution expenses decreased by 8.1% from RMB 74.8 million to RMB 68.8 million, representing approximately 30.5% and 24.8% of total revenue for the respective periods[14] - Administrative expenses increased by 15.9% from RMB 19.9 million to RMB 23.1 million, accounting for about 8.1% and 8.3% of total revenue for the respective periods[15] - R&D expenses decreased by 7.7% from RMB 19.0 million to RMB 17.6 million, representing approximately 7.8% and 6.3% of total revenue for the respective periods[16] Assets and Liabilities - Total assets increased by 24.8% from RMB 505.4 million as of December 31, 2023, to RMB 630.8 million as of June 30, 2024, driven by increases in cash and cash equivalents, trade receivables, and financial assets[18] - Current assets increased by 32.8% from RMB 399.9 million as of December 31, 2023, to RMB 531.0 million as of June 30, 2024, while current liabilities increased by 40.6%[19] - Trade receivables rose by 27.2% from RMB 161.5 million as of December 31, 2023, to RMB 205.5 million as of June 30, 2024, mainly due to increased revenue from digital marketing services[20] - Cash and cash equivalents increased by 59.7% from RMB 89.1 million as of December 31, 2023, to RMB 142.3 million as of June 30, 2024, primarily due to funds raised from a global offering and increased bank borrowings[27] - Total liabilities increased to RMB 175,516 thousand from RMB 126,097 thousand, indicating a rise of approximately 39.2%[41] Financing and Investments - Financing costs decreased by 35.5% from RMB 2.9 million for the six months ended June 30, 2023, to RMB 1.9 million for the same period in 2024, primarily due to a decline in bank borrowing rates[17] - The company plans to allocate 15.0% of the net proceeds from its global offering, approximately RMB 6.1 million, to enhance its R&D capabilities by improving its recommendation engine technology by Q4 2027[36] - The company plans to expand its digital marketing services, allocating 10.0% of the net proceeds, approximately RMB 4.1 million, to establish partnerships with new media channels by Q3 2026[37] Corporate Governance and Compliance - The company has complied with all applicable corporate governance codes since its listing date[64] - The audit committee has reviewed the interim results and confirmed compliance with applicable accounting standards[66] - The financial data for the six months ended June 30, 2024, is prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with applicable disclosure requirements[43] Other Information - The company was listed on the Hong Kong Stock Exchange on June 7, 2024[9] - The company has not made any significant acquisitions or disposals of subsidiaries or joint ventures as of June 30, 2024[34] - There were no significant events that could materially affect the company after the reporting period[62] - The group did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[57]
宜搜科技(02550) - 2024 - 中期业绩