Financial Performance - For the reporting period, the group's revenue from continuing operations was approximately RMB 58.42 million, an increase of about 12.63% compared to RMB 51.87 million in the same period of 2023[2] - The group's gross profit for the reporting period was approximately RMB 6.84 million, representing an increase of approximately 564.08% from RMB 1.03 million in the same period of 2023[2] - The profit attributable to equity holders from continuing and discontinued operations increased from a loss of approximately RMB 9.20 million in the same period of 2023 to a profit of approximately RMB 4.54 million in the reporting period[2] - The basic earnings per share attributable to equity holders for the reporting period was RMB 3.67, compared to a loss of RMB 7.67 in the same period of 2023[3] - The operating profit for the reporting period was RMB 6.40 million, compared to an operating loss of RMB 8.91 million in the same period of 2023[3] - For the six months ended June 30, 2024, the company reported a total profit attributable to shareholders of RMB 4,548,000, compared to a loss of RMB 9,201,000 in the same period of 2023[20] - The basic earnings per share for the six months ended June 30, 2024, was RMB 3.67, a significant improvement from a loss of RMB 7.67 per share in the prior year[20] - The pre-tax profit for the reporting period was approximately RMB 6.06 million, an increase of about RMB 15.25 million compared to a pre-tax loss of RMB 9.19 million for the six months ended June 30, 2023[50] - The profit for the reporting period was approximately RMB 6.03 million, compared to a loss of approximately RMB 9.20 million for the six months ended June 30, 2023, representing an increase of about RMB 15.26 million[52] Revenue Breakdown - Revenue from automotive-related exhibition and event services decreased to RMB 24,837 thousand, down 12.3% from RMB 28,528 thousand in the previous year[17] - Revenue from non-automotive-related exhibition and event services increased significantly to RMB 23,864 thousand, up 26.4% from RMB 18,882 thousand in the previous year[17] - The new subsidiary supplying consumer products generated revenue of RMB 8.14 million, accounting for 13.94% of total revenue[39] - The SaaS platform service generated revenue of RMB 28,000, accounting for 0.05% of total revenue[39] - The company's total revenue increased by approximately 12.63% year-on-year, from RMB 51.87 million to RMB 58.42 million[36] - Revenue from automotive-related exhibitions and activities decreased by approximately 12.94% year-on-year, from RMB 28.53 million to RMB 24.84 million, accounting for 42.52% of total revenue[38] - Revenue from non-automotive-related exhibitions and activities increased by approximately 26.38% year-on-year, from RMB 18.88 million to RMB 23.86 million, accounting for 40.85% of total revenue[38] Assets and Liabilities - The total assets as of June 30, 2024, amounted to RMB 129.40 million, an increase from RMB 108.93 million as of December 31, 2023[5] - The total liabilities as of June 30, 2024, were RMB 117.56 million, compared to RMB 105.35 million as of December 31, 2023[5] - The group’s equity attributable to owners increased to RMB 11.83 million as of June 30, 2024, from RMB 3.58 million as of December 31, 2023[5] - Trade receivables as of June 30, 2024, amounted to RMB 27,016,000, down from RMB 53,582,000 as of December 31, 2023, indicating a reduction in outstanding receivables[22] - The net trade receivables after impairment provisions were RMB 19,638,000 as of June 30, 2024, compared to RMB 37,460,000 at the end of 2023[22] - Trade payables as of June 30, 2024, were RMB 69,341,000, an increase from RMB 64,253,000 as of December 31, 2023, indicating a rise in obligations[26] - The total interest-bearing borrowings as of June 30, 2024, amounted to RMB 22,976 thousand, up from RMB 17,976 thousand as of December 31, 2023, indicating an increase of approximately 27.9%[58] - The equity total increased to RMB 11,840 thousand as of June 30, 2024, compared to RMB 3,575 thousand at the end of 2023, reflecting a growth of 230.5%[58] Cash Flow - The cash and cash equivalents as of June 30, 2024, were RMB 11.18 million, a decrease from RMB 12.44 million as of December 31, 2023[5] - Cash and cash equivalents at the end of the period were RMB 11,177 thousand, compared to RMB 4,800 thousand at the end of the same period last year[7] - Operating cash flow for the six months ended June 30, 2024, was RMB (9,187) thousand, a decrease from RMB 1,468 thousand in the same period of 2023[7] - In the first half of 2024, the net cash used in operating activities was RMB (9,187) thousand, a significant decline compared to RMB 1,468 thousand in the same period of 2023[55] - Net cash generated from financing activities was RMB 7,867 thousand, a significant increase from a net cash outflow of RMB (1,128) thousand in the same period of 2023[7] - The company raised RMB 3,717 thousand from the issuance of ordinary shares during the reporting period[7] - The company completed a placement of 4,000,000 shares at a price of HKD 1 per share, raising approximately RMB 3,670,115 after expenses[25] - The company raised approximately HKD 3.95 million through a subscription agreement to supplement its working capital, with a subscription price of HKD 1 per share, representing a premium of about 20.48% over the market price at the time of the agreement[60] Expenses - Selling expenses decreased by approximately 67.30% from RMB 3.91 million to about RMB 1.28 million, primarily due to reductions in compensation and advertising expenses[43] - Administrative expenses increased by approximately 15.24% from RMB 7.07 million to about RMB 8.15 million, mainly due to increases in employee costs and auditor fees[46] - The service cost increased from approximately RMB 50.85 million to about RMB 51.58 million, representing a year-on-year increase of approximately 1.44% or RMB 0.73 million[40] - The cost of services provided by suppliers decreased from approximately RMB 43.78 million to about RMB 38.50 million, a year-on-year decrease of approximately 12.05% or RMB 5.28 million, accounting for 74.65% of total service costs during the reporting period[41] Other Income and Tax - The group reported a significant increase in other income, which rose to RMB 9.58 million from RMB 1.05 million in the same period of 2023[3] - The company reported other income of RMB 9,578,000 for the six months ended June 30, 2024, compared to RMB 1,047,000 in the same period of 2023, reflecting a substantial increase[18] - The income tax expense for the six months ended June 30, 2024, was RMB 1,516,000, compared to RMB 13,000 in the same period of 2023, reflecting a notable increase in tax obligations[19] Corporate Governance and Compliance - The company has not applied any new or revised Hong Kong Financial Reporting Standards that are not yet effective, which are expected to have a significant impact on the financial statements[12] - The company has complied with all applicable corporate governance codes, except for a deviation regarding the roles of the chairman and CEO[69][70] - The audit committee has reviewed the unaudited interim financial statements for the six months ending June 30, 2024, confirming compliance with applicable accounting standards[77] - The company has not engaged in any significant transactions with related parties during the periods ended June 30, 2023, and June 30, 2024[28] - No related party transactions or ongoing related party transactions were established during the reporting period[72] Economic Context - The Chinese economy's GDP grew by 5.2% year-on-year, reaching RMB 12,605.82 billion[30] - In the first half of 2024, China's GDP is expected to grow by 5.0% year-on-year, indicating a stable economic recovery despite complex international conditions[68] Strategic Initiatives - The company aims to enhance its digital service capabilities through the development of an ERP SaaS solution that integrates supply chain management and risk control[35] - The company aims to develop an ERP SaaS technology solution tailored for e-commerce business clients, integrating supply chain management, risk control, and customer relationship management functions[61] - The group aims to enhance the management of exhibitions and events, improve customer service, and create sustainable returns for shareholders[68] - A new subsidiary was established in April 2024 to sell consumer products in Wuhan, China, with the company holding a 51% stake[60] - The new consumer product subsidiary began operations in April 2024, focusing on the Wuhan market[34] Staffing and Employee Costs - As of June 30, 2024, the company employed 69 staff members, with total employee costs around RMB 6.67 million, a decrease from RMB 8.54 million in the previous year[63] Risk Management - The company continues to monitor its liquidity risk and cash flow forecasts to ensure sufficient cash for operational needs[16] - The group maintains close communication with automotive clients to assess credit risk, believing the inherent credit risk for outstanding trade receivables from these clients is low[66] - The group regularly monitors cash flow needs to ensure sufficient cash reserves for operational demands, utilizing rolling forecasts for liquidity management[67] - The company reported no significant contingent liabilities as of June 30, 2024, maintaining a stable financial position[62] - The company has no significant foreign exchange risk as its operations are primarily conducted in RMB[64]
天平道合(08403) - 2024 - 中期业绩