Economic Overview - In 2024, China's GDP reached RMB 134.9084 trillion, representing a 5.0% year-on-year growth at constant prices, with a 5.4% increase in Q4[8]. - The advertising market in China grew by 1.7% year-on-year from January to November 2024, with significant increases in sectors such as entertainment and leisure, which saw an 18.9% rise in advertising expenditure[10]. - The consumer price index (CPI) in 2024 rose by 0.2% year-on-year, with food, tobacco, and alcohol prices decreasing by 0.1%[12]. - The core CPI, excluding food and energy prices, increased by 0.5% in 2024[12]. - Producer prices for industrial products and purchasing prices for industrial inputs declined by 2.2% year-on-year in December 2024[12]. Company Performance - The Group's revenue for the six months ended December 31, 2024, was approximately RMB54 million, a significant increase from RMB22.9 million for the same period in 2023, representing a growth of approximately 136.2%[18]. - Gross profit for the same period was RMB3.4 million, down from RMB4.9 million in the previous year, resulting in a gross profit margin decrease from 21% to 6.2%[18][35]. - The net loss after taxation for the six months ended December 31, 2024, was approximately RMB5.2 million, an improvement from a net loss of approximately RMB43 million for the same period in 2023[18]. - Revenue from sales of agricultural products was approximately RMB54 million for the six months ended December 31, 2024, compared to approximately RMB74,000 for the same period in 2023, indicating a substantial increase[24][34]. - Revenue from marketing and consulting services decreased by 98.7% to approximately RMB0.26 million compared to the same period in 2023[23]. - The advertising segment contributed RMBNil to the Group's revenue for the six months ended December 31, 2024, down from approximately RMB0.85 million in the previous year[22]. Financial Position - As of 31 December 2024, the Group's net current liabilities were approximately RMB 54 million, with bank and cash balances of approximately RMB 3.7 million[52][56]. - The current ratio was approximately 0.65 times as at 31 December 2024, slightly down from 0.67 times as at 30 June 2024[54]. - The Group had outstanding liabilities of approximately RMB 171 million as of 31 December 2024, including trade payables of approximately RMB 25 million and accruals and other payables of approximately RMB 98 million[53][56]. - The gearing ratio, representing the proportion of total borrowings to total assets, was 83% as at 31 December 2024, compared to 81% as at 30 June 2024[61][65]. - The Group's total liabilities amounted to RMB 2,875,000, an increase of 75.0% compared to RMB 1,644,000 as of 30 June 2024[67]. Corporate Governance - The roles of chairman and CEO are held by the same individual, which deviates from corporate governance code provisions, but measures are in place to maintain balance[84]. - The Group's corporate governance practices are under continuous review to ensure compliance with the Corporate Governance Code[87]. - The Nomination Committee is responsible for recommending the appointment or re-appointment of Directors and succession planning[95]. - The Remuneration Committee evaluates and makes recommendations regarding the remuneration packages of Directors and senior management[94]. Operational Strategies - The company plans to enhance its advertising investments in various sectors, particularly in tourism and regional branding, to drive growth[10]. - The company is focusing on expanding its market presence through increased promotional investments in educational supplies and sports goods[10]. - The company is actively exploring new product development and technological advancements to stay competitive in the market[10]. - The Group is developing the "Yongtai Kungfu Distinctive Town" project, which includes a 60-Chinese mu eco-friendly greenhouse farm and aims to create a full-chain ecological production center for agricultural products[29]. - The Group has established an O2O website and mobile applications to promote online and offline sales of agricultural products since 2019[33]. Challenges and Risks - There is material uncertainty regarding the Group's ability to achieve its plans and measures, which could affect its going concern status[145]. - Successful completion of fundraising for capital investments is critical for the Group's tourism and integrated development projects[151]. - The Group's ability to continue as a going concern depends on generating adequate financing and operating cash flows[147]. - Adjustments may be required to write down the carrying values of the Group's assets if it cannot continue as a going concern[149]. Shareholder Information - As of 31 December 2024, Mr. Chen Zhi holds 610,835,005 Shares, representing approximately 56.80% of the Company's issued Shares[103]. - TopBig International, a controlled corporation wholly-owned by Mr. Chen Zhi, holds 609,076,841 Shares, representing approximately 56.63% of the Company's issued Shares[107]. - Nian Jiaxing holds 132,010,713 Shares, representing approximately 12.27% of the Company's issued Shares[107]. - Forever Joy Investments Limited holds 82,307,493 Shares, representing approximately 7.65% of the Company's issued Shares[107]. - Victory Color International Investment Limited holds 75,759,903 Shares, representing approximately 7.04% of the Company's issued Shares[107].
十方控股(01831) - 2024 - 中期财报