Financial Performance - Total revenue for the year ended December 31, 2024, was approximately RMB 32.3 million, a decrease of about 19.0% from RMB 39.9 million in 2023[42]. - The overall decrease in revenue was attributed to a decline in both the number of trainees and actual training hours[42]. - Gross profit decreased by RMB4.6 million (approximately 54.1%) from RMB8.6 million for the year ended December 31, 2023 to RMB3.9 million for the year ended December 31, 2024, with a gross profit margin decline of 9.3 percentage points from 21.5% to 12.2%[46][48]. - The net loss attributable to the owners of the Company remained stable at approximately RMB8.4 million for both years ended December 31, 2023 and 2024, with net loss margins of 21.2% and 25.9%, respectively[47]. - Revenue from driving training services for Large Vehicles decreased by approximately RMB7.3 million (approximately 24.6%) from RMB29.6 million to RMB22.3 million, primarily due to a decrease in the number of trainees and training hours[50][51]. - The total number of course enrollments decreased by 7.0% from 9,304 in 2023 to 8,646 in 2024[36]. - The number of trainees attending driving courses slightly decreased by approximately 3.5%, from 10,832 in 2023 to 10,450 in 2024[42]. - Revenue from large vehicle training services accounted for approximately 69.1% of total revenue in 2024, down from 74.2% in 2023[42]. Enrollment Trends - The total number of course enrollments decreased by 7.0% from 9,304 in 2023 to 8,646 in 2024[36]. - The number of course enrollments for Large Vehicles dropped significantly by 18.7% from 4,035 in 2023 to 3,279 in 2024, impacting overall revenue[36]. - The overall number of course enrollments for standard courses increased by approximately 130.0% from 3,046 in 2023 to 7,006 in 2024 due to new course designs[37]. - The total number of course enrollments for Shun Da School decreased by approximately 38.2% to 846 in 2024 from 1,368 in 2023[36]. - Tong Tai School's course enrollments slightly decreased by approximately 1.7% from 7,936 in 2023 to 7,800 in 2024[36]. Strategic Initiatives - The company plans to adopt effective methods to stabilize economic income and ensure reasonable market operation amidst competitive pressures[16]. - The company aims to increase capital investment and upgrade teaching facilities, including acquiring new energy vehicles and unique teaching simulators to enhance service quality[18]. - To adapt to market changes, the company plans to cultivate an online sales and marketing team leveraging platforms like TikTok to promote enrollment policies[17]. - The company plans to actively expand its market through potential acquisitions and partnerships in Gansu and Xinjiang provinces[22]. - The company intends to acquire land and construct training fields to enhance its operational capabilities[24]. Competition and Market Conditions - Regulatory changes since Q3 2021 have intensified competition, with an increase in the number of driving schools, leading to a dispersion of course enrollments across provinces[10]. - The company anticipates intensified competition in 2025 due to the survival of numerous non-traditional driving schools and the emergence of internet-based training models[15]. - The driving training industry needs to adjust training curricula to accommodate the characteristics of new energy vehicles, necessitating diversified training courses[15]. - The company will focus on strengthening internal control management and exploring new sources of course enrollments as core tasks for 2025[16]. - The overall strategy for 2025 includes enhancing teaching quality through new technologies to boost competitiveness in a diversified landscape[18]. Cost Management - Cost of services rendered decreased by approximately RMB3.0 million (approximately 9.4%) from RMB31.3 million to RMB28.4 million, mainly due to reduced employee benefit expenses and other costs[55][57]. - Employee benefit expenses decreased by approximately RMB2.4 million, or approximately 22.4%, from approximately RMB10.5 million for the year ended December 31, 2023 to approximately RMB8.2 million for the year ended December 31, 2024[58]. - Fuel expenses decreased by approximately RMB2.5 million, or approximately 34.3%, from approximately RMB7.4 million for the year ended December 31, 2023 to approximately RMB4.9 million for the year ended December 31, 2024[58]. Governance and Compliance - The Company has complied with all code provisions set out in the Corporate Governance Code for the year ended December 31, 2024[109]. - The Board of Directors held four meetings during the year ended December 31, 2024, in compliance with the Corporate Governance Code[117]. - The Company received written confirmations of independence from all independent non-executive directors, affirming their compliance with independence guidelines[124]. - The Board is responsible for strategic decisions and financial performance, meeting at least four times a year to oversee the company's affairs[137][138]. - The Audit Committee reviewed the audited consolidated financial statements for the financial year ended December 31, 2024, including accounting principles and policies, and recommended them for approval at the AGM[157]. Human Resources - The total employee benefit expenses for the year ended December 31, 2024, were approximately RMB 10.7 million, down from approximately RMB 13.3 million for the year ended December 31, 2023[97][98]. - The Group had 158 employees as of December 31, 2024, representing a decrease from 210 employees as of December 31, 2023[95][98]. - The Group's employee composition includes 6 Directors (3.7%), 77 driving instructors (48.7%), and 21 in sales and marketing (13.3%) as of December 31, 2024[100]. Risk Management - The company engaged an external consultant to enhance the effectiveness of its risk management and internal control systems[151]. - The Audit Committee engaged an external consultant to review the financial controls, internal control, and risk management systems of the Company[160].
向中国际(01871) - 2024 - 年度财报