Financial Performance - For the six months ended June 30, 2025, the group generated revenue of approximately RMB 448.7 million, a decrease of RMB 135.5 million or approximately 23.2% year-on-year [12]. - Gross profit recorded was approximately RMB 48.5 million, representing a year-on-year decrease of approximately RMB 19.9 million or 29.1% due to low-margin projects and increased operating costs [13]. - The net loss for the reporting period was HKD 12.79 million, and the board does not recommend the payment of any dividend for the reporting period [13]. - The company's total revenue decreased from approximately RMB 58.42 million to approximately RMB 44.87 million, representing a year-on-year decline of about 23.20% or RMB 13.85 million [29]. - The group recorded a loss of approximately RMB 127.9 million for the reporting period, compared to a profit of approximately RMB 45.5 million for the six months ended June 30, 2024 [53]. - The company reported a total comprehensive loss of RMB 12,025 thousand for the six months ended June 30, 2025, compared to a loss of RMB 6,323 thousand for the same period in 2024 [108]. - For the six months ended June 30, 2025, the company reported a loss attributable to shareholders of RMB (12,785,000), compared to a profit of RMB 4,548,000 for the same period in 2024, resulting in a basic loss per share of (8.64) RMB versus a profit of 3.67 RMB [127]. Revenue Breakdown - Revenue from automotive-related exhibitions and events dropped significantly from approximately RMB 24.84 million to approximately RMB 12.55 million, a year-on-year decrease of about 49.46% or RMB 12.28 million, accounting for 27.98% of total revenue [30]. - Revenue from non-automotive-related exhibitions and events decreased from approximately RMB 23.86 million to approximately RMB 22.13 million, a year-on-year decline of about 7.26% or RMB 1.73 million, representing 49.33% of total revenue [30]. - Revenue from the company's one-stop value chain services during the reporting period was RMB 4.90 million, while revenue from SaaS platform services was RMB 5.09 million [14]. - Revenue from digital platform services increased significantly to approximately RMB 5,089 thousand from RMB 28 thousand, marking a substantial growth [123]. Market and Industry Insights - The exhibition industry in China showed strong performance, with 3,844 trade exhibitions held, maintaining levels similar to 2023, and total exhibition area expanding to 155 million square meters, a year-on-year increase of 10.1% [11]. - The exhibition industry contributed over 0.8% directly to GDP, with a broader impact of 2% to 3% across the value chain [11]. - The exhibition market in China is expected to grow in the second half of 2025, supported by government consumption stimulus policies and a focus on major trade exhibitions [16]. - The output multiplier for the exhibition industry is estimated at 2.45, indicating that every RMB 1 spent directly on exhibitions generates an additional RMB 1.45 in indirect and induced economic activity [23]. Strategic Initiatives - The company announced the acquisition of Yiwang Network Holdings Limited, a technology-driven company specializing in e-commerce platforms and supply chain management systems, to enhance its digital service capabilities, particularly in SaaS and blockchain technology [14]. - The group’s strategic decision to not proceed with a large project due to unsustainable pricing led to missed revenue opportunities [12]. - The company is focusing on strategic expansion in digital services, leveraging expertise in SaaS and blockchain technology to enhance operational efficiency and customer engagement [18]. - The strategic acquisition aims to integrate cutting-edge digital capabilities into the group's existing exhibition and event management framework, creating significant synergies [80]. Financial Position and Cash Flow - The net cash used in operating activities was approximately RMB 81.53 million, compared to RMB 91.87 million for the six months ended June 30, 2024 [57]. - The total interest-bearing borrowings amounted to RMB 34.16 million as of June 30, 2025, compared to RMB 28.56 million as of December 31, 2024 [62]. - The cash and cash equivalents increased to approximately RMB 153.82 million as of June 30, 2025, from RMB 111.77 million as of June 30, 2024 [57]. - The company raised RMB 21,030 thousand from the issuance of ordinary shares during the reporting period, significantly higher than RMB 6,437 thousand in the previous year [110]. Management and Governance - The group has adhered to corporate governance codes, with the chairman also serving as CEO, which the board believes is in the best interest of effective management [82]. - Total compensation for key management increased to RMB 4,105,000 in the six months ended June 30, 2025, compared to RMB 1,291,000 in the same period of 2024, representing a growth of 217% [138]. - The company has no significant capital commitments or contingent liabilities as of June 30, 2025 [71]. Shareholder Information - The company issued a total of 9,000,000 new ordinary shares at a subscription price of HKD 1.00 per share, representing a discount of approximately 9.91% from the market price of HKD 1.11 at the time of the agreement [64]. - As of June 30, 2025, Mr. Huang holds 33,645,000 shares (22.73%) and has a short position of 14,000,000 shares (9.46%) in the company [88]. - The company has not granted, exercised, or canceled any share options during the reporting period [100].
天平道合(08403) - 2025 - 中期财报