Financial Performance - Total revenue for the six months ended November 30, 2025, was RMB 2,311,629,000, representing a 5.7% increase from RMB 2,186,636,000 in the same period of 2024[7]. - Gross profit increased by 14.5% to RMB 841,639,000 compared to RMB 735,143,000 in the previous year[7]. - Profit before tax improved significantly to RMB 308,526,000 from a loss of RMB 72,481,000, marking a 525.7% increase[7]. - Net profit for the period was RMB 239,041,000, a turnaround from a loss of RMB 96,503,000, reflecting a 347.7% increase[7]. - The adjusted net profit under non-IFRS measures was RMB 257,645,000, compared to a loss of RMB 1,609,000, indicating a 16,112.7% increase[7]. - For the six months ending November 30, 2025, total net revenue increased by 5.7% to RMB 2.3 billion from RMB 2.2 billion for the same period in 2024[14]. - The company achieved a net profit of RMB 239 million for the six months ending November 30, 2025, compared to a net loss of RMB 96.5 million for the same period in 2024, establishing a solid foundation for long-term sustainable development[14]. - Total revenue increased by 5.7% from RMB 2.2 billion for the six months ended November 30, 2024, to RMB 2.3 billion for the six months ending November 30, 2025[33]. - Revenue from the application increased from approximately RMB 500 million to approximately RMB 600 million during the same period[33]. - Gross profit rose by 14.5% from RMB 735.1 million to RMB 841.6 million, with gross margin improving from 33.6% to 36.4%[34]. - Net profit for the six months ended November 30, 2025, was RMB 239.0 million, compared to a net loss of RMB 96.5 million for the same period in 2024[41]. - Adjusted EBITDA for the six months ended November 30, 2025, was RMB 315.2 million, compared to a loss of RMB 68.2 million for the same period in 2024[46]. Operational Metrics - The company's GMV for the six months ended November 30, 2025, was RMB 4.1 billion, down from RMB 4.8 billion in the same period of 2024[12]. - The number of paid orders on Douyin decreased to 42.1 million from 50.1 million year-on-year[12]. - The number of paid subscribers on the East Buy app increased to 240,100 from 228,300 in the previous year[12]. - The product range has expanded to 801 self-operated product SKUs as of November 30, 2025, up from 600 SKUs as of November 30, 2024, including new categories such as seafood, health supplements, and personal care products[15]. - The company’s self-operated products accounted for approximately 52.8% of total GMV for the six months ending November 30, 2025[17]. - Total GMV for the six months ending November 30, 2025, was RMB 4.1 billion, representing a 16.4% increase from RMB 3.6 billion in the same period of the previous fiscal year[22]. - The app's self-operated products accounted for 28.6% of total self-operated product GMV in the first half of the 2026 fiscal year, reflecting improvements in supply chain management[21]. Customer Engagement and Satisfaction - Customer satisfaction reached 97.83%, with the customer service team serving 4.5 million users and implementing 202 experience enhancement initiatives[19]. - The company launched a membership system in October 2023, offering exclusive services and discounts on various products[11]. Strategic Initiatives - The company plans to establish same-day delivery capabilities in the top ten cities by order volume and has initiated pilot projects for instant retail fulfillment in Beijing, Shanghai, and Guangzhou[18]. - The company has deployed over 40 vending machines in various regions, achieving profitability in some cities, with plans for further expansion[20]. - A user research mechanism will be established to collect data on changing user demands through community surveys, questionnaires, and big data analysis[25]. - The company plans to enhance operational efficiency using AI technologies, including personalized product recommendations and AI-driven customer service systems[26]. - The company aims to integrate product and cultural content, following a user research → small batch testing → full promotion logic for new product development[28]. - A long-term recruitment plan will be initiated to attract skilled live stream hosts and professionals, focusing on product knowledge, content creation, and live streaming techniques[29]. - The company has helped local specialty agricultural products increase sales through a "live streaming + traceability + brand empowerment" model, enhancing social responsibility[30]. - The company is committed to sustainable development by promoting health knowledge and optimizing packaging to reduce carbon footprints in logistics[30]. - The company will implement a bi-weekly/monthly quality inspection report mechanism to monitor product quality and supplier assessments[24]. - The company is focusing on high-risk product categories, launching "seven zero-additive" sanitary products that meet national standards[30]. - The company aims to strengthen its brand positioning around "health, high quality, and high cost-performance" to match product quality with consumer purchasing power[24]. Financial Position and Cash Flow - As of November 30, 2025, the company's cash and cash equivalents amounted to RMB 1.2 billion, down from RMB 2.5 billion on May 31, 2025, and RMB 1.7 billion on November 30, 2024[47]. - The company's total monetary funds, including cash, cash equivalents, and financial assets at fair value, totaled RMB 5.5 billion as of November 30, 2025[47]. - The company's debt-to-asset ratio was 15.5% as of November 30, 2025, compared to 17.4% on November 30, 2024, and 16.0% on May 31, 2025[48]. - Capital expenditures for the six months ended November 30, 2025, were RMB 0.5 million, significantly lower than RMB 23.4 million for the same period in 2024[49]. - Total employee compensation expenses for the six months ended November 30, 2025, were RMB 346.8 million, a decrease of 34.9% compared to RMB 532.8 million for the same period in 2024[54]. - The company had no off-balance-sheet transactions as of November 30, 2025[50]. - There were no significant investments or capital asset plans anticipated as of November 30, 2025[51]. - The company did not engage in any major acquisitions or disposals of subsidiaries or associates as of November 30, 2025[52]. - As of November 30, 2025, the company had no significant contingent liabilities[58]. - The company had no bank loans or other borrowings during the reporting period, indicating sufficient cash and capital resources for operations and expansion[56]. - The company reported a net cash generated from operating activities for the six months ended November 30, 2025, was RMB 278,558 thousand, compared to a net cash used of RMB 170,068 thousand in the same period of 2024[105]. - The company’s financing activities generated a net cash inflow of RMB 18,872 thousand for the six months ended November 30, 2025, compared to a net cash outflow of RMB 35,459 thousand in the same period of 2024[105]. Shareholder Information - As of November 30, 2025, the total number of issued shares is 1,053,803,538[1]. - The company has granted 6,000,000 stock options to Mr. Yu under the 2019 plan, which may be exercised[2]. - The 2023 plan allows for the issuance of up to 101,351,871 shares, representing 10% of the issued shares as of the plan's adoption date[3]. - The company has issued 10,000 new shares under the 2023 plan during the reporting period[4]. - Mr. Yu holds a beneficial interest in 99% of Beijing Century Friendly Education Investment Co., Ltd., which is a subsidiary of New Oriental[5]. - New Oriental holds 589,585,500 shares, representing approximately 55.95% of the company's equity[6]. - The 2023 plan includes a service provider sub-limit of 2,027,037 shares, which is 2% of the plan authorization[7]. - The company has not granted any new shares under the previous plans during the reporting period, which accounted for 0.00% of the weighted average issued share capital[8]. - The 2019 plan was terminated on March 9, 2023, and no further stock options will be granted under this plan[9]. - The company has a total of 30,813,536 stock options granted under the 2019 plan, with 7,631,000 options exercised during the reporting period[10]. - A total of 101,351,871 shares are available for grant under the 2023 plan, with 75,491,221 shares available as of June 1, 2025[75]. - During the reporting period, no shares were granted under the 2023 plan, and 49,980 shares lapsed[75]. - As of November 30, 2025, there are 75,541,201 shares available for grant under the 2023 plan[75]. - The total number of reward shares granted during the reporting period was 5,563,120, with 10,000 shares vesting[77]. Corporate Governance and Compliance - The company did not recommend the distribution of an interim dividend for the reporting period, which ended on November 30, 2024[91]. - There were no significant lawsuits or arbitration involving the company during the reporting period[90]. - The company has complied with all applicable corporate governance codes during the reporting period, except for the separation of the roles of Chairman and CEO[84]. - The audit committee has reviewed the unaudited consolidated financial statements for the six months ending November 30, 2025[87]. - No shares of the company's listed securities were purchased, sold, or redeemed during the reporting period[89]. - The board of directors approved the financial statements for publication on January 28, 2026[100]. Market and Economic Conditions - Long-term revenue growth rate is projected at 2.0%, based on management's experience and understanding of specific industry conditions[155]. - The discount rate for non-marketable securities is 24%, referencing valuations of comparable listed entities[155]. Miscellaneous - The company was established on February 7, 2018, under the laws of the Cayman Islands[171]. - The fiscal year 2025 ends on May 31, 2025, and the fiscal year 2026 ends on May 31, 2026[172]. - The company is listed on the Hong Kong Stock Exchange since March 28, 2019[172]. - The report period covers six months ending November 30, 2025[172]. - The company operates under the International Financial Reporting Standards[171]. - The company’s shares have a par value of $0.00002 each[172]. - The controlling shareholder is New Oriental Education Technology Group Inc., listed on both NYSE and HKEX[172]. - The company has a defined term for "GMV" as Gross Merchandise Volume[171]. - The company has a defined term for "SPU" as Standard Product Unit[174]. - The company is subject to the Securities and Futures Ordinance of Hong Kong[172].
东方甄选(01797) - 2026 - 中期财报