Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 223,405,000, a decrease of 8.9% compared to RMB 245,241,000 for the same period in 2021[18]. - Gross profit for the same period was RMB 7,348,000, reflecting a significant decline of 72.9% from RMB 27,091,000 in the prior year[18]. - The company reported a loss before tax of RMB 4,087,000, compared to a profit of RMB 9,751,000 in the previous year, marking a 141.9% change[18]. - Total comprehensive income attributable to owners of the company was a loss of RMB 3,401,000, a 159.7% decrease from a profit of RMB 5,699,000 in the same period last year[19]. - Basic and diluted loss per share was RMB (0.01), a 200.0% decline from earnings of RMB 0.01 per share in the prior year[19]. Advertising Revenue Breakdown - Television advertising services generated RMB 67,287,000, a decrease of 4.35% from RMB 70,346,000 in the previous year[22]. - Online advertising services revenue increased by 38.43% to RMB 125,962,000 from RMB 90,991,000 year-on-year[22]. - Outdoor advertising services saw a significant decline of 60.50%, generating RMB 29,721,000 compared to RMB 75,246,000 in the prior year[22]. - The overall advertising market saw a year-on-year decrease of 11.8% in the first half of 2022, with a 12.3% decrease from January to May[29]. - Despite the challenges, there was a month-on-month increase in advertising spending in May and June, with growth rates of 9.5% and 6.9% respectively[29]. Cost Management - The advertising expenses in the first half of 2022 decreased by 11.8% year-on-year, indicating a challenging market environment[26]. - Selling and marketing expenses amounted to approximately RMB 2.3 million, representing a decrease of 30.9% from RMB 3.4 million for the corresponding period last year[53]. - Administrative expenses were approximately RMB 4.2 million, a decrease of approximately 8.5% from RMB 4.5 million for the corresponding period last year[53]. - Finance costs amounted to approximately RMB 2.5 million, a year-on-year decrease of approximately 38.9% from RMB 4.0 million[53]. Cash Flow and Financial Position - As of June 30, 2022, the net cash used in operating activities was RMB (23,535,000), a significant decrease compared to RMB 3,287,000 for the same period in 2021[126]. - The company reported a net cash from investing activities of RMB 8,000 for the six months ended June 30, 2022, down from RMB 16,246,000 in the previous year[126]. - Financing activities generated a net cash inflow of RMB 3,902,000 in the first half of 2022, compared to a net cash outflow of RMB (11,127,000) in the same period of 2021[126]. - Cash and cash equivalents at the end of the period were RMB 15,240,000, an increase from RMB 9,478,000 at the end of the previous year[126]. Employee and Operational Changes - As of June 30, 2022, the Group employed a total of 33 full-time employees, a decrease of 7 from 40 full-time employees as of June 30, 2021[67]. - Staff costs for the period amounted to approximately RMB 3.7 million, representing a decrease of RMB 1.3 million or approximately 27% compared to RMB 5.0 million for the same period last year[68]. - The resurgence of the pandemic from March to May 2022 significantly impacted the Group's operating activities, but demand for advertising began to rebound in June 2022[71]. Future Outlook and Strategy - The company expects recovery and improvement in results in the second half of 2022 due to stabilization of the pandemic and recovery of consumption[26]. - The Group plans to maintain its strengths in television communications and enhance brand influence through efficient communications in television advertising[72]. - The Group will continue to increase its Internet advertising services in line with the current trend of Internet media development and advertisers' demand[77]. - The Group has fully utilized the IPO Net Proceeds of approximately HK$78.8 million by the end of 2021[65]. Corporate Governance and Compliance - The company has maintained compliance with the Corporate Governance Code and the Model Code for Securities Transactions by Directors for the six months ended June 30, 2022[82][83]. - The Audit Committee has reviewed the unaudited interim results and confirmed compliance with applicable accounting principles and standards[108]. Shareholder Information - As of June 30, 2022, Yingheng Co., Ltd. holds 161,704,734 shares, representing approximately 40.43% of the company's total issued share capital[101]. - The company did not declare any interim dividend for the six months ended June 30, 2022[107]. - The weighted average number of ordinary shares remained constant at 400,000,000 for both periods[177].
瑞诚中国传媒(01640) - 2022 - 中期财报