User Engagement and Community Growth - Core monetization user traffic reached 74.8 million as of June 30, 2022, reflecting a year-on-year increase of 0.2%[18] - The second-day retention rate improved to 52.5%, up by 1.0 percentage points compared to the previous year[18] - The number of communities increased significantly to 10.7 thousand, representing a year-on-year growth of 174.3%[18] - The report highlights the company's strategic focus on enhancing user engagement and community building[18] - BabyTree Group continues to leverage third-party data tracking services to monitor user activity and retention rates[22] - The company aims to expand its market presence through innovative product offerings and community-driven initiatives[18] - As of June 30, 2022, the BabyTree Parenting App had approximately 21.9 million monthly active users (MAUs), with post-pregnancy users accounting for 51.7%[27] - Generation Z mothers represented over 75% of the MAUs on the BabyTree Parenting App, while users of the BabyTree Parenting Father Edition accounted for over 15%[27] - The second-day retention rate of the company's products improved to 52.5%, with an average daily engagement time of approximately 12 minutes[27] - The company had approximately 10.7 thousand WeChat communities with 1.4 million active members, achieving an average community activity rate of 20%[32] - As of June 30, 2022, BabyTree has approximately 10,700 WeChat communities with active members reaching 1.4 million, achieving an average community activity rate of 20% across over 60 cities[35] - The average user activity in WeChat communities covers parents of children aged 1 to 6 years[35] - The company aims to further attract user traffic to the BabyTree Parenting App through continuous improvement of external platform accounts[33] - In the first half of 2022, the overall content browsing time of general users increased by more than 35%, while new users saw an increase of over 75% due to the upgraded content recommendation mechanism[45] Financial Performance - Total revenue for the period was RMB 137,130 million, a slight increase of 1.4% compared to RMB 135,185 million in the previous period[25] - Advertising revenue decreased by 10.4% to RMB 107,878 million from RMB 120,390 million[25] - E-commerce revenue surged by 103.5% to RMB 27,203 million, up from RMB 13,370 million[25] - Gross profit fell to RMB 61,200 million, down 27.5% from RMB 84,449 million, resulting in a gross margin of 44.6%, down from 62.5%[25] - The company reported a loss for the period of RMB 197,290 million, an increase of 61.1% from a loss of RMB 122,455 million in the previous period[25] - Revenue from community e-commerce in the first half of 2022 was approximately RMB 6.4 million, contributing to stable operational growth[34] - The revenue generated from advertising execution for the first half of 2022 reached RMB88.7 million, representing a 3.3% decrease from RMB91.6 million recorded for the same period in 2021[53] - M&C brands contributed approximately RMB70.6 million, representing approximately 80% of the Group's revenue generated from traditional brand advertising in the first half of 2022[57] - Newly established domestic brand clients contributed approximately 59% of the total revenue for the first half of 2022, including brands from infant formula and daily consumer goods[57] - The M&C related brands contributed approximately RMB18.1 million, representing approximately 20% of the Group's revenue generated from traditional brand advertising[57] - The company’s E-commerce and C2M businesses generated revenue of RMB 27.2 million in the first half of 2022, reflecting a growth of 103.5% compared to RMB 13.4 million in the same period of 2021[64] - Community E-commerce contributed approximately RMB 6.4 million to the total revenue, showing a year-on-year growth of 477%[64] - Co-branded C2M products, including diapers and maternity bags, generated revenue of RMB 10.2 million, representing a year-on-year growth of 413%[64] - The profit margin remained at 95% due to the tech-driven business nature, despite a year-on-year decrease of 33.3% in revenue to RMB19.2 million[60] - In the first half of 2022, the company's revenue from self-serve advertising amounted to RMB 19.2 million, representing a year-on-year decline of 33.3%[61] - Loss from operations widened to RMB 189.6 million compared to RMB 119.0 million in the previous year[105] - Research and development expenses rose to RMB 28.4 million, up from RMB 27.5 million in the prior year[105] - Other income fell to RMB 5.9 million from RMB 25.9 million, indicating a decline in non-operational revenue sources[105] - Cost of revenue increased by 49.7% to RMB75.9 million for the six months ended June 30, 2022, compared to RMB50.7 million for the same period in 2021[117] - Selling and marketing expenses increased by 18.2% to RMB135.3 million for the six months ended June 30, 2022, with expenses as a percentage of revenue rising to 98.7% from 84.7%[126] - General and administrative expenses decreased by 21.7% to RMB71.0 million for the six months ended June 30, 2022, with expenses as a percentage of revenue decreasing to 51.8% from 67.1%[126] - R&D expenses increased by 3.1% to RMB28.4 million for the six months ended June 30, 2022, with R&D expenses as a percentage of revenue rising to 20.7% from 20.3%[126] Strategic Initiatives and Product Development - The company plans to incubate more Mika-related content to extend user life cycles and expand business development directions[44] - The Mika IP was enhanced with 30 episodes of original stories, 44 parent-child games, and 73 daily videos, improving interactivity and entertainment value[44] - BabyTree hosted more than 2,000 online and offline activities in the first half of 2022, enhancing brand awareness and user engagement[42] - The company launched over 375 new products in collaboration with 27 companies within the Fosun ecosystem during the first half of 2022[91] - The company is collaborating with seven companies within the Fosun ecosystem to further promote its new C2M products[91] - The company plans to continue establishing category lines around M&C groups and promote co-branded products through third-party cooperation[81] - The company will leverage the advantages of Fosun's ecological chain to improve the overall supply capacity of BabyTree C2M products[89] Financial Position and Assets - Total assets decreased from RMB 2,052.3 million as of December 31, 2021, to RMB 1,930.1 million as of June 30, 2022[137] - Total liabilities increased from RMB 163.0 million as of December 31, 2021, to RMB 165.1 million as of June 30, 2022, resulting in a liabilities-to-assets ratio increase from 7.9% to 8.6%[137] - Cash and other liquid financial resources increased from RMB 1,416.6 million as of December 31, 2021, to RMB 1,462.7 million as of June 30, 2022, primarily due to an increase in working capital[140] - Net loss allowance for trade receivables and contract assets increased to approximately RMB 167.5 million as of June 30, 2022, from RMB 151.3 million as of December 31, 2021[149] - The loss allowance for trade receivables and contract assets overdue by more than 365 days was approximately RMB 127.1 million as of June 30, 2022, compared to RMB 117.1 million as of December 31, 2021[149] - The increase in overdue trade receivables was attributed to the COVID-19 outbreak and ongoing macroeconomic downturn in China, affecting advertising customers' financial stability[150] - The company advanced amounts primarily for rental and security deposits, totaling RMB 19,962,000 and RMB 82,124,000 for specific projects as of June 30, 2022, with significant repayments noted[156] - A bank balance of RMB 6.6 million was pledged as of June 30, 2022, primarily to secure investments[167] Shareholding and Corporate Governance - The company’s directors and chief executive held significant interests in shares, with Mr. Wang Huainan owning 22.29% of the issued share capital[181] - As of June 30, 2022, the total number of issued shares of the company was 1,660,711,609 shares[184] - Mr. WANG Huainan directly held approximately 79.66% equity interest in Zhongming as of June 30, 2022[187] - The Wang Family Limited Partnership held 370,096,250 shares, representing a significant ownership stake in the company[184] - Fosun International Limited holds 811,287,536 shares, representing approximately 48.85% of the issued share capital[193] - Startree (BVI) Limited is a beneficial owner of 481,504,021 shares, accounting for 28.99% of the issued share capital[193] - Ms. TANG Yu has an interest in 409,784,096 shares, which is about 24.68% of the issued share capital[193] - The controlling shareholder of Fosun International Limited is Fosun Holdings Limited, which is a wholly-owned subsidiary of Fosun International Holdings Ltd[198] - The board did not recommend the payment of an interim dividend for the six months ended June 30, 2022[170] - The company did not have any material contingent liabilities as of June 30, 2022[159] - There were no material events after June 30, 2022, that could impact the company's operating and financial performance[163]
宝宝树集团(01761) - 2022 - 中期财报