Economic Impact and Market Conditions - The overall economy of Henan province was adversely impacted in the second half of 2021 due to sporadic Covid-19 outbreaks, extreme weather, and flooding, leading to a temporary suspension of the driving training system[6]. - The overall improvement in business performance was attributed to the steady recovery of market conditions in the PRC throughout 2021, despite challenges from extreme weather and COVID-19[28]. Regulatory Changes and Competition - Regulatory changes in the PRC lowered the threshold for existing Small Vehicles driving schools to provide Large Vehicles training, intensifying competition in the driving training services market[6]. Company Strategies and Market Expansion - The company adopted strategies such as expanding market reach to natural villages and enhancing operational capacity through new training vehicles and facilities[6][8]. - Marketing strategies were revised to penetrate markets outside Henan province, focusing on Xinjiang, Hunan, Hainan, and Zhejiang to increase course enrolment[13]. - The company plans to enhance marketing efforts outside Henan province to expand market share in other regions of China[20]. - Online enrolment efforts will be intensified to complement offline market development, facilitating interactions between online and offline channels[20]. - For 2022, the company plans to extend its market reach from Zhumadian City to surrounding areas to maintain its leading position[17]. Course Enrolment and Performance - The total number of course enrolments for the year ended 31 December 2021 increased by 3.1% to 13,040 from 12,645 in the previous year[29]. - Shun Da School's course enrolments rose by approximately 9.1%, reaching 3,264 compared to 2,993 in the year ended 31 December 2020[30]. - Tong Tai School's course enrolments saw a slight increase of approximately 1.3%, totaling 9,776, up from 9,652 in the previous year[30]. - Enrolments for premium courses of Large Vehicles increased by approximately 3.2% to 6,365 from 6,168 in the previous year[31]. - Enrolments for premium courses of Small Vehicles decreased by approximately 19.1%, falling to 3,018 from 3,730[31]. - Standard course enrolments for Large Vehicles decreased by approximately 26.8% to 447 from 611[31]. - Standard course enrolments for Small Vehicles improved by approximately 50.3%, increasing to 3,210 from 2,136[31]. - The total number of trainees attending driving courses increased to 15,183 in 2021, a slight increase of approximately 0.9% from 15,046 in 2020[39]. Financial Performance - Total revenue for the year ended December 31, 2021, was approximately RMB 67.2 million, representing a slight decrease of approximately 1.2% from RMB 68.0 million in 2020[39]. - Revenue from large vehicle training services accounted for approximately 82.7% of total revenue in 2021, up from 78.6% in 2020[39]. - Revenue from premium courses contributed approximately 92.7% of total revenue in 2021, down from 94.3% in 2020[39]. - The number of trainees for large vehicle premium courses was 8,111, generating revenue of RMB 53.985 million, which accounted for 80.4% of large vehicle revenue[43]. - The number of trainees for small vehicle standard courses was 2,761, generating revenue of RMB 2.987 million, which accounted for 4.4% of total revenue[43]. - The total revenue from small vehicles was RMB 11.636 million, representing 17.3% of total revenue in 2021[43]. - The total number of trainees for small vehicle premium courses was 3,763, generating revenue of RMB 8.244 million, which accounted for 12.3% of total revenue[43]. - The overall revenue from driving training services for large vehicles was RMB 55.515 million, up from RMB 53.394 million in 2020[43]. Profitability and Losses - Gross profit decreased by RMB7.1 million (or approximately 23.9%) from RMB29.8 million for the year ended 31 December 2020 to RMB22.7 million for the year ended 31 December 2021[48]. - Net loss attributable to the owners of the Company was approximately RMB3.5 million for the year ended 31 December 2021, compared to a net profit of approximately RMB6.8 million for the year ended 31 December 2020[48]. - Net loss margin attributable to the owners of the Company was 5.1% for the year ended 31 December 2021, compared to a net profit margin of 10.0% for the year ended 31 December 2020[48]. Cost and Expense Management - Cost of services rendered increased by approximately RMB6.3 million (or approximately 16.6%) from approximately RMB38.2 million for the year ended 31 December 2020 to approximately RMB44.5 million for the year ended 31 December 2021[55]. - Employee benefit expenses increased by approximately RMB0.9 million (or approximately 5.0%), from approximately RMB17.2 million for the year ended 31 December 2020 to approximately RMB18.0 million for the year ended 31 December 2021[59]. - Fuel expenses increased by approximately RMB3.5 million (or approximately 47.5%), from approximately RMB7.3 million for the year ended 31 December 2020 to approximately RMB10.8 million for the year ended 31 December 2021[60]. - Depreciation and amortisation charges increased by approximately RMB1.7 million (or approximately 17.8%), from approximately RMB9.3 million for the year ended 31 December 2020 to approximately RMB11.0 million for the year ended 31 December 2021[61]. Governance and Compliance - The Board comprised six Directors, including two executive Directors, one non-executive Director, and three independent non-executive Directors[123]. - The Company has complied with all code provisions set out in the Corporate Governance Code for the year ended December 31, 2021[116]. - The Company received written annual confirmations of independence from each independent non-executive Director[130]. - The Audit Committee held four meetings during the year ended December 31, 2021, and will continue to hold at least two meetings each subsequent year[162]. - The Nomination Committee held one meeting during the year ended December 31, 2021, and will continue to hold at least one meeting each subsequent year[175]. - The Remuneration Committee is responsible for reviewing and approving remuneration proposals with reference to corporate goals and objectives[195]. Future Outlook and Investments - The company provided a forward guidance of 8% revenue growth for the next fiscal year, anticipating continued market expansion[200]. - The company is investing HKD 1 billion in research and development for new technologies over the next two years[200]. - The company plans to enter two new international markets by the end of the next fiscal year, targeting a revenue contribution of HKD 500 million from these markets[200].
向中国际(01871) - 2021 - 年度财报