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向中国际(01871) - 2022 - 中期财报
CHINA ORIENTEDCHINA ORIENTED(HK:01871)2022-09-16 08:52

Enrolment Trends - The total number of course enrolments decreased by 27.8% from 8,097 for the six months ended June 30, 2021, to 5,846 for the same period in 2022[10] - Shun Da School's course enrolments dropped significantly by approximately 55.4%, from 2,220 to 991[10] - Tong Tai School's course enrolments decreased by approximately 17.4%, from 5,877 to 4,855[10] - The overall decline in enrolments is attributed to sporadic COVID-19 outbreaks leading to travel restrictions in Zhumadian City[8] - The total number of trainees attending driving courses decreased to 8,788 for the six months ended June 30, 2022, down approximately 15.0% from 10,334 in the same period of 2021[21] Course Performance - Premium courses for Small Vehicles saw a slight growth of approximately 17.8%, increasing from 1,845 to 2,173[14] - Enrolments for premium courses of Large Vehicles decreased by approximately 40.2%, from 3,872 to 2,314[14] - Standard courses for Large Vehicles experienced a significant decrease of approximately 60.2%, from 264 to 105[14] - Standard courses for Small Vehicles also saw a significant decrease of approximately 40.7%, from 2,116 to 1,254[14] - The number of enrolments in small vehicle standard courses increased to 543, a significant rise from 148, representing an increase of approximately 267.6%[18] Financial Performance - Total revenue for the Group was approximately RMB 31.5 million for the six months ended June 30, 2022, representing a decrease of approximately 11.3% from RMB 35.5 million in the same period of 2021[21] - The company's total revenue decreased by RMB4.0 million, or approximately 11.3%, from RMB35.5 million for the six months ended June 30, 2021, to RMB31.5 million for the six months ended June 30, 2022[45] - Gross profit decreased by RMB2.6 million, or approximately 20.3%, from RMB13.0 million for the six months ended June 30, 2021, to RMB10.4 million for the six months ended June 30, 2022[45] - The net profit attributable to the owners of the company was approximately RMB59,000 for the six months ended June 30, 2022, compared to RMB4.0 million for the same period in 2021, resulting in a net profit margin of 0.2%[45] - Profit before tax was RMB 258,000, significantly lower than RMB 4,426,000 in the previous year, indicating a decrease of 94.2%[148] Operational Challenges - The actual number of training hours provided by the Group decreased during the six months ended June 30, 2022, impacting business performance negatively[8] - The entire driving training system in Henan province was temporarily suspended due to COVID-19, affecting overall business operations[8] - The overall business performance was adversely affected by sporadic COVID-19 outbreaks, leading to a decline in enrolments and necessitating a reduction in course fees[34] - The company expects to face continued adverse impacts from sporadic COVID-19 outbreaks in the second half of 2022 but is committed to regaining market share through enhanced marketing efforts[40] Marketing and Expansion Plans - The introduction of new PRC regulations on driving tests and licenses on April 1, 2022, is expected to provide opportunities for market expansion in other provinces[35] - The company plans to develop the market for C6 vehicle training, which is expected to have higher course fees compared to other small vehicles[36] - Marketing efforts will be strengthened in Zhumadian City and nearby cities to increase enrolments for large vehicle courses[37] - The company intends to expand its marketing channels using new media technologies to reach a wider customer base[37] - The company plans to promote driving courses for C6 vehicles to gain market share in this potential new revenue source[40] Cost and Expense Management - Employee benefit expenses decreased by approximately RMB1.6 million, or approximately 16.6%, from approximately RMB9.3 million for the six months ended June 30, 2021, to approximately RMB7.8 million for the six months ended June 30, 2022[56] - Cost of services rendered decreased by approximately RMB1.4 million, or approximately 6.2%, from approximately RMB22.5 million for the six months ended June 30, 2021, to approximately RMB21.1 million for the six months ended June 30, 2022[56] - Selling and marketing expenses increased by approximately RMB0.4 million, or approximately 30.0%, from approximately RMB1.3 million to approximately RMB1.6 million for the six months ended June 30, 2022[64] - Finance costs increased by approximately RMB0.5 million, or approximately 25.7%, from approximately RMB1.9 million to approximately RMB2.3 million for the six months ended June 30, 2022[66] Assets and Liabilities - As of June 30, 2022, the Group's bank balances and cash increased to approximately RMB178.1 million from RMB175.2 million as of December 31, 2021, primarily due to increased operating cash flows[10] - The current assets of the Group amounted to approximately RMB181.3 million, while current liabilities were approximately RMB93.2 million, resulting in a current ratio of 1.94 as of June 30, 2022[10] - The Group's total interest-bearing borrowings increased to approximately RMB55.3 million as of June 30, 2022, compared to approximately RMB41.8 million as of December 31, 2021[14] - The gearing ratio of the Group was approximately 0.29 times as of June 30, 2022, up from 0.19 times as of December 31, 2021[76] Shareholder Information - Mr. Qi Xiangzhong holds a 51.6% interest in the company through a controlled corporation, Alpha Leap[109] - As of June 30, 2022, Alpha Leap holds a beneficial ownership of 206,400,000 shares, representing 51.60% of the total shareholding[116] - Cosmic Hero has a beneficial ownership of 39,600,000 shares, accounting for 9.90% of the total shareholding[116] - Great Sino holds 42,000,000 shares, which is 10.50% of the total shareholding[116] Corporate Governance - The company has complied with all applicable code provisions set out in the Corporate Governance Code during the reporting period[128] - The Audit Committee reviewed the unaudited consolidated financial statements and confirmed compliance with applicable accounting standards[135] - The company plans to continue reviewing and monitoring its corporate governance practices to maintain high standards[128]