Enrollment Trends - Total course enrollments decreased by 7.6% from 5,846 for the six months ended June 30, 2022, to 5,404 for the six months ended June 30, 2023[12]. - Shun Da School's total course enrollments amounted to 863, representing a decrease of approximately 12.9% compared to 991 for the same period in 2022[12]. - Tong Tai School's total course enrollments amounted to 4,541, representing a decrease of approximately 6.5% compared to 4,855 for the same period in 2022[12]. - The overall number of course enrollments for standard courses of Small Vehicles decreased by approximately 13.6% from 1,254 to 1,083 for the same period[13]. - Both driving schools, Shun Da and Tong Tai, experienced negative growth in course enrollments for the six months ended June 30, 2023[12]. - The total number of trainees attending driving courses decreased to 6,213 for the six months ended June 30, 2023, down approximately 29.3% from 8,788 in the same period of 2022[19]. Revenue Performance - Total revenue for the Group was approximately RMB 23.4 million for the six months ended June 30, 2023, representing a decrease of approximately 25.5% from approximately RMB 31.5 million in the same period of 2022[19]. - Revenue from large vehicle training services accounted for approximately 80.2% of total revenue, down from 82.1% in the same period of 2022[19]. - Revenue generated from premium courses contributed approximately 96.6% of total revenue, an increase from 93.1% in the same period of 2022[19]. - The company recorded a total revenue decline of RMB8.0 million (approximately 25.5%) from RMB31.5 million in the first half of 2022 to RMB23.4 million in the first half of 2023[43]. - Revenue from driving training services for Large Vehicles decreased by approximately RMB7.1 million (approximately 27.3%) from RMB25.8 million in the first half of 2022 to RMB18.8 million in the first half of 2023[49]. - Revenue from small vehicle driving training services decreased by approximately RMB1.0 million or approximately 17.3%, from RMB5.6 million to RMB4.6 million for the same periods[53]. Profitability and Loss - Gross profit decreased by RMB4.0 million (approximately 38.8%) from RMB10.4 million in the first half of 2022 to RMB6.3 million in the first half of 2023, with a gross profit margin drop of 5.9 percentage points from 33.0% to 27.1%[43]. - The net loss attributable to the owners of the company was approximately RMB3.3 million for the first half of 2023, compared to a net profit of approximately RMB59,000 in the same period of 2022[44]. - The company reported a loss before income tax of RMB2,684,000, compared to a profit of RMB258,000 for the same period in 2022[161]. - Total comprehensive loss attributable to owners of the company for the period was RMB3,252,000, compared to a profit of RMB59,000 in the prior year[161]. - Basic and diluted loss per share was RMB (0.81) cents, compared to earnings of RMB 0.01 cents per share in the previous year[161]. Operational Challenges - The decline in course enrollments is attributed to decreased demand for driving courses due to deteriorating market conditions in the logistics industry, influenced by ongoing US-China trade tensions[11]. - The overall business performance reflects a negative growth trend, indicating challenges in the current market environment[11]. - The company aims to enhance marketing efforts and implement preferential policies to boost course enrollments, which were less than half of the target in the first half of 2023[32]. - The company is determined to overcome the loss-making situation in 2023 despite the downturn in market conditions and increased competition[40]. Future Plans and Strategies - The company aims to expand its business scale and enhance operational effectiveness to better meet trainees' needs and achieve improved business results[25]. - Plans for the second half of 2023 include replacing old vehicles and optimizing the driving learning environment to improve service quality[38]. - The company intends to expand its business to other provinces and cities in China, utilizing online marketing strategies to reach potential trainees[34]. - Significant improvements in teaching management and quality were noted, with a focus on integrating online and offline teaching methods[26]. - The company is committed to optimizing curriculum, instructor staffing, and examination services to ensure high-quality service for trainees[27]. Financial Position - The current ratio of the Group was 1.84 as of June 30, 2023, slightly down from 1.86 as of December 31, 2022[82]. - Aggregate interest-bearing borrowings decreased to approximately RMB54.2 million as of June 30, 2023, down from approximately RMB55.2 million as of December 31, 2022[83]. - As of June 30, 2023, the Group's current assets were approximately RMB 186.9 million, including cash and bank balances of about RMB 175.8 million[85]. - The Group's current liabilities were approximately RMB 101.5 million, with borrowings of RMB 54.2 million due within one year[85]. - The total employee benefit expenses for the six months ended June 30, 2023, were approximately RMB 9.0 million, down from approximately RMB 11.3 million for the same period in 2022[105]. Corporate Governance and Compliance - The Company complied with all applicable code provisions set out in the Corporate Governance Code during the six months ended June 30, 2023[146]. - The Audit Committee reviewed the unaudited consolidated financial statements for the six months ended June 30, 2023, confirming compliance with applicable accounting standards[153]. - The board composition now includes two executive directors, one non-executive director, and three independent non-executive directors, fulfilling the requirements under the Listing Rules[156]. Shareholder Information - The company holds a long position in shares, with Mr. Qi Xiangzhong owning 206.4 million shares, representing 51.6% of the total shareholding[125]. - Significant shareholders include Alpha Leap, which holds 206.4 million shares (51.6%), and Cosmic Hero with 39.6 million shares (9.9%) as of June 30, 2023[131]. - The Company did not purchase, sell, or redeem any listed securities during the six months ended June 30, 2023[135].
向中国际(01871) - 2023 - 中期财报