Investment Valuation and Impairment - The fair value change of investments measured at fair value through profit or loss decreased by approximately RMB 237 million to about RMB -144.4 million, primarily due to overdue redemptions and a decline in the price of listed shares [2]. - The company recorded a financial asset impairment loss of approximately RMB 100.3 million, mainly due to deteriorating credit conditions and increased credit risk from certain debtors [8]. - The fair value of listed equity investments decreased by RMB 34.3 million, as the closing price of shares dropped from HKD 5.40 to HKD 3.21 per share [7]. - The expected credit loss rate for certain projects was assessed at 100%, indicating a high likelihood of default and low recovery prospects [6]. - The fair value of the 2nd and 14th projects showed significant losses, with fair value changes of RMB -83.118 million and RMB -39.306 million respectively [4]. - The company has reported a loss of RMB 6.882 million and RMB 5.387 million for the fair value changes of the 2nd and 14th projects as of December 31, 2021 [4]. - The company has recognized impairment losses based on an evaluation report, considering industry policy changes and the financial status of the counterparty [12]. Legal Actions and Recovery Efforts - The company has initiated legal actions and arbitration against counterparties for non-fulfillment of payment obligations, with a first-instance victory confirmed [4]. - The total amount of principal and interest recovered from certain projects after December 31, 2021, was approximately RMB 33 million [10]. - The company is actively pursuing the recovery of investments and has signed extension agreements with issuers due to liquidity issues and construction delays [10]. - The company is in discussions with external legal advisors to mitigate credit risk and recover overdue amounts [4]. Financial Results Adjustments - The unaudited financial results showed a sales cost of RMB (1,169,280) thousand, which was adjusted to RMB (1,187,750) thousand in the audited results, reflecting a difference of RMB 18,470 thousand [18]. - Research and development expenses were reported at RMB (142,310) thousand in the unaudited results, adjusted to RMB (146,909) thousand in the audited results, indicating a difference of RMB 4,599 thousand [18]. - The company reported a loss of RMB (140,178) thousand from the impairment of intangible assets, which was not recorded in the unaudited results [18]. - The company’s investment in associates was valued at RMB 17,492 thousand in the audited results, down from RMB 20,318 thousand in the unaudited results, showing a decrease of RMB 2,826 thousand [20]. - The deferred tax assets were reported at RMB 35,080 thousand in the audited results, down from RMB 60,187 thousand in the unaudited results, reflecting a decrease of RMB 25,107 thousand [20]. - The company’s cash and cash equivalents were reported at RMB 211,180 thousand in the audited results, slightly down from RMB 213,845 thousand in the unaudited results, a decrease of RMB 2,665 thousand [20]. - The adjustments in financial results were influenced by the severe pandemic impact in Guangzhou, leading to lower operational performance and financial conditions than expected [20]. Management and Governance - The executive director team includes Mr. Tang Junjing, Mr. Tang Junying, Mr. Zhou Gui, and Ms. Zhao Weiying [29]. - The board of directors is chaired by Mr. Tang Junjing, who also serves as the CEO and executive director [29]. - The announcement date is September 27, 2022 [29].
卓越教育集团(03978) - 2022 Q2 - 季度财报