Financial Performance - The group recorded revenue of RMB 26.2 million for the six months ended December 31, 2021, a decrease of 15.7% compared to the same period in 2020[10] - Profit attributable to owners of the company for the six months ended December 31, 2021, was RMB 1.15 million, a decrease of 97.5% year-on-year[10] - Basic earnings per share for the six months ended December 31, 2021, was RMB 0.01, down from RMB 0.25 for the same period in 2020[10] - Operating profit for the six months ended December 31, 2021, was RMB 11.62 million, representing an 81.8% decrease compared to RMB 63.79 million in the previous year[11] - EBITDA for the six months ended December 31, 2021, was RMB 11.85 million, a decline of 34.9% from RMB 18.21 million in the same period of 2020[11] - The group reported a net profit of RMB 1.15 million for the six months ended December 31, 2021, down from RMB 45.98 million in the same period of 2020, marking a 97.5% decline[11] - For the six months ended December 31, 2021, the company reported a net profit attributable to owners of RMB 2,536,000, a decrease of 97.5% compared to RMB 41,993,000 in the same period of 2020[12] - The total comprehensive income for the period was RMB (15,000), compared to RMB 42,114,000 in the previous year, indicating a significant decline[12] Revenue Sources - Revenue from educational facility leasing decreased by 16.0% to RMB 24,203,000 for the six months ended December 31, 2021, down from RMB 28,825,000 in the previous year[31] - Major customer A's contribution to revenue dropped by 52.9% to RMB 7,854,000 for the six months ended December 31, 2021, compared to RMB 16,679,000 in the same period of 2020[32] - Revenue for the period decreased by 15.7% to RMB 26.18 million compared to RMB 31.06 million in the same period last year, primarily due to a reduction in leasing space and terms for educational institutions in Langfang, China[59] Expenses and Costs - The group experienced a significant increase in legal and consulting fees, which rose by 73.2% to RMB 3.08 million compared to RMB 1.78 million in the previous year[11] - Maintenance and repair costs increased by 242.9% to RMB 0.54 million from RMB 0.16 million in the same period last year, due to waterproofing works and air conditioning repairs in student dormitories[60] - Interest expenses surged by 233.2% to RMB 10.43 million, up from RMB 3.13 million in the previous year[11] Assets and Liabilities - The company's total assets decreased to RMB 1,639,107,000 from RMB 1,646,226,000 as of June 30, 2021, reflecting a slight reduction in asset value[13] - Current liabilities increased to RMB 84,330,000 from RMB 77,184,000, indicating a rise in short-term financial obligations[13] - The company's trade receivables as of December 31, 2021, were RMB 6,383,000, down from RMB 10,647,000 as of June 30, 2021[48] - The total amount of trade and other payables as of December 31, 2021, was RMB 10,594,000, a slight decrease from RMB 10,977,000 as of June 30, 2021[50] Cash Flow and Liquidity - Operating cash flow for the six months ended December 31, 2021, was RMB 21,687,000, down from RMB 26,882,000 in the same period of 2020[19] - The company's cash and cash equivalents increased to RMB 32,061,000 from RMB 28,095,000, showing improved liquidity[13] - The net cash increase for the period was RMB 3,980,000, a decrease from RMB 16,646,000 in the previous year[21] - Cash and cash equivalents at the end of the period increased to RMB 32,061,000 from RMB 18,857,000 a year earlier[21] Investments and Acquisitions - The company has made a prepayment of RMB 18,009,000 for the acquisition of investment properties in Mongolia as of December 31, 2021[47] - The company has committed to a property acquisition in Ulaanbaatar, Mongolia, for RMB 32.71 million, with RMB 18.01 million already paid[85] Corporate Governance - The audit committee, composed of three independent non-executive directors, reviewed the interim results and confirmed compliance with applicable accounting standards[107] - The company has adhered to the corporate governance code as per GEM listing rules during the reporting period[95] - The company has committed to solid corporate governance to enhance shareholder value[94] Shareholder Information - As of December 31, 2021, the company had a total of 180,000,000 issued shares[100] - Raffles, the controlling shareholder, holds 33.58% of the company’s shares, amounting to 462,907,764 shares[100] - Mr. Zhou, the chairman and executive director, has a beneficial interest in 135,000,000 shares, representing 75% of the company[101] Future Outlook - The company anticipates continued moderate growth in the Chinese education sector, benefiting from increasing student numbers[83] - The company plans to manage operating costs prudently and delay discretionary capital expenditures to ensure sufficient funds for working capital and financing activities[82] - The company is exploring competitive financing options in China to meet future demands, indicating flexibility in optimizing leverage due to a low debt-to-asset ratio[83]
东方大学城控股(08067) - 2022 - 中期财报