Revenue Performance - Revenue decreased by 25.8% from RMB 56.8 million for the three months ended June 30, 2022, to RMB 42.1 million for the three months ended June 30, 2023[4]. - For the three months ended June 30, 2023, total revenue was RMB 42,140 thousand, a decrease of 26.0% compared to RMB 56,777 thousand for the same period in 2022[74]. - Revenue from solutions was RMB 10,115 thousand, down from RMB 12,000 thousand, representing a decline of 16.0% year-over-year[74]. - Service revenue increased to RMB 22,863 thousand from RMB 12,852 thousand, marking a significant growth of 77.9% year-over-year[74]. - Product revenue decreased to RMB 9,162 thousand from RMB 31,925 thousand, reflecting a decline of 71.3% year-over-year[74]. Profitability and Loss - The company recorded a loss of RMB 18.4 million for the three months ended June 30, 2023, compared to a loss of RMB 8.5 million for the same period in 2022[4]. - The company incurred a loss before tax of RMB 18,381,000, compared to a loss of RMB 8,472,000 in the previous year, reflecting a 117.5% increase in losses[64]. - The total comprehensive loss for the period was RMB 22,904,000, compared to RMB 9,716,000 in the same period last year, representing a 136.5% increase[64]. - Basic and diluted loss per share for the period was RMB 3.07, compared to RMB 1.07 for the same period in 2022[64]. - The company reported a total comprehensive loss of RMB 13,858 thousand for the period, compared to a loss of RMB 7,890 thousand in the previous year[68]. Gross Profit and Margin - Gross profit increased by 412.7% from RMB 2.7 million for the three months ended June 30, 2022, to RMB 13.7 million for the three months ended June 30, 2023[14]. - Gross margin improved from 4.7% for the three months ended June 30, 2022, to 32.4% for the three months ended June 30, 2023[14]. Expenses - Research and development expenses increased by 17.9% from RMB 5.2 million for the three months ended June 30, 2022, to RMB 6.1 million for the three months ended June 30, 2023[18]. - Selling and marketing expenses rose by 15.1% from RMB 11.8 million for the three months ended June 30, 2022, to RMB 13.6 million for the three months ended June 30, 2023[16]. - Administrative expenses decreased by 19.1% from RMB 9.7 million for the three months ended June 30, 2022, to RMB 7.8 million for the three months ended June 30, 2023[17]. - Employee compensation expenses (excluding share-based payment expenses) for the three months ended June 30, 2023, were approximately RMB 19.9 million, compared to RMB 22.5 million for the same period in 2022[33]. - Employee benefits expenses decreased to RMB 19,852,000 in Q2 2023 from RMB 22,475,000 in Q2 2022, a reduction of about 11.6%[83]. - The cost of software and hardware recognized as expenses was RMB 24,738,000 in Q2 2023, down from RMB 40,279,000 in Q2 2022, indicating a decrease of approximately 38.7%[83]. Other Income and Financing Costs - Other income decreased from RMB 10.2 million for the three months ended June 30, 2022, to RMB 1.4 million for the three months ended June 30, 2023[15]. - Other income for the three months was RMB 1,360 thousand, down from RMB 10,216 thousand, a decrease of 86.7% year-over-year[75]. - Financing costs decreased by 30.2% from RMB 3.7 million for the three months ended June 30, 2022, to RMB 2.6 million for the three months ended June 30, 2023[19]. - Interest income was RMB 9 thousand, significantly lower than RMB 879 thousand for the same period last year[75]. Share Options and Employee Incentives - The company has adopted a share option scheme to attract and retain employees, with a total of 62,000,000 shares available for issuance, representing 10% of the total issued shares as of the listing date[45]. - As of June 30, 2023, a total of 61,482,700 share options have been granted under the scheme, which accounts for 9.75% of the total issued shares[50]. - No share options were granted, cancelled, expired, or exercised during the three months ending June 30, 2023[50]. - The share options vest as follows: 40% on the grant date, 30% after one year, and 30% after two years[52]. - The exercise price for the share options is set at a minimum of the highest of the closing price on the grant date, the average closing price over the five trading days prior to the grant date, or the par value of the shares[46]. - The maximum number of shares that can be issued upon exercise of options granted to any participant in a 12-month period cannot exceed 1% of the issued shares[46]. - The company aims to encourage contributions to growth and profitability through the share option scheme[45]. - The share options granted to executive directors and other participants are subject to board discretion regarding the exercise period[47]. Corporate Governance and Compliance - The audit committee reviewed the unaudited financial statements for the three months ended June 30, 2023, and confirmed compliance with applicable accounting standards[61]. - The company has adopted the corporate governance code as per GEM listing rules, ensuring proper governance practices are in place[58]. - There were no interests held by directors or major shareholders in any competing businesses during the reporting period[55]. Employment and Workforce - As of June 30, 2023, the company employed 315 full-time employees and 57 dispatched workers, a decrease from 439 full-time employees and 39 dispatched workers as of June 30, 2022[33]. Future Plans and Strategic Direction - The company plans to explore other business opportunities and consider asset sales, acquisitions, and business rationalization to enhance long-term growth potential[8]. - The company has no plans for significant investments or acquisitions of capital assets[32]. - The company confirmed that there were no significant events after June 30, 2023, up to the report date[36]. - The company continues to focus on research and development of video-related and broadcasting equipment and software, as well as providing related technical services in China[68].
中国数字视频(08280) - 2024 Q1 - 季度财报