Financial Performance - For the nine months ended September 30, 2022, the group managed and coordinated a total of 69 exhibition and event projects, generating revenue of approximately RMB 100.82 million, a decrease of RMB 14.22 million or about 12.36% year-on-year [9]. - The group recorded a gross profit of approximately RMB 4.34 million, a decrease of about RMB 9.21 million year-on-year, primarily due to the adverse impact of COVID-19 outbreaks in the second and third quarters of 2022 on the exhibition and event management services industry [9]. - The net loss attributable to the owners of the company for the period was approximately RMB 9.11 million, and the board does not recommend the distribution of dividends for this period [9]. - For the nine months ended September 30, 2022, total revenue decreased by approximately 12.36% to about RMB 100.82 million from RMB 115.04 million in the same period of 2021 [20]. - Gross profit for the nine-month period was RMB 4,338,000, down from RMB 13,552,000 in the previous year, reflecting a significant decline in profitability [94]. - Operating loss for the period was RMB 8,564,000, compared to an operating profit of RMB 1,863,000 in the same period last year [94]. - The net loss for the period was RMB 9,106,000, compared to a profit of RMB 1,415,000 in the previous year, indicating a substantial downturn [94]. - The group recorded a loss before tax of approximately RMB 9.09 million, a decrease of about RMB 10.55 million compared to a profit of RMB 1.46 million for the same period last year [32]. Revenue Breakdown - Revenue from automotive-related exhibition and event services increased by approximately 8.37% to about RMB 54.46 million, accounting for 54.02% of total revenue [22]. - Revenue from non-automotive-related exhibition and event services decreased by approximately 81.66% to about RMB 4.10 million, representing 4.06% of total revenue [22]. - Revenue from exhibition hall services decreased by approximately 73.95% to about RMB 5.31 million, accounting for 5.27% of total revenue [22]. - Revenue from advertising-related services increased by approximately 67.55% to about RMB 36.95 million, making up 36.65% of total revenue [22]. - Automotive-related exhibition and event services generated revenue of RMB 54,459,000, an increase of 8.7% from RMB 50,255,000 in the previous year [122]. - Non-automotive-related exhibition and event services revenue dropped significantly to RMB 4,095,000 from RMB 22,331,000, reflecting a decrease of 81.7% [122]. - Advertising-related services revenue increased to RMB 36,949,000, up 67.5% from RMB 22,053,000 in the prior year [122]. Economic Context - The GDP of China for the first three quarters of 2022 reached RMB 87,026.9 billion, with a year-on-year growth of 3.0%, showing improvement compared to the previous quarter [8]. - The service sector's value added grew by 2.3% year-on-year in the first three quarters of 2022, an increase of 0.5 percentage points compared to the first half of the year [8]. - The overall economic development of the country remains within a reasonable range, with effective measures in place for economic stability and pandemic control [8]. - The Chinese economy showed a GDP growth of 3.9% year-on-year in the third quarter of 2022, indicating a recovery trend despite ongoing global uncertainties [15]. - The overall economic environment remains challenging due to inflation risks and external uncertainties, impacting the company's operational landscape [14]. - The Chinese economy showed signs of recovery in Q3 2022, with a 2.3% year-on-year increase in the service sector, improving from the previous quarter [69]. Company Strategy and Operations - The group has established a solid customer base and reputation in the industry, providing comprehensive exhibition and event management services to well-known automotive brands since 2009 [7]. - The group operates in over 50 cities across China, focusing on the design, planning, coordination, and management of exhibitions and events [7]. - The company aims to enhance its service offerings by focusing on core customer needs and expanding into advertising and other exhibition promotion businesses [13]. - The management team emphasizes maintaining strategic partnerships with international automotive companies to strengthen market position [18]. - The company plans to continue monitoring the development trends in the exhibition and related services industry in China [13]. - The group plans to enhance the management of exhibitions and events to improve customer service and experience, aiming for sustainable returns for shareholders [69]. Financial Position and Liabilities - As of September 30, 2022, the group's cash and cash equivalents were approximately RMB 4.97 million, down from RMB 5.83 million as of September 30, 2021 [38]. - The total bank borrowings as of September 30, 2022, were RMB 10.00 million, an increase from RMB 9.00 million as of September 30, 2021 [39]. - The debt-to-equity ratio increased to 20.10% as of September 30, 2022, compared to 18.01% as of December 31, 2021 [43]. - The group reported a net cash outflow from operating activities of RMB 12,516,000 for the nine months ended September 30, 2022, compared to RMB 8,921,000 in the previous year [103]. - The company's total liabilities were RMB 96,609,000, a slight decrease from RMB 98,898,000 at the end of the previous year [97]. - The group has no significant investments, acquisitions, or capital asset plans during the reporting period [58]. - As of September 30, 2022, the group reported no significant contingent liabilities, consistent with the previous year [59]. Governance and Compliance - The board of directors confirmed the accuracy and completeness of the report, ensuring no misleading or fraudulent elements were present [3]. - The group has complied with all applicable corporate governance codes, with a noted exception regarding the roles of the chairman and CEO [71][72]. - The group has not engaged in any related party transactions during the reporting period [74]. - The company confirmed compliance with the trading standards set forth in GEM Listing Rules during the reporting period [90]. Shareholder Information - As of September 30, 2022, Mr. Huang holds 63,645,000 shares, representing 53.04% of the company's equity, through A&B Development Holding Limited [80]. - Mr. Ma and Mr. Yan each hold 1,000,000 shares, representing 0.83% of the company's equity, as beneficial owners [81]. - The company has a total of 5,150,000 stock options that remain unexercised as of September 30, 2022 [87]. - The company has adopted a share option scheme since May 16, 2018, with no new options granted, exercised, or cancelled during the reporting period, except for 1,650,000 options that have lapsed [87]. - As of September 30, 2022, the total issued and paid-up ordinary shares increased to 120,000,000 shares, with a total share premium of RMB 86,344,000 [135]. - The company completed a share consolidation on August 24, 2021, merging every 20 shares into 1 share, and subsequently issued 20,000,000 shares at a placement price of HKD 0.55 per share, raising approximately HKD 10,559,000 [138]. Taxation and Subsidies - The effective profit tax rate for the company in Hong Kong is 8.25% for the first HKD 2,000,000 of profits, with profits exceeding this amount taxed at 16.5% [129]. - The corporate income tax provision for the group companies operating in China is calculated at a statutory tax rate of 25% [130]. - The group received government subsidies amounting to RMB 70,000, down from RMB 121,000 in the previous year [125]. - The income tax expense for the period was RMB 19,000, consistent with the previous year's expense of RMB 44,000 [128].
天平道合(08403) - 2022 Q3 - 季度财报