Financial Performance - For the three months ended March 31, 2023, the company recorded revenue of approximately RMB 10.1 million, representing a decrease of 64.6% compared to RMB 28.6 million in the same period of 2022[15]. - The company reported a net loss of approximately RMB 3.3 million for the period, compared to a net profit of approximately RMB 1.3 million in the corresponding period of 2022[21]. - The gross profit for the period was a loss of RMB 90, a significant decline from a gross profit of RMB 5.8 million in the same period last year[15]. - The Group recorded a revenue of approximately RMB10.1 million for the three months ended March 31, 2023, representing a decrease of approximately RMB18.5 million or 64.6% compared to the same period in 2022[23][25][29]. - The Group experienced a net loss of approximately RMB3.3 million for the Period, compared to a net profit of approximately RMB1.3 million for the same period in 2022[23][35][38]. - The gross loss was approximately RMB0.09 million, resulting in a gross loss margin of approximately 0.9%, compared to a gross profit margin of 20.2% in the same period of 2022[26][30]. - The operating loss for the period was RMB 4,181,000, compared to an operating profit of RMB 2,020,000 in Q1 2022, indicating a significant decline in operational performance[72]. - The loss before taxation for Q1 2023 was RMB 4,424,000, compared to a profit before taxation of RMB 1,875,000 in Q1 2022[72]. - The total comprehensive loss for the period was RMB 3,340,000, contrasting with a total comprehensive income of RMB 1,271,000 in the previous year[72]. - Basic and diluted loss per share for Q1 2023 was RMB 0.02, compared to earnings per share of RMB 0.01 in Q1 2022[72]. - As of March 31, 2023, the total equity of the Group decreased to RMB 69,101,000 from RMB 72,451,000 at the beginning of the year[73]. Revenue Breakdown - Online media advertising services contributed RMB 1.3 million, accounting for 13.2% of total revenue, while traditional offline media advertising services accounted for RMB 8.7 million, or 86.1% of total revenue[16]. - Revenue from traditional offline media advertising services was RMB 8,708,000, down 66.0% from RMB 25,622,000 year-over-year[87]. - Online media advertising services revenue increased to RMB 1,229,000, up 33.5% from RMB 921,000 in the previous year[87]. Cost and Expenses - Administrative expenses increased to approximately RMB3.9 million, up from RMB3.1 million in the same period last year, primarily due to increased credit loss provisions[27][31]. - Media costs for the first quarter were RMB 8,490,000, a reduction of 57.5% from RMB 19,976,000 in the previous year[89]. - The cost of sales for Q1 2023 was RMB 10,199,000, resulting in a gross loss of RMB 90,000, compared to a gross profit of RMB 5,779,000 in the same period last year[72]. Strategic Focus and Future Outlook - The decline in revenue and gross margin was attributed to challenges from the post-COVID-19 environment and a macroeconomic slowdown, leading brand customers to reduce their advertising budgets[21]. - The company continues to focus on integrated multimedia advertising and marketing solutions, including traditional offline media, online media, and public relations services[20]. - The company is actively seeking to adapt its strategies to the changing market conditions and customer behaviors post-pandemic[21]. - The management remains cautiously optimistic about future recovery as brand customers adjust their marketing strategies[21]. - The company is committed to maximizing brand awareness and promoting sales performance for its clients' products through integrated marketing services[20]. - The financial results indicate a need for strategic adjustments to navigate the current economic landscape effectively[21]. - The Group plans to formulate a clear business strategy, adjust team structure, and further cut costs to ensure sufficient cash flow for sustainable development in 2023[37][40]. - The Group aims to achieve product differentiation through innovation and improve efficiency while reducing costs to enhance marketing services for customers[37][40]. Shareholding and Securities - As of March 31, 2023, the total number of shares issued by the company is 180,000,000[60]. - Mr. Chow holds 87,750,000 shares, representing 48.75% of the total shareholding[57]. - Ms. Cai holds 33,750,000 shares, representing 18.75% of the total shareholding[57]. - Shining Icon holds 69,660,000 shares, representing 38.70% of the total shareholding[63]. - Sense One holds 18,090,000 shares, representing 10.05% of the total shareholding[63]. - Master Connection holds 13,500,000 shares, representing 7.50% of the total shareholding[63]. - As of March 31, 2023, there are no unexercised share options[54]. - The company has not engaged in any purchase, sale, or redemption of its listed securities during the period[52]. - The company has adopted a share option scheme effective from January 14, 2020, for a duration of ten years[53]. - There are no interests or short positions in shares or debentures by other entities or persons apart from the disclosed directors and chief executives[64]. Compliance and Reporting - The Audit Committee has reviewed the unaudited condensed consolidated results and confirmed compliance with applicable accounting standards and GEM Listing Rules[69]. - The financial report was authorized for issue on May 12, 2023, indicating timely reporting of financial performance[75]. - The Group's financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring adherence to regulatory requirements[75]. - The company did not declare any dividends for the period, consistent with the previous year[93]. - The company did not generate any assessable profits in Hong Kong during the period, resulting in no provision for Hong Kong profits tax[91]. - The subsidiaries operating in the PRC are subject to a corporate income tax rate of 25%[92].
天泓文创(08500) - 2023 Q1 - 季度财报