Revenue Performance - Total revenue for the first half of 2023 was RMB 68,975,000, a decrease of 36.5% compared to RMB 108,591,000 in the same period of 2022[25]. - Revenue from marketing and promotion services was RMB 55,067,000, accounting for 79.8% of total revenue, down from 84.6% in the previous year[25]. - Revenue from virtual goods sourcing and delivery services increased to RMB 28,145,000, representing 40.8% of total revenue, compared to 23.6% in the same period last year[25]. - Revenue from IT solutions services was RMB 13,905,000, which is 20.2% of total revenue, compared to 15.4% in the previous year[25]. - Revenue from lottery-related software systems and equipment solutions increased to RMB 13,339,000, representing 19.4% of total revenue, up from 7.4% in the same period last year[25]. - Revenue from advertising agents decreased to RMB 28,456,000, accounting for 51.7% of marketing and promotion services revenue, down from 80.5% in the previous year[18]. - Revenue from enterprises increased to RMB 26,611,000, representing 48.3% of marketing and promotion services revenue, up from 19.5% in the previous year[18]. - Revenue from marketing and promotion services decreased by 40.0%, from approximately RMB 91.9 million for the six months ended June 30, 2022, to approximately RMB 55.1 million for the period ended June 30, 2023[28]. - Overall revenue decreased by approximately 36.5% for the six months ended June 30, 2023, compared to the same period in 2022, primarily due to a decline in advertisement placement and distribution services[38]. - Revenue from online marketing services accounted for 99.9% of total revenue from marketing and promotion services for the six months ended June 30, 2023, amounting to RMB 55.1 million[32]. Strategic Acquisitions and Plans - The company acquired 100% equity interest in ASMKT on May 31, 2023, to enhance its capabilities in virtual goods sourcing and delivery[15]. - The company plans to expand the type of virtual goods and customer base in the second half of 2023 following the acquisition of ASMKT[15]. - The company aims to maximize cross-segment synergies from strategic investments in marketing and lottery-related software solutions[20]. - The company plans to expand its market presence among the Welfare Lottery and Sports Lottery in the second half of 2023[42]. - The company will continue to develop lottery-related software and hardware to facilitate digital transformation in lottery shops[43]. - The company plans to develop a SaaS enterprise marketing service platform to enhance marketing channels and operational efficiency in lottery retail stores[54]. - The investment in Mingzhi aims to strengthen the company's market presence in the Sports Lottery sector[51]. - The company will focus on strategic investments to maximize synergies across its segments in promotion and marketing services[45]. - The company launched lottery marketing tickets in December 2022, targeting large-scale sales platform customers[48]. Financial Performance and Margins - The gross margin increased from 52.9% for the six months ended June 30, 2022, to 63.0% for the six months ended June 30, 2023, primarily due to higher profit margins from IT solutions and virtual goods services[57]. - Gross profit margin improved from 52.9% in the first half of 2022 to 63.0% in the first half of 2023, primarily due to higher margins in IT solution services[92]. - Net profit margin decreased to 16.6% in the first half of 2023 from 26.7% in the previous year[175]. - Adjusted net profit margin under HKFRS measures fell to 15.8% from 31.6% year-on-year[175]. - Profit for the period decreased by approximately RMB 16.9 million, or 59.5%, from RMB 28.4 million in 2022 to RMB 11.5 million in 2023[118]. - The adjusted net profit for the six months ended June 30, 2023, was RMB 10.9 million, down 63.6% from RMB 29.9 million in the prior year[121]. Cost Management - Total cost of sales decreased by RMB 25.6 million, or 50.0%, from RMB 51.1 million for the six months ended June 30, 2022, to RMB 25.6 million for the same period in 2023[73]. - Traffic acquisition costs decreased from approximately RMB 45.3 million for the six months ended June 30, 2022, to approximately RMB 21.6 million for the same period in 2023, representing a reduction of 52.3%[73]. - Selling and distribution expenses decreased by 17.9% from approximately RMB 4.8 million in 2022 to RMB 3.9 million in 2023[96]. - Administrative expenses increased by approximately RMB 6.9 million, or 98.6%, from RMB 7.0 million in 2022 to RMB 13.9 million in 2023, primarily due to higher employee benefits and professional fees[113]. - Research and development expenses increased by 24.9% from approximately RMB 7.5 million in 2022 to approximately RMB 9.4 million in 2023, attributed to a higher number of employees focused on platform upgrades[98]. Customer and Supplier Concentration - The top five customers accounted for 69.2% of the Group's revenue for the six months ended June 30, 2023, with the largest customer contributing 31.1%[153]. - The top five suppliers represented 73.8% of the total costs of sales for the same period, with the largest supplier accounting for 58.8%[153]. Employee and Financial Ratios - The Group had 215 full-time employees as of June 30, 2023, with the majority based in Hangzhou and Xi'an, China[140]. - Total employee costs for the Group amounted to approximately RMB 20.7 million for the six months ended June 30, 2023, compared to RMB 19.3 million for the same period in 2022, reflecting an increase of 7.2%[124]. - As of June 30, 2023, the Group's gearing ratio was 29.6%, up from 12.9% as of December 31, 2022[148]. - The Group's bank borrowings increased to approximately RMB 90 million as of June 30, 2023, compared to RMB 38 million as of December 31, 2022[149]. - Current ratio decreased to 2.6 times as of June 30, 2023, compared to 3.7 times at the end of 2022[175]. Cash Flow and Capital Commitments - Cash and cash equivalents decreased by RMB 38.6 million from RMB 186.8 million as of December 31, 2022, to RMB 148.2 million as of June 30, 2023, primarily due to the cash consideration paid for the acquisition of ASMKT amounting to RMB 41.8 million[150]. - The Group had capital commitments of RMB 10 million as of June 30, 2023, related to the acquisition of ASMKT[153].
润歌互动(02422) - 2023 - 中期财报