Financial Performance - Total revenue for the six months ended November 30, 2023, was RMB 2,795,046, representing a 34.4% increase compared to RMB 2,080,073 for the same period in 2022[5]. - Profit before tax decreased by 49.9% to RMB 378,128 from RMB 755,294 year-on-year[5]. - The company reported a net profit of RMB 249,191, down 57.4% from RMB 585,293 in the previous year[5]. - The adjusted profit for the period was RMB 508,500, a decrease of 15.4% from RMB 600,995 in the same period last year[5]. - Total revenue increased by 34.4% from RMB 2.08 billion for the six months ended November 30, 2022, to RMB 2.8 billion for the six months ended November 30, 2023[26]. - Net profit decreased from RMB 585.3 million for the six months ended November 30, 2022, to RMB 249.2 million for the six months ended November 30, 2023[40]. - Basic earnings per share decreased to RMB 0.25 from RMB 0.58, indicating a decline of 56.9%[1]. Revenue Breakdown - Revenue from self-operated products and live e-commerce rose by 36.6% from RMB 1.77 billion to RMB 2.41 billion during the same period[11]. - University education segment revenue rose by 23.9% from RMB 295.1 million to RMB 365.7 million, despite a decrease in paid student numbers from 315,000 to 225,000[28]. - Revenue from institutional clients decreased by 6.2% from RMB 19.2 million to RMB 18.0 million due to business adjustments[29]. - Revenue from self-operated products and live e-commerce customers was RMB 2,411,323 thousand, up from RMB 1,765,803 thousand, showing a growth of 36.5%[83]. Cost and Expenses - Total revenue cost increased by 55.0% from RMB 1.1 billion to RMB 1.7 billion, primarily due to increased inventory and transportation costs[30]. - Gross profit rose by 11.4% from RMB 982.5 million to RMB 1.1 billion, while gross margin decreased from 47.2% to 39.1%[30]. - Sales and marketing expenses surged by 145.6% from RMB 227.8 million to RMB 559.5 million, driven by increased staffing costs for self-operated products and live e-commerce operations[35]. - R&D expenses increased by 56.5% from RMB 48.3 million for the six months ended November 30, 2022, to RMB 75.5 million for the six months ended November 30, 2023, primarily due to investments in internet technology systems and applications for proprietary brands and live e-commerce[36]. - Administrative expenses rose by 129.6% from RMB 62.3 million for the six months ended November 30, 2022, to RMB 142.9 million for the six months ended November 30, 2023, mainly due to increased share-based payment expenses[37]. Operational Highlights - The Gross Merchandise Volume (GMV) reached RMB 5.7 billion, up from RMB 4.8 billion year-on-year[8]. - The number of followers on Douyin increased to 45.8 million, compared to 35.2 million in the previous year[8]. - The number of paid orders on Douyin decreased to 59.6 million from 70.2 million year-on-year[8]. - The average spending per paid student in the university education segment increased from RMB 1,058 to RMB 1,944, despite a decrease in the number of paid students from 315,000 to 225,000[9]. - The company continues to focus on expanding its live e-commerce platform and enhancing customer experience through innovative live streaming activities[6]. Strategic Initiatives - The company announced plans to sell its education business, which is expected to be approved at a special shareholder meeting on January 18, 2024[9]. - The company announced plans to sell its entire education business to its parent company, New Oriental, to focus on self-operated and live e-commerce operations[18]. - The company plans to enhance its supply chain management and expand its product offerings, with over 264 self-operated products currently available[17]. - The company has established a membership program to improve customer service and increase customer retention[15]. - The company is focusing on a multi-platform strategy to broaden its user base and enhance brand awareness[19]. Financial Position - Cash and cash equivalents amounted to RMB 1.3 billion as of November 30, 2023, up from RMB 793.7 million as of November 30, 2022[45]. - The debt-to-asset ratio was 30.3% as of November 30, 2023, compared to 27.8% as of November 30, 2022[46]. - Total current assets as of November 30, 2023, were RMB 4,358,941 thousand, compared to RMB 3,436,916 thousand as of May 31, 2023, indicating a growth of 26.8%[75]. - Total equity increased to RMB 3,305,059 thousand from RMB 2,803,808 thousand, reflecting a growth of 17.8%[76]. - The company reported a significant increase in inventory, which rose to RMB 359,754 thousand from RMB 140,952 thousand, a growth of 155.5%[75]. Governance and Compliance - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended November 30, 2023[60]. - The company has complied with all applicable corporate governance code provisions during the reporting period[58]. - The company has established a nomination committee and a remuneration committee in addition to the audit committee[61].
东方甄选(01797) - 2024 - 中期业绩