Financial Performance - Total revenue for the six months ended November 30, 2023, was RMB 2,795,046, representing a 34.4% increase from RMB 2,080,073 in the same period of 2022[8]. - Profit before tax decreased by 49.9% to RMB 378,128 from RMB 755,294 year-on-year[8]. - Net profit for the period was RMB 249,191, down 57.4% compared to RMB 585,293 in the previous year[8]. - Basic earnings per share decreased by 56.9% to RMB 0.25 from RMB 0.58[8]. - Adjusted profit for the period was RMB 508,500, a decrease of 15.4% from RMB 600,995[8]. - Total net revenue increased by 34.4% from RMB 2.08 billion to RMB 2.8 billion for the six months ended November 30, 2023[18]. - Revenue from self-operated products and live e-commerce grew by 36.6% from RMB 1.77 billion to RMB 2.41 billion during the same period[18]. - Adjusted net profit for the reporting period was RMB 508.5 million, compared to RMB 601.0 million in the first half of the 2023 fiscal year[18]. - Gross profit increased by 11.4% from RMB 982.5 million to RMB 1.1 billion, while gross margin decreased from 47.2% to 39.1%[40]. - The net profit decreased from RMB 5,853 million to RMB 2,492 million for the six months ended November 30, 2023[53]. - The company reported a total profit of RMB 249,191,000 for the six months ended November 30, 2023, compared to RMB 585,293,000 for the same period in 2022, reflecting a decline of 57.5%[165]. Revenue Sources - Gross Merchandise Value (GMV) reached RMB 5.7 billion, up from RMB 4.8 billion in the previous year[15]. - Revenue from online education services for students was RMB 365,742 thousand, up from RMB 295,103 thousand, indicating a growth of 23.8%[148]. - The university education segment's revenue increased 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[38]. - Revenue from institutional clients decreased by 6.2% from RMB 19.2 million to RMB 18.0 million due to business adjustments in this segment[39]. - Revenue from self-operated products and live e-commerce customers reached RMB 2,411,323 thousand, up from RMB 1,765,803 thousand, reflecting a growth of 36.5%[148]. - The majority of GMV came from Douyin, with a total of 59.6 million paid orders for third-party and self-operated products during the same period[25]. Operational Changes - The company continues to focus on enhancing its live e-commerce platform and expanding its product offerings, including self-operated agricultural products[11]. - The company aims to promote high-quality products and improve supply chain efficiency to contribute to rural revitalization in China[11]. - The company is focused on becoming a pure self-operated and live e-commerce operator following the sale of its education business, aiming to consolidate resources for further growth[26]. - The company plans to enhance supply chain management and expand product categories to meet diverse consumer needs[31]. - Future strategies include developing high-cost performance products and expanding the SKU range to adapt to conservative market trends[30]. - The company aims to improve user experience through new technology development and better quality control from raw materials to finished products[32]. - The company will implement price insurance for both self-operated and third-party products to enhance customer service experience[33]. Expenses and Costs - The total revenue cost rose by 55.0% from RMB 1.1 billion to RMB 1.7 billion, primarily due to increased inventory and transportation costs associated with business growth[40]. - Sales and marketing expenses surged by 145.6% from RMB 2,278 million to RMB 5,595 million, mainly due to increased employee costs for self-operated products and live streaming business operations[46]. - Research and development expenses increased by 56.5% from RMB 483 million to RMB 755 million, driven by investments in internet technology systems and applications for proprietary brands and live e-commerce[49]. - Administrative expenses rose by 129.6% from RMB 623 million to RMB 1,429 million, primarily due to increased share-based compensation expenses[50]. - The total revenue cost for the university education segment increased by 5.4% from RMB 776 million for the six months ended November 30, 2022, to RMB 818 million for the six months ended November 30, 2023[43]. Shareholder Information - Major shareholder New Oriental holds 557,160,500 shares, representing approximately 54.89% of the company's equity as of November 30, 2023[81]. - The ownership structure includes significant stakes held by key executives, with Yu Minhong holding approximately 12.0% of the shares through controlled entities[76]. - The company has adopted three share plans, with 30,000 new shares granted under the 2023 plan, accounting for approximately 0.00% of the company's issued share capital[82]. - The company has a maximum share issuance limit of 10% of the issued shares as of the 2023 plan adoption date, equating to 101,351,871 shares[95]. - The company did not declare an interim dividend for the reporting period, consistent with the previous year[117]. Corporate Governance - The company has established an audit committee to oversee financial reporting and internal control systems[112]. - The company plans to continue monitoring and reviewing its corporate governance practices[110]. - The company has complied with all applicable code provisions of the corporate governance code during the reporting period[109]. Cash and Assets - As of November 30, 2023, the company's cash and cash equivalents amounted to RMB 1.3 billion, up from RMB 1.2 billion and RMB 793.7 million on May 31, 2023, and November 30, 2022, respectively[58]. - The company reported a cash and cash equivalents balance of RMB 1,345,039 as of November 30, 2023, compared to RMB 1,165,137 at the end of the previous reporting period[133]. - Total assets amounted to RMB 4,358,941, an increase from RMB 3,436,916 as of May 31, 2023[133]. - Inventory increased significantly to RMB 359,754,000 as of November 30, 2023, compared to RMB 140,952,000 as of May 31, 2023, an increase of 155.5%[173]. Employee Information - Total employee compensation expenses for the six months ended November 30, 2023, amounted to RMB 624.8 million, representing a year-on-year increase of 167.7% from RMB 233.4 million in the same period of 2022[65]. - The total number of full-time employees increased to 1,785 as of November 30, 2023, compared to 1,260 a year earlier, while part-time employees rose to 720 from 410[65]. Future Plans - The company plans to continue expanding its live e-commerce and online education services to enhance revenue growth and market presence[140].
东方甄选(01797) - 2024 - 中期财报