Economic Growth - The annual GDP in 2023 was RMB 126,058.2 billion, representing a year-on-year growth of 5.2% at constant prices[13]. - Quarterly GDP growth rates were 4.5%, 6.3%, 4.9%, and 5.2% year-on-year for the first to fourth quarters respectively[13]. - The fourth quarter GDP grew by 1.0% on a quarter-on-quarter basis[13]. Industry Performance - The value-added of the primary, secondary, and tertiary industries amounted to RMB 8,975.5 billion, RMB 48,258.9 billion, and RMB 68,823.8 billion, with year-on-year growth of 4.1%, 4.7%, and 5.8% respectively[14]. - The service sector's added value increased by 5.8% year-on-year, with the accommodation and catering sector growing by 14.5%[16]. - The production index of the service sector grew by 8.5% year-on-year in December, with significant increases in the accommodation and catering sector (34.8%) and information technology services (13.8%)[16]. - The financial service sector's added value increased by 6.2% year-on-year[16]. - The leasing and business service sector saw a year-on-year growth of 9.3%[16]. - The wholesale and retail sector's added value increased by 6.8% year-on-year[16]. - From January to November, operating revenues of service enterprises with scalable capacity increased by 8.5% year-on-year, particularly in culture, sports, and entertainment (18.9% growth)[16]. Company Financial Performance - For the twelve months ended December 31, 2023, the Group recorded revenue of approximately RMB56.6 million, a decrease from approximately RMB129.3 million in 2022[22]. - The gross profit was RMB9.8 million, with a gross profit margin increase from 8.4% in 2022 to 11.3% in 2023[22]. - The net loss after taxation was approximately RMB42.9 million, significantly improved from a loss of approximately RMB167.9 million in 2022[22]. - Revenue from marketing and consulting services decreased by 60.8% to approximately RMB21.2 million compared to the corresponding period in 2022[27]. - Revenue from sales of agricultural products was approximately RMB34.3 million, down from approximately RMB61.3 million in 2022[31]. - Revenue from newspapers and public vehicles advertising services contributed only RMB848,000, a decline from approximately RMB6.5 million in 2022[25]. - The Group's total revenue decreased by 56.2% from RMB129.3 million for the twelve months ended 31 December 2022 to RMB56.6 million for the twelve months ended 31 December 2023, primarily due to declines in marketing and consulting services and agricultural product sales[37]. - Overall expenses decreased to RMB52.6 million for the twelve months ended 31 December 2023, down from approximately RMB104.4 million in 2022, mainly due to reduced cost of sales and selling and marketing expenses[42]. - The Group reported a net loss of RMB42.9 million for the twelve months ended 31 December 2023, significantly improved from a net loss of RMB167.9 million in the previous year[43]. - The company reported a net fair value loss on financial assets at fair value through profit or loss of RMB 0 in 2023, compared to a loss of RMB 3,056,000 in 2022, indicating a recovery[165]. - Total comprehensive loss for the period was RMB 42.9 million, compared to RMB 173.9 million for the same period in 2022, indicating a substantial decrease in losses[167]. Cash Flow and Liabilities - Net cash used in operating activities amounted to RMB35.9 million, primarily due to the net loss for the period[49]. - The company’s current liabilities exceeded its current assets by RMB 79.3 million as of 31 December 2023, raising concerns about its ability to continue as a going concern[180]. - Current liabilities increased to RMB 217,594,000 in 2023 from RMB 203,307,000 in 2022, an increase of 7.0%[161]. - Cash and cash equivalents significantly decreased to RMB 9,867,000 in 2023 from RMB 46,025,000 in 2022, a drop of 78.6%[158]. - The major shareholder has issued a letter of financial support for eighteen months from 31 December 2022 to assist the company in meeting its liabilities[184]. Shareholder Information - As of December 31, 2023, Mr. Chen Zhi holds 610,835,005 shares, representing a 56.80% interest in the company[139]. - As of December 31, 2023, TopBig International holds 609,076,841 shares, representing 56.63% of the total issued shares of 1,075,449,549[143]. - Nian Jiaxing holds 132,010,713 shares, accounting for 12.27% of the total issued shares[143]. - Forever Joy Investments Limited owns 82,307,493 shares, which is 7.65% of the total issued shares[143]. - Victory Color International Investment Limited has 75,759,903 shares, representing 7.04% of the total issued shares[143]. Corporate Governance and Management - The Company appointed new directors and saw several resignations, including the retirement of Mr. Yu Shi Quan and Ms. Chen Min on 30 June 2023[112]. - PricewaterhouseCoopers retired as the Company's auditor effective from the conclusion of the annual general meeting on 30 June 2023[105]. - The Company adopted new bye-laws on 24 November 2023, reflecting updates in corporate governance practices[108]. - The Board does not recommend the payment of an interim dividend for the twelve months ended 31 December 2023, consistent with the previous year[110]. - Management provided regular verbal updates to the Board on the Company's performance, although monthly management accounts were not circulated[118]. - The Company has complied with the Corporate Governance Code provisions, except for the overlap of roles between the chairman and CEO[117]. Future Plans and Developments - The Group is developing the "Yongtai Kungfu Distinctive Town" project, with the first phase featuring a 60-Chinese mu eco-friendly greenhouse farm[34]. - The Group's eco-agricultural business includes a cooperation project in Yongfu County, focusing on forming an eco-agricultural demonstration base[35]. - The company is focusing on the digitalization of its flower export platform, which has generated consistent revenue, and aims to expand its agricultural products platform sales business[98]. - The company plans to integrate traditional Chinese culture and film services to develop specialty township projects, aiming to diversify its long-term income sources[98]. - The Group is negotiating with potential investors to raise funds for capital investments in tourism and integrated development projects[187]. - The Group aims to dispose of properties held for sale with a carrying amount of approximately RMB 15.1 million as of June 30, 2023, expecting to collect sales proceeds within the cash flow forecast period[187]. - The Group is implementing cost control measures, including adjustments to management remuneration and streamlining administrative costs[187]. - The Group is focused on strengthening its operating cash flows and working capital by expediting the collection of outstanding trade receivables and deferring discretionary capital expenditures[188].
十方控股(01831) - 2023 - 中期财报