Financial Performance - For the year ended December 31, 2023, the total revenue was RMB 117,446,000, a decrease of 33.73% compared to RMB 177,132,000 for the previous year[6] - The gross profit for the year was RMB 5,862,000, representing a gross margin of 5.00%[6] - The operating loss for the year was RMB 17,328,000, improved from an operating loss of RMB 36,256,000 in the previous year[6] - The net loss attributable to owners of the company was RMB 16,918,000, compared to RMB 36,454,000 in the previous year, indicating a significant reduction in losses[6] - The basic loss per share for the year was RMB 14.10, improved from RMB 31.82 in the previous year[6] - Revenue from external customers for the year ended December 31, 2023, was RMB 117,446,000, a decrease of 33.8% from RMB 177,132,000 in 2022[44] - The operating loss for the year ended December 31, 2023, was RMB 17,328,000, compared to an operating loss of RMB 36,256,000 in 2022, representing a 52.2% improvement[44] - The net loss for the year ended December 31, 2023, was RMB 16,918,000, down from RMB 36,454,000 in 2022, indicating a 53.6% reduction in losses[44] - The group reported a pre-tax loss of RMB 16,918,000 for the year ended December 31, 2023, compared to a loss of RMB 36,454,000 in 2022, indicating a 53.6% improvement year-over-year[57] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 105,348,000, compared to RMB 129,195,000 in the previous year[8] - The total liabilities decreased to RMB 103,395,000 from RMB 110,480,000 in the previous year, indicating a reduction in financial obligations[8] - Cash and bank balances increased to RMB 12,439,000 from RMB 4,251,000, showing improved liquidity[8] - The company reported a net asset value of RMB 3,575,000, down from RMB 20,493,000 in the previous year[9] - Trade receivables decreased to RMB 53,582,000 in 2023 from RMB 64,912,000 in 2022, reflecting a reduction of approximately 17.5%[60] - The net amount of trade receivables after expected credit loss provisions was RMB 37,460,000, down from RMB 49,157,000 in the previous year, a decline of about 23.8%[60] - The total liabilities, including trade payables and accrued expenses, amounted to RMB 75,589 thousand in 2023, down from RMB 90,017 thousand in 2022, a decrease of about 16.0%[62] Revenue Breakdown - Revenue from exhibition and event-related services was RMB 101.52 million, accounting for 86.44% of total revenue, reflecting a decrease of approximately 1.29% from RMB 102.84 million in the previous year[81] - Revenue from advertising-related services dropped significantly to approximately RMB 10.05 million, a decrease of about 85.10% from RMB 67.41 million in the previous year[82] - Major customer A contributed RMB 25,243,000 to revenue in 2023, down 50.3% from RMB 50,743,000 in 2022[47] - Major customer B contributed RMB 12,283,000 in 2023, which was not present in 2022, indicating new customer acquisition[47] Expenses and Costs - Employee benefits expenses, including directors' remuneration, increased to RMB 13,439,000 in 2023 from RMB 9,634,000 in 2022, representing an increase of approximately 39.0%[57] - The total depreciation of property and equipment was RMB 82,000 in 2023, significantly lower than RMB 1,086,000 in 2022, indicating a decrease of about 92.4%[55] - Sales expenses rose to approximately RMB 8.94 million, an increase of about 13.94% or RMB 1.09 million compared to the previous year[86] - Administrative expenses increased to approximately RMB 12.64 million, up about 7.72% or RMB 0.91 million year-over-year[87] - Service costs decreased from approximately RMB 171.75 million to about RMB 111.58 million, a reduction of approximately 35.03% or RMB 60.17 million[83] Strategic Focus and Future Plans - The company plans to focus on market expansion and new product development to drive future growth[5] - The company aims to shift its focus from advertising services to exhibition and exhibition hall businesses to better align with post-pandemic market demands[80] - The group aims to expand its non-automotive business to reduce risk and promote business diversification[129] - The group has developed a strategic plan to diversify its customer base across high-growth industries and accelerate digital transformation through strategic technology investments[130] Compliance and Governance - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and comply with the applicable disclosure requirements of the GEM Listing Rules[13] - The audit committee was established on May 16, 2018, in compliance with GEM Listing Rules, consisting of three independent non-executive directors[143] - The audit committee reviewed the annual audited consolidated financial statements and confirmed that the preparation of the annual results complied with applicable accounting standards and regulations[143] Market Conditions and Economic Outlook - The macroeconomic recovery in China is expected to continue driving demand in various sectors, including entertainment, travel, and sports[67] - The group expects a moderate global economic growth of about 3% in 2024, with domestic consumption in China contributing over 80% to the GDP growth of 5.2% in 2023[126] - The latest data shows that the service sector in China continues to grow, albeit at a slower pace, with the composite PMI index slightly declining from 52.7 to 52.5[127] Risks and Challenges - The company faces significant risks due to low entry barriers in the exhibition services industry and intense competition[109] - The majority of the company's clients are in the automotive sector, which poses a risk to expanding the customer base[109] - Future expansion into new market segments may exert significant pressure on resource allocation[114] - The company cannot guarantee sufficient resources to support future development, which may be affected by customer preferences and overall market conditions[114]
天平道合(08403) - 2023 - 年度业绩