Financial Performance - The company reported a total loss and comprehensive expenses of RMB 21,026 thousand during the period[5]. - The company's revenue for the six months ended June 30, 2023, was RMB 16,113,000, compared to RMB 8,603,000 for the same period in 2022, representing a growth of 87.5%[23]. - The pre-tax loss for the six months ended June 30, 2023, was RMB (12,232,000), an improvement from a loss of RMB (29,450,000) in the same period of 2022, indicating a reduction in losses by approximately 58.4%[23]. - The net loss for the period was approximately RMB 19.6 million, an increase of approximately RMB 18.3 million compared to a loss of RMB 1.3 million in the same period of 2022[130]. - For the six months ended June 30, 2023, the company reported a gross profit of RMB 9,831,000, compared to a loss of RMB 394,000 in the same period of 2022[198]. - The company incurred a pre-tax loss of RMB 19,874,000, significantly higher than the pre-tax loss of RMB 1,324,000 in the prior year[199]. Assets and Liabilities - As of June 30, 2023, non-current assets totaled RMB 125,411 thousand, a decrease of 1.03% from RMB 127,732 thousand as of December 31, 2022[1]. - Current assets amounted to RMB 154,863 thousand, an increase of 9.66% compared to RMB 141,302 thousand as of December 31, 2022[1]. - Inventory decreased to RMB 165 thousand, down 30.08% from RMB 236 thousand as of December 31, 2022[1]. - Trade receivables were RMB 4,224 thousand, a decline of 54.45% from RMB 9,278 thousand as of December 31, 2022[1]. - Cash and cash equivalents stood at RMB 80,317 thousand, a decrease of 15.53% from RMB 94,961 thousand as of December 31, 2022[1]. - Current liabilities increased to RMB 72,232 thousand, up 57.25% from RMB 45,947 thousand as of December 31, 2022[1]. - The net current assets amounted to RMB 82,631 thousand, a decrease of 13.36% from RMB 95,355 thousand as of December 31, 2022[1]. - Total assets less current liabilities were RMB 208,042 thousand, down 6.75% from RMB 223,087 thousand as of December 31, 2022[1]. - The capital debt ratio increased to approximately 14.9% as of June 30, 2023, compared to approximately 4.6% as of December 31, 2022[137]. - The current ratio decreased to approximately 2.1 times as of June 30, 2023, from approximately 3.1 times as of December 31, 2022[138]. Shareholder Information - The company has a significant ownership structure with the largest shareholder holding 34.01% of the issued share capital[21]. - As of June 30, 2023, the company had a total of 800,000,000 shares issued, with major shareholder Zhang Hongjun holding 34.01% of the shares through a controlled corporation[30][31]. - The company reported a basic and diluted loss per share of approximately RMB 2.73, compared to RMB 0.11 in the same period last year[156]. Corporate Governance - The company has established an audit committee to assist the board in reviewing and supervising the financial reporting process and internal control systems[33]. - The company has confirmed compliance with the standards set out in the code of conduct for securities transactions by directors during the reporting period[28]. - There were no significant competitive businesses or conflicts of interest involving directors as of the date of the interim report[29]. - The company has adhered to the corporate governance code during the reporting period, with the chairman and CEO roles held by the same individual, Zhang Hongjun, which the board believes is beneficial for management[40]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring a high level of independence[40]. Business Transformation and Strategy - The company continues to focus on improving its financial performance and exploring new strategies for market expansion and product development[1]. - The company has shifted its focus from academic education services to non-academic education services and training and consulting services due to regulatory changes in China's education system[78]. - The company is actively transforming its existing business and exploring new opportunities in response to increasing disposable income and demand for international education among parents[80]. - The company plans to expand overseas education consulting services through acquisitions and partnerships to cover more study abroad groups and families[120]. - The group aims to leverage its accumulated teaching experience and resources to provide targeted training for teachers, enhancing its consulting services[100]. - The group is committed to developing a comprehensive ecosystem in international education, providing one-stop services for Chinese students seeking international education[115]. Regulatory and Audit Issues - The company is currently addressing audit concerns related to software development payments, training service effectiveness, and a loan granted to an entity[76]. - The company has established a special investigation committee to address audit issues and has engaged an independent risk consulting firm for an agreed-upon procedures investigation[90]. - The independent investigation report was released on May 29, 2024, confirming that the investigation results adequately address each audit issue[90]. - Deloitte resigned as the auditor on May 22, 2023, citing concerns over payments related to software development services totaling RMB 100,000,000[193]. - The company appointed Zhonghui Anda as the new auditor effective May 25, 2023, to fill the vacancy left by Deloitte[193]. Revenue and Expenses - The group recorded a tax credit of approximately RMB 257,000 during the reporting period, compared to RMB 11,000 in the same period last year[109]. - Sales and marketing expenses increased by approximately RMB 4.0 million to about RMB 4.6 million due to higher advertising and marketing expenditures for non-academic education services[106]. - Administrative expenses rose by approximately RMB 11.7 million to about RMB 22.0 million, primarily due to increased employee salaries and professional fees related to business transformation and expansion[106]. - Other income recorded was approximately RMB 1.0 million, an increase of approximately RMB 0.1 million compared to RMB 0.9 million in the same period of 2022[124]. - The company recorded other income of RMB 968,000, a decrease from RMB 901,000 in the previous year[198]. - The total employee-related costs during the reporting period were approximately RMB 147 million, compared to RMB 135 million for the same period last year[173]. Future Outlook - The company is committed to restoring trading as soon as possible and has taken appropriate measures to rectify the issues leading to the suspension of its shares[90]. - The group expects the demand for extracurricular courses to rise, aligning with market trends and regulatory requirements[100]. - The trend of younger students studying abroad is increasing at an annual rate of approximately 20% in first-tier cities in China[120]. - The company plans to extend the estimated use period of unutilized net proceeds to the end of 2025 due to a shift in business focus[183].
大山教育(09986) - 2024 - 中期业绩