向中国际(01871) - 2024 - 中期财报

Course Enrollments and Demand - The total number of course enrollments decreased by 12.4% from 5,404 for the six months ended June 30, 2023, to 4,736 for the six months ended June 30, 2024[14]. - Shun Da School's course enrollments amounted to 511, representing a significant decrease of approximately 40.8% compared to 863 in the same period last year[14]. - Tong Tai School's course enrollments totaled 4,225, reflecting a slight decrease of approximately 7.0% from 4,541 in the previous year[14]. - The demand for driving courses for Large Vehicles, which accounted for approximately 75.0% of total revenue, significantly declined due to adverse market conditions in the logistics industry[14]. - The overall number of course enrollments for standard courses increased by approximately 184.7% from 1,128 to 3,211 due to newly designed driving courses with lower fees[15]. - The decline in course enrollments was attributed to increased competition from existing Small Vehicles driving schools entering the Large Vehicles training sector[12]. - The overall negative growth in trainees was primarily due to a decrease in actual training hours provided during the six months ended June 30, 2024[12]. - The restructuring of training locations contributed to the significant decrease in Shun Da School's enrollments[14]. - The company faced intensified competition in the driving training services market due to ongoing US-China trade tensions[12]. - The overall deterioration in business performance was linked to a decrease in demand for driving courses, particularly for Large Vehicles[12]. Financial Performance - The total revenue for the Group amounted to approximately RMB 18.1 million, representing a decrease of 22.5% from approximately RMB 23.4 million for the six months ended June 30, 2023[18]. - The number of trainees attending driving courses decreased by approximately 12.0% to 5,469 for the six months ended June 30, 2024, down from 6,213 in the same period in 2023[19]. - Revenue from large vehicle driving training services accounted for approximately 75.0% of total revenue, down from 80.2% for the same period in 2023[18]. - Revenue generated from premium courses of large vehicles contributed approximately 20.0% of total revenue, a significant decrease from 79.2% in the same period in 2023[19]. - The overall decrease in revenue was attributed to a reduction in both the number of trainees and the actual training hours[19]. - The company recorded a loss before income tax of approximately RMB 5.3 million for the six months ended 30 June 2024, compared to a loss of approximately RMB 2.7 million for the same period in 2023[25]. - Gross profit decreased by approximately RMB 2.9 million (or 45.9%) from RMB 6.3 million for the six months ended June 30, 2023, to RMB 3.4 million for the six months ended June 30, 2024, with a gross profit margin decline of 8.2 percentage points from 27.1% to 18.9%[25]. - The net loss attributable to the owners of the Company reduced from approximately RMB 3.3 million for the six months ended June 30, 2023, to approximately RMB 2.3 million for the six months ended June 30, 2024, resulting in a net loss margin of 12.9%[25]. Operational Adjustments and Strategies - The company plans to enhance its service offerings and invest in unique teaching simulators to reduce training costs and maintain gross margins amid price competition[24]. - The company is exploring potential acquisitions and partnerships to expand course enrollments, including a cooperation agreement with a technical secondary school in Gansu Province[24]. - The company aims to stabilize economic income by increasing course enrollments through various methods and measures[21]. - The company emphasizes the importance of timely responses to market changes and strategic decisions to optimize training and examination services[24]. Employee and Cost Management - Employee benefit expenses decreased by approximately RMB 1.7 million, or approximately 27.8%, from RMB 6.1 million for the six months ended June 30, 2023, to RMB 4.4 million for the six months ended June 30, 2024[33]. - Cost of services rendered decreased by approximately RMB 2.4 million (or 13.8%) from RMB 17.1 million to RMB 14.7 million, mainly due to reduced employee benefit expenses and other costs[30]. - Selling and marketing expenses decreased by approximately RMB 0.1 million, or approximately 7.8%, from RMB 1.0 million for the six months ended June 30, 2023, to RMB 0.9 million for the six months ended June 30, 2024[41]. - Administrative expenses decreased by approximately RMB 0.3 million, or approximately 4.3%, from RMB 6.7 million for the six months ended June 30, 2023, to RMB 6.4 million for the six months ended June 30, 2024[42]. Share Capital and Financing - The Company raised approximately HK$7.2 million from a Rights Issue, with net proceeds after expenses amounting to approximately HK$6.1 million[53]. - The issued share capital of the Company after the Rights Issue comprises 435,958,192 Shares of HK$0.01 each[54]. - The Company intends to apply the net proceeds from the Rights Issue for the partial repayment of outstanding bank borrowings[53]. - The Group's bank balances and cash decreased from approximately RMB 152.4 million as at 31 December 2023 to approximately RMB 150.6 million as at 30 June 2024, with a current ratio of 2.34 as of 30 June 2024[52]. Market and Competitive Landscape - The driving training services market has seen a continuous increase in the number of driving schools since the regulatory changes in the third quarter of 2021, intensifying competition[22]. - The company faced challenges in course enrollments due to increased competition from new driving schools and price reduction strategies adopted by some competitors, leading to a decrease in overall economic benefits in the driving training industry[21]. Future Plans and Investments - The Company plans to acquire a parcel of land and construct training fields to increase training capacity, with expected completion by the end of December 2024[66]. - The Company intends to recruit and train 40 new driving instructors, with an allocated budget of HK$10.4 million, of which HK$7.5 million has been utilized[63]. - The Company has not anticipated any changes to the intended use of net proceeds as previously disclosed in the Prospectus[64].