Revenue Performance - Total revenue for the six months ended December 31, 2023 was 12.75 million, or 113%, compared to the same period in the prior year[18]. - Revenue for brand promotion increased by 280% from 21.14 million for the same period in 2023, primarily due to cooperation with key opinion leaders (KOLs) and increased online promotion budgets[21]. - Revenue for event hosting decreased by 8% from 2.01 million in 2023, while revenue for event planning and execution decreased by 88% from 0.38 million during the same period[20]. - Other revenue for the six months ended December 31, 2023 was 0.12 million, or 33%, compared to the same period in 2022[22]. - Total revenue for the six months ended December 31, 2023, was 11,255,771 for the same period in 2022, representing a growth of approximately 113%[51]. - For the six months ended December 31, 2023, total revenue reached 8,727,933 for the same period in 2022, indicating a significant increase[69]. Cost and Expenses - Cost of revenue for the six months ended December 31, 2023 increased by 63% to 13.63 million in the previous period[23]. - Cost of brand promotion revenue increased by 318% from 19.83 million in 2023, in line with the growth in revenue for brand promotion[24]. - Total cost of revenue for the six months ended December 31, 2023, was 13,627,203 for the same period in 2022[26]. - Operating expenses decreased by 26% to 2,248,683 in the same period of 2022[29]. - General and administrative expenses increased by 119% to 3,934,301 for the six months ended December 31, 2023, primarily due to bad debt allowance and increased R&D expenses[31]. - The company incurred total operating lease expenses of 43,390 for the six months ended December 31, 2023, a decrease from 1,780,414 in the six months ended December 31, 2023, from a loss of 4,151,846[28]. - The operating loss narrowed to 4,650,000 in the same period of 2022[33]. - Net loss attributable to equity holders was 4,710,000 in the same period of 2022[35]. - The net loss for the six months ended December 31, 2023, was (4,118,522) in the prior year[69]. - For the six months ended December 31, 2023, the company reported a net loss of 4,714,381 for the same period in 2022, indicating a 49.8% improvement in net loss year-over-year[128]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2023, totaled 3,630,000 as of June 30, 2023[36]. - Net cash used in operating activities was 5,787,201 in the same period of 2022[40]. - The company experienced a cash outflow of 5,787,201 in 2022[55]. - The company’s cash balance at the end of the period was 1,095,007 at the beginning of the period, indicating a decrease of approximately 82.4%[130]. Assets and Liabilities - Total current assets increased to 32,253,714, reflecting a growth of about 8.4%[47]. - Total current liabilities rose to 12,827,546, marking an increase of approximately 28%[47]. - Total assets reached 39,045,328, showing an increase of about 5.5%[48]. - As of December 31, 2023, total assets amounted to 27,308,942[68]. - Accounts payable increased significantly to 2,697,089, representing a growth of about 106%[47]. - The total shareholders' equity decreased to 26,178,148, indicating a decline of approximately 8.6%[48]. Shareholder Information - The company conducted a share consolidation on October 27, 2023, converting every 10 Class A and Class B ordinary shares into one ordinary share, impacting all share numbers retrospectively[113]. - The company issued 1,500,000 Class A ordinary shares at a price of 4,290,000 through subscription agreements on March 19, 2024[118]. - The company’s total shareholders' equity decreased from 24,603,915 as of December 31, 2023, a decline of approximately 8.0%[125]. Future Outlook - The company expects the adverse effects of the COVID-19 pandemic on its business operations to gradually phase out in the following years[15]. - The company expects to obtain a new credit line of not less than RMB8 million (approximately $1.1 million) in 2024[37].
Pop Culture (CPOP) - 2024 Q2 - Quarterly Report