Accordingly, with respect to the JV stores operated by Leisure Lion, we recognized revenue from sales of RVs as revenue generated from sales to dealers for 2021, 2022, and the period in 2023 when Leisure Lion remained as our equally-owned joint venture.
Summary · p. 7
Our revenue generated from sales to dealers decreased from RMB268.2 million for the six months ended June 30, 2023 to RMB252.5 million for the six months ended June 30, 2024, primarily because the revenue from the JV stores operated by Leisure Lion was recorded as revenue generated from direct sales via JV stores after Leisure Lion became our subsidiary in September 2023.
Summary · p. 7
Subsequently, Leisure Lion became one of our subsidiaries in September 2023 when the shareholding interest of Regent Company in it increased to 51%.
We also began offering training facilitation service in 2023 where we assist our customer and the organizer of the training sessions in performing the organizational and logistical groundwork, such as (i) co-designing the training curriculum, standards, and attendance certificates; (ii) contacting training session lecturers; (iii) promoting the training sessions among potential attendees; (iv) handling the logistics of setting up the training sessions; (v) providing attendee after-sale services; and (vi) maintaining the website and online portals in relation to the trainings.
Business · p. 275
We ceased offering training facilitation service in January 2024, and entered into a termination agreement with the customer in April 2024.
Save for Ausnutria Group from whom we commenced to procure our milk powder products in 2022, we have established business relationship of six to 12 years with our five largest suppliers for each year/period during the Track Record Period.
Business · p. 221
Despite the purchases from which constituted approximately 23.3% and 22.0% of the our total purchases for FY2022 and FY2023, respectively, our Group has terminated all of its agreements with Ausnutria Group in October 2023 and our Group had no plan to resume milk powder business in the near future
Business · p. 229
The Internal Control Consultant has also reviewed and assessed our entering into and termination of milk powder business, and has made certain recommendations in order to mitigate the risks of any substantial loss to be suffered by our Group in the event that our Group intends to commence any business in new products with material financial commitment or enter into any significant business contracts in the ordinary course of our business.
The decrease in our revenue from precision content services during the Track Record Period was primarily because we allocated more resources to expand our RWS support services.
Business · p. 278
Our revenue generated from RWS support services was nil, RMB54.5 million, RMB421.9 million, RMB170.9 million and RMB268.1 million in 2021, 2022 and 2023 and for the six months ended June 30, 2023 and 2024, respectively.
Our inventories increased from RMB0.3 million as of December 31, 2021 to RMB5.8 million as of December 31, 2022, primarily due to the acquisition of Jianmingtang in December 2022, which is a pharmaceutical retailer with its own medicine stock.
Financial Information · p. 465
Our goodwill was RMB2.9 million, RMB8.6 million, RMB8.6 million and RMB8.6 million as of December 31, 2021, 2022 and 2023 and June 30, 2024, respectively, as the result of our acquisition of Choksend Communication in 2019 and our acquisition of Fujian Jianmingtang in 2022.
By the end of 2023, we phased out most e-commerce service cloud offerings as customers transitioned their O2O operations in-house, where they carried out their own daily online store management, such as updating product listings, maintaining product information, handling inquiries and after-sales, and managing store promotions.
Summary · p. 2
In April 2024, we completed the Restructuring to divest all of our equity in Dmall Fresh (Beijing), our former VIE.
Summary · p. 2
We believe that the discontinued operation did not have a material impact on our business, as it has always been our strategic goal to focus on providing digitalization solutions to our customers.
The legacy commodity business accounted for RMB0.1 million, RMB0.5 million, nil and nil of our revenues in 2021, 2022, 2023 and the six months ended June 30, 2024, respectively.
Financial Information · p. 396
We have fully exited the legacy commodity business due to its insignificant contribution to and impact on the growth and profitability of our Company as well as its strategic incompatibility with our Company’s focus of providing retail cloud products and services to customers who are undergoing digitalization.
In 2021, our acquisition of Kerry Logistics further strengthened our domestic and cross-border express operations in Southeast Asia, international supply chain and freight forwarding capabilities.
Summary · p. 3
Successful integration of Kerry Logistics into our existing international operations further solidified our global integrated logistics capabilities and customer base, empowering our global expansion strategy and vision.
Summary · p. 3
Our acquisition of Kerry Logistics in September 2021 further enhanced our international supply chain services capabilities.
Our results of operations may also be affected by changes in our business mix.
Financial Information · p. 362
During the Track Record Period, our intelligent automotive vision business recorded a gross loss margin of 1.1% in 2021, and a gross profit margin of 17.5%, 14.9%, 10.2% and 15.3% in 2022, 2023 and the five months ended May 31, 2023 and 2024, respectively.
Financial Information · p. 363
The fluctuations were primarily because in 2021, our intelligent automotive vision business was in its early stage of development and in 2022 we started to benefit from the economies of scale as we commenced mass production for several intelligent automotive lamp projects.
As of April 30, 2024, we have ceased the operation of the 61 brands on Amazon and still operate these brands on other sales channels.
Business · p. 253
The decrease was also partly due to our strategic shift to furniture and home furnishings and the downsizing of our product offerings of electric tools, home appliances, consumer electronics and sports and wellness after the Amazon Incident.
Summary · p. 5
Our revenue from sales of furniture and home furnishings increased by 19.1% from RMB3,516.3 million in 2021 to RMB4,187.1 million in 2022, and further increased by 27.5% to RMB5,336.6 million in 2023, accounting for 38.8%, 59.0% and 61.5% of our total revenue in the respective years.
(1) To address the market condition that has affected long-haul services in the Transpacific and the Asia – Europe markets where deployment of smaller vessels became less profitable or even loss-making in light of the continued decline of freight rates, we decided to suspend our services in the Transpacific and Asia – Europe markets in December 2022, and all services in the Transpacific and Asia – Europe markets had been suspended in February and in March 2023, respectively.
Summary · p. 5
In addition, our revenue generated from the Transpacific market and the Asia – Europe market decreased from US$354.4 million in 2022 to nil in 2023 and from US$43.3 million in 2022 to US$16,000 in 2023, respectively, as all services in the Transpacific and Asia – Europe markets had been suspended in February and in March 2023, respectively.
Summary · p. 6
Our revenue generated from the Asia – Oceania market decreased by 84.2% from US$628.6 million in 2022 to US$99.4 million in 2023 mainly because we suspended one independent service to Australia in April 2023 and the only one independent service to New Zealand in August 2023 due to the continued decline in the freight rate which made our independent services not economically justifiable.
Then in June 2021, we expanded our presence in the LFP cathode material industry through the acquisitions of Tianjin Beiterui Nano and Jiangsu Beiterui Nano which are engaged in businesses in the field of LFP cathode materials.
Summary · p. 2
Leveraging our long-term development strategies tailored to developments within the automotive industry, we engaged third party contract manufacturers to produce small amounts of LFP cathode materials in 2020 and the first half of 2021.
Summary · p. 2
We expanded our presence in the LFP cathode materials industry through the acquisitions of Tianjin Beiterui Nano and Jiangsu Beiterui Nano in June 2021 and our revenue derived from LFP cathode materials increased significantly by 552.3% from RMB1,876.8 million for the year ended December 31, 2021 to RMB12,241.9 million for the year ended December 31, 2022.
In light of the above events, we made the decision in 2022 to scale down our all-in-one server business. As a result, our revenue from our Kodo business decreased from RMB650.8 million in 2021 to RMB320.4 million in 2022 and our total revenue and gross profit decreased accordingly.
Summary · p. 15
Our gross margin of other business decreased from 28.5% in 2022 to 9.2% in 2023 as we made the strategic adjustment to scale down our DPaaS business, despite its relatively high gross margin as DPaaS solutions are typically sold in the form of dedicated and technical software deployed on a private cloud built for our customers.
Summary · p. 11
In 2023 and the three months ended March 31, 2024, our all-in-one server business gradually recovered mainly due to the recovery of all-in-one server business in the industry.
In April 2023, we reassessed the business performance of Beijing Nuoming and decided to cease its business in order to improve operating efficiency.
Financial Information · p. 407
Beijing Nuoming has made provision for impairment of goodwill and patent for RMB8.4 million and RMB1.2 million, respectively, in 2023.
Financial Information · p. 407
For core customers especially, such a decrease is also attributable to our decision of business cease of Beijing Nuoming, which primarily focuses on the sales of customized products for hospitals and clinical research institutions, resulting in customer termination in 2023.
We made a strategic adjustment to dispose of our business of data collection for sales of pharmaceuticals during the Track Record Period.
Summary · p. 21
From February 2022 to September 2023, we entered into a series of agreements with an independent third party and our client to transfer our business of data collection for sales of pharmaceuticals for a total consideration of RMB1.1 million.
Summary · p. 21
As a result, the revenue in this business line decreased by RMB4.4 million, or approximately 52.0%, in 2023.
In addition, we also systematically upgraded our customized pharmaceutical and medical device commercialization products to SaaS products during the Track Record Period by encouraging relevant customers to switch to standardized versions that offer equivalent or even superior or additional functionalities, which will enable better customer retention and life-cycle customer spending in the long term.
Business · p. 259
In 2023, we optimized less efficient product lines, after which we expect abated customer churn and short-term revenue loss given that we have substantially completed the SaaS transformation of pharmaceutical and medical device commercialization software in 2023, and our shifted focus on promoting SaaS versions of ONECEM solutions, which have a higher margin than previously offered customized pharmaceutical and medical device commercialization software, is expected to further improve our gross profit margin.
Business · p. 257
In 2023, we experienced a decrease in the gross profit and gross profit margin for customized products in clinical trials business line, primarily because we strategically prioritized enhancing revenue from its SaaS products over customized products.
Since the service revenue attributable to the Master Agreement C only amounted to HK$11.2 million for FY2021/22, which was substantially lower than the aggregate service revenue attributable to the Master Agreement A and the Master Agreement B of approximately HK$113.5 million for FY2021/22, our Directors considered that it was not economically justified to devote resources and reserve a designated pool of direct labour and machinery for provision of services under the Master Agreement C.
Business · p. 182
Starting from FY2022/23, the main contractor of the Master Agreement C had not issued to our Group any work orders and our Group had not requested for or accepted any work orders under the Master Agreement C.
Business · p. 182
Our Directors confirmed that there has been no dispute or claim lodged by or against our Group in relation to the Master Agreement C.
In 2013, recognizing the market demands, we pivoted to focus on developing our ODM business, where we engaged in designing, developing, and manufacturing customized kitchenware products to international brand-owners and retailers.
Summary · p. 1
The decrease in our revenue from ODM business during the Track Record Period was primarily due to a decrease in our number of ODM products sold from approximately 7.5 million in 2021 to approximately 4.4 million in 2022, and further to approximately 3.7 million in 2023, and further to approximately 0.9 million in the three months ended March 31, 2024, mainly attributable to: (i) our strategic redirection of focus away from this business segment as our branded business generally yields a higher gross profit margin; and (ii) a decrease in demand from our ODM customers in Western Europe.
Summary · p. 7
As a result of our expansion efforts, our branded business achieved rapid growth during the Track Record Period, with revenue for this segment increasing substantially from RMB283.3 million in 2021 to RMB1,379.9 million in 2023 at a CAGR of 120.7%.
Since May 2024, as part of our expansion plan, while remaining our primary business focus on construction engineering testing and inspection services, we have commenced to diversify our service offerings and provide food testing services, which contributed 12.3% to our total revenue generated in 6M2024.
Summary · p. 1
Since May 2024, we have also commenced to provide food testing services.
We have entered into an equity transfer agreement and supplemental agreements to transfer the entire equity interest in Shanghai Yabao to an Independent Third Party with a consideration of RMB34,900,000 and we are in the process of completing this transaction.