Key Points - **Company's Net Profit for H1 2024**: The company reported a net profit of -115 million, a decrease of 64.5% compared to the same period last year. [1] - **Reason for Profit Improvement**: The improvement was primarily driven by a decrease in overall corporate expenses. [1] - **Adjusted Net Loss**: After adjusting for stock-based compensation, the company's adjusted net loss narrowed significantly to -17 million, a decrease of 82.5% compared to the same period last year. [1]

Financial Performance - For the six months ended June 30, 2024, the company's revenue reached RMB 720.1 million, a year-on-year decrease of 5.5% compared to RMB 762.3 million in the same period of 2023[2]. - Gross profit for the same period was RMB 577.7 million, down 5.1% from RMB 608.8 million year-on-year[2]. - The adjusted net loss for the six months ended June 30, 2024, was RMB 17.0 million, a significant reduction of 82.5% compared to RMB 97.1 million in the same period of 2023[3]. - The company reported a net operating loss of RMB 210.4 million for the first half of 2024, significantly improved from a loss of RMB 403.2 million in the same period of 2023[25]. - The company reported a net loss attributable to the company's owners for the period was RMB 115,369 thousand, compared to RMB 324,733 thousand in the previous year, representing a reduction of 64.5%[51]. - Operating loss narrowed to RMB 210,434 thousand from RMB 403,167 thousand, indicating a significant improvement in operational efficiency[50]. Revenue Breakdown - The company's cloud services revenue was RMB 612.2 million, representing a 3.6% decline from RMB 635.1 million year-on-year, accounting for 85.0% of total revenue[6]. - The customer relationship management product line generated revenue of RMB 441.3 million, a decrease of 6.0% from RMB 469.5 million in the same period of 2023[9]. - The project construction product line recorded revenue of RMB 62.5 million, an increase of 4.9% compared to RMB 59.6 million in the same period of 2023[11]. - The asset management and operations product line recorded revenue of RMB 46.3 million for the six months ended June 30, 2024, representing a year-on-year growth of 30.5% compared to RMB 35.5 million in the same period of 2023[12]. - Revenue from localized deployment software and services was RMB 107.9 million for the six months ended June 30, 2024, down 15.1% from RMB 127.2 million in the same period of 2023[14]. - The Tianji PaaS platform generated revenue of RMB 62.1 million for the six months ended June 30, 2024, a decline of 12.0% from RMB 70.6 million in the same period of 2023[13]. Cost Management - Sales and marketing expenses amounted to RMB 407.8 million for the six months ended June 30, 2024, a decrease of 9.8% compared to RMB 452.0 million in the same period of 2023[17]. - General and administrative expenses were RMB 140.9 million, down 46.6% from RMB 263.8 million in the same period of 2023[17]. - Research and development expenses totaled RMB 254.1 million, a decrease of 22.2% from RMB 326.7 million in the same period of 2023[17]. - The company aims to enhance operational efficiency and reduce costs through resource optimization and internal budget management[16]. Customer Retention and Market Strategy - The company achieved a customer account retention rate of 88% for the customer relationship management product line, up from 85% in the same period of 2023[9]. - The customer account retention rate for the asset management and operations segment was 94% as of June 30, 2024, up from 93% in the same period of 2023[12]. - The company aims to deepen its focus on high-quality state-owned enterprise clients to ensure continuous revenue growth[21]. - The company plans to integrate AI technology into its products to explore more business growth opportunities, including the launch of "AI+SaaS" applications[22]. - The company continues to focus on expanding its cloud services and localized deployment software offerings in the Chinese real estate sector[56]. Cash Flow and Financial Position - The company reported a net cash outflow from operating activities of approximately RMB 164.5 million, a decrease of 39.1% year-on-year[3]. - Cash and cash equivalents and time deposits totaled approximately RMB 3,841.5 million as of June 30, 2024, down from RMB 4,392.0 million as of December 31, 2023[40]. - Current ratio as of June 30, 2024, was approximately 5.43, a decrease from 5.96 as of December 31, 2023[41]. - The company maintained a net cash position as of June 30, 2024, with no significant capital commitments[42]. - The company has implemented a detailed cash management policy to enhance financial security and reduce funding costs[47]. Future Outlook and Strategic Initiatives - The company plans to enhance its ERP solutions, allocating 6% of the net proceeds, which is approximately RMB 414.62 million[83]. - The company aims to seek strategic investments and acquisitions, allocating 20% of the net proceeds, which is approximately RMB 1,382.06 million[83]. - The company has completed the international adaptation of its key products and plans to launch several AI-enabled overseas products and solutions in the second half of 2024[23]. - Future outlook includes potential new product launches and enhancements in technology to improve service delivery[56]. Shareholder and Corporate Governance - The board has proposed a special dividend of RMB 0.1 per share, amounting to RMB 179,532,000, to be paid on July 5, 2024[75]. - The board has decided not to declare any interim dividend for the six months ended June 30, 2024[86]. - The audit committee has reviewed the company's accounting principles and internal controls, confirming compliance with applicable accounting standards and regulations[91]. - The company operates under international financial reporting standards[97]. - The board consists of executive and non-executive directors, including independent directors[98].

Financial Performance - The company's revenue for 2023 reached RMB 1,639.6 million, a decrease of 9.7% year-on-year[10]. - Total expenses for 2023 amounted to RMB 2,084.2 million, down 16.8% year-on-year[10]. - Adjusted net loss for 2023 was RMB 169.7 million, a reduction of 72.9% compared to the previous year[10]. - The company reported a gross profit of RMB 1,303.2 million for 2023, down from RMB 1,479.3 million in 2022[8]. - The operating loss for 2023 was RMB 763.2 million, an improvement from a loss of RMB 1,265.7 million in 2022[8]. - Total revenue for the year ended December 31, 2023, was RMB 1,639.6 million, a decrease of 9.7% compared to RMB 1,816.4 million in the same period of 2022[40]. - The overall gross profit for the group was RMB 1,303.2 million, a year-on-year decrease of 11.9%[43]. - The net loss for the year was approximately RMB 587.0 million, a year-on-year decrease of 49.4%[50]. Assets and Liabilities - The total assets as of December 31, 2023, were RMB 5,852.2 million, compared to RMB 6,184.2 million in 2022[9]. - The total liabilities decreased to RMB 918.3 million in 2023 from RMB 1,089.7 million in 2022[9]. - As of December 31, 2023, the total cash and cash equivalents and time deposits amounted to approximately RMB 4,392.0 million, a decrease from RMB 4,636.2 million as of December 31, 2022[56]. - As of December 31, 2023, the company is in a net cash position, with no capital commitments for construction assets reported[60]. - The company has no significant contingent liabilities as of December 31, 2023[60]. Revenue Breakdown - In 2023, cloud service revenue was RMB 1,338.7 million, a decrease of 6.2% year-on-year, accounting for 81.6% of total revenue[16]. - The customer relationship management product line generated revenue of RMB 945.9 million, down 9.2% year-on-year, with a customer retention rate of 80%[19]. - The project construction product line recorded revenue of RMB 156.5 million, an increase of 32.7% year-on-year, with a single construction site customer price of RMB 23,000, up 35.3% year-on-year[21]. - The asset management and operation product line achieved revenue of RMB 87.4 million, a growth of 42.0% year-on-year, managing approximately 47.069 million square meters of real estate, up 5.3% year-on-year[22]. - The revenue from the Tianji PaaS platform in 2023 was RMB 148.9 million, a decrease of 27.6% year-on-year compared to RMB 205.6 million in the same period of 2022[23]. - The revenue from localized deployment software and services totaled RMB 301.0 million in 2023, down 22.8% year-on-year from RMB 398.8 million in 2022[25]. Market Conditions and Strategy - The residential market in China saw a total sales area of 1.12 billion square meters in 2023, a decline of 8.5% year-on-year[13]. - The company is focusing on strategic transformation and cost control to improve its financial performance amid challenging market conditions[12]. - Future growth is expected as core business segments show signs of revenue growth and reduced losses[12]. - The company anticipates a recovery in the Chinese residential market, with no further drastic declines expected in property development and sales[28]. - The government plans to invest RMB 1 trillion in infrastructure construction starting in 2024, which is expected to drive significant investment in local infrastructure projects[30]. Operational Efficiency and Cost Management - The average output per employee in 2023 was RMB 557,000, an increase of 15.8% compared to RMB 481,000 in 2022[27]. - Sales and marketing expenses were RMB 921.7 million, a year-on-year decrease of 8.5%[44]. - General and administrative expenses were RMB 519.5 million, a year-on-year decrease of 23.9%[45]. - Research and development expenses were RMB 643.0 million, a year-on-year decrease of 21.3%[47]. - The company has implemented a series of fund layout adjustments to effectively reduce foreign exchange risks due to significant currency fluctuations in 2023[60]. Client and Supplier Relationships - The company signed contracts with over 130 new supplier clients, including leading firms such as Dongfang Yuhong and Haier Smart Home[19]. - The company is focusing on high-quality state-owned enterprise residential developers, which have clear digital transformation goals and sufficient IT budgets[25]. - The competitive landscape among residential developers is increasingly polarized, with state-owned enterprises outperforming private enterprises[28]. Product Development and Innovation - The company launched new products like "Video Marketing Assistant" and "AI Digital Human" to enhance marketing efficiency for real estate developers[17]. - The company is integrating AI technology into its products, launching applications like "AI Creative Factory" to enhance marketing productivity[34]. - The company aims to improve operational efficiency by leveraging AI tools such as "Tianji GPT - Application Development Assistant" to enhance development and testing processes[36]. Shareholder Information and Corporate Governance - The company proposed a special dividend of HKD 0.1 per share, subject to shareholder approval at the upcoming annual general meeting[76]. - As of December 31, 2023, the company's distributable reserves amounted to approximately RMB 7,529.9 million[80]. - The annual general meeting is scheduled for May 10, 2024, to discuss the proposed special dividend and other matters[78]. - The company will suspend share transfer registration from May 7 to May 10, 2024, to determine eligibility for voting at the annual general meeting[78]. Employee and Share Plans - The total employee cost for the year ended December 31, 2023, was approximately RMB 1,599,847,000, which includes salaries, bonuses, and other employee benefits[141]. - The company had a total of 2,577 employees as of December 31, 2023, a decrease from 3,310 employees as of December 31, 2022[141]. - The company has adopted three share plans: (1) equity incentive plan, (2) share reward plan, and (3) stock option plan, with a potential issuance of shares based on these plans amounting to 3.75% of the weighted average number of shares issued during the reporting period[142]. Compliance and Risk Management - The company has confirmed compliance with the disclosure requirements for related party transactions under the Listing Rules[117]. - The company faces risks related to its contractual arrangements, including potential non-compliance with Chinese laws and regulations, which could lead to severe consequences[135]. - The company has arranged appropriate directors' liability insurance as of December 31, 2023, in accordance with the permitted indemnity provisions[140].

Investment Rating - The report gives an "Accumulate" rating with a target price of HKD 3.23 [2][5]. Core Views - The company is a leader in the digitalization of the real estate ecosystem, showing significant results from its cloud service transformation and benefiting from favorable policies. The optimization of product and customer structure suggests that future revenue growth may exceed expectations [5][16]. Summary by Sections 1. Profit Forecast and Valuation - The company is expected to generate revenues of RMB 16.67 billion, RMB 17.91 billion, and RMB 19.64 billion for the years 2023-2025, with net losses of RMB 2.95 billion, RMB 2.39 billion, and RMB 2.26 billion respectively. The EPS is projected to be -0.15, -0.12, and -0.12 for the same period [9][12]. 2. Cloud Service Transformation and Policy Support - The company is positioned as a digital leader in the real estate ecosystem, leveraging a dual strategy of PaaS and digitalization for growth. The cloud service revenue is expected to account for 81.6% of total revenue in 2023, despite a 6.2% decline due to market conditions [8][10][19]. - The company has a comprehensive product matrix covering the entire customer lifecycle, including customer relationship management, project construction, and asset management [19][20]. 3. Market Demand Driven by Policy and Funding - The CRM market is rapidly developing, with cloud deployment becoming mainstream. The market size for CRM in China is projected to exceed RMB 250 billion by 2024, growing at around 10% annually [40][41]. - The residential market is expected to rebound due to policy support, with various measures being implemented to stabilize the real estate sector [44][45]. 4. Focus on State-Owned Enterprises and International Markets - The company is deepening its engagement with high-quality state-owned enterprise clients, enhancing customer value through product upgrades and tailored solutions [53]. - An international strategy is underway, with the establishment of a headquarters in Singapore to expand into Southeast Asia and the Middle East [57]. 5. AI Technology Integration - The company is increasing its investment in AI technology, integrating it into various product lines to enhance marketing productivity and operational efficiency [55].

Investment Rating - The report maintains a "Buy" rating for Mingyuan Cloud (0909.HK) with a market price of HKD 2.44 [1]. Core Insights - The company has optimized its business structure and achieved cost reduction and efficiency improvements, focusing on three main areas for future growth [5]. - Despite a decline in overall revenue due to the real estate sector's downturn, the cloud services segment showed resilience, with revenue contributing 81.6% to total revenue in 2023 [5]. - The company is exploring opportunities in state-owned enterprises, AI integration, and international expansion, particularly in Southeast Asia [5]. Financial Summary - Total revenue for 2023 was HKD 1,657 million, a decrease of 9.6% year-on-year, with projections for 2024-2026 showing gradual recovery [1][7]. - The adjusted net loss for 2023 was HKD 586 million, with forecasts indicating continued losses but narrowing in subsequent years [1][7]. - The company’s revenue from cloud services was HKD 1,339 million in 2023, down 6.2% year-on-year, while project management and asset management segments saw significant growth [5]. Revenue and Profit Forecast - Revenue projections for 2024, 2025, and 2026 are HKD 1,686 million, HKD 1,832 million, and HKD 2,114 million respectively, with corresponding net losses expected to decrease over the same period [1][5]. - The report anticipates a return to profitability by 2026, with a projected net loss of HKD 112 million [5]. Operational Efficiency - The company has successfully reduced operational costs, with sales, management, and R&D expenses decreasing by 8.5%, 23.9%, and 21.3% respectively in 2023 [5]. - The average output per employee increased by 15.8% to HKD 557,000 [5]. Market Position and Strategy - The company aims to deepen its engagement with state-owned enterprises and leverage AI technologies to enhance its product offerings [5]. - An international business headquarters has been established in Singapore to facilitate market entry into Southeast Asia [5].

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Insights - Mingyuan Cloud (0909.HK) reported a revenue of 1.64 billion RMB in 2023, a year-on-year decrease of 9.7%, primarily due to the ongoing adjustment in the domestic residential market [2] - The company achieved a gross profit of 1.303 billion RMB, with a gross margin of 79.5%, down 2 percentage points year-on-year [2] - Net loss narrowed to 587 million RMB, a 49.4% improvement compared to the previous year, while adjusted net loss significantly reduced by 72.9% to 170 million RMB, attributed to ongoing cost reduction and efficiency improvement efforts [2] - The company has a strong cash reserve of approximately 4.392 billion RMB as of December 31, 2023, and plans to distribute a special dividend of 0.1 HKD per share for 2023 [2] Revenue Structure and Performance - The revenue structure continues to optimize, with project construction and asset management income maintaining high growth rates [2] - Localized software and service revenue was 301 million RMB, down 22.8% year-on-year, while cloud service revenue was 1.34 billion RMB, down 6.2%, accounting for 81.6% of total revenue [2] - Customer relationship management revenue was 946 million RMB, down 9.2%, with cloud customer product revenue at 869 million RMB, down 4.9% [2] - Project construction revenue increased by 32.7% to 157 million RMB, driven by clearer digital transformation budgets from state-owned enterprises [2] - Asset management and operations combined revenue was approximately 87 million RMB, up 42% year-on-year [2] Cost Reduction and Efficiency Improvement - Significant cost reduction and efficiency improvement results were achieved in 2023, with operating expenses (excluding share-based payments) decreasing by 16.9% to 1.67 billion RMB [2] - Management, R&D, and sales expenses decreased by 20.6%, 22.4%, and 11.7% respectively [2] - The company’s per capita output value reached 557,000 RMB, an increase of 15.8% year-on-year [2] Profit Forecast and Valuation - The company continues to expand its industrial infrastructure and existing market, optimizing product layout and focusing on state-owned enterprise clientele [2] - Revenue forecasts for 2024 and 2025 have been adjusted down to 1.65 billion RMB and 1.76 billion RMB respectively, with a new forecast for 2026 set at 1.84 billion RMB [2] - Non-GAAP net profit forecasts for 2024 and 2025 have been revised down to 15 million RMB and 57 million RMB respectively, with a new forecast for 2026 at 108 million RMB [2]

[Table_Page] 公告点评|软件与服务 证券研究报告 [【Table_T广itle] 发 计 算 机 & 海 外 】 明 源 云 [公Tab司le_评Inve级st] 买入 当前价格 2.59港元 （00909.HK） 合理价值 3.76港元 前次评级 买入 业务结构优化成效体现，经营逐步转好 报告日期 2024-03-21 [ 核Tab 心le_S 观umm 点ary ：] 相[Ta对ble市_P场icQ表uot现e]  公司披露23年业绩，业务结构持续优化，H2收入降幅继续收窄，控 10% 费提效推动亏损进一步减少。23年收入同比-9.7%至16.4亿元，其中 -4%03/23 05/23 07/23 09/23 11/23 01/24 03/24 H2 降幅收窄至6.2%；23年/23H2 经调整净亏损分别为 1.70/0.73亿 -17% 元，23H2 环比继续收窄。毛利率同比-2.0pct 至 79.5%，整体趋稳。 -31% 降本增效效果明显，23 年三费同比-16.8%，H2 费用率环比收窄。根 -44% 据业绩发布会，23H2经营净现金流转正至1.31亿元。 -58%  23年持续 ...

计算机/软件开发 公 司 研 明源云（00909.HK） 具备估值安全垫，盈利拐点向上有望驱动估值修复 究 2024年03月21日 ——港股公司信息更新报告 投资评级：买入（维持） 吴柳燕（分析师） 李祎晗（联系人） wuliuyan@kysec.cn liyihan@kysec.cn 证 书编号：S0790521110001 证书编号：S0790123080037 日期 2024/3/21  现金储备提供估值安全垫，盈利拐点向上有望驱动估值修复 港 当前股价(港元) 2.660 考虑到地产行业复苏力度低于预期影响公司核心产品云客表现，我们下调 股 一年最高最低(港元) 5.300/1.880 2024-2025年收入预测至16.43/17.31亿元（前值18.68/21.8亿元），新增2026年 公 司 总市值(亿港元) 51.67 收入预测18.56亿元，对应同比增速为0.2%/5.4%/7.2%；由此下调2024-2025年 信 流通市值(亿港元) 51.67 调整后净利润预测至0.069/0.994亿元（前值0.075/1.01亿元），新增2026年调整 息 总股本(亿股) 19.42 更 后净利润 ...

Financial Performance - The company's total revenue for the year ended December 31, 2023, was RMB 1,639.6 million, a decrease of 9.7% compared to RMB 1,816.4 million in 2022[2]. - Adjusted net loss for 2023 was RMB 169.7 million, a reduction of 72.9% from the previous year's loss of RMB 626.9 million[3]. - Gross profit for the period was RMB 1,303.2 million, a decrease of 11.9% from RMB 1,479.3 million in 2022, with a gross margin of 88.2% for cloud services[29]. - Operating loss was RMB 763.2 million, a reduction of 39.7% compared to RMB 1,265.7 million in the previous year[35]. - The company recorded a net loss of RMB 587.0 million for the year, a decrease of 49.4% from RMB 1,159.2 million in 2022[36]. - The company reported a total comprehensive loss of RMB 575,666 thousand for the year, compared to RMB 812,880 thousand in 2022, a decrease of 29.2%[49]. - The company's basic loss per share improved to RMB (0.32) in 2023 from RMB (0.62) in 2022, reflecting a 48.4% reduction in loss per share[48]. Revenue Breakdown - Cloud services revenue reached RMB 1,338.7 million in 2023, down 6.2% year-on-year, accounting for 81.6% of total revenue[6]. - The customer relationship management product line generated revenue of RMB 945.9 million, a decline of 9.2% from RMB 1,041.5 million in 2022[8]. - In 2023, the project construction product line recorded revenue of RMB 156.5 million, a year-on-year increase of 32.7% compared to RMB 118.0 million in 2022[10]. - The asset management and operation product line achieved revenue of RMB 87.4 million in 2023, reflecting a year-on-year growth of 42.0% from RMB 61.5 million in 2022[12]. - The Tianji PaaS platform recorded revenue of RMB 148.9 million in 2023, a year-on-year decline of 27.6% from RMB 205.6 million in 2022[14]. - The localized deployment software and services revenue totaled RMB 301.0 million in 2023, a year-on-year decrease of 22.8% from RMB 398.8 million in 2022[15]. Market Trends - The residential market in China saw a sales area decline of 8.5% and a sales value drop of 6.5% in 2023[4]. - The Chinese residential market is expected to stabilize as the People's Bank of China and the National Financial Regulatory Administration extend financial support for troubled developers, preventing a sharp decline in property development and sales[18]. - In 2023, 31 out of the top 100 developers experienced a sales decline of over 30%, with 27 being private enterprises, indicating that state-owned enterprises are outperforming private ones in the residential market[18]. - The Chinese government plans to build approximately 8 million units of affordable rental housing as part of the "14th Five-Year Plan," increasing the demand for digital management solutions in this sector[18]. Operational Efficiency and Strategy - The company is focusing on digital upgrades for clients in the real estate ecosystem through enterprise-level cloud services and localized software[6]. - The company aims to enhance operational efficiency and marketing effectiveness for clients through AI-driven tools and digital marketing solutions[8]. - The company aims to deepen its focus on high-quality state-owned enterprise clients, targeting resilient developers among the top 100 to ensure continuous revenue growth[21]. - The integration of AI technology into product lines is a priority, with the company collaborating with major AI model providers to enhance marketing productivity and explore new business opportunities[22]. - The company plans to enhance its PaaS platform capabilities by integrating AI models to quickly generate data models and support low-code development, improving client application building[22]. - The company is committed to cost reduction and efficiency improvement by focusing on high-quality clients and enhancing contract quality to lower operational risks[24]. - The company will strengthen budget management and team structure to improve operational quality and enhance employee productivity[24]. - The company aims to apply AI capabilities across its value chain, including delivery and customer service, to continuously improve business efficiency[24]. Client and Market Engagement - The company signed over 130 new supplier clients during the year, including major industry players such as Dongfang Yuhong and Haier[8]. - The number of sales offices equipped with the cloud customer management system decreased to 11,601, down 5.5% from 12,278 in 2022[8]. - The total number of construction sites equipped with project construction products decreased by 3.8% year-on-year to 6,876 sites, while the number of industrial and infrastructure construction sites increased by 70.7% to 1,456 sites[10]. - The area of real estate properties managed by the asset management and operation product line increased by 5.3% year-on-year to approximately 47.069 million square meters[12]. - The number of cumulative cooperative clients for the Tianji PaaS platform reached 2,300, with over 4,833 certified zero-code/low-code/data developers[14]. Financial Position and Management - The total cash and cash equivalents and time deposits as of December 31, 2023, amounted to approximately RMB 4,392.0 million, down from RMB 4,636.2 million in 2022[39]. - The current ratio as of December 31, 2023, was 5.96, an increase from 5.87 in 2022[40]. - The company maintained a net cash position as of December 31, 2023, with no debt obligations[41]. - The company has established a comprehensive financial safety and cash management strategy to ensure liquidity and reduce funding costs[46]. - The company has implemented measures to manage foreign exchange risks, particularly related to fluctuations between the RMB and USD/HKD[43]. - The company reported that no single customer contributed more than 10% of total revenue for the years ended December 31, 2023, and 2022[59]. Employee and Governance - The company had a total of 2,577 employees as of December 31, 2023, representing a decrease of 22.1% compared to 3,310 employees on December 31, 2022[81]. - The company plans to continue granting share-based incentives to employees to motivate contributions to its growth and development[82]. - The audit committee has reviewed the financial statements for the year ended December 31, 2023, and confirmed compliance with applicable accounting standards and regulations[86]. - The company has adopted the principles and provisions of the Corporate Governance Code as a basis for its governance practices[87].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 762.3 million, a decrease of 13.5% compared to RMB 881.2 million in the same period of 2022[8]. - Cloud service revenue for the same period was RMB 635.1 million, down 5.1% from RMB 669.4 million year-on-year[12]. - Adjusted net loss for the six months ended June 30, 2023, was RMB 97.1 million, a significant reduction of 71.7% compared to RMB 342.7 million in the previous year[12]. - Total revenue for the period was RMB 762.3 million, representing a year-on-year decline of 13.5%[52]. - Overall gross profit was RMB 608.8 million, down 13.8% compared to RMB 706.5 million in the same period last year, with a gross margin of 79.9%[54]. - Operating loss for the period was RMB 403.2 million, a reduction of 34.2% year-on-year[63]. - Cash used in operating activities was RMB 270.1 million, down from RMB 406.9 million in the same period last year[50]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 5,941.2 million, down from RMB 6,184.2 million at the end of 2022[11]. - Non-current assets increased to RMB 1,155.6 million from RMB 1,013.3 million year-on-year[11]. - Total liabilities decreased to RMB 874.8 million from RMB 1,089.7 million at the end of 2022[11]. - As of June 30, 2023, cash and cash equivalents totaled RMB 4,226.1 million, down from RMB 4,636.2 million at the end of 2022[76]. - The current ratio improved to approximately 6.58, up from 5.87 at the end of 2022[77]. - As of June 30, 2023, the company's debt-to-capital ratio is zero, indicating no long-term borrowings[80]. Revenue Breakdown - Cloud services revenue for the first half of 2023 was RMB 635.1 million, a year-on-year decrease of 5.1% compared to RMB 669.4 million in the same period of 2022, accounting for 83.3% of total revenue[18]. - Customer relationship management product line generated revenue of approximately RMB 469.5 million, down 8.0% from RMB 510.2 million in the same period of 2022, with a customer retention rate of 85%[21]. - Project construction product line recorded revenue of approximately RMB 59.6 million, an increase of 12.3% from RMB 53.1 million in the same period of 2022, with a customer retention rate of 83%[24]. - Asset management and operation product line achieved revenue of approximately RMB 35.5 million, up 12.4% from RMB 31.6 million in the same period of 2022, with a customer retention rate of 93%[25]. - The Tianji PaaS platform generated revenue of RMB 70.6 million, a decrease of 5.5% from RMB 74.6 million in the same period of 2022, serving over 2,000 customers[29]. - Localized deployment software and services revenue was RMB 127.2 million, down 39.9% from RMB 211.8 million in the same period of 2022[31]. Expenses - The company's sales and marketing expenses were approximately RMB 452.0 million, a decrease of 9.8% compared to RMB 501.2 million in the same period last year[36]. - General and administrative expenses were about RMB 263.8 million, down 12.9% from RMB 302.9 million year-on-year[36]. - Research and development expenses were approximately RMB 326.7 million, a decline of 16.8% from RMB 392.9 million in the previous year[36]. Market and Strategic Focus - The company is focused on providing enterprise-level cloud services and localized software to key participants in the real estate ecosystem[17]. - The Chinese residential market saw a 1.1% year-on-year increase in commodity housing sales, totaling RMB 630.9 billion in the first half of 2023[14]. - Infrastructure investment in China grew by 10.2% year-on-year in the first half of 2023, with new infrastructure investments like data centers increasing by 16.2%[15]. - The company anticipates more favorable policies from local governments to stabilize the residential market following recent central government directives[14]. - The company plans to optimize product layout and accelerate the integration of generative AI technology into various business scenarios[41]. - The company aims to enhance digital solutions for project management and asset management to address client pain points across the real estate lifecycle[44]. - The company will focus on providing differentiated products and services to state-owned enterprises, particularly in residential development and project management[46]. Shareholder and Governance - The board approved the grant of a total of 8,032,650 shares under the share incentive plan to 79 eligible participants on July 7, 2023[98]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[108]. - The company confirms it has maintained sufficient public float as required by the listing rules during the reporting period[113]. - The company has not identified any violations of the standard code of conduct by employees regarding insider information as of June 30, 2023[104]. - There have been no changes in the information regarding any directors since the last annual report[105]. Share Incentive Plans - The company has adopted three share plans, including an equity incentive plan, a share reward plan, and a stock option plan, with a potential issuance of shares amounting to 2.56% of the weighted average of issued shares during the reporting period[132]. - The equity incentive plan allows for a maximum of 74,840,800 shares to be granted under the plan without shareholder approval[137]. - The total number of rewards granted to any qualified participants under the equity incentive plan cannot exceed 1% of the total issued shares during any twelve-month period[139]. - The equity incentive plan includes various types of rewards such as stock options, restricted share units, and restricted shares[136]. - The plan aims to enhance performance and efficiency, attract and retain contributors, and promote teamwork within the group[135]. - The rewards will vest and become exercisable upon meeting performance criteria set by the board[140]. - In the event of a change in control, the stock options will immediately vest and become exercisable[145]. - The company will ensure compliance with applicable securities laws when exercising or settling rewards[147]. - The restricted shares will be released from custody as soon as practicable after the applicable vesting date[151]. Utilization of Proceeds - The net proceeds from the global offering amount to approximately HKD 6,910.3 million, with specific uses outlined for the funds[114]. - The company plans to enhance existing SaaS product features, allocating 18% of the net proceeds, approximately HKD 1,243.86 million, for this purpose[116]. - A total of 6% of the net proceeds, approximately HKD 414.62 million, is designated for purchasing advanced equipment and infrastructure[116]. - The company aims to invest 8% of the net proceeds, approximately HKD 552.82 million, in developing proprietary key technologies for product innovation[116]. - The company has allocated 10% of net proceeds (HKD 691.03 million) for working capital and general corporate purposes, with HKD 155.50 million utilized[119]. - The total amount of utilized proceeds represents approximately 54.8% of the total net proceeds as of the reporting date[119]. - The company has been cautious in its financial resource management due to global economic uncertainties, impacting the utilization of net proceeds[121]. - The board confirmed that the development direction remains consistent with the prospectus, despite changes in the expected timeline for fund utilization[122]. Employee and Shareholder Structure - The total number of employees decreased by 11.6% to 2,925 as of June 30, 2023, down from 3,310 as of December 31, 2022[94]. - The company has no major investments or capital asset plans as of June 30, 2023[93]. - As of June 30, 2023, GHTongRui Investment Limited holds 397,923,600 shares, representing a 20.72% ownership stake[124]. - HengXinYuan Investment Limited owns 298,644,800 shares, accounting for 15.55% of the total shares[128]. - The total number of issued shares as of June 30, 2023, is 1,920,177,308[124]. - TMF (Cayman) Ltd. acts as the trustee for three trusts, holding a total of 886,395,000 shares, which is 46.16% of the total shares[128]. - The ownership structure indicates that major shareholders include individuals with significant stakes, such as Mr. Gao with 20.72% and Mr. Chen with 15.71%[124][128]. - The total shares held by major shareholders and related entities indicate a concentrated ownership structure, with the top three shareholders holding over 46% of the total shares[128].