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].

Revenue Performance - Revenue for the six months ended June 30, 2023, reached RMB 762.3 million, a decrease of 13.5% compared to RMB 881.2 million in the same period of 2022[2] - Cloud service revenue for the same period was RMB 635.1 million, down 5.1% from RMB 669.4 million year-on-year, accounting for 83.3% of total revenue[6] - Revenue for the six months ended June 30, 2023, was RMB 762,340 thousand, a decrease of 13.4% compared to RMB 881,235 thousand for the same period in 2022[24] - Revenue from cloud services was RMB 635,140,000, down 5.1% from RMB 669,429,000 in the previous year[40] - Revenue from localized deployment software and services was RMB 127,200,000, a significant decline of 40.0% from RMB 211,806,000 in the prior year[40] Profitability and Loss - Adjusted net loss for the six months ended June 30, 2023, was reduced by 71.7% to RMB 342.7 million compared to the adjusted net loss in the same period of 2022[2] - Operating loss for the six months was RMB 403,167 thousand, improved from a loss of RMB 613,123 thousand in the previous year[24] - Net loss for the period was RMB 324,733 thousand, compared to a net loss of RMB 563,787 thousand in the prior year, indicating a significant reduction in losses[25] - The company reported a net loss attributable to owners of RMB 323,324 thousand for the six months ended June 30, 2023, compared to a net loss of RMB 561,531 thousand for the same period in 2022, representing a 42.4% improvement[48] - Basic loss per share for the six months ended June 30, 2023, was RMB (0.18), an improvement from RMB (0.30) for the same period in 2022[48] Expenses and Cost Management - The group’s sales and marketing expenses were approximately RMB 452.0 million, a decrease of 9.8% from RMB 501.2 million in the same period of 2022[16] - General and administrative expenses were approximately RMB 263.8 million, down 12.9% from RMB 302.9 million in the same period of 2022[16] - R&D expenses were approximately RMB 326.7 million, a decline of 16.8% from RMB 392.9 million in the same period of 2022[16] - Employee benefit expenses for the six months ended June 30, 2023, were RMB 583,830 thousand, a decrease of 14.5% compared to RMB 682,137 thousand for the same period in 2022[43] - The company’s total expenses for the six months ended June 30, 2023, were RMB 1,196,125 thousand, down 12.7% from RMB 1,371,788 thousand for the same period in 2022[43] Asset and Liquidity Management - Total assets as of June 30, 2023, were RMB 5,941,217 thousand, down from RMB 6,184,167 thousand at the end of 2022[26] - Cash and cash equivalents decreased to RMB 914,815 thousand from RMB 1,642,078 thousand, indicating a reduction in liquidity[26] - The current ratio increased to 6.58 as of June 30, 2023, compared to 5.87 on December 31, 2022[70] - The company had no long-term borrowings, resulting in a debt-to-capital ratio of zero as of June 30, 2023[71] Market and Strategic Outlook - The residential real estate market in China is expected to gradually stabilize, with a projected increase of about 70 million urban population over the next decade, driving demand for housing[17] - The company plans to accelerate its strategic transformation towards the industrial and infrastructure non-residential real estate market, enhancing coverage of core business areas and adapting product lines to digital technology innovation systems[19] - Future outlook includes potential expansion in cloud services and localized software offerings to capture market share in the evolving real estate sector[29] - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share by 2025[90] - The board has approved a new acquisition strategy to target complementary tech firms, with a budget allocation of $50 million[90] Customer and Product Development - The customer relationship management product line generated revenue of approximately RMB 469.5 million, a decline of 8.0% from RMB 510.2 million in the previous year[7] - The 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[10] - The asset management and operation product line recorded revenue of approximately RMB 35.5 million for the six months ended June 30, 2023, representing a year-on-year growth of about 12.4% compared to RMB 31.6 million in the same period of 2022[11] - The company is investing in R&D for its low-code PaaS platform, with a budget increase of 40% for the upcoming year[90] - Strategic partnerships are being formed to enhance cloud service offerings, with an expected revenue boost of $10 million[90] Governance and Compliance - The company has adopted new accounting standards effective from January 1, 2023, with no significant impact on the financial statements[32] - The audit committee, consisting of three independent non-executive directors, reviewed the accounting principles and policies adopted by the company[84] - The independent auditor conducted a review of the interim financial information for the six months ended June 30, 2023[85] - The company has adopted the corporate governance code as a basis for its governance practices[80] Shareholder and Capital Management - The company did not recommend any interim dividend for the six months ended June 30, 2023, consistent with the previous year[50] - The company repurchased a total of 313,000 shares at a total cost of HKD 1,004,278.56 during the six months ended June 30, 2023[81] - The highest and lowest purchase prices for the repurchased shares were HKD 3.20 and HKD 3.19, respectively[81] - The board expressed confidence in the company's business development prospects through the share repurchase[82]

Financial Performance - Revenue in 2022 reached approximately RMB 1,816.4 million, a year-on-year decrease of 16.9%[8] - Adjusted net loss in 2022 was approximately RMB 627.0 million, a year-on-year decrease of 304.1%[8] - Total revenue for 2022 was RMB 1,816.4 million, a decrease of 16.9% year-over-year (2021: RMB 2,184.5 million), primarily due to industry downturn and pandemic impacts, leading to cautious ERP investments and delayed/canceled projects[35] - Total revenue for 2022 was RMB 1,816.4 million, a decrease from RMB 2,184.5 million in 2021, with SaaS products and ERP solutions contributing 78.5% and 21.5% respectively[36] - Operating loss in 2022 was RMB 1,265.7 million, compared to an operating loss of RMB 626.8 million in 2021[6] - Gross profit in 2022 was RMB 1,479.3 million, a decrease from RMB 1,751.1 million in 2021[6] - The company's overall gross profit was RMB 1,479.3 million, a decrease of 15.5% YoY (2021: RMB 1,751.1 million)[47] - Pre-tax loss surged by 132.1% to RMB 1,168.7 million compared to the previous year's RMB 503.6 million[58] - Annual loss increased by 133.8% to RMB 1,159.2 million, with SaaS product losses at RMB 77.0 million and ERP solution losses at RMB 357.3 million[59] - EBITDA loss widened by 102.1% to RMB 1,151.9 million, while adjusted EBITDA turned negative at RMB 619.6 million, a 365.9% decline[62] - Adjusted net loss reached RMB 626.9 million, a 304.1% increase from the previous year's profit of RMB 307.2 million[64] SaaS and ERP Revenue - SaaS product revenue in 2022 reached approximately RMB 1,426.6 million, a year-on-year increase of 6.6%, accounting for 78.5% of total revenue[8] - ERP solution revenue in 2022 was approximately RMB 389.8 million, a year-on-year decrease of 54.0%, accounting for 21.5% of total revenue[8] - The company's SaaS product revenue reached RMB 1,426.6 million in 2022, a year-on-year increase of 6.6%, accounting for 78.5% of total revenue[15] - SaaS product revenue maintained growth despite overall revenue decline, reflecting the company's successful SaaS transformation[35] - SaaS product revenue reached RMB 1,426.6 million in 2022, a year-on-year increase of 6.6% (2021: RMB 1,337.7 million), accounting for 78.5% of total revenue, up from 61.2% in 2021[38] - ERP solution revenue declined by 54.0% to RMB 389.8 million in 2022 (2021: RMB 846.8 million), with its share of total revenue dropping from 38.8% in 2021 to 21.5% in 2022[40] - ERP solution revenue declined by 54.0% to RMB 389.8 million in 2022 due to cautious customer spending and project delays[21] Gross Profit and Margins - The gross profit margin for SaaS products improved to 92.3% in 2022, up from 90.7% in 2021, while ERP solutions' gross profit margin decreased to 41.8% from 63.5%[46] - The gross profit for SaaS products increased by 8.5% to RMB 1,316.5 million in 2022, while ERP solutions' gross profit declined by 69.7% to RMB 162.9 million[46] - SaaS product gross profit increased by 8.5% YoY to RMB 1,316.5 million (2021: RMB 1,213.8 million), with gross margin improving from 90.7% to 92.3%[47] - ERP solution gross profit decreased by 69.7% YoY to RMB 162.9 million (2021: RMB 537.4 million), with gross margin dropping from 63.5% to 41.8%[47] R&D and Investment - R&D investment in 2022 reached approximately RMB 816.9 million, a year-on-year increase of 27.2%[8] - R&D expenses increased by 27.2% YoY to RMB 816.9 million (2021: RMB 642.3 million)[50] - The company is focusing on technological upgrades, particularly the adaptation of the Tianji PaaS platform to better serve state-owned enterprise clients[11] - The company is leveraging its Tianji PaaS platform to provide digital innovation solutions for the real estate industry, aligning with national digital transformation strategies[31] - Tianji PaaS platform integrated over 3,200 systems and accumulated nearly 300 industry data assets, with low-code capabilities covering over 1,400 developers and IT personnel[22] - Tianji PaaS platform achieved revenue of RMB 204.0 million in 2022, serving over 1,900 customers, a significant increase from RMB 19.1 million in 2021[23] Market and Customer Trends - The number of domestic sales offices equipped with Cloud Customer (云客) decreased by 26.0% to 12,278 in 2022, while the average revenue per sales office increased by 20.4% to RMB 74,400[16] - The customer retention rate for Cloud Customer (云客) was 82.0% in 2022, down from 88.0% in 2021[16] - The number of domestic construction sites equipped with Cloud Chain (云链) decreased by 4.7% to 7,150 in 2022, while the average revenue per site decreased by 5.2% to RMB 23,900[18] - The customer retention rate for Cloud Chain (云链) was 84.0% in 2022, down from 90.0% in 2021[18] - State-owned enterprise clients accounted for 40.3% of the company's total revenue in 2022[14] - The company is upgrading its target market from residential real estate to the entire real estate market, including residential, industrial, and infrastructure sectors[11] - The Chinese real estate market is valued at tens of trillions of RMB, with significant potential for digital transformation[11] - State-owned enterprises' demand for digital products and services to manage and revitalize assets has significantly increased, with total state-owned assets valued at approximately RMB 308 trillion in 2021[27] - The "Digital China" initiative is accelerating, creating new opportunities for software products that meet independent innovation standards[27] Cost and Expense Management - The cost of sales for SaaS products decreased by 11.1% to RMB 110.1 million in 2022 (2021: RMB 123.9 million), primarily due to reduced sales of smart hardware[43] - The cost of sales for ERP solutions decreased by 26.7% to RMB 226.9 million in 2022 (2021: RMB 309.5 million), mainly due to reductions in employee benefits and outsourcing costs[45] - The cost of sales for the company overall decreased by 22.2% to RMB 337.0 million in 2022 (2021: RMB 433.4 million)[41] - Sales and marketing expenses increased by 12.2% YoY to RMB 1,006.9 million (2021: RMB 897.2 million), accounting for 55.4% of total revenue[48] - General and administrative expenses decreased by 32.0% YoY to RMB 682.3 million (2021: RMB 1,002.8 million), accounting for 37.6% of total revenue[49] - Impairment losses on financial assets and contract assets increased by 33.7% YoY to RMB 58.3 million (2021: RMB 43.6 million)[51] - Other income decreased by 28.3% YoY to RMB 69.5 million (2021: RMB 97.0 million), mainly due to reduced income from financial products and VAT refunds[53] - Other net losses amounted to RMB 250.0 million, a decrease of 325.3% YoY (2021: net income of RMB 111.0 million), mainly due to foreign exchange losses and goodwill impairment[55] - Financial income decreased by 14.1% to RMB 108.7 million, primarily due to reduced bank deposit interest income[57] - Financial costs increased by 232.3% to RMB 10.3 million, mainly due to higher lease liability interest expenses from increased leased assets[57] Strategic Transformation and Focus - The company is accelerating its strategic transformation into three key areas: residential real estate, industrial and infrastructure non-residential real estate, and asset management/operations/services markets[28] - Product lines are being upgraded into three major segments: Customer Relationship Management, Project Construction, and Asset Management & Operations, targeting over 100,000 residential and industrial developers, and tens of thousands of upstream suppliers and distributors[30] - The company is focusing on the Tianji PaaS platform, enhancing its digital technology innovation system to better serve state-owned enterprises (SOEs) and accelerate commercialization[31] - The Tianji PaaS platform is being optimized for zero-code/low-code capabilities, significantly improving productivity and enabling faster customer demand fulfillment[31] - The company is targeting SOE developers, construction companies, and asset management groups, with a focus on digital transformation and asset preservation/appreciation, particularly in the context of hundreds of trillions of RMB in state-owned assets[32] - Cost reduction and efficiency improvement measures are being implemented, including organizational restructuring, talent optimization, and process improvements, to enhance profitability and operational resilience[33] - The company is expanding its customer base in the industrial and infrastructure real estate markets, aiming for comprehensive coverage in both incremental development and existing asset management/operations[28] Customer and Market Expansion - Cloud Procurement platform saw 4,400 real estate developers and 99,000 suppliers join in 2022, representing year-on-year growth of 15.8% and 11.2% respectively[19] - Cloud Space managed over 440 million square meters of property in 2022, a 27.9% increase year-on-year, with an annual customer retention rate of 85.0%[20] - The company has a large and growing customer base, which provides valuable insights into industry best practices and helps improve products and customer experience[95] - The company faces risks related to enhancing software solutions, maintaining and growing its customer base, financial stability, innovation, regional partnerships, and cybersecurity[98] Shareholder and Equity Information - The company's directors and senior management have significant equity interests, with Mr. Gao holding 20.21% (long) and 1.28% (short), Mr. Chen holding 15.29% (long) and 1.02% (short), and Mr. Jiang holding 9.53% (long) and 0.92% (short) of the company's shares[105] - GHTongRui Investment Limited holds 395,923,600 shares, representing 20.21% of the company's total shares[106][109] - HengXinYuan Investment Limited holds 296,644,800 shares, representing 15.14% of the company's total shares[106][109] - LINGFAN Investment Limited holds 186,826,600 shares, representing 9.53% of the company's total shares[106][109] - TMF (Cayman) Ltd. holds 968,716,000 shares, representing 49.44% of the company's total shares[109] - The company has issued a total of 1,959,526,979 shares as of December 31, 2022[107][111] - GHTongRui Investment Limited is 99% owned by MYTongRui Holdings Limited, which is fully owned by TMF (Cayman) Ltd.[106][109] - HengXinYuan Investment Limited is 99% owned by SunshineMorning Holdings Limited, which is fully owned by TMF (Cayman) Ltd.[106][110] - LINGFAN Investment Limited is 99% owned by Mindfree Holdings Limited, which is fully owned by TMF (Cayman) Ltd.[106][110] - SunshineSmoor Holdings Limited holds 3,000,000 shares, fully owned by SunshineMorning Holdings Limited[110] - JIABAOSZ Investment Limited holds 86,321,000 shares, 99% owned by JINBAOSZ Holdings Limited, which is fully owned by TMF (Cayman) Ltd.[110] Employee and Compensation - The company had 3,310 employees as of December 31, 2022, compared to 4,247 employees in the previous year[74] - The company provides competitive salaries, bonuses, and equity-based compensation to employees, particularly key employees[74] - On January 17, 2023, the company granted 75,037 restricted stock units to two employees and 41,200,000 share options to 59 employees[76] - The company participates in various employee social security plans, including housing, pension, medical, and unemployment benefits[75] - The company offers continuous education and training programs to enhance employees' technical, professional, and management skills[75] - Total employee costs for the year amounted to approximately RMB 1,901,419,000, including wages, salaries, bonuses, pension costs, and other benefits[134] Share-Based Incentive Plans - The company has adopted three share-based incentive plans: (1) Share Incentive Plan, (2) Share Award Plan, and (3) Share Option Plan[135] - The total number of shares that may be issued under all share-based plans is 0.71% of the weighted average number of issued shares during the reporting period[135] - The maximum number of shares under the Share Incentive Plan is 74,840,800 shares[140] - The maximum quota for any eligible participant under the Share Incentive Plan is 1% of the total issued shares at the relevant time[140] - The company's Share Incentive Plan aims to reward participants for their contributions, encourage performance improvement, and attract and retain talent[137] - The Share Incentive Plan allows for the issuance of share options, restricted share units, and other share-based awards[138] - Eligible participants under the Share Incentive Plan include full-time executives, directors, and other contributors deemed beneficial to the company[139] - The company's Share Incentive Plan includes performance indicators that must be met before share options or restricted shares can be exercised or vested[141] - The company has granted a total of 17,671,689 unexercised restricted share units under the equity incentive plan, equivalent to approximately 0.90% of the total issued shares as of December 31, 2022[152] - A total of 46,460,000 restricted share units have vested and 6,405,334 have lapsed under the equity incentive plan as of December 31, 2022[152] - The remaining term of the equity incentive plan is approximately 7 years and 2 months as of December 31, 2022[151] - The total number of awards available for grant under the equity incentive plan was 31,597,796 as of January 1, 2022 and 10,709,111 as of December 31, 2022[152] - The company granted 75,037 restricted share units to 2 employees on January 17, 2023, equivalent to 75,037 shares[153] - The maximum number of shares that can be granted under the share award plan is 96,357,499 shares, not exceeding 5% of the total issued shares as of the adoption date[158] - No more than 1% of the total issued shares can be granted to any selected participant within any 12-month period without shareholder approval[158] - The total number of reward shares available for issuance under the Share Award Plan as of January 1, 2022, and December 31, 2022, were 56,090,706 shares and 48,127,114 shares, respectively[164] - As of December 31, 2022, a total of 6,303,604 reward shares had lapsed or been forfeited under the Share Award Plan[163] - The total number of shares available for issuance and/or transfer due to the vesting or exercise of rewards under the Share Award Plan as of December 31, 2022, was 95,961,499 shares, representing approximately 5.01% of the total issued shares as of the annual report date[164] - The number of new shares available for issuance due to the vesting or exercise of rewards under the Share Award Plan as of December 31, 2022, was 47,731,114 shares, representing approximately 2.49% of the total issued shares as of the annual report date[164] - The number of existing shares available for transfer due to the vesting of rewards under the Share Award Plan as of December 31, 2022, was 48,230,385 shares, representing approximately 2.52% of the total issued shares as of the annual report date[164] - The remaining term of the Share Award Plan as of December 31, 2022, was approximately 8 years and 5 months[163] - The unvested rewards for employee participants as of January 1, 2022, were 40,266,793 shares, with 5,070,321 shares lapsed or forfeited during the reporting period, resulting in 35,196,472 unvested shares as of December 31, 2022[166] - On May 30, 2022, 6,044,996 reward shares were granted to employee participants, with a closing price of HK$9.07 per share immediately before the grant date[168] - On November 14, 2022, 7,044,997 reward shares were granted to employee participants, with a closing price of HK$5.38 per share immediately before the grant date[168] - No rewards were granted to any directors, chief executives, major shareholders, or their respective associates under the Share Award Plan since its adoption[168] - The company granted a total of 19,000,000 reward shares on August 24, 2022, with a weighted average closing price of HKD 5.78 per share before the vesting date[170] - On January 11,

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Financial Performance - Total revenue for the year 2022 was approximately RMB 1,816.4 million, a year-on-year decrease of about 16.9%[2] - Adjusted net loss for 2022 reached approximately RMB 627.0 million, a year-on-year increase of about 304.1%[2] - The company reported a net loss attributable to owners of RMB 1,159,212 for 2022, compared to a loss of RMB 495,918 in 2021, indicating a significant increase in losses[26] - The net loss for the reporting period was approximately RMB 1,159.2 million, a year-on-year increase of 133.8% from RMB 495.9 million[81] - The company reported an operating loss of RMB 1,265.7 million, an increase of 101.9% year-on-year from RMB 626.8 million, influenced by macroeconomic conditions and ongoing R&D investments[76] Revenue Breakdown - Revenue from SaaS products in 2022 was approximately RMB 1,426.6 million, a year-on-year increase of about 6.6%, accounting for 78.5% of total revenue[2] - Revenue from ERP solutions in 2022 was approximately RMB 389.8 million, a year-on-year decrease of about 54.0%, accounting for 21.5% of total revenue[2] - SaaS product revenue for 2022 was RMB 1,426.6 million, a year-on-year increase of 6.6% from RMB 1,337.7 million in 2021, accounting for 78.5% of total revenue[59] - ERP solution revenue for 2022 was RMB 389.8 million, a year-on-year decrease of 54.0% from RMB 846.8 million in 2021, accounting for 21.5% of total revenue[61] Research and Development - R&D investment in 2022 reached approximately RMB 816.9 million, a year-on-year increase of about 27.2%[2] - Research and development expenses rose to RMB 816,934 in 2022, up from RMB 642,295 in 2021, highlighting continued investment in innovation[24] - Research and development expenses increased by 30% to RMB 300 million, reflecting the company's commitment to innovation[111] Customer Metrics - The annual customer account retention rate for the cloud customer solution was 82.0%, down from 88.0% in the previous year[6] - The number of real estate developers on the cloud procurement platform grew to approximately 4,400, a year-on-year increase of about 15.8%[9] - User data indicates an increase in active users to 5 million, up from 4 million in the previous year, marking a growth of 25%[112] Cost Management - The company is committed to enhancing cash flow management and reducing operational costs to improve profitability and resilience amid industry challenges[23] - The company aims to enhance operational efficiency and cost reduction, with the results expected to gradually manifest in the following year[55] - Sales and marketing expenses rose by 12.2% year-on-year to RMB 1,006.9 million, accounting for 55.4% of total revenue, up from 41.1%[68] - General and administrative expenses decreased by 32.0% year-on-year to RMB 682.3 million, representing 37.6% of total revenue, down from 45.9%[69] Strategic Initiatives - The company plans to accelerate its strategic transformation by expanding into the industrial and infrastructure non-residential real estate market, covering both incremental and stock asset management[18] - The company aims to enhance its digital technology innovation capabilities by continuously investing in the Tianji PaaS platform[18] - The company plans to selectively seek strategic investments and acquisitions, allocating 20.0% of the net proceeds (approximately HKD 1,382.06 million) for this purpose by December 31, 2023[98] Market Outlook - The company projects a revenue guidance of RMB 1.5 billion for the next fiscal year, indicating an expected growth of 25%[113] - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share within the next two years[115] Awards and Recognition - The company has received multiple awards, including "Top 10 High-Value Technology Teams of 2022" and "Outstanding Low-Code Platform Product" from Hai Bi Research Institute[12] Corporate Governance - The company has adopted the principles and code provisions of the Corporate Governance Code as a basis for its corporate governance practices[99] - The company has established an audit committee consisting of three independent non-executive directors[105]

Financial Performance - Total revenue for the six months ended June 30, 2022, reached RMB 881.2 million, a year-on-year decrease of 9.5%[6] - Adjusted net loss for the same period was RMB 342.7 million, a year-on-year increase of 277.1%[8] - The company reported a net loss of approximately RMB 563.8 million for the period, a decrease of 400.7% compared to a net profit of RMB 187.5 million in the same period of 2021[48] - The company reported a net loss of RMB 124.4 million in other gains/losses, a 453.4% decline year-over-year, primarily due to increased foreign exchange losses[44] - The company reported a pre-tax loss of RMB 567.4 million for the six months ended June 30, 2022, a decrease of 403.6% compared to a pre-tax profit of RMB 186.9 million in the same period of 2021[48] Revenue Breakdown - Revenue from SaaS products amounted to RMB 669.4 million, representing a year-on-year growth of 21.3% and accounting for 76.0% of total revenue[8] - Revenue from ERP solutions was RMB 211.8 million, a year-on-year decline of 49.8%, making up 24.0% of total revenue[8] - The revenue contribution from the "Other" category surged to RMB 84.2 million, a significant increase of 3,305.7% year-on-year from RMB 2.5 million[27] - SaaS product revenue reached RMB 669.4 million, growing by 21.3% and accounting for 76.0% of total revenue[24] - ERP solution revenue was RMB 211.8 million, down 49.8%, representing 24.0% of total revenue[24] Operational Challenges - The company faced significant industry challenges, with a 22.2% year-on-year decline in commodity housing sales area in the first half of 2022[9] - The company has observed a cautious investment approach from end customers in ERP solutions, leading to a decline in sales revenue for this segment during the reporting period[60] - The digitalization penetration rate in the real estate sector remains low, indicating substantial future growth potential[9] - The company implemented various measures to mitigate the impact of industry downturns and optimize operations[10] Cost and Expenses - Sales and marketing expenses rose to RMB 501.2 million, a 30.1% increase from RMB 385.3 million in the previous year, driven by higher distributor commissions and increased employee benefits for the sales team[38] - General and administrative expenses increased to RMB 302.9 million, a 274.0% year-over-year increase, primarily due to increased share-based compensation expenses[39] - Research and development expenses rose to RMB 392.9 million, reflecting a 54.2% year-over-year increase, driven by higher employee welfare costs for R&D staff, which numbered 2,049, up 16.5% year-over-year[40] Cash Flow and Liquidity - As of June 30, 2022, the company had cash and cash equivalents totaling approximately RMB 4,348.3 million, down from RMB 5,450.2 million as of December 31, 2021[53] - The company maintained a net cash position as of June 30, 2022, indicating a strong capital structure[121] - Operating cash flow for the six months ended June 30, 2022, was a net outflow of RMB 406,879 thousand, compared to a net inflow of RMB 13,826 thousand for the same period in 2021[109] Shareholder Information - The company did not declare any interim dividend for the six months ended June 30, 2022, consistent with the previous year[62] - A total of 22,157,000 shares were repurchased during the six months ended June 30, 2022, at a total cost of HKD 231,969,717.60[63] - The company has not made any significant acquisitions, disposals, or investments during the six months ending June 30, 2022[58] Employee and Compensation - The company reported a significant increase in share-based compensation expenses to RMB 221,043 from RMB 6,026 in the previous year, indicating a strategic shift in employee compensation[145] - Employee benefit expenses rose to RMB 682,137, a 27.9% increase from RMB 533,595 in the previous year[145] - The expected retention rate for the granted restricted share units was estimated at 96% as of June 30, 2022, indicating strong employee retention expectations[193] Financial Position - Non-current assets totaled RMB 1,043.1 million as of June 30, 2022, compared to RMB 659.1 million as of December 31, 2021[7] - Total assets decreased to RMB 6,525.7 million from RMB 6,972.8 million over the same period[7] - The total equity attributable to owners decreased to RMB 5,489,744 thousand, down from RMB 5,930,176 thousand[107] Market and Growth Strategy - The company is focusing on four core product lines: Customer Relationship Management (CRM), Engineering Construction, Asset Management, and Supply Chain Management (SCM) to support SaaS growth[22] - The company plans to accelerate the transition from OP to SaaS in the residential development sector, optimizing its business model[19] - The company aims to strengthen cash flow management and reduce operational costs amid industry uncertainties[22] Investment and Acquisitions - The company plans to utilize approximately HKD 6,910.3 million from its global offering, with 28.9% already utilized by June 30, 2022[66] - 20% of the net proceeds is designated for strategic investments and acquisitions, with HKD 570.72 million utilized by June 30, 2022[68] - The company has not held any significant investments as of June 30, 2022[58] Governance and Compliance - The audit committee has reviewed the company's accounting principles and internal controls, confirming compliance with applicable standards[62] - The company adheres to good corporate governance standards to protect shareholder interests and enhance corporate value[61]

Financial Performance - Revenue for the year 2021 reached RMB 2,184.5 million, representing a year-on-year growth of 28.1%[12] - Adjusted net profit for 2021 was RMB 307.2 million, a decrease of 19.7% compared to the previous year[12] - The company reported an operating loss of RMB 626.8 million for 2021, compared to an operating profit of RMB 326.5 million in 2020[10] - The net loss for the year was approximately RMB 495.9 million, a decrease of 25.8% from RMB 668.2 million in the previous year[83] - The adjusted EBITDA for the year 2021 was RMB 233.06 million, a decrease of 44.8% compared to RMB 422.28 million in 2020[87] - The total cash and cash equivalents, along with time deposits, amounted to approximately RMB 5,450.2 million as of December 31, 2021, down from RMB 6,572.1 million in 2020[92] - The current ratio as of December 31, 2021, was approximately 6.66, a decrease from 8.55 as of December 31, 2020[93] - The company maintained a net cash position as of December 31, 2021, with no significant contingent liabilities reported[95] Revenue Breakdown - SaaS product revenue reached RMB 1,337.7 million in 2021, with a year-on-year growth of 53.5%, accounting for 61.2% of total revenue[13] - ERP solution revenue was RMB 846.8 million in 2021, showing a modest growth of 1.5%, making up 38.8% of total revenue[13] - The cloud marketing solution "Yunke" generated RMB 1,025.2 million in revenue, representing 76.6% of SaaS product revenue, with a growth of 53.3% year-on-year[54] - The "Yunlian" solution contributed RMB 189.2 million, accounting for 14.1% of SaaS product revenue, with a growth of 37.6%[54] Research and Development - Research and development expenditure for 2021 amounted to RMB 642.3 million, an increase of 80.5% year-on-year[13] - The number of R&D employees reached 2,123 in 2021, a growth of 64.8%, constituting 50.0% of the total workforce[13] - R&D investment grew by over 80% year-on-year, with investment in the Tianji PaaS platform increasing by over 140%[17] - The Tianji PaaS platform achieved significant breakthroughs in five product suites, including over 40 connectors for the iPaaS suite and a fully localized BI and big data computing platform[34] Operational Metrics - The number of domestic sales offices equipped with the cloud customer service system reached approximately 16,600, an increase of about 11% year-on-year[26] - The cloud supply chain business saw approximately 3,800 real estate developers and 89,000 suppliers join the platform, representing year-on-year growth of about 36% and 25%, respectively[29] - The cloud chain business expanded to approximately 7,500 construction sites, a year-on-year increase of about 83%[27] - The annual customer account retention rate for the cloud chain's quality inspection, customer service, and risk control products was 90%[27] - The annual customer account retention rate for the company in 2021 was 78%, slightly up from 77% in 2020[30] Strategic Initiatives - The company initiated a transformation of its ERP system to a subscription model to lower the barriers for digital transformation[25] - The company plans to continue expanding its presence in the digitalization of the industry development/operation/service market, which has significant growth potential[19] - The company aims to launch a SaaS version of its ERP system to enable more small and medium-sized developers to achieve digital upgrades at a lower cost[19] - The company plans to enhance its SaaS offerings by launching new products and transitioning its ERP solutions to a subscription model, targeting small to medium-sized developers initially[43] Expenses and Costs - Sales and marketing expenses increased to RMB 897.2 million, a year-on-year increase of 52.0% from RMB 590.4 million in 2020, accounting for 41.1% of total revenue[67] - General and administrative expenses rose to RMB 1,002.8 million, a year-on-year increase of 382.8% from RMB 207.7 million in 2020, accounting for 45.9% of total revenue[68] - Research and development expenses increased to RMB 642.3 million, a year-on-year increase of 80.5% from RMB 355.9 million in 2020, with R&D staff increasing by 64.8% to 2,123 employees[69] - The cost of goods sold for SaaS products was RMB 123.9 million, a year-on-year increase of 9.9% from RMB 112.8 million in 2020[61] - The cost of goods sold for ERP solutions was RMB 309.5 million, a year-on-year increase of 22.4% from RMB 252.8 million in 2020[64] Shareholder Information - The board of directors has approved a dividend payout of $0.50 per share, reflecting a commitment to returning value to shareholders[112] - The company reported a final dividend of RMB 0.055 per share for the year ended December 31, 2021, equivalent to HKD 0.068 per share, subject to shareholder approval[118] - As of December 31, 2021, the company's available reserves for distribution amounted to approximately RMB 6,144.7 million[122] - The company has no bank loans or other borrowings as of December 31, 2021[123] Employee Metrics - The company had a total of 4,247 employees as of December 31, 2021, an increase from 3,170 employees in the previous year[105] - The total employee cost for the group was approximately RMB 2,058,077,000, which includes salaries, bonuses, pension costs, and other employee benefits[190] - The company continues to provide competitive salaries and benefits to attract and retain qualified personnel[105] - The company has implemented various employee social security plans in accordance with local regulations, including housing, pension, medical, and unemployment benefits[105] Acquisitions and Investments - On August 3, 2021, the company acquired a 29.906541% stake in Shenzhen Mingyuan Cloud E-commerce Co., Ltd. for a total consideration of RMB 598,130,841.17[105] - The company plans to enhance existing SaaS products with an investment of HKD 1,243.86 million, representing 18.0% of total net proceeds, to be utilized by December 31, 2023[127] - Strategic investments and acquisitions are targeted at HKD 1,382.06 million, which is 20.0% of total net proceeds, with expected utilization by December 31, 2023[128] Compliance and Governance - The board of directors includes a mix of executive and independent non-executive members, ensuring governance and oversight[143] - The independent non-executive directors have confirmed their independence as of December 31, 2021[143] - The company has confirmed compliance with non-competition agreements by its major shareholders[158] - The company is subject to the Cayman Islands Companies Law regarding the appointment and re-election of directors[140]

Financial Performance - The total revenue for the six months ended June 30, 2021, reached RMB 973.7 million, representing a year-on-year growth of 45.2% compared to RMB 670.7 million for the same period in 2020[12]. - Adjusted net profit for the same period was RMB 193.5 million, an increase of 32.7% from RMB 145.8 million in the previous year[12]. - The company's gross profit for the first half of 2021 was RMB 773.7 million, compared to RMB 529.4 million in the same period of 2020[6]. - Operating profit for the first half of 2021 was RMB 126.1 million, slightly down from RMB 132.7 million in the previous year[6]. - Profit for the six months ended June 30, 2021, was approximately RMB 187.5 million, a growth rate of approximately 119.7% compared to RMB 85.3 million for the same period in 2020[59]. - The pre-tax profit for the six months ended June 30, 2021, was RMB 186.9 million, compared to RMB 94.0 million for the same period in 2020[57]. - The net profit before income tax for the period was RMB 186.9 million, significantly higher than RMB 94.0 million in the previous year[175]. - Basic earnings per share increased to RMB 0.09 from RMB 0.05, reflecting a 80% growth year-on-year[121]. Revenue Breakdown - Revenue from SaaS products amounted to RMB 551.8 million, showing a significant growth of 65.5%, accounting for 56.7% of total revenue[10]. - Revenue from ERP solutions reached RMB 421.9 million, with a stable growth of 25.1%, making up 43.3% of total revenue[10]. - The revenue from the cloud customer management product (Yunke) surged by 82.1% to RMB 428.0 million in the first half of 2021[17]. - The revenue from ERP solutions grew by 25.1% to RMB 421.9 million in the first half of 2021[22]. - Revenue from ERP solutions included RMB 150.3 million from value-added services, RMB 140.3 million from software licenses, and RMB 87.5 million from product support services, showing significant growth compared to the previous year[166]. Cost and Expenses - The cost of sales increased by 41.5% from RMB 141.3 million to RMB 200.0 million for the same periods[36]. - The cost of sales for SaaS products increased by 78.6% from RMB 31.9 million in the six months ended June 30, 2020, to RMB 57.0 million in the six months ended June 30, 2021[38]. - The total cost of sales for ERP solutions increased by 30.7% from RMB 109.4 million in the six months ended June 30, 2020, to RMB 143.0 million in the six months ended June 30, 2021[40]. - Sales and marketing expenses rose by 67.7% from RMB 229.7 million in the six months ended June 30, 2020, to RMB 385.3 million in the six months ended June 30, 2021[43]. - Research and development expenses increased by 71.9% from RMB 148.2 million in the six months ended June 30, 2020, to RMB 254.8 million in the six months ended June 30, 2021, with R&D staff increasing by 65.8%[45]. Assets and Liabilities - The total assets as of June 30, 2021, were RMB 7,459.5 million, compared to RMB 7,472.2 million as of December 31, 2020[8]. - The total equity attributable to equity holders was RMB 6,509.6 million, a slight decrease from RMB 6,538.8 million in the previous period[7]. - Total liabilities decreased to RMB 895,436 thousand as of June 30, 2021, from RMB 902,630 thousand as of December 31, 2020, representing a reduction of approximately 0.2%[124]. - Current liabilities remained stable at RMB 846,604 thousand, slightly increasing from RMB 843,354 thousand, reflecting a marginal increase of 0.3%[124]. - The company's contract liabilities rose to RMB 632,707 thousand, up from RMB 548,938 thousand, marking an increase of approximately 15.2%[124]. Strategic Initiatives - The company recognizes the strategic value of digital transformation, leading to increased investments in digital upgrades across the industry[13]. - The company plans to continue investing in new products and technologies, including mobile platforms and data analysis platforms[24]. - The company aims to strengthen cooperation with top 100 real estate companies through the Tianji platform and digital operations[27]. - The company is focused on continuous investment in SaaS business to cover more scenarios and participants in the real estate ecosystem[27]. - The company is committed to building an industry cooperation ecosystem through co-creation, investment, and mergers and acquisitions[27]. Shareholder Information - As of June 30, 2021, the total number of issued shares was 1,927,149,990[6][90]. - HengXinYuan Investment Limited held 296,644,800 shares, representing approximately 15.39% of total shares[4][88]. - The company has a stock incentive plan aimed at rewarding and retaining key personnel, enhancing performance and collaboration[91][92]. - The major shareholders include GHTongRui Investment Limited, HengXinYuan Investment Limited, and LINGFAN Investment Limited, among others[1][88]. - The company did not declare any interim dividends for the six months ended June 30, 2021[74]. Cash Flow and Financing - Cash and cash equivalents as of June 30, 2021, amounted to RMB 2,567.8 million, with no bank financing[66]. - The company maintained a capital debt ratio of zero as of June 30, 2021, due to the absence of long-term borrowings[67]. - The net cash flow from operating activities was RMB 13,826 thousand for the six months ended June 30, 2021, compared to RMB 44,689 thousand in the same period of 2020, a decrease of about 69.0%[128]. - The company reported a foreign exchange gain of RMB 28.5 million, compared to a gain of RMB 1.5 million in the same period last year[173]. Market Environment - The real estate industry in China saw a sales revenue of RMB 9.3 trillion in the first half of 2021, growing by 38.9% year-on-year, indicating a favorable market environment for digital upgrades[13]. - The company plans to enter 100 new cities throughout the year as part of its strategy to penetrate lower-tier markets[27].

Financial Performance - Revenue for the year 2020 reached RMB 1,705.3 million, representing a year-on-year growth of 34.9%[9] - Adjusted EBITDA for 2020 was RMB 422.3 million, an increase of 52.6% compared to the previous year[9] - Adjusted net profit for 2020 amounted to RMB 382.7 million, reflecting a year-on-year growth of 62.2%[9] - Total revenue increased by 34.9% from RMB 1,264.0 million in 2019 to RMB 1,705.3 million in 2020, driven by business expansion and improved reputation among existing and potential customers[42] - The company reported an operating profit of RMB 326.5 million for 2020, up from RMB 244.1 million in 2019[7] - The gross profit for the year ended December 31, 2020, was RMB 1,339.7 million, an increase of 34.7% compared to RMB 994.6 million for the year ended December 31, 2019[56] - The gross profit from SaaS products increased by 63.1% to RMB 758.4 million, while the gross profit from ERP solutions rose by 9.7% to RMB 581.3 million[56] SaaS and ERP Business Growth - SaaS product revenue reached RMB 871.2 million in 2020, a year-on-year increase of 70.9%, accounting for 51.1% of total revenue[9] - The company's SaaS business revenue increased by 70.9% year-on-year to RMB 871.2 million, accounting for 51.1% of total revenue, achieving profitability for the first time[15] - The ERP business maintained a year-on-year growth of 10.6%, reaching RMB 834.1 million despite the adverse effects of the pandemic[15] - The company's ERP solution revenue increased by 10.6% from RMB 754.1 million in 2019 to RMB 834.1 million in 2020, with 89 of the top 100 real estate developers as clients[26] Customer and Market Expansion - The company served approximately 15,200 sales offices in 2020, with a year-on-year growth of over 70%[9] - The number of developers served increased to about 2,000 in 2020, showing a year-on-year growth of 12.4%[9] - The number of cities covered by the company's marketing and service network expanded from 42 to 70 during the reporting period, enhancing localized professional services[15] - The average cooperation amount with the top 100 real estate developers increased significantly from RMB 4.7 million in 2019 to RMB 6 million in 2020, reflecting strong trust in the company's products and services[15] Financial Position and Assets - Total assets as of December 31, 2020, were RMB 7,472.2 million, compared to RMB 1,234.7 million in 2019[8] - Total liabilities were RMB 902.6 million in 2020, down from RMB 963.7 million in 2019[8] - The company's equity attributable to owners was RMB 6,538.8 million in 2020, compared to RMB 266.5 million in 2019[8] - Cash and cash equivalents, along with time deposits, totaled approximately RMB 6,572.1 million as of December 31, 2020, a significant increase from RMB 732.2 million in 2019[80] - The current ratio improved to 8.55 as of December 31, 2020, compared to 1.08 at the end of 2019, indicating a strong liquidity position[81] Operational Efficiency and Cost Management - The cost of sales for SaaS products surged by 151.0% from RMB 44.9 million in 2019 to RMB 112.8 million in 2020, primarily due to increased hardware costs and employee benefits[51] - The total cost of sales for ERP solutions increased by 12.6% to RMB 252.8 million, driven by rising employee and outsourcing costs[53] - Sales and marketing expenses increased by 33.8% to RMB 590.4 million, accounting for 34.6% of total revenue, slightly down from 34.9% in the previous year[57] - General and administrative expenses rose by 91.6% to RMB 207.7 million, with the proportion of total revenue increasing from 8.6% to 12.2%[58] - Research and development expenses increased by 24.3% to RMB 355.9 million, driven by an increase in the number of R&D staff and their compensation levels[59] Strategic Initiatives and Future Plans - The company aims to accelerate the digital upgrade of the real estate ecosystem in 2021, focusing on expanding its SaaS business and enhancing the Tianji Open Platform infrastructure[31] - The company plans to maintain its leading position in ERP solutions among real estate developers through its extensive regional channel partner network[31] - The company plans to enhance existing SaaS products with an investment of HKD 1,243.86 million, representing 18.0% of total net proceeds, to be completed by December 31, 2023[110] - The company aims to develop new SaaS products with an investment of HKD 414.62 million, also 6.0% of total net proceeds, to be finalized by December 31, 2023[110] Governance and Management - The company’s board of directors includes four executive directors and three independent non-executive directors[121] - The board has confirmed that the transactions conducted during the reporting period under the contract arrangements were established according to the relevant terms and were fair and reasonable[154] - The independent non-executive directors have confirmed their independence in accordance with the listing rules[188] - The company has arranged appropriate liability insurance for directors and senior officers to protect against legal actions arising from corporate activities[192] Social Responsibility and Community Engagement - The company has committed to social responsibility and environmental protection, including a donation of RMB 1 million for COVID-19 relief efforts[116] - The company emphasizes the importance of maintaining a strong relationship with stakeholders, including employees and customers, to ensure sustainable development[113]