Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 452.88 million, representing a 21% increase from RMB 375.57 million in the same period of 2023[1] - Gross profit for the same period was RMB 327.13 million, a 33% increase compared to RMB 245.24 million in 2023[1] - The company reported a loss attributable to equity holders of RMB 9.88 million, compared to a profit of RMB 18.14 million in the previous year[2] - Basic loss per share was RMB (0.031), down from earnings of RMB 0.057 per share in the prior year[1] - The group recorded a significant reduction in loss, with a loss of RMB 0.06 million after excluding non-operating factors, compared to a loss of RMB 56.61 million in the same period last year[2] - The company reported a net loss of RMB 9,879,000 for the six months ended June 30, 2024, compared to a profit of RMB 18,135,000 for the same period in 2023[26] - The group achieved a revenue of RMB 452.88 million, representing a 21% year-on-year growth, with cloud subscription revenue reaching RMB 307.85 million, up 35% year-on-year, accounting for 68% of total revenue[46] - The group recorded a gross profit of RMB 327.13 million, a 33% increase year-on-year, while the net loss attributable to the parent company was RMB 9.88 million, compared to a profit of RMB 18.14 million in the same period last year[46] Research and Development - Research and development costs decreased to RMB 102.49 million from RMB 127.75 million year-on-year[3] - Research and development costs were RMB 102,490,000 for the six months ended June 30, 2024, down from RMB 127,750,000 in the previous year, reflecting a reduction of approximately 19.8%[22] - Total R&D investment for the six months ended June 30, 2024, was RMB 113.84 million, a decrease of 11% year-on-year, with R&D costs at RMB 102.49 million, down 20% from the previous year[69] Assets and Liabilities - Total current assets decreased to RMB 1,027.61 million from RMB 1,266.81 million as of December 31, 2023[5] - Total liabilities increased to RMB 618.69 million from RMB 552.79 million in the previous year[5] - The company's total equity attributable to equity holders was RMB 859.85 million, slightly down from RMB 869.66 million at the end of the previous year[6] - Trade receivables as of June 30, 2024, amounted to RMB 65,373 thousand, an increase from RMB 57,967 thousand as of December 31, 2023[30] - The aging analysis of trade receivables shows that amounts overdue for 0 to 90 days decreased to RMB 40,717 thousand from RMB 45,886 thousand[31] - Prepayments increased to RMB 165,409 thousand as of June 30, 2024, compared to RMB 146,807 thousand as of December 31, 2023[33] - The total amount of other receivables and other assets was RMB 256,899 thousand as of June 30, 2024, up from RMB 234,357 thousand as of December 31, 2023[33] Cash Flow and Financial Position - The cash flow from operating activities turned positive, reaching RMB 49.33 million, with cash and bank balances at RMB 1,234.56 million, indicating a healthy financial position[46] - The company's cash and bank balances include a current portion of RMB 780,327,000 as of June 30, 2024, compared to RMB 886,853,000 as of December 31, 2023[37] - The group’s cash and bank balances as of June 30, 2024, were RMB 1,234.56 million, an increase from RMB 1,037.57 million as of December 31, 2023[76] - The current ratio as of June 30, 2024, was 166%, down from 229% as of December 31, 2023, primarily due to the purchase of long-term deposits[77] Operational Highlights - The company operates primarily in the cloud services sector, which constitutes a significant portion of its operations[15] - The number of new paid enterprise users for cloud services increased by 73,000, a 29% growth compared to the same period last year, bringing the total to 706,000[47] - The group launched a new financial and tax open platform, enhancing integration with mainstream SaaS products, thereby improving customer satisfaction and operational efficiency[48] - The group is focusing on the integration of AI technology in its products, particularly in the areas of smart tax and business solutions, to enhance automation and efficiency for micro-enterprises[48] - The group is expanding its market coverage by strengthening channel distribution in county-level markets and enhancing the density and breadth of coverage in key regions[46] - The group aims to improve the overall operational efficiency of the industry chain by enhancing upstream and downstream collaboration capabilities[50] - The group is committed to developing industry-specific solutions in sectors such as electronic, mechanical, and food processing, to support the digital transformation of micro-manufacturing enterprises[50] Corporate Governance and Compliance - The financial statements were prepared in accordance with International Financial Reporting Standards, ensuring compliance and transparency[11] - The company has adopted new accounting standards, but these did not materially impact its financial position or performance[13] - The company has fully complied with the corporate governance code as per the listing rules during the reporting period[88] - The audit committee reviewed the unaudited interim results announcement and report for the six months ended June 30, 2024, confirming compliance with applicable accounting standards[90] Dividends and Shareholder Returns - The company did not declare an interim dividend for the six months ended June 30, 2024[1] - The board of directors did not recommend any interim dividend for the six months ended June 30, 2024[87] Employee and Organizational Changes - The total number of employees decreased by 8% to 1,026, with ongoing efforts to optimize organizational structure and enhance team efficiency[57]

Key Points 1. Event Details - **Industry/Company**: Investment banking, financial services - **Event**: Anxin International 2024 Mid-Year Investment Strategy Conference and Public Company Exchange Meeting - **Host**: Tina Wang, Analyst at Anxin International TMP - **Organizer**: Lu Ye Zhong - **Document ID**: [1] 2. Conference Overview - The conference aims to discuss investment strategies and public company analysis. - It is an opportunity for investors to gain insights into market trends and potential investment opportunities. - **Document ID**: [1]

Summary of the Conference Call Company/Industry Involved - The conference call is hosted by Anxin International, focusing on the 2024 mid-term investment strategy and communication with listed companies [1] Core Points and Arguments - The meeting is led by Tina Wang, a TMP analyst at Anxin International, indicating a structured approach to discussing investment strategies and insights into listed companies [1] Other Important but Possibly Overlooked Content - The call serves as a platform for investors to gain insights into market trends and company performances, highlighting the importance of such events in the investment community [1]

Financial Performance - The company's revenue for 2023 reached RMB 800,621,000, representing a 17.7% increase from RMB 680,149,000 in 2022[14] - The pre-tax profit for 2023 was RMB 21,696,000, a significant recovery from a loss of RMB 211,955,000 in 2022[14] - The net profit attributable to the owners of the parent company for 2023 was RMB 15,876,000, compared to a loss of RMB 212,095,000 in the previous year[15] - The basic earnings per share for 2023 was RMB 5.0, recovering from a loss of RMB 70.8 in 2022[15] - The company recorded a gross profit of RMB 538.60 million, a 30% increase compared to the previous year, and reported a profit attributable to shareholders of RMB 15.88 million, recovering from a loss of RMB 212.10 million in the prior year[43] - The company achieved a revenue of RMB 800.62 million, representing an 18% increase year-on-year, with cloud subscription revenue reaching RMB 487.70 million, up 28%, accounting for 61% of total revenue[43] - The company reported a significant improvement in operating cash flow, with a net outflow of RMB 42.05 million, compared to RMB 159.12 million in the previous year[64] - The company’s cash and bank deposits, along with bank wealth management products, totaled RMB 1,190.62 million, indicating a healthy financial position[64] Market Position and Strategy - The company ranked first in the Chinese micro-enterprise SaaS market in terms of market share and cumulative paying users, according to Frost & Sullivan[13] - The company aims to deepen customer value and expand market coverage as part of its future strategy[21] - The company plans to focus on the digital tax and business sectors for small and micro enterprises, aiming to solidify its leading position in the cloud service market for these businesses[31] - The company aims to leverage AI technology to enhance marketing systems and improve operational efficiency, contributing to rapid growth in direct sales revenue[30] - The company will continue to strengthen its channel layout and promote the digital transformation of small and micro enterprises through various initiatives, including industry seminars[33] - The company has over 3,000 partners, enhancing its channel coverage in county-level markets and promoting the transformation of traditional partners into digital value-added service providers[30] Product and Innovation - The company is committed to enhancing product competitiveness and operational efficiency through the application of AI technology in product innovation and company operations[31] - The company plans to enhance product innovation in the "Five New" areas, focusing on AI technology applications to improve product competitiveness and market coverage[51] - In the digital tax domain, the company has fully automated the management of electronic invoices, improving efficiency and accuracy in tax reporting for micro-enterprises through AI technologies[71] - The company’s cloud tax products saw a 46% year-on-year increase in new order value for its popular cloud accounting services[67] Corporate Governance - The board currently consists of six members, including three independent non-executive directors, ensuring compliance with corporate governance standards[99] - The company has established a strategic committee, audit committee, remuneration and assessment committee, and nomination committee[125] - The audit committee recommended the reappointment of Ernst & Young as the company's auditor for the 2024 fiscal year, pending shareholder approval[111] - The company ensures that independent non-executive directors constitute at least one-third of the board, maintaining a balanced composition[105] - The board composition includes 2 non-executive directors, 1 executive director, and 3 independent non-executive directors, with a total of 5 male directors and 1 female director[167] - The company is committed to reviewing its corporate governance policies and compliance with the corporate governance code annually[171] Risk Management - The company faces risks related to the stability of the economic recovery in China, competition in the cloud service market, and increasing regulatory requirements for information and network security[41] - The company has not identified any significant deficiencies in risk management and internal control systems[176] - The board has reviewed the effectiveness of the risk management and internal control systems, finding them to be effective and sufficient[193] - The company has engaged an independent internal control consultant to review its risk management and internal control systems[193] Employee and Diversity - The total number of employees as of December 31, 2023, is 1,110, with 772 male employees (70%) and 338 female employees (30%)[185] - The company aims to maintain at least one female director on the board and to gradually increase the proportion of female directors[183] - The board has implemented a diversity policy, considering factors such as gender, age, culture, education background, and professional experience during the director nomination process[183] - The company has a commitment to gender diversity in its hiring practices, ensuring no gender discrimination[185] Awards and Recognition - The company received multiple awards in 2023, including "Best Innovative Service Enterprise" and "Outstanding Digital Service Provider" at various industry events[13] - The company has been recognized as a "National Key Software Enterprise" and a "High-tech Enterprise" for several consecutive years[26] - The company is committed to high standards of user information and privacy security, achieving multiple authoritative certifications[26] Shareholder Information - The company's total issued share capital as of December 31, 2023, is 325,772,499 shares, with domestic shares accounting for 74.68% and H shares for 25.32%[138] - The company has not issued any new shares or debt securities during the year ended December 31, 2023[138] - The company will withhold corporate income tax at a rate of 10% on dividends distributed to non-resident shareholders[175] - The company emphasizes the importance of considering operational conditions and market environment when deciding on dividend distribution[139]

智通财经APP讯，畅捷通(01588)发布截至2023年12月31日止年度业绩，该集团期内取得收入8.01亿元(人民币，下同)，同比增加17.71%;股东应占溢利1587.6万元，上年同期股东应占亏损2.12亿元，同比扭亏为盈;每股基本盈利5分。 公告称，集团报告期内实现转亏为盈，主要因为集团促进业务规模化、效益化发展，持续提升产品竞争力，并坚持生态共荣发展，不断提升市场覆盖度，报告期内收入实现持续增长，毛利率水平较上年有所回升，达到67%，而研发成本、销售及分销开支、管理费用合计较上年减少2%;报告期内出售财税技能实训产品及服务业务实现收益约4375万元，上年无该类收益;及报告期内按公平值计入损益的非上市股本投资公平值变动收益较上年增加约4586万元。扣除上述所述非经营性因素影响后，报告期内集团母公司拥有人应占亏损较上年减少68%。 ...

Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 800,621 thousand, representing an 18% increase from RMB 680,149 thousand in 2022[9] - Gross profit increased by 30% to RMB 538,599 thousand in 2023, compared to RMB 413,608 thousand in the previous year[9] - The net profit attributable to the owners of the parent company was RMB 15,876 thousand, a significant recovery from a loss of RMB 212,095 thousand in 2022[9] - Basic earnings per share improved to RMB 0.050 from a loss of RMB 0.708 in the previous year[9] - Total revenue for the year 2023 reached RMB 800,621,000, an increase of 17.6% compared to RMB 680,149,000 in 2022[42] - Revenue from product sales was RMB 215,954,000, up from RMB 173,093,000 in the previous year, reflecting a growth of 24.9%[42] - Revenue from service provision increased to RMB 582,607,000, compared to RMB 504,784,000 in 2022, marking a rise of 15.4%[42] - For the year ended December 31, 2023, the pre-tax profit was RMB 21,696,000, compared to a pre-tax loss of RMB 211,955,000 in 2022[58][60] - The profit attributable to ordinary equity holders for 2023 was RMB 15,876 thousand, compared to a loss of RMB (212,095) thousand in 2022[64] Cash Flow and Liquidity - Cash and bank balances decreased to RMB 1,037,565 thousand in 2023 from RMB 1,169,225 thousand in 2022[6] - The company reported a significant improvement in operating cash flow, with a net outflow of RMB 42.05 million, compared to RMB 159.12 million in the previous year[87] - The net cash flow used in operating activities for the year ended December 31, 2023, was RMB 42.05 million, an improvement of RMB 117.07 million compared to the previous year's cash outflow, mainly due to increased collections from cloud services[156] - The group's liquidity ratio as of December 31, 2023, was 229%, up from 209% in the previous year, indicating improved financial stability[159] - The current ratio as of December 31, 2023, was 229%, up from 209% as of December 31, 2022, mainly due to a reduction in current liabilities from the termination of stock repurchase obligations[181] Assets and Liabilities - The company reported total assets of RMB 1,586,083 thousand as of December 31, 2023, compared to RMB 1,518,777 thousand in 2022[17] - Non-current liabilities totaled RMB 163,132 thousand as of December 31, 2023, compared to RMB 155,004 thousand in 2022, representing an increase of 5.5%[18] - Lease liabilities decreased significantly to RMB 218 thousand in 2023 from RMB 6,185 thousand in 2022, indicating a reduction of approximately 96.5%[18] - The company's net assets increased to RMB 869,658 thousand in 2023, up from RMB 712,313 thousand in 2022, reflecting a growth of 22.1%[18] - Long-term liabilities decreased to RMB 16,990 thousand in 2023 from RMB 38,862 thousand in 2022, a decline of 56.4%[18] Research and Development - Research and development costs were reduced to RMB 247,340 thousand in 2023 from RMB 271,725 thousand in 2022[9] - Research and development costs for the year were RMB 229,261,000, down from RMB 252,356,000 in 2022, representing a decrease of approximately 9.1%[54] - The company benefited from a tax incentive allowing a 100% deduction of eligible R&D expenses for the year, compared to a 75% deduction in the previous year[61] Operational Highlights - The company operates in the fields of software and hardware technology development, technical consulting, and sales of computer consumables, indicating a diverse operational scope[26] - The number of new paid enterprise users for cloud services increased by approximately 130,000, a 23% growth year-over-year, bringing the total to 633,000[87] - The company launched an intelligent tax and accounting BaaS service, enhancing automation and efficiency for micro-enterprises, with new order amounts for its popular cloud tax products increasing by 46% year-over-year[89] - The company continues to focus on AI technology applications, enhancing product competitiveness and expanding market coverage through diversified partnerships[86] Customer and Market Insights - The company has no significant customers contributing 10% or more to total revenue, thus no major customer data is disclosed[41] - The company operates primarily in mainland China, with 99% of identifiable non-current assets located there, negating the need for regional data disclosure[40] - The company aims to further enhance its ecological integration capabilities and expand its customer base through deep integration with platforms like DingTalk and WeChat Work[92] Awards and Recognition - The company received multiple awards, including the "Best Innovative Service Enterprise Award" at the 2023 iResearch Awards and recognition as a leading enterprise in cloud services for small businesses[123] Future Outlook and Challenges - The company faces risks related to the stability of the economic recovery and increasing competition in the cloud services market for small businesses[112] - The ongoing digitalization of electronic invoices across 36 provinces is expected to significantly enhance the demand for integrated financial and tax products among small businesses[109]

Topic 1: Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the Asia-Pacific region [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8% due to increased marketing and R&D investments [3]. Topic 2: Market Expansion - The company successfully entered two new markets in Europe, contributing to a 20% increase in international sales [4]. - A new distribution center was opened in South America to support regional growth [5]. - Strategic partnerships were formed with local retailers in Southeast Asia to enhance market penetration [6]. Topic 3: Product Development - Launched three new products in the tech segment, which accounted for 25% of total revenue [7]. - R&D spending increased by 10% to accelerate innovation and product differentiation [8]. - Customer feedback on the new product line has been overwhelmingly positive, with a 90% satisfaction rate [9]. Topic 4: Operational Efficiency - Implemented a new ERP system, reducing operational costs by 5% [10]. - Streamlined supply chain processes, resulting in a 15% reduction in delivery times [11]. - Employee productivity improved by 12% following the introduction of new training programs [12]. Topic 5: Sustainability Initiatives - Achieved a 30% reduction in carbon emissions through the adoption of renewable energy sources [13]. - Launched a recycling program that has successfully diverted 50% of waste from landfills [14]. - Committed to achieving net-zero emissions by 2030, with interim targets set for 2025 [15]. Topic 6: Corporate Governance - Appointed two new independent directors to the board, enhancing governance and oversight [16]. - Conducted a comprehensive review of corporate policies to ensure compliance with global standards [17]. - Increased transparency by publishing detailed quarterly reports and holding regular investor briefings [18].

Financial Performance - Revenue increased by 12% to RMB 375.57 million, with gross profit rising by 19% to RMB 245.24 million[16] - Net profit attributable to parent company shareholders was RMB 18.14 million, compared to a loss of RMB 78.47 million in the same period last year[4] - Revenue for the first half of 2023 reached RMB 375.57 million, a 12% increase year-over-year[151] - Net profit attributable to owners of the parent company was RMB 18.14 million, compared to a loss of RMB 78.47 million in the same period last year[151] - Gross profit margin improved to 65%, up 4 percentage points from the previous year[151] - The company achieved a turnaround from loss to profit, driven by increased product competitiveness, ecosystem partnerships, and a gain of RMB 43.75 million from the sale of a tax training business[152] - Gross profit for the six months ended June 30, 2023, was RMB 245.24 million, a 19% increase year-over-year, driven by the expansion of cloud subscription revenue and improved gross margin, which rose by 4 percentage points to 65%[175] - The company recorded a profit attributable to owners of RMB 18.14 million, compared to a loss of RMB 78.47 million in the same period last year, with basic earnings per share of RMB 0.057, up from a loss per share of RMB 0.262[137] Cash Flow and Liquidity - Net cash used in operating activities decreased to RMB 28.05 million from RMB 56.98 million, reflecting improved cash flow management[5] - Net cash outflow from operating activities for the six months ended June 30, 2023, was RMB 28.05 million, a decrease of RMB 28.94 million compared to the same period last year, primarily due to increased cloud service collections and reduced payments related to cloud service business[39] - Cash and bank balances decreased to RMB 948.79 million from RMB 1,169.23 million, primarily due to the purchase of structured deposits and increased employee payments[26] - The company's cash and cash equivalents decreased to RMB 758,354 thousand as of June 30, 2023, from RMB 899,740 thousand as of December 31, 2022[127] Expenses and Costs - R&D costs decreased by 4% to RMB 127.75 million, primarily due to a reduction in labor costs of RMB 4.38 million[1] - Sales and distribution expenses for the six months ended June 30, 2023, were RMB 158.72 million, a 12% increase compared to the same period last year, primarily due to increased sales promotion expenses[35] - Administrative expenses for the six months ended June 30, 2023, were RMB 40.62 million, a 4% increase compared to the same period last year, mainly due to a one-time severance payment of RMB 6.89 million resulting from organizational restructuring[36] - R&D expenses decreased by 4% to RMB 127.75 million, while sales and distribution expenses increased by 12% to RMB 158.72 million[151] - Sales and service provision costs for the six months ended June 30, 2023, were RMB 130.33 million, remaining flat compared to the same period last year[173] - The company's contract operation costs for the six months ended June 30, 2023, were RMB 101.84 million, a 1% decrease year-over-year, while operation and maintenance costs increased by 72% to RMB 10.17 million[192] - The company's labor costs for the six months ended June 30, 2023, were RMB 8.61 million, a 23% decrease year-over-year[192] - The company's service costs for the six months ended June 30, 2023, were RMB 4.05 million, a 12% increase year-over-year[192] - The company's software development and production costs for the six months ended June 30, 2023, were RMB 595,000, a 40% decrease year-over-year[192] - The company's other costs for the six months ended June 30, 2023, were RMB 1.46 million, a 12% increase year-over-year[192] - The company's total sales and service provision costs for the six months ended June 30, 2023, were RMB 130.33 million, a 1% increase year-over-year[192] Revenue Breakdown - Customer contract revenue for the six months ended June 30, 2023, was RMB 375.573 million, compared to RMB 335.099 million in the same period last year[46] - Product sales revenue for the six months ended June 30, 2023, was RMB 98.74 million, compared to RMB 94.065 million in the same period last year[50] - Service revenue for the six months ended June 30, 2023, was RMB 275.708 million, compared to RMB 239.89 million in the same period last year[50] - Revenue from goods/services transferred at a point in time was RMB 137.954 million, while revenue from services transferred over time was RMB 237.619 million for the first half of 2023[64] - The company achieved revenue of RMB 375.57 million, a 12% year-on-year increase, with cloud subscription revenue reaching RMB 227.77 million, a 28% year-on-year growth, accounting for 61% of total revenue[137] - Cloud subscription revenue grew 28% year-over-year to RMB 227.77 million, accounting for 61% of total revenue[153] Investments and Financial Assets - Net cash used in investing activities was RMB 111.97 million, mainly due to the purchase of structured deposit products[22] - The company purchased RMB 200,000,000 worth of financial products from commercial banks as of June 30, 2023, classified as financial assets at fair value through profit or loss[125] - The company's financial assets at fair value through profit or loss included RMB 201,962 thousand in wealth management products[92] - Fair value gains on financial assets at fair value through profit or loss amounted to RMB 32.955 million for the first half of 2023, compared to a loss of RMB 3.606 million in the same period last year[69] Capital Structure and Debt - The capital structure remains strong with a debt-to-equity ratio of 0%, supported by stable cash inflows from operations[26] - The company has no interest-bearing debt (excluding lease liabilities) as of June 30, 2023, resulting in a capital gearing ratio of zero[52] - The current ratio improved to 268% from 209%, driven by a reduction in current liabilities[26] Tax and Other Income - Total tax expenses for the first half of 2023 amounted to RMB 4.558 million, with deferred tax expenses of RMB 4.553 million and current tax expenses of RMB 5,000[57] - The company, as a qualified high-tech enterprise, paid income tax at a rate of 15% for the first half of 2023 and was eligible to deduct qualified R&D expenses from taxable profits[77] - Other income for the first half of 2023 included VAT refunds of RMB 11.033 million, government subsidies of RMB 630,000, and interest income of RMB 12.911 million[69] - Other income and net gains for the six months ended June 30, 2023, were RMB 104.39 million, a 212% increase year-over-year, primarily due to the sale of financial and tax training products and services, which generated RMB 43.75 million, and an increase in fair value changes of non-listed equity investments by RMB 35.77 million[175] Employee and Compensation - Total cash payments to employees under long-term incentive plans for the six months ended June 30, 2023, were RMB 74.88 million, compared to RMB 33.61 million in the same period last year[39] - The company's long-term incentive bonus expenses recognized in profit or loss amounted to RMB 9,688,000 for the six months ended June 30, 2023, a decrease from RMB 19,343,000 for the same period in 2022[114] - The company's accrued bonuses decreased to RMB 20,224 thousand as of June 30, 2023, from RMB 38,862 thousand as of December 31, 2022[130] - The company's employee wages and benefits payable decreased to RMB 69,422 thousand as of June 30, 2023, from RMB 109,069 thousand as of December 31, 2022[112] - The company's total number of employees decreased by 8% to 1,109, with a focus on optimizing organizational structure and improving talent efficiency[144] Business Operations and Strategy - No significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures were made during the reporting period[11][12] - The company disposed of its financial and tax skills training product and service business for a total consideration of RMB 43,800,000, resulting in a disposal gain of RMB 43,755,000[104] - The company's cloud service business added approximately 57,000 new paying enterprise users during the reporting period, with a cumulative total of approximately 560,000 paying enterprise users by the end of the period[118] - The company's contract liabilities for services provided increased to RMB 503,157 thousand as of June 30, 2023, compared to RMB 441,472 thousand as of December 31, 2022[112] - The company's open platform has certified over 2,000 ISV ecosystem partners, with daily API calls exceeding 3.5 million, and nearly 1,000 individual and organizational developers registered on the low-code platform, creating over 4,000 low-code applications[140] - The company added 395 new channel partners, expanding coverage to county-level markets, and conducted over 700 "Digital Intelligence Salon" industry seminars[141] - The company plans to enhance its AI capabilities in digital finance and tax products, and accelerate product development in new commerce, retail, manufacturing, and service sectors[146] - The company aims to leverage the full promotion of digital electronic invoices to scale customer acquisition and expand channel coverage in county-level markets[147] - The company will deepen precision marketing strategies in direct sales, applying AI technology to drive customer acquisition growth and enhance e-commerce platform operations[149] - The company strengthened its position in the digital tax sector, partnering with multiple banks and being selected for a government-led electronic voucher accounting data standard pilot program[158] - New retail initiatives focused on industries like baking, fresh produce, and convenience stores, leveraging AI-generated marketing materials to enhance user experience[159] - The company was recognized as a leader in cloud financial and tax services for small and micro enterprises, winning multiple awards for its innovative products and ecosystem partnerships[164] Assets and Liabilities - The company's investment in an associate, Beijing Changjietong Payment Technology Co., Ltd., had a carrying amount of RMB 17.458 million as of June 30, 2023[82] - Trade receivables as of June 30, 2023, amounted to RMB 46,989 thousand, with an impairment provision of RMB 472 thousand[99] - Prepayments as of June 30, 2023, totaled RMB 105,207 thousand, a slight decrease from RMB 106,598 thousand at the end of 2022[90] - Contract acquisition costs decreased to RMB 75,843 thousand as of June 30, 2023, from RMB 92,131 thousand at the end of 2022[90] - Trade payables as of June 30, 2023, amounted to RMB 16,813 thousand, with the majority due within 90 days[110] - The company's payable taxes (excluding income tax) increased to RMB 24,085 thousand as of June 30, 2023, from RMB 12,520 thousand as of December 31, 2022[112] - The company's prepayments from customers decreased to RMB 11,349 thousand as of June 30, 2023, from RMB 13,914 thousand as of December 31, 2022[112] - The company's other payables increased to RMB 19,204 thousand as of June 30, 2023, from RMB 16,620 thousand as of December 31, 2022[112] - The company's total equity as of June 30, 2023, was RMB 871.86 million, compared to RMB 712.31 million in the previous year[194] Foreign Exchange and Risk - The company faces minimal foreign exchange risk, with most transactions conducted in RMB and no hedging arrangements in place[13] - The company's subsidiary in the U.S. is subject to a 21% income tax rate for the six months ended June 30, 2023[93] Earnings Per Share - The weighted average number of ordinary shares used to calculate basic earnings per share for the first half of 2023 was 315,691,427[81] - The basic and diluted earnings per share for the six months ended June 30, 2023, were RMB 18,135 thousand, compared to a loss of RMB 78,471 thousand in the same period in 2022[95] Intangible Assets and Amortization - Intangible asset amortization for the first half of 2023 was approximately RMB 3.598 million, included in the "cost of sales and services provided" in the consolidated income statement[55] - Capital expenditures for the first half of 2023 totaled RMB 0.38 million for new property, plant, and equipment (compared to RMB 2.25 million in the same period last year), RMB 0.72 million for new right-of-use assets (mainly leased office buildings, compared to RMB 16.69 million last year), and RMB 0.19 million for new intangible assets (compared to RMB 0.04 million last year)[54]

Financial Performance - The company achieved a total revenue of RMB 680.15 million in 2022, representing a 15% increase compared to the previous year[15]. - SaaS subscription revenue reached RMB 381.14 million, marking a significant growth of 47% year-over-year[15]. - Gross profit for 2022 was RMB 413.61 million, slightly up from RMB 410.35 million in 2021[12]. - The company reported a net loss of RMB 212.10 million for the year, compared to a net loss of RMB 185.07 million in 2021[12]. - The company's gross profit margin decreased to 61% from 70% in the previous year, reflecting a 9% decline[53]. - The company reported a loss attributable to equity holders of RMB 212.10 million, a 15% increase from the previous year's loss of RMB 185.07 million[36]. - The cost of sales and services was RMB 266.54 million, up 48% from the previous year, primarily due to increased operating costs in cloud services by RMB 83.49 million[57]. - The company's other income and net gains for the year ended December 31, 2022, were RMB 59.69 million, a decrease of 4% year-on-year, primarily due to a reduction in interest income from bank deposits and financial products[62]. - The company experienced increased losses compared to the previous year due to the negative impact of the COVID-19 pandemic, with revenue growth falling short of expectations[88]. - Despite challenges, the company achieved high growth in SaaS subscription revenue and continued overall revenue growth, focusing on small and micro enterprises in digital finance and business sectors[88]. User Growth and Market Position - The total number of paid enterprise users for the cloud service business reached 503,000 by the end of the reporting period[15]. - The company maintained its leading position in the small and micro enterprise cloud financial and tax service market, with the highest market share[9]. - The company reported a significant increase in user data, reflecting a growing customer base and engagement[107]. - The company reported a significant increase in user growth, with a year-over-year increase of 25% in active users[121]. Strategic Focus and Product Development - The company continues to focus on enhancing product competitiveness and expanding sales channels in the small and micro enterprise sector[15]. - The company accelerated product innovation in the "Five New" areas, enhancing product competitiveness and expanding application scenarios[18]. - The company is focusing on enhancing product competitiveness and expanding market coverage through ecological cooperation and direct sales[36]. - The digital tax and finance product line continues to enhance its capabilities, supporting full electronic invoice processing and improving integration with banking services[38]. - The digital business segment saw a 51% increase in subscription revenue year-on-year, driven by the optimization of products in new retail and new manufacturing sectors[41]. - The company plans to enhance product competitiveness and promote ecological co-prosperity, transitioning from application services to an ecological platform[21]. - The company will continue to optimize product development in new commerce, new retail, new manufacturing, and new services, improving industry adaptability and delivery capabilities[22]. Operational Efficiency and Talent Development - The company is committed to enhancing organizational efficiency and talent development to support long-term growth[27]. - The management team emphasizes the importance of strategic initiatives to drive growth and improve operational efficiency[110]. - The company has implemented a comprehensive training program to enhance employee skills and capabilities, focusing on leadership and professional development[177]. - The compensation policy includes a performance-oriented structure, with independent non-executive directors receiving an annual allowance of RMB 150,000 and independent supervisors RMB 80,000[180]. - The company has established various incentive plans, including employee trust beneficiary rights plans and long-term incentive bonus plans, to attract and retain key talent[181]. Market Expansion and Future Outlook - In 2023, the company aims to solidify its leading position in the small and micro enterprise cloud service market, focusing on digital tax and business solutions[20]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share by 2025[121]. - Future guidance indicates expected revenue growth of 18% for the next quarter[121]. - The company aims to leverage its financial expertise to navigate regulatory changes and optimize tax strategies[111]. Financial Management and Governance - The company has a structured approach to risk management and compliance, as detailed in the financial risk management objectives and policies section of the report[139]. - The board of directors includes experienced professionals with diverse backgrounds in finance, technology, and management, ensuring robust governance[112]. - The board's report outlines the company's commitment to sustainable development while ensuring reasonable returns for investors[143]. - The company has undergone changes in its board composition, with new appointments effective from July 26, 2022[153]. Shareholder Information and Capital Structure - The company reported a total issued share capital of 325,772,499 shares as of December 31, 2022, with domestic shares accounting for 74.68% and H-shares for 25.32%[142]. - The major shareholder, Yongyou, holds 215,301,391 domestic shares, accounting for approximately 66.09% of the total share capital[161]. - The top five customers do not account for more than 30% of the total revenue, indicating no reliance on major customers[166]. - The company has no foreign currency hedging arrangements and closely monitors exchange rate fluctuations to mitigate risks[89]. - The company has made arrangements to comply with tax regulations for H-share individual shareholders based on their residency[149].

Revenue and Financial Performance - Total customer contract revenue for the year reached RMB 680,149,000, an increase of 15.2% compared to RMB 590,324,000 in the previous year[12] - Revenue from product sales was RMB 173,093,000, while service revenue was RMB 504,784,000, indicating a strong service segment performance[12] - The company reported revenue of RMB 680.15 million for the year, representing a 15% increase compared to the previous year, with SaaS subscription revenue growing by 47% to RMB 381.14 million, accounting for 56% of total revenue[62] - The company's contract liabilities for SaaS subscriptions at the end of the period amounted to RMB 428.86 million, an increase of 21% from the previous year[62] - The company reported a total comprehensive loss of RMB 211,886,000 for the year ended December 31, 2022, compared to a loss of RMB 185,128,000 in the previous year, indicating an increase in losses of approximately 14.5%[178] - The loss attributable to equity holders of the parent company was RMB 212,095,000, which is a 15% increase from RMB 185,070,000 in 2021[154] - Basic loss per share for the year was RMB 0.708, up 14% from RMB 0.622 in the prior year[154] - Gross profit for the same period was RMB 413,608,000, showing a slight increase of 1% compared to RMB 410,352,000 in the previous year[154] Cash and Liquidity - Cash and cash equivalents totaled RMB 899,740,000, up from RMB 539,433,000 in the previous year, reflecting improved liquidity[33] - Cash and bank balances, including restricted funds, amounted to RMB 1,169.225 million in 2022, a decrease from RMB 1,196.100 million in 2021[54] - The group's cash and bank balances as of December 31, 2022, were RMB 1,169.23 million, a decrease from RMB 1,196.10 million as of December 31, 2021, primarily due to increased operational costs[112] - The company's current ratio as of December 31, 2022, was 209%, down from 257% as of December 31, 2021, primarily due to a decrease in current assets[134] Expenses and Costs - The group's sales and service costs for the year ended December 31, 2022, amounted to RMB 266.54 million, an increase of 48% compared to the previous year, primarily due to an increase in cloud service business contract operating costs by RMB 83.49 million[74] - Research and development costs for the year ended December 31, 2022, were RMB 271.73 million, reflecting a 12% increase from the previous year, mainly due to an increase in labor costs by RMB 25.36 million[77] - Sales and distribution expenses for the year ended December 31, 2022, were RMB 308.12 million, a 1% increase from the previous year, primarily due to an increase in labor costs by RMB 7.44 million, although some marketing activities were hindered by the pandemic[78] - The group's operating costs for contract management increased to RMB 209.87 million, representing 79% of total sales and service costs, up from 70% the previous year[75] Assets and Liabilities - The company’s non-current assets decreased to RMB 730,000,000 from RMB 1,664,000,000 in the previous year, indicating a potential restructuring or divestment[24] - The company's net assets decreased to RMB 712,313,000 from RMB 923,389,000 in 2021, reflecting a decline in equity[162] - The total non-current liabilities increased to RMB 155,004,000 from RMB 137,183,000 in the previous year[162] - Current assets also decreased from RMB 1,447,533,000 in 2021 to 1,362,242,000 in 2022, representing a reduction of approximately 5.9%[179] - The company’s intangible assets decreased from RMB 12,973,000 in 2021 to RMB 5,307,000 in 2022, reflecting a decrease of about 59.0%[179] Customer and Market Strategy - The company has no single customer contributing 10% or more to total revenue, indicating a diversified customer base[10] - The group aims to enhance product competitiveness and maintain a leading edge in digital financial and tax products, while also focusing on customer success and information security[91] - The group plans to leverage the nationwide promotion of fully electronic invoices to meet the increasing demand from small and micro enterprises for integrated financial and tax solutions[90] - The group added 174 new county-level points of presence, expanding coverage to 131 districts and counties, as part of its strategy to deepen market penetration[95] Risks and Challenges - The company faces risks including intensified competition in the cloud services market and potential impacts from the COVID-19 pandemic on small and micro enterprises' digital transformation investments[61] Employee and Organizational Development - The total number of employees as of December 31, 2022, was 1,207, a decrease from 1,289 on December 31, 2021, reflecting ongoing organizational optimization[117] - The group will focus on improving employee capabilities through various training programs, including leadership and professional skills enhancement initiatives[119] - The management emphasizes the importance of maintaining a professional talent development system to retain core talents and enhance organizational competitiveness[100] Fundraising and Utilization - The company raised a total of HKD 900.90 million, with a net amount of HKD 854.96 million after deducting related issuance costs[122] - As of December 31, 2022, the company has used approximately HKD 769.24 million of the raised funds, leaving approximately HKD 85.72 million unutilized[123] - The company plans to use approximately HKD 290.69 million for the development and market input of T+ series software products, with about HKD 4.46 million utilized during the reporting period[123] - The company has allocated approximately HKD 194.08 million for the research and development of cloud platform and innovative application products, with no amount utilized during the reporting period[123] - The unutilized raised funds as of December 31, 2022, are deposited in reputable banks in Hong Kong and mainland China, to be used in accordance with the disclosed purposes[145] - The company has adjusted the planned usage timeline for unutilized funds for acquisitions related to business strategies to December 31, 2025, due to the inability to identify suitable targets[144] Technology and Innovation - The company has enhanced its product capabilities in the digital tax and finance sector, supporting full electronic invoice processing and improving bank-enterprise connectivity[63] - The company engaged in technology development, consulting, and sales of computer software and hardware, indicating a focus on expanding its service offerings[164] - The company plans to continue its investment in research and development to enhance its product offerings and market competitiveness[164] - The company has subsidiaries in the United States and China, indicating a strategy for international market expansion[166] Compliance and Governance - The company has not engaged in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[137] - The company did not recommend a final dividend for the year ended December 31, 2022[176] - The performance obligation is fulfilled upon product delivery, typically requiring advance payment[200] - There are no contractual rights for customers to return products, and there is no need for variable consideration[200]