Group 1 - The company, Chuangjietong (01588.HK), announced that its board meeting will be held on August 29, 2025, to review and approve the unaudited interim results for the six months ending June 30, 2025 [1] - The meeting will also address other matters as necessary [1]

董事會會議通告 本公告乃由暢捷通信息技術股份有限公司（「本公司」）根據香港聯合交易所有限公司證券 上市規則第13.43條而作出。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHANJET INFORMATION TECHNOLOGY COMPANY LIMITED* 暢捷通信息技術股份有限公司 王文京 董事長 中國，北京 二零二五年八月十五日 於本公告日期，本公司非執行董事為王文京先生及吳政平先生；本公司執行董事為楊雨 * 僅供識別 本公司董事會（「董事會」）謹此公佈，董事會會議將於二零二五年八月二十九日（星期五） 舉行，藉以審議及批准(i)本公司及其附屬公司截至二零二五年六月三十日止六個月之未 經審核中期業績及其刊發；及(ii)其他事項（如有）。 代表董事會 春先生；及本公司獨立非執行董事為劉俊輝先生、吳小慶女士及崔強先生。 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 暢捷通信息技術股份有限公司 FF301 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01588 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 135,901,211 | RMB | | 1 RMB | | 135,901,211 | | 增加 / 減少 (-) | | | | | | RMB | | | | 本月底結存 | | | 135,901,211 | RMB | | 1 RMB | | 135,901,211 | | 2. 股份分類 | 普通股 | 股份類別 | 其他類別 ...

Group 1 - The company plans to repurchase H-shares under the general mandate granted by the special resolution passed at the shareholder annual meeting on May 20, 2025 [1] - The board believes that the H-share repurchase aligns with the overall best interests of the company and its shareholders, aiming to promote sustainable operations and maximize shareholder value [1] - The company is authorized to repurchase up to 8.25 million H-shares, which represents 10% of the total issued H-shares as of the date of the special resolution [1] Group 2 - The company intends to use its own funds for the H-share repurchase, with a maximum amount of RMB 80 million [2] - The board has authorized the executive directors to adjust the repurchase amount limit as necessary based on stock price, financial, and operational conditions during the repurchase period [2] - The board believes that the current financial resources of the company allow for the implementation of the H-share repurchase plan while maintaining a robust financial position [2]

Core Insights - The company reported a revenue of RMB 237 million for the three months ending March 31, 2025, representing an 11% year-on-year increase, with cloud subscription revenue reaching RMB 171 million, a 16% increase year-on-year, accounting for 72% of total revenue [1] - The net profit attributable to shareholders was RMB 18.61 million, a significant improvement from a net loss of RMB 4.39 million in the same period last year, attributed to the successful transformation of the cloud subscription business model and effective cost management [1] - Total assets increased by 3% to RMB 1.751 billion compared to RMB 1.695 billion at the end of the previous year [1] Product Development - The company is enhancing its product intelligence through the development of an AI-driven management platform, focusing on scenario AI, analytical AI, and knowledge AI to improve automation and intelligence in its financial services [2] - In the smart commercial sector, new features such as light manufacturing outsourcing and material requirements planning (MRP) have been launched to improve production management capabilities for small and micro enterprises [2] Marketing Strategy - The company is deepening its market penetration by expanding its workforce and enhancing the operational capabilities of value-added distributors through professional training [3] - AI technology is being utilized for digital marketing and refined operational strategies to improve opportunity acquisition and conversion rates for value-added distributors [3] - The company is implementing a dual-engine strategy of "multi-channel lead generation + precise conversion" to enhance brand exposure and customer acquisition efficiency [3] User Growth - The cloud service business added over 44,000 paid enterprise users during the reporting period, a 27% increase year-on-year, bringing the total number of paid enterprise users to 820,000 [4]

Financial Performance - The company achieved a revenue of RMB 959.27 million in 2024, representing a 20% increase compared to the previous year[18]. - Cloud subscription revenue reached RMB 653.81 million, a growth of 34%, accounting for nearly 70% of total revenue[18]. - The profit attributable to the owners of the parent company was RMB 33.46 million, an increase of 111% year-on-year[18]. - The company's gross profit for 2024 was RMB 692.05 million, compared to RMB 538.60 million in 2023[15]. - Basic earnings per share rose to RMB 10.4 in 2024, up from RMB 5.0 in 2023[15]. - Operating cash flow improved significantly to a net inflow of RMB 91.30 million, compared to a net outflow of RMB 42.05 million in the previous year[38]. - The number of new paid enterprise users for cloud services increased by 143,000 during the reporting period[38]. - The company's gross profit was RMB 692.05 million, reflecting a 28% growth from the previous year[38]. - The net profit attributable to the parent company was RMB 33.46 million, a significant increase of 111% year-on-year[50]. - Basic earnings per share rose to RMB 0.104, marking a 108% increase compared to the previous year[38]. Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 1,694.66 million, up from RMB 1,585.58 million in 2023[15]. - Total liabilities increased to RMB 791.39 million in 2024 from RMB 715.92 million in 2023[15]. - As of the end of the reporting period, the company had cash and bank deposits of RMB 1,259.03 million, indicating a healthy financial position[38]. - The current ratio as of December 31, 2024, was 193%, down from 229% in the previous year, mainly due to the purchase of long-term time deposits and an increase in contract liabilities[69]. Market Strategy and Product Development - The company is focusing on the digital transformation of small and micro enterprises, enhancing product competitiveness through AI technology[18]. - The company aims to transition from application services to ecological platform services to promote scalable and efficient business development[18]. - The company accelerated product innovation in the "Five New" areas, enhancing the automation and intelligence of digital tax and finance services, and developed a new generation enterprise-level AI native application development platform[20]. - The company introduced an intelligent tax BaaS service for micro-enterprises, improving the efficiency and accuracy of automated accounting and tax reporting through AI technology[20]. - The company aims to expand its market share in the micro-enterprise cloud service sector, targeting to establish a leading position by 2025[22]. - The company plans to enhance its marketing strategies by leveraging AI for precise customer acquisition and improving operational efficiency, resulting in rapid growth in direct sales revenue[21]. - The company will continue to focus on the integration of AI technology in product innovation and operational processes, promoting a "customer success" principle[22]. - The company is committed to expanding its ecosystem partnerships with telecom operators, banks, and internet platforms to enhance product application value and market coverage[28]. - The company will implement a multi-channel strategy, including direct sales, distribution, and co-sales, to support the digital transformation of micro-enterprises[26]. - The company is focused on the globalization of its products, ensuring localization in finance and business aspects to expand its operational scope[25]. Leadership and Management - Yang Yuchun has been the President since January 9, 2017, and has over 25 years of experience in the software industry[81]. - Liu Junhui has served as an independent non-executive director since September 8, 2011, providing independent financial opinions[82]. - Wu Xiaoqing has been an independent non-executive director since July 26, 2022, with extensive experience in financial management in large state-owned enterprises[83]. - Cui Qiang has been an independent non-executive director since September 8, 2023, with over 20 years of experience in the enterprise service sector[84]. - Guo Xinping has been the chairman of the supervisory board since September 8, 2011, and has held various positions in finance and management[85]. - The company has seen significant leadership changes with the introduction of new senior executives focusing on R&D and channel operations[95][96]. - The company has a strong emphasis on user growth and customer success, led by Ms. Xiong Xiaoxiao since March 18, 2022[94]. - Financial oversight is managed by Ms. Gao Jin, who has been the Chief Financial Officer since May 28, 2018, ensuring strategic financial planning and budgeting[91]. - The company has a robust human resources team, with Ms. Ren Jie and Ms. Xia Yuhan serving as employee representative supervisors since April 20, 2018, and September 8, 2020, respectively[89][90]. - The company is committed to expanding its market presence and enhancing its product offerings through strategic leadership appointments[94][95]. Shareholder and Equity Structure - As of December 31, 2024, the company's share capital structure consists of 243,272,499 domestic shares (74.68%) and 82,500,000 H-shares (25.32%), totaling 325,772,499 shares[109]. - The company plans to convert 53,401,211 domestic shares (16.39% of total issued shares) into H-shares, pending regulatory approvals[109]. - The controlling shareholder, Yonyou, holds 216,458,791 domestic shares, accounting for approximately 66.44% of the company's total equity[125]. - The company has a significant ownership structure with major shareholders holding a combined total of 216,458,791 domestic shares, which is approximately 88.98% of the related equity[125]. - The total number of shares held by the company's directors, supervisors, and senior management in the company and its affiliated entities is 222,210,241 domestic shares, representing approximately 68.21% of the company's total equity[121]. Employee and Compensation Policies - The company has established a competitive, performance-oriented compensation policy based on market levels, employee performance, and contributions[141]. - The employee compensation includes basic salary, performance bonuses, and allowances, with social insurance contributions made monthly[141]. - The company has implemented long-term incentive measures, including employee stock ownership plans and cash-based long-term incentives, to attract and retain key talent[141]. - The total number of incentive shares granted under the employee stock ownership plan is capped at 15,412,716 shares, representing approximately 7.10% of the total issued share capital as of December 28, 2020[148]. - The annual allowance for independent non-executive directors is RMB 150,000 (tax inclusive), while independent supervisors receive RMB 80,000 (tax inclusive)[140]. Corporate Governance and Compliance - The board of directors includes a mix of executive and independent directors, ensuring governance and oversight[119]. - The company has confirmed compliance with non-competition agreements from January 1, 2024, to December 31, 2024[173]. - The company has not entered into any significant contracts with controlling shareholders or their subsidiaries during the reporting period[168]. - The group faces various risks and uncertainties, with corresponding response policies and potential opportunities outlined in the management discussion[107]. - The board report includes information on the group's environmental policies and performance, as well as compliance with relevant laws and regulations[107]. Capital and Investment Activities - The company has undergone a capital reduction from RMB 40.357 million to RMB 5.357 million, maintaining a 10% stake in the partnership post-reduction[178]. - The company and Beijing Yongyou Ronglian Technology Co., Ltd. agreed to increase capital in Changjietong Payment by a total of RMB 100 million, with the company contributing RMB 19.28 million, maintaining a 19.28% ownership stake[181]. - The registered capital of Changjietong Payment will increase from RMB 200 million to RMB 300 million following the capital increase[181]. - The company has raised a total of HKD 900.90 million, with a net amount of HKD 854.96 million after deducting related issuance costs[131]. - The actual usage of the raised funds includes approximately HKD 290.69 million for T+ series software product development, HKD 194.08 million for cloud platform and innovative application product R&D, and HKD 199.21 million for promoting cloud services[131].

Summary of Conference Call Records Company Overview - The conference call discusses the performance and strategies of Changjie Tong, a company focused on SaaS and AI solutions for small and micro enterprises in China. [1][2] Key Points and Arguments Financial Performance - In 2024, Changjie Tong achieved a net profit of 334.6 million, a 111% increase year-over-year, with total revenue reaching 960 million, up 20% from the previous year. [5][6] - The adjusted operating profit improved by over 90 million compared to 2023, marking a significant turnaround to profitability. [6] - The company's gross profit was 690 million, reflecting a 28% increase year-over-year, with a gross margin of 72%, up 5 percentage points. [5][6] - Subscription revenue for 2024 was 650 million, a 34% increase year-over-year, contributing to a total Annual Recurring Revenue (ARR) of 720 million, up 27%. [5][6] Business Transformation - The company successfully transitioned to a cloud subscription model, with approximately 70% of its revenue now coming from sustainable subscription income. [2][5] - Changjie Tong's ARR surpassed 100 million USD, achieving this milestone in about six years since adopting the subscription model. [3] User Growth and Retention - The company added 143,000 new paying users in 2024, bringing the total to 775,000, maintaining a leading position in the industry. [1][5] - Customer retention rate improved to 84%, indicating enhanced customer satisfaction and loyalty. [7] AI Integration and Future Strategy - Changjie Tong is embracing AI technology, planning to leverage it for further growth and efficiency in its services. [1][3] - The company aims to develop AI-driven services, particularly in intelligent tax and accounting solutions, targeting small and micro enterprises. [8][11] - By 2028, the company plans to reach 5 million paying users, driven by its AI initiatives and expansion into new markets. [25][46] Market Context - As of 2024, there are approximately 1.82 million market entities in China, with over 49 million small and micro enterprises, indicating a growing market for Changjie Tong's services. [2] - The company is positioned to capitalize on the policy benefits and increasing demand for digital financial services among small businesses. [4] Operational Insights - The average employee lifespan at Changjie Tong is 8.4 years, showing stability in the workforce. [4] - The company plans to maintain its employee count despite technological upgrades, indicating a focus on efficiency rather than downsizing. [4] Sales and Marketing Strategy - Changjie Tong is refining its sales channels, focusing on direct sales and expanding its market presence through AI-enhanced marketing strategies. [24] - The company is exploring international markets, with plans to enter regions like Hong Kong, Macau, Southeast Asia, and the Middle East starting in 2025. [24] Challenges and Considerations - The management acknowledged the need for continuous investment in AI and technology to maintain competitive advantage and support growth. [30][34] - There are ongoing discussions about potential stock buybacks and improving liquidity through full circulation of shares. [30][43] Additional Important Content - The company is developing a comprehensive AI model that integrates data analysis and automation to enhance operational efficiency for small businesses. [10][12] - Changjie Tong's intelligent tax service is designed to automate accounting processes, significantly increasing productivity and reducing costs in the accounting industry. [16][18] - The management emphasized the importance of collaboration with accounting firms to provide comprehensive services to small enterprises. [29][40] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Changjie Tong's robust growth trajectory and commitment to leveraging AI for future success.

Core Viewpoint - Changjie Tong has successfully transitioned into profitability, demonstrating the sustainability of its small and micro enterprise SaaS business model, while other companies are still discussing the end of the SaaS winter [1][2]. Financial Performance - In the reporting period, Changjie Tong achieved a net profit of 33.46 million yuan, a year-on-year increase of 111%. Operating cash flow improved significantly, with a net inflow of 91.3 million yuan compared to a net outflow of 42.05 million yuan in the previous year [2][5]. - The company’s total revenue for 2024 grew by 20% year-on-year, with cloud subscription revenue increasing by 34%. In contrast, competitor Kingdee's total revenue grew by 10.2% and cloud business by 13.4% [5]. Business Model Validation - The breakeven point is crucial as it validates the business model, particularly for small and micro enterprise SaaS. Changjie Tong has successfully broken the myth of profitability challenges in this sector [2][3]. - The company has leveraged high operational efficiency and continuous R&D investment to enhance customer conversion rates and improve delivery quality and efficiency [2]. Market Positioning - Changjie Tong's cloud service revenue accounted for 86% as early as 2021, and by 2024, the cloud subscription revenue share had significantly increased to nearly 70% [5]. - The company has a gross margin of 72%, compared to Kingdee's 65.1% [5]. Valuation Insights - Changjie Tong's current price-to-sales (PS) ratio is 2.3X, significantly lower than Kingdee's 6.8X and the average PS of 4.2X for the Hong Kong SaaS sector [6]. - The company holds substantial cash assets, with total assets of 1.695 billion yuan and cash assets of 1.259 billion yuan, indicating a low valuation when cash is deducted from market capitalization [7].

Financial Performance - Revenue for the year ended December 31, 2024, reached RMB 959,273 thousand, representing a 20% increase from RMB 800,621 thousand in 2023[3] - Gross profit increased by 28% to RMB 692,047 thousand, up from RMB 538,599 thousand in the previous year[4] - Profit attributable to equity holders of the parent company surged by 111% to RMB 33,464 thousand, compared to RMB 15,876 thousand in 2023[4] - Basic earnings per share rose to RMB 0.104, reflecting a 108% increase from RMB 0.050 in the prior year[4] - Total revenue for the year 2024 reached RMB 959,273,000, an increase of 19.8% from RMB 800,621,000 in 2023[25] - The company reported a profit attributable to equity holders of RMB 33,464,000 for the year ended December 31, 2024, compared to RMB 15,876,000 for 2023, representing a 111.5% increase[37] - The company achieved revenue of RMB 959.27 million for the year ended December 31, 2024, representing a 20% increase compared to the previous year[81] - The net profit attributable to the company's owners was RMB 33.46 million, a significant increase of 111% from RMB 15.88 million in the previous year[82] - The basic earnings per share rose to RMB 0.104, reflecting a growth of 108% year-over-year[82] Revenue Breakdown - Product sales contributed RMB 249,082,000, up from RMB 215,954,000, reflecting a growth of 15.3%[25] - Service revenue increased significantly to RMB 707,992,000 from RMB 582,607,000, marking a growth of 21.5%[25] - Revenue from procurement of goods sales was RMB 2,199,000, slightly up from RMB 2,060,000[25] - The majority of revenue, RMB 959,071,000, was generated from the mainland China market, indicating a strong domestic performance[26] - Revenue recognized at a point in time was RMB 274,683,000, down from RMB 290,183,000, while revenue recognized over time rose to RMB 684,590,000 from RMB 510,438,000[26] - Revenue from service provision recognized in the reporting period amounted to RMB 361,335,000, an increase from RMB 283,099,000 in the previous year, representing a growth of approximately 27.6%[28] Cost Management - Research and development costs decreased to RMB 210,844 thousand from RMB 247,340 thousand, indicating a focus on cost management[4] - Research and development expenses totaled RMB 210.84 million, down 15% from the previous year, contributing to a total R&D investment of RMB 228.99 million, a decrease of 7%[89] - The total tax expense for 2024 is RMB 530,000, significantly lower than RMB 5,820,000 in 2023, indicating a decrease of approximately 90.9%[32] - The company’s employee benefits expenses for 2024 total RMB 427,460,000, down from RMB 470,698,000 in 2023, reflecting a decrease of approximately 9.2%[31] - Sales and distribution expenses increased by 22% to RMB 408.01 million, driven by efforts to scale the business and enhance direct sales[90] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 1,716,662 thousand, compared to RMB 1,585,582 thousand in 2023[6] - Cash and bank balances increased significantly to RMB 1,259,031 thousand from RMB 1,037,565 thousand year-on-year[6] - Net assets rose to RMB 903,273 thousand, up from RMB 869,658 thousand in the previous year[7] - The current portion of contract liabilities as of December 31, 2024, is approximately RMB 455,692,000, up from RMB 402,134,000 in 2023, indicating a year-over-year increase of about 13.3%[29] - Total trade receivables amounted to RMB 62,755,000 as of December 31, 2024, down from RMB 57,967,000 in the previous year[46] - The impairment provision for trade receivables rose to RMB 3,751,000 in 2024 from RMB 1,041,000 in 2023, indicating a focus on credit risk management[45] Cash Flow - The company reported a cash flow from operations of RMB 492,559,000 for the year, down from RMB 785,789,000 in the previous year[52] - The net cash flow from operating activities for the year ended December 31, 2024, was RMB 91.30 million, a significant improvement from a net cash outflow of RMB 42.05 million in the previous year, primarily due to increased collections from cloud services and reduced payments to employees[95] - The net cash outflow from investing activities for the year ended December 31, 2024, was RMB 378.56 million, an increase of RMB 312.87 million compared to RMB 65.69 million in the previous year, mainly due to the purchase of time deposits and capital injection into an associated company[96] - The net cash outflow from financing activities for the year ended December 31, 2024, was RMB 7.88 million, primarily related to lease principal and interest payments under IFRS 16[97] Strategic Focus - The company continues to focus on the development of computer software technology and related services, with a strong emphasis on market expansion and innovation[8] - The group operates primarily in the cloud services sector, which constitutes a significant portion of its operations[22] - The company plans to enhance product competitiveness and strengthen the application of new technologies like AI to improve customer value and satisfaction[62] - The company will continue to develop a multi-channel approach, including direct sales and partnerships, to enhance market coverage and customer engagement[62] - The company aims to expand its market share in small and micro enterprise cloud services, establishing a leading position in the sector by 2025[75] Governance and Compliance - The company has fully complied with the Corporate Governance Code as per the listing rules during the reporting period[119] - The audit committee, composed of independent non-executive directors, reviewed the accounting principles and practices adopted by the group without any objections[124] - The company has implemented a competitive, performance-oriented compensation policy for its employees, including basic salary, performance bonuses, and allowances[113] - The company has adopted employee stock ownership plans and long-term incentive plans to attract and retain key talent[113]

Summary of Conference Call Company Overview - The conference call was held by Guozheng International, focusing on Changjitong, a Hong Kong-listed company specializing in financial and commercial cloud services for small and micro enterprises in China [1][2]. Core Business Insights - Changjitong has transitioned from traditional software packages to cloud-based solutions, targeting small and micro enterprises with digital financial and commercial services [2][3]. - The company provides services that include digital tax reporting and business management tools, catering to the needs of approximately 50 million enterprises in China, with around 10 million actively operating [3][4]. Market Potential - The target market consists of 900,000 to 1 million small enterprises that employ professional accountants, with potential annual revenues ranging from 500,000 to 3 million RMB [4][5]. - The average customer lifecycle is 8.2 years, with most new users being established businesses of 3 to 5 years [5][6]. Financial Performance - For the first three quarters of 2024, total revenue reached 670 million RMB, a 24% year-over-year increase, driven by a subscription model that now accounts for over 70% of revenue [9][10]. - Gross profit margin improved to 71%, with a 36% increase in gross profit year-over-year [9][10]. - The company anticipates a shift from loss to profit in 2024, with a target of over 30 million RMB in net profit for the year [11][12]. Customer Acquisition and Retention - The average customer acquisition cost is approximately 1,700 RMB, with a retention rate of 82-83% [19][12]. - New customer growth primarily comes from new users rather than switching from competitors, with only about 5% of new customers coming from other products [20][21]. Competitive Landscape - The competitive landscape is expected to consolidate, with fewer players remaining due to economic pressures, leading to a more stable market environment [22][23]. - Traditional competitors like Kingdee and other established accounting firms continue to operate, but the market is becoming less fragmented [22][23]. Sales Strategy - The company aims to increase the direct sales channel's contribution to 20-30% of total sales, currently at 10% [24][25]. - The distribution network covers all major cities in China, with a focus on larger small enterprises for direct sales [25][26]. AI Integration - Changjitong is actively integrating AI into its products to enhance service delivery and operational efficiency, with AI expected to improve customer service response rates significantly [32][33]. - The company is exploring AI's potential for cost savings and revenue generation, particularly in automating accounting processes for small businesses [35][36]. Future Outlook - The company projects a revenue growth rate of at least 20% over the next three years, with a goal of achieving a 10% net profit margin by 2026 [32][33]. - The focus will remain on supporting small enterprises, particularly those with international business aspirations, through tailored solutions [30][31]. Conclusion - The conference highlighted Changjitong's strategic direction towards cloud services, AI integration, and a robust growth trajectory, positioning the company favorably within the small and micro enterprise sector in China [1][2][30].