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]

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 335,099 thousand, representing a 56% increase compared to RMB 214,696 thousand in the same period of 2021[14]. - Gross profit for the same period was RMB 205,957 thousand, up 41% from RMB 146,301 thousand year-on-year[14]. - The company reported a pre-tax loss of RMB (77,174) thousand, a 48% improvement from a loss of RMB (147,758) thousand in the previous year[14]. - The net loss attributable to equity holders of the parent for the period was RMB (78,471) thousand, a 42% decrease from RMB (134,486) thousand in the previous year[14]. - Basic loss per share for the period was RMB (26.2), compared to RMB (45.3) in the same period of 2021, indicating a 42% improvement[14]. - The company reported a total comprehensive loss of RMB 134,512,000 for the period[161]. - The company’s net loss for the period was RMB 78.47 million, a 42% reduction from a net loss of RMB 134.49 million in the previous year[52]. Assets and Liabilities - Total assets as of June 30, 2022, were RMB 1,676,556 thousand, reflecting a 3% increase from RMB 1,624,344 thousand at the end of 2021[14]. - Total liabilities increased by 19% to RMB 831,108 thousand from RMB 700,955 thousand at the end of 2021[14]. - Current liabilities totaled RMB 664,637,000, an increase of 17.9% from RMB 563,772,000[155]. - Non-current liabilities increased to RMB 166,471,000 from RMB 137,183,000, showing a rise of 21.4%[157]. - Net assets decreased to RMB 845,448,000 from RMB 923,389,000, a decline of 8.5%[157]. Cash Flow - The net cash flow from operating activities for the six months ended June 30, 2022, was RMB (56.98) million, an increase of RMB 27.10 million compared to the previous year[74]. - The net cash flow from investing activities for the same period was RMB 180.01 million, primarily due to the maturity of structured deposit products and some fixed-term deposits[75]. - Cash and cash equivalents reached RMB 1,252,510,000, up from RMB 1,196,100,000, marking a growth of 4.7%[155]. - The company reported a net cash inflow from investing activities of RMB 180,008,000, a substantial increase from RMB 57,852,000 in the same period last year, reflecting improved investment performance[170]. Market and Growth Opportunities - The number of newly registered market entities in China increased by 4.3% year-on-year to 14.54 million in the first half of 2022[17]. - The company is benefiting from favorable government policies aimed at supporting small and micro enterprises, enhancing its market opportunities[18]. - The digital transformation of accounting management is being actively promoted, which is expected to support the company's growth in the digital economy sector[18]. - The company plans to focus on small and micro enterprises in digital finance and business sectors, aiming for rapid growth in SaaS subscription revenue and overall revenue[41]. SaaS Business Performance - The company achieved a total revenue of RMB 335.10 million, representing a 56% year-over-year increase, with SaaS subscription revenue reaching RMB 177.64 million, up 78% year-over-year, accounting for 53% of total revenue[21]. - The number of paid enterprise users for the cloud service business increased by 62,000 during the reporting period, bringing the total to 459,000[22]. - The company’s SaaS products maintained leading sales in Alibaba Cloud and Huawei Cloud markets, with rapid growth in sales on collaboration platforms like DingTalk and WeChat Work[36]. - The company’s SaaS subscription contract liabilities increased by 32% to RMB 467.62 million compared to the end of the previous year[21]. Employee and Incentive Plans - The company’s employee count reached 1,189, with a focus on optimizing organizational structure and enhancing employee capabilities to support cloud service growth[38]. - The company has raised approximately HKD 74.93 million for the employee trust beneficiary rights plan[98]. - A total of 15,412,716 incentive shares were granted under the employee stock ownership plan, representing about 7.10% of the company's total issued share capital as of December 28, 2020[105]. - The company aims to enhance its incentive mechanism to promote sustainable business development and achieve strategic goals[111]. Shareholding Structure - As of June 30, 2022, the company had a total of 325,772,499 shares issued, with 243,272,499 being domestic shares[118][129]. - Wang Wenjing holds 215,301,391 domestic shares, representing approximately 66.09% of the company's total equity[119][123]. - The company’s major shareholder, Yonyou, directly and indirectly holds 215,301,391 domestic shares, accounting for 66.09% of the total equity[119][129]. - The total shareholding of major shareholders, excluding directors and senior management, reflects a concentrated ownership structure[126]. Accounting Standards and Compliance - The group adopted new accounting standards, interpretations, and amendments, including revisions to IAS 37, IFRS 3, and IFRS 16, which did not impact the interim condensed consolidated financial statements[181][183][190]. - The revisions to IAS 37 clarify that costs directly related to fulfilling a contract must be included when assessing whether a contract is loss-making[183].

Financial Performance - The company's revenue for 2021 was RMB 590,324,000, an increase from RMB 509,418,000 in 2020, representing a growth of approximately 15.9%[51] - The gross profit for 2021 was RMB 410,352,000, compared to RMB 425,984,000 in 2020, indicating a decrease of about 3.7%[51] - The company reported a loss before tax of RMB (193,228,000) for 2021, a significant decline from a profit of RMB 23,619,000 in 2020[51] - The net loss attributable to equity holders of the parent for 2021 was RMB (185,070,000), compared to a profit of RMB 33,392,000 in 2020[51] - Basic loss per share for 2021 was RMB (62.2), a decline from earnings of RMB 10.4 per share in 2020[51] - The total revenue for the reporting period was RMB 590.32 million, a 16% increase compared to the previous year, while the net loss attributable to shareholders was RMB 185.07 million, compared to a profit of RMB 33.39 million in the prior year[73] - The gross profit margin decreased to 70% from 84% in the previous year, reflecting a 14% decline[101] - The company reported a net cash outflow from operating activities of RMB 90.73 million, compared to a net inflow of RMB 90.52 million in the previous year[130] - The company incurred a net loss attributable to equity holders of RMB 185.07 million for the year, compared to a profit of RMB 33.39 million in the previous year[126] Cloud Services Growth - The company achieved a total revenue of RMB 590.32 million in 2021, representing a 16% increase year-over-year, with cloud service revenue reaching RMB 505.37 million, up 111% from the previous year[54] - The proportion of cloud service revenue in total revenue rose significantly from 47% to 86% during the reporting period, indicating a successful transformation towards cloud services[54] - The company's cloud service business achieved revenue of RMB 505.37 million, a 111% increase year-over-year, and accounted for 86% of total revenue, up from 47% the previous year[72] - SaaS subscription revenue reached RMB 258.68 million, representing a 123% year-over-year growth, with contract liabilities from SaaS subscriptions increasing by 72% to RMB 354.70 million[72] - The company is transitioning from a one-time revenue recognition model for licensed software to a subscription-based public cloud service model, which is expected to positively impact future business development and revenue growth[73] Market Strategy and Development - The company aims to enhance its cloud service offerings and expand its market presence in the small and micro enterprise sector[44] - The company plans to invest in new product development and technology to drive future growth and improve service offerings[44] - The company plans to focus on product application innovation and expand sales channels in 2022, aiming for breakthrough growth in total revenue and to capture a leading position in the small and micro enterprise cloud service market[58] - The company aims to implement a "Ten-Hundred-Thousand" plan to achieve large-scale customer acquisition across ten sub-sectors, with a goal of creating 100 ecosystem integration applications and best practice cases[61] - The company is focusing on small and micro enterprises in the digital finance and business sectors, leveraging its core strengths in financial capabilities and industry-specific applications[79] - The company plans to enhance its product competitiveness by continuously innovating in the digital finance and business sectors, while also expanding its market presence through channel advantages and ecological cooperation[70] Awards and Recognition - Chanjet was recognized as the "Best Cloud Tax Service Provider" at the GIEC 2021, highlighting its competitive position in the market[45] - The company received multiple awards, including "Best Cloud Financial Service Provider" at the GIEC2021, enhancing its market recognition[98] - The group achieved an order amount exceeding RMB 60 million during the reporting period, receiving accolades such as the "Best Co-Creation Award" from Alibaba Cloud and being recognized as one of the "Top Ten Benchmark Partners" in Huawei Cloud's Star Plan[84] Organizational Development - The company will continue to strengthen its organizational capabilities and talent development to ensure efficient operations and long-term healthy growth[64] - The group has increased its partner count by 33% compared to the end of the previous year, implementing the GOT (GOAL-OBJECTIVE-TASK) co-creation plan to enhance cloud business capabilities[84] - The company has been actively involved in the software industry since its inception, with key figures like Yang Yuchun and Chen Shuning contributing to its strategic direction and innovation[156][161] - The company has a strong governance structure with multiple independent directors providing oversight and financial judgment, including Liu Junhui and Chen Shuning, who have extensive backgrounds in accounting and finance[160][161] Financial Position and Liabilities - The total assets as of December 31, 2021, were RMB 1,624,344,000, slightly up from RMB 1,610,023,000 in 2020[51] - Total liabilities increased to RMB 700,955,000 in 2021 from RMB 343,922,000 in 2020, reflecting a rise of approximately 103.5%[51] - The current ratio as of December 31, 2021, was 257%, down from 513% as of December 31, 2020, primarily due to increased liabilities from employee stock ownership plans and deferred revenue from cloud services[136] - The company had no borrowings or interest-bearing debts, resulting in a capital debt ratio of 0% as of December 31, 2021[136] Research and Development - Research and development costs increased by 50% to RMB 242.56 million, up from RMB 161.69 million in the previous year[101] - The company is committed to improving customer satisfaction by providing additional services such as tax consulting and accounting training alongside its SaaS tools for digital transformation[61] Employee and Management Structure - The company has been led by President Yang Yuchun since January 9, 2017, who has over 20 years of experience in the Chinese software industry[156] - The company has a commitment to maintaining high standards of corporate governance, as evidenced by the diverse backgrounds of its board members, including experience in academia and public accounting[165][168] - The group provides platform services, application services, and data value-added services focused on financial and business cloud services for small and micro enterprises in China[191]

Financial Performance - Total revenue for the period was RMB 214.70 million, representing a 6% year-on-year growth[33]. - The company reported a loss attributable to equity holders of RMB 134.49 million, compared to a profit of RMB 17.50 million in the same period last year[33]. - The basic loss per share was RMB 0.679, compared to earnings of RMB 0.081 per share in the previous year[33]. - The software business revenue decreased by 78% to RMB 27.34 million, down from RMB 124.80 million in the previous year[62]. - Gross profit for the six months ended June 30, 2021, was RMB 146.30 million, a decrease of 17% year-over-year, with a gross margin of 68%, down 19 percentage points from the previous year[71]. - The company reported a loss before tax of RMB 147,758 thousand compared to a profit of RMB 13,979 thousand in the previous year[149]. - The net loss attributable to the owners of the parent company was RMB 134,486 thousand, a stark contrast to a profit of RMB 17,502 thousand in the same period last year[149]. - The company’s total comprehensive loss for the period amounted to RMB 134,512,000, reflecting the overall financial challenges faced during this period[164]. Cloud Services - The cloud services business achieved revenue of RMB 187.36 million, a 138% increase year-on-year, accounting for 87% of total revenue[33]. - Cloud subscription revenue reached RMB 99.92 million, a 102% increase year-on-year[33]. - Contract liabilities from cloud subscriptions amounted to RMB 337.40 million, a 63% increase from the end of the previous year[33]. - The company is focusing on the digital tax and business sectors, enhancing resource investment in cloud services[30]. - The strategic expansion into cloud services is aligned with the ongoing digital transformation trends in various industries[30]. - The company aims to enhance its cloud products and integrate them with industry ecosystems, targeting innovations in tax enterprise connectivity and digital tax solutions[55]. - The cloud services business segment is a key focus area for future growth and expansion[194]. Customer Growth and Engagement - The company added over 57,000 new paid enterprise users in the reporting period, representing a 79% year-on-year growth, bringing the total to over 275,000 paid enterprise users[44]. - The T+Cloud product has seen an increasing revenue share from cloud services, driving improvements in average customer transaction value and customer retention rates[37]. - The integration of Smart Reimbursement and Good Accounting has enhanced the management of the entire lifecycle of electronic invoices, improving product competitiveness[41]. - The launch of the "Smart Member" service provides tailored content and application guidance based on customer needs, enhancing user experience with SaaS products[44]. Operational Costs and Expenses - The cost of sales and services for the same period was RMB 68.40 million, a significant increase of 161% year-over-year, primarily due to increased operating costs in cloud services and higher labor costs[66]. - Research and development costs increased by 75% year-over-year to RMB 116.97 million, driven by an increase in the number of R&D personnel and long-term incentive plans[77]. - Sales and distribution expenses rose by 84% year-over-year to RMB 145.06 million, attributed to an increase in sales personnel and heightened promotional efforts for the company's cloud services brand[80]. - Management expenses increased by 41% year-over-year to RMB 43.04 million, mainly due to the inclusion of long-term incentive plans[81]. Shareholder Structure and Governance - As of June 30, 2021, the company had a total of 217,181,666 shares issued, with 143,030,927 shares (approximately 65.86%) held by the controlling shareholder, Yonyou[126]. - The company has a significant ownership structure with major shareholders holding substantial stakes, including Yonyou and UBS Group AG[126]. - The company’s equity structure indicates a strong concentration of ownership among a few key stakeholders, particularly Yonyou[126]. - The company’s financial disclosures comply with the Securities and Futures Ordinance, ensuring transparency in shareholder equity[126]. - The company has fully complied with the Corporate Governance Code during the reporting period[144]. Cash Flow and Financial Position - The net cash flow from operating activities for the six months ended June 30, 2021, was RMB (29.88) million, a decrease from RMB 65.63 million in the same period last year, primarily due to increased prepaid contract operating costs and higher cash payments to employees[88]. - The net cash flow from investing activities for the same period was RMB 57.85 million, mainly from the maturity of certain time deposits and bank wealth management products[89]. - The company’s cash and bank balances decreased to RMB 1,155,740 thousand from RMB 1,281,241 thousand, a decline of about 9.8%[155]. - The current ratio as of June 30, 2021, was 261%, a decrease from 513% as of December 31, 2020, primarily due to increased contract liabilities from the cloud services business and obligations from the employee stock ownership plan[93]. Employee and Incentive Plans - The total number of employees increased to 1,122, up by 180 from the previous year, to support the cloud service business strategy[62]. - The company invested approximately RMB 46.54 million in long-term incentive plans, a 779% increase from RMB 5.29 million in the previous year[62]. - The company adopted an employee stock ownership plan on December 28, 2020, to attract and retain key personnel, granting 15,412,716 shares, representing 7.10% of the total issued capital[115]. - The long-term incentive plan includes the participation of the company's executive director and 157 other key personnel[119]. Compliance and Accounting Standards - The financial statements for the six months ending June 30, 2021, were prepared based on International Accounting Standards and the Hong Kong Stock Exchange's disclosure requirements[183]. - The company has adopted new accounting standards, including amendments to IFRS 9 and IAS 39, which may impact financial reporting due to interest rate benchmark reforms[187]. - The company has not experienced significant impacts from the new accounting standards on its interim financial statements[189].

Chanjet 畅 捷 通 暢捷通信息技術股份有限公司 CHANJET INFORMATION TECHNOLOGY COMPANY LIMITED (於中華人民共和國註冊成立之股份有限公司) 股份代號：1588 1010 10000 01 01110100100 101 11010 l 0101 0 l U 0 1 0 0 2020 年度報告 | --- | |------------------------------| | | | | | 管理層討論及分析 目錄 | | | | 公司資料 | | 公司簡介 | | 公司架構 | | 財務資料概要 | | 董事長報告 | | 管理層討論及分析 | | 董事、監事及高級管理人員簡歷 | | 董事會報告 | | 監事會報告 | | 企業管治報告 | | 獨立核數師報告 | | 綜合損益表 | | 綜合全面收益表 | | 綜合財務狀況表 | | 綜合權益變動表 | | 綜合現金流量表 | | 財務報表附註 | | 釋義 | 2 4 5 6 7 11 27 37 66 68 92 98 99 100 102 105 108 224 1 2020年度報告 公司資料 ...

Cloud Services and Product Development - The company focused on financial and management services for small and micro enterprises, increasing investment in cloud service resources to accelerate development in this area[21]. - During the reporting period, the company launched new cloud service products such as Chanjet Smart+ and Good Business Prosperity Edition to meet the urgent needs of small and micro enterprises for online operations during the pandemic[21]. - The company conducted nearly 2,000 online marketing activities in collaboration with national partners to empower small and micro enterprises to transition to cloud services during the pandemic[21]. - A special initiative called "Cloud Support Care Action" was launched, providing eligible small and micro enterprise users with a two-month free trial of relevant Chanjet cloud products[21]. - The company introduced a high-end version of its integrated intelligent cloud financial application, Chanjet Good Accounting Flagship Edition, to strengthen its competitive advantage in smart cloud finance and taxation[21]. - Cloud services revenue grew by 74% year-on-year, with the number of new paid enterprise users increasing by 32,000, representing a 47% growth compared to the same period last year, totaling over 189,000 paid enterprise users[26]. - The company released new products including "Smart+" and "Good Business" versions, enhancing e-commerce functionalities and integrating various e-commerce platforms[33][32]. - The company has deepened cooperation with IaaS cloud vendors and completed multi-cloud deployment on Alibaba Cloud, Huawei Cloud, and Tencent Cloud[25]. - The company continues to enhance its software business strategy, focusing on online and offline training and community marketing to support small and micro enterprises in transitioning to cloud services[37]. Financial Performance - The company achieved revenue of RMB 203.46 million, a decrease of 22% year-on-year, primarily due to reduced marketing investment in software business and significant impact from the pandemic, leading to a 42% decline in software revenue[22]. - The company's profit was RMB 17.50 million, down 81% year-on-year, mainly due to a decrease in software revenue of RMB 89.15 million and a provision for impairment of RMB 15.20 million related to unguaranteed principal and interest from a bank[22]. - Basic earnings per share were RMB 0.081, compared to RMB 0.431 in the same period last year[22]. - The company reported a net profit for the period of RMB 17,502 thousand, compared to RMB 91,887 thousand in the prior year, indicating a decrease of approximately 81%[134]. - The gross profit for the same period was RMB 177,281 thousand, down from RMB 238,662 thousand, reflecting a decline in gross margin[134]. - The company reported a profit before tax of RMB 13,979 thousand, significantly lower than RMB 96,759 thousand in the previous year[134]. - The company reported a net exchange loss of RMB 2,793,000 for the six months ended June 30, 2020, compared to a gain of RMB 521,000 in the previous year[195]. Market and Economic Impact - The government implemented a series of tax reduction measures to support economic stability during the pandemic, which positively impacted the company's operations[17]. - The pandemic significantly increased the willingness of enterprises to adopt cloud applications, particularly in the finance and taxation sector[17]. - The company utilized big data analysis to provide important insights to government departments regarding the recovery status of small and micro enterprises, aiding in policy formulation[21]. - The company is committed to supporting the recovery of small and micro enterprises by providing financial support and reducing loan costs through collaboration with financial institutions[17]. Operational and Cost Management - The sales and service costs increased by 27% to RMB 26.18 million, primarily due to higher costs associated with cloud services[53]. - Management expenses decreased by 37% to RMB 30.56 million, primarily due to a reduction in amortization of capitalized projects[69]. - Research and development costs for the group were RMB 66.76 million, an increase of 1% year-on-year, primarily due to new capitalized projects in the cloud services business[64]. - Total R&D investment increased by 11% year-on-year to RMB 73.15 million, driven by increased investment in cloud services[65]. - The company plans to enhance its cloud service business and expand its one-stop service platform for small and micro enterprises in the second half of 2020[41]. Shareholder and Equity Information - As of June 30, 2020, the company had a total of 217,181,666 shares issued, with 158,057,643 shares (approximately 72.78%) held by its parent company, Yonyou[114]. - The company’s major shareholder, Yonyou, has a significant stake in the company, representing approximately 97.46% of the total equity[114]. - The company’s shares held by UBS Group AG accounted for approximately 3.55% of the total equity[114]. - The beneficial ownership of Mr. Wang in Yonyou includes 158,057,643 shares, which is approximately 72.78% of the total equity[109]. Cash Flow and Financial Position - Net cash flow from operating activities for the six months ended June 30, 2020, was RMB 65.63 million, a decrease of RMB 24.92 million year-on-year, largely due to reduced collections in the software business impacted by the pandemic[75]. - The group’s cash and bank balances as of June 30, 2020, were RMB 1,081.42 million, down from RMB 1,319.46 million as of December 31, 2019[81]. - The current ratio as of June 30, 2020, was 374%, down from 516% as of December 31, 2019, primarily due to an increase in contract liabilities from cloud services[82]. - The company reported a net cash outflow from investing activities of RMB 368,841,000, compared to a net inflow of RMB 148,484,000 in 2019[156]. - The total cash and cash equivalents at the end of the period was RMB 210,417,000, a decrease of 50.6% from RMB 425,905,000 in the previous year[156]. Corporate Governance and Compliance - The company has complied fully with the Corporate Governance Code as per the listing rules during the reporting period[130]. - The group adopted new accounting standards and interpretations, which did not impact its financial position or performance[172].

Financial Performance - Revenue for 2019 reached RMB 463,402,000, an increase of 8.0% compared to RMB 428,941,000 in 2018[37] - Gross profit for 2019 was RMB 420,243,000, reflecting a growth of 5.3% from RMB 398,942,000 in the previous year[37] - Profit before tax decreased to RMB 90,861,000, down 17.5% from RMB 110,208,000 in 2018[37] - Net profit for the year was RMB 92,418,000, a decline of 13.4% compared to RMB 106,812,000 in 2018[37] - Basic earnings per share for 2019 were RMB 43.2, down from RMB 51.0 in 2018[37] - The company's revenue for the reporting period was RMB 463.40 million, an increase of 8% year-on-year, primarily driven by cloud service revenue of RMB 146.00 million, which grew by 289%[42] - The company achieved a net profit of RMB 92.42 million, a decrease of 13% compared to the previous year, mainly due to increased operational promotion and R&D costs for cloud services[42] - The gross profit margin decreased to 91% from 93%, with a gross profit of RMB 420,243 thousand, up by 5% year-on-year[77] - The company's net profit for the year was RMB 92,418 thousand, a decrease of 13% compared to RMB 106,812 thousand in 2018[77] Assets and Liabilities - Total assets increased to RMB 1,597,448,000, up 5.8% from RMB 1,510,333,000 in 2018[38] - Total liabilities rose to RMB 278,560,000, an increase of 39.1% from RMB 200,098,000 in the previous year[38] - Total equity stood at RMB 1,318,888,000, slightly up from RMB 1,310,235,000 in 2018[38] - The total cash and bank deposits as of December 31, 2019, were RMB 1,319.46 million, up from RMB 803.33 million in the previous year, mainly due to the redemption of maturing bank financial products[100] Cloud Services and Innovation - The cloud service business's revenue contribution increased from 9% to 32% of total revenue, indicating a structural breakthrough[41] - The company plans to enhance its product application innovation and expand its product line to provide more convenient cloud services for small and micro enterprises in 2020[45] - The company is focusing on new product development in areas such as intelligent tax services and integrated online marketing solutions for small and micro enterprises[54] - The company enhanced its "Smart Cloud Finance and Tax" features, achieving intelligent extraction of invoices and improving accuracy through machine learning technology[64] - The company has established a smart cloud financial learning platform and launched various operational services to help clients improve their financial capabilities[41] Market Presence and Strategy - Chanjet was recognized as one of the "Top Ten Innovative Enterprises in China's Information Technology Service Industry" in 2019[30] - The company maintained the highest market coverage rate among small and micro enterprises in China, according to a report by Analysys[66] - The company has established partnerships with major platforms like Alibaba and Huawei to enhance its ecosystem and sales channels[66] - The company aims to improve customer retention rates and ARPU, enhancing customer lifetime value through a combination of distribution and direct sales models[46] - The company will continue to explore suitable acquisition opportunities to strengthen its ecosystem layout and create a one-stop service platform for small and micro enterprises[47] Human Resources and Leadership - The company has been led by experienced executives, including Mr. Guo Xinping, who has served as a supervisor since September 2011 and has extensive experience in finance and management[127] - Mr. Zhang Peilin has been with the company since 2001, holding various senior positions, including CFO since January 2016, indicating strong internal leadership continuity[128] - The company has a commitment to human resources development, with a dedicated team focusing on recruitment and employee management since its establishment[135] - The company has maintained a stable leadership structure, with key executives having long tenures, which contributes to strategic consistency and operational efficiency[136] Governance and Compliance - The company has been recognized for its governance practices, with independent directors and supervisors ensuring accountability and transparency in operations[129] - The board of directors includes key members such as the Chairman Wang Wenjing and CEO Yang Yuchun, with several independent directors contributing to governance[169] - The company has not granted any rights to its directors or supervisors to subscribe for shares or debt securities[179] COVID-19 Impact - The COVID-19 pandemic is expected to have a phase-specific impact on the group's operations, with ongoing assessments of its financial and operational effects[113] - The company will actively collaborate with government departments to support small and micro enterprises in overcoming challenges posed by the COVID-19 pandemic[44] Share Capital and Dividends - The company's total issued share capital as of December 31, 2019, is 217,181,666 shares, with domestic shares accounting for 74.68% and H shares for 25.32%[159] - The proposed final dividend for the year ended December 31, 2019, is RMB 0.40 per share (tax included), totaling approximately RMB 868.7 million, a decrease from RMB 0.46 per share (tax included) in 2018, which totaled RMB 999 million[162] - The company emphasizes that dividend distribution will consider factors such as operational conditions, financial status, and future capital needs[161]

Financial Performance - The company achieved revenue of RMB 259.22 million, representing a 5% increase year-on-year, primarily driven by a 142% growth in cloud service revenue[16]. - The company's profit for the period was RMB 91.89 million, a 4% increase compared to the same period last year[16]. - Basic earnings per share remained stable at RMB 0.43, consistent with the previous year[16]. - The company reported revenue of RMB 259.22 million for the six months ended June 30, 2019, representing a 5% increase compared to RMB 246.44 million in the same period last year[35]. - The net profit for the same period was RMB 91.89 million, a 4% increase from RMB 87.97 million year-on-year[35]. - The gross profit for the same period was RMB 238,662 thousand, compared to RMB 231,671 thousand in 2018, indicating a slight increase[106]. - The company reported a total comprehensive income of RMB 91,807 thousand for the six months ended June 30, 2019, compared to RMB 87,852 thousand for the same period in 2018, an increase of 4.4%[118]. - The profit before tax for the six months ended June 30, 2019, was RMB 96,759 thousand, up from RMB 92,986 thousand in the same period of 2018, marking a growth of 4.1%[122]. - The pre-tax profit for the six months ended June 30, 2019, was RMB 91,887,000, compared to RMB 87,972,000 for the same period in 2018, reflecting a growth of 3.3%[197]. User Growth and Market Strategy - The total number of software business users exceeded 1.54 million, while the number of paid cloud service users reached 135,000[13]. - The company is focusing on small and micro enterprises, enhancing SaaS business investment and improving user experience[13]. - The company is expanding its market presence through various marketing campaigns aimed at enhancing brand awareness and sales capabilities[17]. - The group aims to become the leading brand in cloud services and financial services for small and micro enterprises in the second half of 2019[27]. - The number of paid users for "Changjietong Good Accounting" increased by 99% year-on-year during the reporting period[20]. - "T+ Cloud" reported a 37% year-on-year increase in paid users, enhancing integrated enterprise management capabilities[23]. Research and Development - R&D expenses rose by 45% to RMB 66.18 million, driven by increased investment in R&D personnel and new deferred development costs[48]. - The company invested approximately HKD 276.36 million in T+ series software product development and market input, with an unused amount of HKD 14.33 million[92]. - The company is leveraging new technologies such as cloud computing and big data to meet the urgent needs of small and micro enterprises for digital transformation[12]. Financial Position and Cash Flow - The company generated a net cash flow from operating activities of RMB 90.55 million, a decrease of RMB 27.92 million compared to the previous year[54]. - The cash and bank balance as of June 30, 2019, was RMB 1,189.05 million, up from RMB 803.33 million at the end of 2018[59]. - The company’s gross profit margin was 92%, down 2 percentage points from the previous year[42]. - The current ratio as of June 30, 2019, was 473%, down from 664% as of December 31, 2018, mainly due to an increase in payable dividends of RMB 97.40 million, leading to a rise in current liabilities[61]. - The company’s financial position remains strong with total cash and bank balances of RMB 1,189,052,000 as of June 30, 2019[126]. Tax and Regulatory Environment - The government has implemented tax reduction policies for small and micro enterprises, expected to reduce their burden by approximately RMB 200 billion annually[11]. - The company expects to benefit from a reduced corporate income tax rate of 10% due to its anticipated qualification as a key software enterprise[192]. Accounting Standards and Compliance - The company has adopted new accounting standards, but these did not have any significant impact on the consolidated financial statements[170]. - The company applies significant judgment in determining the treatment of uncertain tax positions, ensuring compliance with tax regulations[162]. - The new accounting policy under IFRS 16 for leases was adopted on January 1, 2019, replacing previous lease accounting policies[152]. Employee and Shareholder Information - The total number of employees reached 911, with a focus on increasing cloud operation and development personnel[26]. - As of June 30, 2019, the company had a total of 217,181,666 shares issued, with 156,406,210 shares held by the controlling shareholder, Yonyou, representing approximately 72.02% of the total share capital[82][90]. - The employee trust beneficiary plan raised approximately HKD 74.93 million for the implementation of the plan[76].