Financial Performance - Total revenue decreased by 20.9% from RMB 1,106.5 million in 2021 to RMB 875.7 million in 2022, primarily due to the prolonged impact of COVID-19 on operations[7] - Gross profit decreased by 20.1% from RMB 593.4 million in 2021 to RMB 473.9 million in 2022[22] - The net loss attributable to equity holders for the year ended December 31, 2022, was RMB 126.0 million, compared to a profit of RMB 74.1 million for the year ended December 31, 2021[45] - The adjusted net loss attributable to equity holders for the year ended December 31, 2022, was RMB 64.2 million, primarily due to operating losses in the interior design and construction business[43] - Total revenue for 2022 was RMB 875.7 million, representing a decrease of 20.9% compared to the previous year[156] Revenue Breakdown - SaaS and extended services revenue fell by 18.4% from RMB 634.3 million in 2021 to RMB 517.6 million in 2022[18] - Revenue from SaaS and marketing services decreased by 15.8% to RMB 477.9 million, while revenue from interior design and construction services fell by 24.2% to RMB 345.2 million[166] - Revenue from supply chain services dropped by 40.7% to RMB 39.7 million due to various market disruptions[159] - The revenue from the new brand "Yuzu," which offers home renovation services, was RMB 6.1 million, with a contract value of RMB 12.9 million as of December 31, 2022[10] Merchant and User Metrics - The number of active paying merchants decreased by 30.1% to 4,055, attributed to community lockdown measures affecting construction and communication[1] - The number of sales leads decreased by 8.4% to 686,092, and the number of recommended users decreased by 6.9% to 581,775[1] - The average revenue per sales lead from SaaS and marketing services was RMB 697, down from RMB 757 in 2021, reflecting a decrease of 7.9%[139] Cash Flow and Financial Position - Cash and cash equivalents decreased to RMB 445.4 million from RMB 548.0 million in 2021[31] - Net cash used in operating activities was RMB (225.7) million, compared to RMB (190.6) million in 2021[33] - The net cash generated from investing activities for the year ended December 31, 2022, was RMB 97.4 million, mainly from the sale of financial assets at fair value amounting to RMB 1,165.2 million[35] - The net cash generated from financing activities for the year ended December 31, 2022, was RMB 8.2 million, primarily from borrowings of RMB 38.0 million[36] Cost and Margin Analysis - The gross profit margin for interior design and construction services dropped from 9.7% in 2021 to 4.1% in 2022, mainly due to lower-margin services comprising a larger portion of revenue[26] - The overall gross margin for the year ended December 31, 2022, was 54.1%, slightly up from 53.6% in 2021[197] Investment and Capital Expenditures - Total borrowings increased by 133.7% to RMB 38.0 million as of December 31, 2022, primarily due to new borrowings of RMB 20.0 million from Shanghai Qiyi Information Technology Co., Ltd.[55] - Capital expenditures decreased significantly to RMB 6.1 million in 2022 from RMB 20.6 million in 2021, mainly for the purchase of property and equipment[57] Governance and Management - The management team includes experienced executives with over 20 years in the industry, enhancing strategic planning and operational efficiency[70][72] - The company has maintained a stable board of directors since April 2018, ensuring continuity in governance and oversight[82] - The independent directors contribute to risk management and compliance, strengthening corporate governance practices[80][81] Strategic Initiatives and Future Outlook - The company is focused on expanding its market presence and enhancing product offerings through strategic initiatives[84] - The management emphasizes the importance of user data and technology development in driving future growth[84] - The company has a clear strategy for international business expansion, leveraging existing technology and expertise[84] - The company plans to continue exploring new business models and opportunities in the future[189] - The company provided guidance for the next fiscal year, projecting revenue growth of 25% and aiming to reach $1.875 billion[90]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）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。 Qeeka Home (Cayman) Inc. 齊 屹 科 技（開 曼）有 限 公 司 （於開曼群島註冊成立的有限公司） 1739 （股份代號： ） 2022 12 31 截 至 年 月 日 止 年 度 的 全 年 業 績 公 告 齊屹科技（開曼）有限公司（「本公司」）董事會欣然宣佈本公司及其附屬公司及中 國經營實體（合稱「本集團」）截至2022年12月31日止年度的經審核合併業績。該 等業績已由核數師根據國際審計準則審核，並經審核與風險管理委員會審閱。 於本公告中，「我們」指本公司及（倘文義另有指定）本集團。 關鍵摘要 1. 財務摘要 12 31 截至 月 日止年度 2022 年 2021年 同比變動 （人民幣千元）（人民幣千元） (%) 收入 875,735 1,106,540 (20.9%) ...

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 431.94 million, a decrease of 18.5% from RMB 524.39 million for the same period in 2021[17]. - Gross profit for the same period was RMB 244.99 million, down 17.4% from RMB 296.56 million in 2021[17]. - The adjusted net loss attributable to equity holders was RMB 20.68 million, compared to a profit of RMB 20.54 million in the same period last year[17]. - Total revenue for the six months ended June 30, 2022, was RMB 431.9 million, a year-on-year decrease of 17.6%[23]. - Net loss attributable to equity holders was RMB 57.1 million, with adjusted net loss of RMB 20.7 million primarily due to operational losses in the interior design and construction business[23]. - The company reported a significant operating loss of RMB 62.7 million before income tax adjustments for the six months ended June 30, 2022[82]. - The company reported a total comprehensive loss of RMB 56,086 thousand for the six months ended June 30, 2022, compared to a total comprehensive income of RMB 51,450 thousand in the previous year[151]. Revenue Breakdown - SaaS and related services revenue was RMB 255.7 million, down 17.4% year-on-year, with active paying merchants decreasing by 3.8% to 5,451[25]. - Revenue from the interior design and construction business was RMB 169.9 million, a decrease of 18.0% year-on-year, impacted by macroeconomic policies and the pandemic[27]. - Total revenue decreased by 17.6% year-on-year to RMB 431.9 million, primarily due to a 14.6% decline in SaaS and marketing services to RMB 239.9 million, a 44.2% drop in supply chain services to RMB 15.8 million, and an 18.0% decrease in interior design and construction to RMB 169.9 million[40]. - Revenue from supply chain services was RMB 15,828 thousand, down from RMB 28,385 thousand, marking a decline of 44.3% year-over-year[198]. - Revenue from interior design and construction services was RMB 169,904 thousand, a decrease of 18.0% from RMB 207,079 thousand in the previous year[198]. Operational Challenges - The company faced significant challenges due to COVID-19, impacting user demand for renovation and construction services[22]. - The logistics disruptions severely affected the supply chain, contributing to the overall performance decline[22]. - The real estate market continues to face significant downward pressure, with no clear signs of recovery in supply-demand relationships and transactions[28]. - The real estate market faced significant downward pressure, with a 23.3% year-on-year decline in completed housing area from January to July 2022[42]. Cash Flow and Liquidity - Cash and cash equivalents increased by 26.4% to RMB 719.9 million compared to RMB 569.8 million as of December 31, 2021[23]. - Cash and cash equivalents as of June 30, 2022, amounted to RMB 475.0 million, down from RMB 548.0 million as of December 31, 2021, representing a decrease of approximately 13.3%[77][78]. - The net cash used in operating activities for the six months ended June 30, 2022, was RMB 134.3 million, compared to a net cash inflow of RMB 21.5 million for the same period in 2021[81]. - The company maintains a healthy liquidity position, closely monitoring its cash flow to meet funding needs[89]. Cost Management - Sales and marketing expenses decreased by 10.8% from RMB 234.3 million to RMB 208.9 million, mainly due to optimized marketing channels and reduced labor costs[65]. - Research and development expenses slightly decreased by 8.0% from RMB 22.1 million to RMB 20.3 million, reflecting improved R&D efficiency[68]. - SaaS and extended services business cost decreased by 41.2% from RMB 38.6 million to RMB 22.7 million, attributed to a reduction in revenue from this segment[56]. Shareholder Information - As of June 30, 2022, Mr. Tang holds 308,377,140 shares, representing approximately 26.93% of the company's voting shares[112]. - Qeeka Holding is the beneficial owner of 294,789,530 shares, representing approximately 25.75% of the company's shares[112]. - The company repurchased 8,827,000 shares at a total cost of approximately HKD 6.2 million during the reporting period, with a maximum price of HKD 0.79 and a minimum price of HKD 0.40 per share[122]. Investment and Financial Assets - The company reported a significant reduction in its investment in financial products, which decreased by 30.7% from RMB 603.0 million to RMB 417.6 million due to a shift to lower-risk fixed deposits[97]. - The company held financial assets at fair value through profit or loss amounting to approximately RMB 448.7 million as of June 30, 2022, down 29.9% from RMB 639.3 million as of December 31, 2021[96]. - The fair value of financial assets measured at fair value through other comprehensive income was RMB 38,360 thousand as of June 30, 2022, compared to RMB 48,388 thousand as of December 31, 2021, indicating a decline of about 20.9%[180]. Employee and Management Information - As of June 30, 2022, the company had a total of 870 full-time employees, primarily located in China, with most based in Shanghai[134]. - The board has resolved not to declare any interim dividends for the reporting period[143].

Financial Performance - Total revenue for the year ended December 31, 2021, was RMB 1,106.5 million, representing a year-on-year increase of 20.8%[24] - Net profit attributable to equity holders reached RMB 74.1 million, an increase of 82.3% compared to RMB 40.6 million in 2020[25] - Gross profit for 2021 reached RMB 593.4 million, an increase of RMB 72.9 million compared to RMB 520.5 million in 2020[51] - Operating profit for 2021 was RMB 63.8 million, a significant recovery from an operating loss of RMB 28.5 million in 2020[51] - The adjusted net profit attributable to equity holders for the year ended December 31, 2021, was RMB 2.4 million, a decrease primarily due to losses from the interior design and construction business and new ventures offsetting profits from core operations[72] Merchant Activity - Active paying merchants increased to 5,799, reflecting an 18.3% year-on-year growth[27] - The retention rate for active paying merchants improved to 72.5%, up 17.3% from the previous year[26] - New paying merchants numbered 2,242, a decrease of 14.5% compared to 2,621 in 2020[31] - The number of active paying merchants reached 5,799 in 2021, an increase of 18.3% year-over-year, with a retention rate of 72.5%[39] Revenue Breakdown - Revenue from SaaS and extended services grew by 17.3%, while revenue from interior design and construction increased by 25.6%[38] - SaaS and extended services contributed RMB 629.8 million, accounting for 56.9% of total revenue in 2021[54] - The indoor design and construction segment generated RMB 476.8 million, representing 43.1% of total revenue[54] - SaaS revenue rose by 12.5% to RMB 460.1 million for the year ended December 31, 2021, driven by growth in real estate decoration services[58] Cost and Expenses - The gross profit margin decreased to 53.6%, down from 56.8% in the previous year[30] - Sales and marketing expenses increased by 21.4% to RMB 492.9 million, primarily due to increased personnel costs and advertising expenses[64] - The cost of sales increased by 29.7% to RMB 513.1 million, with the indoor design and construction business accounting for the majority[58] Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2021, were RMB 548.0 million, down from RMB 897.1 million as of December 31, 2020[74] - The net cash used in operating activities for the year ended December 31, 2021, was RMB 190.6 million, primarily due to adjustments for non-cash items and changes in working capital[79] - The net cash used in investing activities for the year ended December 31, 2021, was RMB 82.4 million, mainly due to purchases of property, plant, and equipment totaling RMB 19.5 million[80] Governance and Management - The board of directors includes key members such as Mr. Deng Huajin, who has been the CEO since April 2, 2018, and has over 20 years of industry experience[106] - The company has a strong management team with members like Mr. Tian Yuan and Mr. Gao Wei, both of whom have extensive industry backgrounds[108][110] - The company has maintained a stable governance structure with a mix of executive and non-executive directors since its inception[104] - The board emphasizes strict corporate governance principles to enhance transparency and accountability to all shareholders[120] Risk Management - The board confirmed its responsibility for risk management and internal control systems, which are designed to manage risks rather than eliminate them, ensuring reasonable assurance against material misstatements or losses[162] - The company has established a strong, comprehensive, and technology-driven risk management system to effectively manage and mitigate inherent business risks[162] ESG Initiatives - The company has identified 13 key ESG issues through stakeholder communication and has categorized them into operational, employee, and environmental aspects[175] - The board of directors is responsible for the company's ESG strategy and performance, ensuring that ESG risks and opportunities are integrated into the business strategy[169] - The company emphasizes sustainable development and has implemented a comprehensive e-commerce solution for suppliers in the home decoration and building materials sector[178] Customer Engagement and Services - The company has established a comprehensive customer service system, including a 400 customer service hotline and online platforms, to address customer needs and complaints effectively[191] - The company has introduced a "construction site live broadcast" feature, allowing customers to monitor the renovation process in real-time, enhancing transparency and customer satisfaction[188] - The company has developed a complaint management system with specific response time standards, aiming for a 3-hour response, a preliminary solution within one day, and resolution within five days[191]

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 524,391 thousand, representing a 66.5% increase from RMB 315,034 thousand in the same period of 2020[11] - Gross profit for the same period was RMB 296,556 thousand, up 41.9% from RMB 209,060 thousand year-over-year[11] - The net profit attributable to equity holders of the company was RMB 12,087 thousand, a significant recovery from a loss of RMB 12,263 thousand in the previous year[11] - Adjusted net profit attributable to equity holders increased by 286.3% to RMB 20,538 thousand from RMB 5,316 thousand in the prior year[11] - The gross margin for the six months ended June 30, 2021, was 56.6%, down from 66.4% in the same period of 2020, reflecting a decrease of 14.8%[11] - The adjusted net profit margin improved to 3.9% from 1.7% in the previous year, marking a 129.4% increase[11] - Total revenue grew by 66.5% year-on-year to RMB 524 million, up from RMB 315 million in the same period of 2020[16] - Adjusted net profit attributable to the parent company was RMB 205.4 million, a year-on-year increase of 286.3%[16] - The overall financial performance remains robust, with a strong emphasis on SaaS strategy as a core growth driver[18] - The company reported a net profit of RMB 15.5 million for the six months ended June 30, 2021, compared to a net loss of RMB 16.0 million for the same period in 2020[50] Revenue Breakdown - SaaS and extended service revenue rose by 38.4% year-on-year to RMB 309 million[16] - Revenue from interior design and construction business surged by 140.9% year-on-year to RMB 207 million[20] - Marketing services revenue increased by 38.8% to RMB 265.7 million, with the number of sales leads rising from 330,199 to 384,216[31] - The revenue breakdown shows that marketing services generated RMB 265,668 thousand, up from RMB 191,466 thousand, reflecting a growth of 38.8%[160] - The total revenue from external customers reached RMB 524,391 thousand, with the supply chain services segment contributing RMB 28,385 thousand[156] Merchant Activity - The number of new paying merchants decreased by 10.9% to 1,082 from 1,214 in the same period last year[13] - Active paying merchants increased by 33.8% to 5,667 from 4,236 year-over-year[13] - The number of active paying renovation companies increased by 33.8% year-on-year, reaching 5,667[16] Expenses and Costs - Sales and marketing expenses increased by 29.6% to RMB 234.3 million, driven by higher personnel costs and increased advertising and promotion expenses[44] - Administrative expenses slightly decreased by 6.8% to RMB 38.5 million due to improved management efficiency[45] - Research and development expenses decreased by 19.9% to RMB 22.1 million, mainly due to the completion of outsourced platform technology development projects[46] - Total expenses for the period were RMB 522,660 thousand, up from RMB 355,551 thousand, which is an increase of 47.0%[163] Cash Flow and Assets - Cash and cash equivalents increased to RMB 929.5 million as of June 30, 2021, from RMB 897.1 million as of December 31, 2020[53] - Operating cash flow for the six months ended June 30, 2021, was RMB 21,487 thousand, a decrease of 54.5% from RMB 47,214 thousand in the same period of 2020[124] - Total assets increased to RMB 2,330,310 thousand as of June 30, 2021, up from RMB 2,149,605 thousand as of December 31, 2020, representing an increase of approximately 8.4%[115] - Current assets totaled RMB 1,515,245 thousand, an increase from RMB 1,394,427 thousand, reflecting a growth of approximately 8.7%[115] Shareholder Information - The company’s major shareholder, Mr. Deng, holds 308,377,140 shares, representing approximately 26.61% of the voting shares[66] - Mr. Gao holds 14,211,360 shares, which accounts for about 1.23% of the total shares[66] - Mr. Tian holds 4,578,876 shares, representing approximately 0.40% of the total shares[66] - Mr. Li holds 100,000,000 shares, which is about 8.63% of the total shares[66] Corporate Governance - The company has adopted the principles and code provisions of the Corporate Governance Code as the basis for its corporate governance practices during the reporting period[99] - The company believes that having the same individual serve as both Chairman and CEO ensures consistent internal leadership and effective strategic planning[100] - The company is committed to maintaining high standards of ethics, transparency, accountability, and integrity in its corporate governance practices[98] Investments and Acquisitions - The company completed a share transfer agreement on July 22, 2021, to sell its subsidiaries for a total consideration of RMB 432 million[106] - The company made an investment of RMB 5,000,000 in Xiamen Jingdao Zhibo Investment Partnership, becoming a limited partner with a 24.7525% stake[182] - The company has made non-controlling equity investments in technologies or businesses deemed beneficial, although some investments have not yet generated significant returns[61] Impairment and Provisions - The provision for impairment of accounts receivable increased to RMB 2,053 thousand from RMB 998 thousand, reflecting a significant rise in credit risk[190] - The group’s other receivables provision for impairment decreased slightly to RMB 12,893 thousand from RMB 12,925 thousand, showing stability in this area[192] Future Strategies - The company plans to enhance R&D investment and optimize internal organizational structure to support strategic goals[22] - Future strategies include expanding merchant partnerships and improving user experience through digital transformation initiatives[22] - The company anticipates continued growth in the interior design and construction business, leveraging its SaaS capabilities[20]

Financial Performance - Total revenue for the year ended December 31, 2020, was RMB 916.3 million, an increase of 18.8% year-over-year[11] - Adjusted net profit attributable to equity holders was RMB 45.1 million, down 26.1% year-over-year[15] - Total revenue for the year ended December 31, 2020, increased by 18.8% year-on-year to RMB 916.3 million, with a 48.7% increase in the second half of the year to RMB 601.2 million[22] - Adjusted net profit attributable to equity holders reached RMB 45.1 million, driven by increased marketing service revenue and strict cost control measures in response to the pandemic[22] - The company reported a net profit of RMB 41.9 million for 2020, down from RMB 49.5 million in 2019, with profit attributable to equity holders decreasing from RMB 60.7 million to RMB 40.6 million[48] - Adjusted net profit attributable to equity holders was RMB 45.1 million in 2020, compared to RMB 60.9 million in 2019[48] Revenue Breakdown - SaaS business revenue amounted to RMB 29.8 million, up 39.9% compared to the previous year[11] - Marketing services revenue amounted to RMB 454.6 million, representing a year-on-year increase of 6.4%, with sales lead volume increasing by 7.9%[27] - Total revenue from interior design and construction services was RMB 360.5 million, a year-on-year growth of 41.3%, attributed to digital innovations like live video monitoring of construction sites[32] - Supply chain services revenue reached RMB 52.4 million, showing recovery in orders from the second half of the year after initial pandemic-related disruptions[30] - SaaS business revenue grew by 39.9%, while marketing services revenue increased by 6.4%[43] - Interior design and construction revenue surged by 41.3% from RMB 255.1 million in 2019 to RMB 360.5 million in 2020, attributed to steady growth in renovation service demand[54] Merchant Activity - Active paying merchants reached 4,904, representing a year-over-year increase of 32.6%[11] - The number of new paying merchants was 2,621, reflecting a growth of 34.2% year-over-year[18] - The company introduced 2,621 new paid merchants in 2020, compared to 1,953 in 2019[39] - Active paid merchants increased to 4,904 in 2020 from 3,697 in 2019, reflecting strong merchant retention[39] Cost and Profitability - Gross profit for the year was RMB 520.5 million, with a gross margin of 56.8%[15] - The company reported a decrease in gross margin for supply chain services to 8.9%, down from 11.4%[15] - The total gross profit increased by 2.3% from RMB 508.6 million in 2019 to RMB 520.5 million in 2020, while the overall gross margin decreased from 66.0% to 56.8%[56] - Supply chain services gross profit decreased by 35.4% from RMB 7.2 million in 2019 to RMB 4.6 million in 2020, with a gross margin decline to 8.9% from 11.4%[60] - Interior design and construction gross profit fell by 28.9% from RMB 70.5 million in 2019 to RMB 50.1 million in 2020, with a gross margin drop of 49.8%[61] Research and Development - Research and development expenses increased from RMB 46.8 million in 2019 to RMB 58.8 million in 2020, reflecting the company's commitment to enhancing its service offerings[48] - The company plans to invest in technology and big data analytics to improve lead matching mechanisms[44] - The company is investing $20 million in research and development for new technologies aimed at enhancing user experience[84] Corporate Governance - The board of directors is responsible for leading and controlling the company, overseeing business strategies and performance[93] - The company emphasizes strict corporate governance principles to enhance transparency and accountability to shareholders[92] - The management team is authorized to execute daily operations and administrative tasks, while major investment decisions require board approval[94] - The company has established a robust internal control and risk management system to ensure operational integrity[93] - The company has a structured approach to reviewing and approving its annual financial budget and profit distribution plans[94] ESG Initiatives - The company has established an ESG working group to oversee daily ESG operations and report progress to senior management[137] - The ESG strategy is based on sustainable development principles, integrating ESG risks and opportunities into the company's operational strategy[139] - The company identified 13 key ESG issues, categorized into operations, employees, and environment, through stakeholder communication[143] - The company launched the Nola brand in collaboration with Holike, focusing on customized light fashion furniture, utilizing an online service and offline experience model[146] - The company emphasizes high-quality products and services, ensuring customer satisfaction through efficient and transparent solutions[146] Employee Engagement and Training - The company has established a comprehensive privacy protection system in compliance with various laws, ensuring customer data security[159] - The company has implemented a training system that combines self-training and professional knowledge training to enhance employee skills[167] - The company has a dedicated online learning platform, "Qizhi Academy," to facilitate employee training and development[168] - The training participation rate for male employees is 54% with an average of 33.8 hours per employee, while for female employees it is 46% with an average of 20.5 hours[168] Environmental Impact - In 2020, nitrogen oxide emissions were recorded at 110.70 kg, a decrease from 119.30 kg in 2018[198] - Total greenhouse gas emissions amounted to 415.11 tCO2e in 2020, down from 548.71 tCO2e in 2019[198] - The total energy consumption for 2020 was 692.06 MWh, a reduction from 889.67 MWh in 2019[199] - Total water consumption decreased to 2,701 tons in 2020, compared to 4,181 tons in 2019[199] - The company replaced two energy-efficient air conditioning units in 2020 as part of its green initiatives[191]

Revenue and Profitability - Revenue for the six months ended June 30, 2020, was RMB 309,877 thousand, a decrease of 15.4% compared to RMB 366,465 thousand for the same period in 2019[10]. - Gross profit for the same period was RMB 206,819 thousand, down 18.3% from RMB 253,265 thousand in 2019[10]. - The adjusted net profit attributable to equity holders was RMB 6,871 thousand, a significant decrease of 80.5% from RMB 35,186 thousand in the previous year[10]. - Total revenue decreased by 15.4% year-on-year to RMB 309.9 million for the six months ended June 30, 2020[28]. - Platform business revenue declined by 8.0% year-on-year to RMB 206.7 million, accounting for 66.7% of total revenue[29]. - The adjusted net loss attributable to equity holders for the six months ended June 30, 2020, was RMB 10.7 million, compared to a net profit of RMB 20.1 million for the same period in 2019, representing a significant decline[55]. - The adjusted net profit attributable to equity holders for the six months ended June 30, 2020, was RMB 6.9 million, down 80.5% from RMB 35.2 million in the same period of 2019[55]. - The company reported a net loss attributable to equity holders of the company was RMB 10,708 thousand, compared to a profit of RMB 20,097 thousand in the same period last year[105]. - The company reported a net loss before tax of RMB 14,441 thousand, compared to a profit of RMB 13,964 thousand in the same period last year[158]. - The company reported a significant increase in outsourced labor costs, which rose to RMB 104,455 thousand from RMB 85,521 thousand in the previous year, an increase of about 22%[165]. Visitor and User Metrics - Monthly unique visitors increased by 9.1% to 60.1 million from 55.1 million in the prior year[13]. - The number of recommended users rose by 14.1% to 257,801 from 226,026 in the previous year[13]. - The average revenue per recommended user decreased by 19.3% to RMB 802 from RMB 994 in the previous year[13]. Business Performance and Segments - The number of interior design and construction service providers on the platform increased by 23.4% to 13,624 as of June 30, 2020[19]. - The self-operated interior design and construction service revenue grew by 47.1% year-on-year to RMB 66.8 million[22]. - Platform business revenue decreased by 8.0% from RMB 224.6 million for the six months ended June 30, 2019, to RMB 206.7 million for the six months ended June 30, 2020, primarily due to temporary sales discounts offered to merchants[30]. - Material supply chain business revenue decreased by 29.2% from RMB 28.9 million for the six months ended June 30, 2019, to RMB 20.5 million for the six months ended June 30, 2020, due to reduced demand for construction materials as service providers were unable to enter sites during the pandemic[31]. - Self-operated interior design and construction business revenue decreased by 26.7% from RMB 112.9 million for the six months ended June 30, 2019, to RMB 82.7 million for the six months ended June 30, 2020, mainly due to fewer available construction sites in Q1 2020[32]. Financial Position and Cash Flow - Operating cash flow was positive at RMB 49.2 million due to strict cost control during the pandemic[1]. - Cash and cash equivalents increased to RMB 655.4 million from RMB 410.7 million as of December 31, 2019[1]. - The company maintained a healthy liquidity position, primarily meeting cash needs through cash generated from operating activities[61]. - The company reported a cash inflow from investing activities of RMB 227,992 thousand, a significant increase from a cash outflow of RMB 131,801 thousand in the same period of 2019[119]. - The company recorded a significant increase in cash and cash equivalents, reaching RMB 655,361 thousand at the end of the reporting period, compared to RMB 638,554 thousand at the end of the previous year[119]. Expenses and Cost Management - Research and development expenses increased by 14.9% from RMB 23.5 million to RMB 27.0 million, primarily due to an increase in R&D staff and third-party subcontracting to enhance platform technology development[49]. - Administrative expenses increased by 20.1% from RMB 33.3 million to RMB 40.0 million, mainly due to hiring more senior managers to develop new business opportunities[48]. - Sales and marketing expenses decreased by 5.2% from RMB 188.2 million to RMB 178.4 million, primarily due to optimization of marketing channels[47]. Shareholder Structure and Equity - As of June 30, 2020, Mr. Tang holds 308,377,140 shares, representing approximately 26.03% of the company's voting shares[69]. - Mr. Gao owns 5,229,970 shares and has options for an additional 8,981,390 shares, totaling 14,211,360 shares, which is about 1.20% of the company[70]. - The total number of shares issued by the company is not explicitly stated, but the significant ownership percentages indicate a concentrated shareholder structure[75]. - The company repurchased 6,332,000 shares at a total cost of approximately HKD 15,400,000, with the highest price paid being HKD 2.49 and the lowest price HKD 2.38[85]. Governance and Compliance - The audit and risk management committee consists of three independent non-executive directors, ensuring compliance with applicable accounting principles and standards[98]. - The company has adopted corporate governance principles to enhance transparency and accountability to shareholders[93]. - The company has not made any significant changes to its risk management policies since December 31, 2019[135]. Impairment and Credit Management - The company recognized an impairment loss of RMB 930,000 on investments accounted for using the equity method as of June 30, 2020[66]. - The company reported a net impairment loss on accounts receivable and other receivables of RMB 415 thousand, a significant reduction from RMB 2,598 thousand in the same period of 2019, indicating better credit management[196]. - The impairment provision for other receivables increased to RMB 12,925 thousand as of June 30, 2020, compared to RMB 12,695 thousand at the end of 2019, indicating ongoing challenges in this area[195]. Taxation and Financial Standards - The company’s tax rate in Hong Kong is 16.5%, while the general corporate income tax rate in China is 25%, with certain subsidiaries benefiting from a reduced rate of 15% due to their status as high-tech enterprises[175]. - The financial data for the six months ended June 30, 2020, is prepared in accordance with International Accounting Standards (IAS) 34, indicating a mid-year financial report[126].

Financial Performance - Total revenue for the year ended December 31, 2019, was RMB 770.9 million, representing a year-on-year increase of 19.4%[29] - Platform business revenue reached RMB 459.0 million, up 42.9% year-on-year[29] - Adjusted net profit attributable to equity holders was RMB 62.2 million, a year-on-year increase of 20.5%[29] - Gross profit for the year was RMB 508.6 million, reflecting a 33.3% increase compared to the previous year[29] - Gross margin improved to 66.0%, up from 59.1% in the previous year[29] - Total revenue for the year ended December 31, 2019, increased by 19.4% to RMB 770.9 million[38] - Gross profit from continuing operations rose by 33.3% to RMB 508.6 million compared to RMB 381.6 million in 2018[38] - Adjusted net profit attributable to equity holders increased to RMB 62.2 million from RMB 51.6 million in the previous year[38] - Monthly unique visitors grew by 22.2% from approximately 48.6 million in 2018 to approximately 59.4 million in 2019[32] - The number of recommended users reached 463,725, a year-on-year increase of 42.8%[32] Business Segments - Material supply chain business revenue was RMB 63.1 million, representing a 17.5% increase compared to the full year of 2018[54] - The self-operated interior design and construction business revenue slightly decreased by 8.1% to RMB 248.8 million in 2019[55] - The gross profit from the platform business increased by 44.1% to RMB 439.4 million in 2019, maintaining a stable gross margin of 95.7%[76] - The gross profit from the materials supply chain business rose by 15.4% to RMB 7.2 million in 2019, with a stable gross margin[77] - The gross profit from the self-operated interior design and construction business decreased by 11.9% to RMB 62.0 million in 2019, with a slight decline in gross margin due to a focus on lower-margin projects[78] Operational Efficiency and Strategy - The company aims to expand its market presence and enhance product offerings in the upcoming fiscal year[28] - The company plans to enhance operational efficiency and user engagement through improved online services and content[64] - The company is focusing on expanding its market presence and enhancing its service offerings through strategic partnerships and operational improvements[65] - The company plans to continue focusing on enhancing operational efficiency and strategic synergies between its brands in 2020[55] - The company aims to improve operational efficiency, targeting a 5% reduction in costs through streamlined processes[113] Research and Development - Research and development expenses rose by 22.6% to RMB 45.5 million in 2019, driven by an increase in the number of R&D personnel and their average salaries and benefits[80] - Research and development investments have increased by 10%, focusing on cutting-edge technologies to drive future growth[114] - The company is developing a Platform as a Service (PaaS) to support the irreversible digitalization trend in the interior design and construction industry[55] Cash Flow and Financial Position - Cash and cash equivalents as of December 31, 2019, were RMB 410.7 million, down from RMB 779.8 million as of December 31, 2018[87] - Net cash generated from operating activities was RMB 50.1 million for the year ended December 31, 2019, compared to RMB 58.4 million in 2018[88] - The net cash used in investing activities for the year ended December 31, 2019, was RMB 400.2 million, mainly attributed to cash payments for land use rights of RMB 9.4 million and purchases of property, plant, and equipment of RMB 7.3 million[90] - The net cash used in financing activities for the year ended December 31, 2019, was RMB 29.9 million, primarily due to share repurchase payments of RMB 46.5 million and lease liability payments of RMB 8.4 million[92] - The company maintained a healthy liquidity position as of December 31, 2019, with a prudent financial management approach to manage cash flow risks[98] Corporate Governance - The board has approved a new strategy to enhance digital marketing efforts, aiming for a 40% increase in online engagement[114] - The board consists of nine directors, with the roles of chairman and CEO held by the same individual, Mr. Deng Huajin, to ensure effective strategic planning[124] - The company has three independent non-executive directors, with at least one possessing appropriate professional qualifications or financial management expertise, complying with listing rules[126] - The company has established a remuneration committee consisting of three independent non-executive directors and one executive director[144] - The board of directors is responsible for ensuring that the consolidated financial statements fairly reflect the group's financial position[134] Environmental, Social, and Governance (ESG) - The company reported a commitment to sustainable development strategies, integrating ESG risks and opportunities into its operational strategy[169] - The company has established an ESG working group to manage and report on ESG-related performance and risks[171] - The company aims to provide high-quality products and services to customers, ensuring a good working environment and development opportunities for employees[172] - In 2019, the company launched new furniture and flooring products that comply with European environmental standards, enhancing its green product offerings[179] - The company emphasizes compliance with various laws and regulations, including the Consumer Rights Protection Law, to ensure customer feedback is effectively addressed[181] Employee Relations - The company adheres to national labor laws and has established a comprehensive human resources management system to protect employee rights[192] - Employees are evaluated annually, with promotions and salary increases based on professional capabilities and job nature[192] - The company maintains effective communication with employees through multiple feedback channels, ensuring timely understanding and resolution of their needs[198] - Various festive activities and birthday parties for employees are organized annually to enrich their lives[199] - Support and assistance are provided for employees with special needs, including facilities for breastfeeding[198]

Revenue and Growth - Total revenue for the six months ended June 30, 2019, was RMB 366.5 million, representing a year-on-year increase of 33.0%[10] - Platform business revenue reached RMB 224.6 million, up 57.1% compared to the same period last year[10] - Total revenue for the first half of 2019 was RMB 366.5 million, representing a year-on-year growth of 33.0%[18] - Platform business revenue rose by 57.1% to RMB 224.6 million, accounting for 61.3% of total revenue[41] - Material supply chain business revenue increased by 66.8% to RMB 28.9 million, representing 7.9% of total revenue[34] - Self-operated interior design and construction business revenue slightly decreased by 2.1% to RMB 112.9 million, making up 30.8% of total revenue[34] - Revenue for the six months ended June 30, 2019, was RMB 366.5 million, an increase of 32.9% compared to RMB 275.6 million for the same period in 2018[115] - Revenue from the platform business reached RMB 224,631 thousand, up from RMB 142,945 thousand in the previous year, marking a growth of about 57.2%[182] Profitability - Gross profit for the period was RMB 253.3 million, a 54.9% increase from the previous year[11] - Adjusted net profit attributable to equity holders was RMB 35.2 million, up 16.5% year-on-year[11] - The gross margin improved to 69.1%, compared to 59.3% in the same period last year[11] - The company reported an adjusted net profit margin of 9.6%, down from 11.0% year-on-year[11] - Adjusted net profit attributable to equity holders for the first half of 2019 was RMB 35.2 million, a growth of 16.5% from RMB 30.2 million in the same period of 2018[34] - The company reported a net profit of RMB 20,097 thousand for the six months ended June 30, 2019, compared to a loss of RMB 820,843 thousand in the previous period[125] User Engagement and Activity - Monthly unique visitors increased to 55.1 million, a growth of 19.0% year-on-year[10] - The number of recommended users rose to 226,026, reflecting a 45.5% increase year-on-year[15] - The number of recommendations made increased by 59.7% to 549,911[15] - Average revenue per recommended user was RMB 994, an increase of 8.0% year-on-year[15] - The number of IDC service providers on the platform increased to 11,042, a growth of 36.6% year-on-year[20] - The number of construction sites using the "Qijia Bao" service rose to 13,870, marking a 91.5% increase year-on-year[23] Expenses and Costs - Sales cost for continuing operations slightly increased by 1.1% to RMB 113.2 million, primarily due to rising costs in the material supply chain business[45] - Research and development expenses increased by 30.6% from RMB 18.0 million to RMB 23.5 million, primarily due to hiring more R&D staff[57] - Selling and marketing expenses rose by 50.0% from RMB 125.5 million to RMB 188.2 million, driven by increased advertising and promotional costs[55] - Total expenses for the six months ended June 30, 2019, amounted to RMB 360,766,000, an increase of 24.5% from RMB 289,801,000 in the previous year[186] Cash Flow and Liquidity - Cash and cash equivalents decreased from RMB 779.8 million as of December 31, 2018, to RMB 638.6 million as of June 30, 2019[64] - Operating cash flow for the six months ended June 30, 2019, was a net outflow of RMB 12,375 thousand, compared to an inflow of RMB 29,198 thousand for the same period in 2018[130] - Cash and cash equivalents decreased by RMB 142,450 thousand, compared to a decrease of RMB 18,963 thousand in the prior year[130] - The company’s cash and cash equivalents at the end of the period were RMB 638,554 thousand, compared to RMB 469,886 thousand at the end of the previous year[130] Shareholder Information - Qeeka Holding holds a beneficial interest of 302,349,530 shares, representing 24.99% of the company's total shares[85] - Mr. Deng and Ms. Sun each hold 315,937,140 shares through controlled corporations, accounting for 26.11% of the total shares[85] - Baidu (Hong Kong) Limited has a beneficial interest of 139,333,330 shares, which is 11.51% of the total shares[85] - The total number of shares held by major shareholders indicates a concentrated ownership structure within the company[86] - The ownership percentages reflect significant control by a few key stakeholders, which may impact corporate governance and strategic decisions[86] Corporate Governance - The company has adopted strict corporate governance standards to enhance transparency and accountability to shareholders[98] - The company complied with all provisions of the corporate governance code except for the separation of the roles of Chairman and CEO[101] - The independent non-executive director, Huang Wenzong, has experience serving on multiple boards and has committed sufficient time to fulfill his responsibilities[102] Strategic Initiatives - The company is focusing on enhancing the efficiency and transparency of the IDC industry, aiming to attract more participants to its platform[23] - The company has established strategic partnerships with well-known brands in the home improvement sector to enhance supply chain efficiency[22] - The company plans to explore diversified business models and opportunities to build a strong and comprehensive platform for sustainable value creation[24] - The company plans to develop a commercial complex in Shanghai, integrating various aspects of the interior design and construction value chain[72] Financial Position - Total assets as of June 30, 2019, reached RMB 1,977,293 thousand, an increase of 4.1% from RMB 1,899,880 thousand as of December 31, 2018[120] - Total liabilities amounted to RMB 649,479 thousand, an increase of 12.1% from RMB 579,203 thousand[122] - The company's equity attributable to equity holders was RMB 1,365,140 thousand, up from RMB 1,353,460 thousand, representing a growth of 0.6%[120] - The company’s total equity as of June 30, 2019, was RMB 1,327,814 thousand, a slight increase from RMB 1,320,677 thousand, showing a growth of 0.5%[122]

Financial Performance - Total revenue for the year ended December 31, 2018, increased by 34.8% to RMB 645.7 million compared to the previous year[14]. - Adjusted net profit attributable to equity holders of the company was RMB 51.6 million, demonstrating stable monetization capability of the online platform business[14]. - The company reported a fair value gain of RMB 699.2 million on preferred shares and convertible debt for the year ended December 31, 2018, compared to a loss of RMB 743.0 million in the previous year[73]. - The net profit from continuing operations for the year ended December 31, 2018, was RMB 713.5 million, a substantial increase of 184.4% compared to a net loss of RMB 844.9 million in 2017[77]. - Operating cash flow reached RMB 58.4 million, indicating improved operational capability[35]. - The company reported a significant increase in operating leverage due to stable monetization capabilities of its online platform and strict cost control measures[78]. Online Platform Business - Online platform business revenue surged by 97.7% to RMB 374.9 million, up from RMB 189.6 million in 2017, driven by strong expansion in platform services and material supply chain[14]. - The online platform business accounted for 58.1% of total revenue in 2018, compared to 39.6% in 2017[39]. - Platform services revenue increased by 80.6% to RMB 321.2 million, driven by improvements in online storefronts and increased user engagement[45]. - The online platform business's gross profit rose by 83.5% to RMB 311.1 million for the year ended December 31, 2018, from RMB 169.5 million in the previous year[61]. - The company plans to focus on long-term development of the online platform business and enhance user experience in 2019[37]. User Engagement and Growth - Monthly unique visitors increased to 48.6 million, a growth of 28.6% year-on-year[12]. - The number of renovation companies on the platform reached 9,694, representing a year-on-year growth of 45.1%[12]. - The number of construction sites using the "Qi Jia Bao" service increased by 58.1% to 18,924, addressing common user experience issues during construction[17]. - The company aims to continue expanding its user base and attracting more quality renovation companies to the platform[15]. - The company has developed user profiling technology to improve user experience and retention by analyzing browsing behavior and preferences[28]. Supply Chain and Operational Efficiency - The company aims to enhance its supply chain efficiency and reduce procurement costs for renovation companies through partnerships with leading suppliers[18]. - The company has established a localized material supply chain system to enhance supply chain efficiency and improve profit margins for renovation companies[18]. - The material supply chain segment saw a remarkable growth of 359.0%, contributing significantly to the overall revenue increase[44]. - The revenue from the materials supply chain segment increased by 359.0% to RMB 53.7 million for the year ended December 31, 2018, compared to RMB 11.7 million for the year ended December 31, 2017[49]. Corporate Governance and Management - The company has a strong management team with extensive industry experience, including Mr. Tian, who has over 20 years of industry experience since joining in August 2007[107]. - The management team emphasizes the importance of attracting and retaining qualified personnel as a key factor for success[98]. - The company is focused on expanding its market presence and enhancing its operational efficiency through strategic appointments and governance improvements[110]. - The board includes members with significant academic and professional qualifications, enhancing the company's governance and compliance capabilities[109]. - The company emphasizes strict corporate governance principles, focusing on internal control measures and high ethical standards[122]. Risk Management and Internal Control - The company is committed to establishing a high-level risk management and internal control system to protect shareholder investments[184]. - The board of directors is responsible for the risk management and internal control systems, which are regularly reviewed for effectiveness[186]. - The company has established a risk management committee to identify, control, and prevent significant risks across the organization[185]. - The internal audit department is responsible for oversight and auditing, and a review of the risk management and internal control systems was conducted in 2018[187]. ESG Commitment - The report adheres to the ESG Reporting Guidelines set by the Hong Kong Stock Exchange, emphasizing the importance of stakeholder engagement and materiality assessment in determining key ESG issues[196]. - The company is committed to sustainable development and aims to provide high-quality home decoration services, guided by core principles of green sustainability[199]. - The company has established an ESG working group involving department heads to oversee ESG management and reporting progress, ensuring effective implementation of ESG strategies[199]. - The board of directors is responsible for evaluating ESG-related risks and ensuring the establishment of effective risk management and internal control systems[199].