Financial Performance - The total billings for the short video marketing business increased from RMB 11 billion for the year ended December 31, 2021, to RMB 12.6 billion for the year ended December 31, 2022, representing a growth of 14.5%[9] - Total revenue rose from RMB 7.8 billion for the year ended December 31, 2021, to RMB 8.3 billion for the year ended December 31, 2022, reflecting a year-on-year increase of 6.3%[9] - Net profit decreased from RMB 254.4 million for the year ended December 31, 2021, to RMB 113.6 million for the year ended December 31, 2022, marking a decline of 55.3%[9] - In 2022, the group's revenue reached RMB 8,336.1 million, representing a 6.3% increase from RMB 7,841.4 million in 2021[21] - The group's gross profit decreased by 48.8% to RMB 219.8 million from RMB 429.4 million in the previous year[21] - The group reported a pre-tax profit of RMB 148.7 million, down 55.3% from RMB 332.5 million in 2021[21] - The company reported a total comprehensive income of RMB 140,492,000 for the year ended December 31, 2022, which includes a profit of RMB 113,579,000[112] - The company declared a dividend of RMB 50,184,000 during the reporting period[112] - The total equity as of December 31, 2022, was RMB 1,323,792,000, reflecting an increase from the previous year[112] Market Trends and Strategy - The internet advertising market size in China was RMB 508.8 billion in 2022, indicating a structural adjustment in the market compared to 2021[5] - Short video advertising has become the only advertising format to achieve growth amid a structural adjustment in the internet advertising market[7] - The company adjusted its strategy in response to the challenging economic environment, focusing on the credit status of industry clients[9] - The company plans to leverage opportunities in the post-pandemic era as the economy stabilizes and consumer confidence is expected to recover[6] - The live e-commerce market is projected to exceed RMB 4.9 trillion in 2023, with a penetration rate of 24.3% in the online shopping market[13] - The company aims to leverage cross-border e-commerce opportunities, with a projected market growth of nearly 115% CAGR from 2022 to 2024[17] User and Client Metrics - As of December 2022, the number of monthly active mobile internet users in China reached 1.07 billion, with an internet penetration rate of 75.6%[6] - The user base for short video applications grew to 1.01 billion, showing significant growth in 2022[6] - As of December 31, 2022, the group collaborated with 19 media partners, achieving a customer retention rate of 92% for clients with total billings over RMB 10 million and 96% for those over RMB 50 million[10] Operational Insights - The company expanded its business scope in 2022 to include live e-commerce services, indicating a strategic move towards diversifying revenue streams[155] - The company has established a management system for energy conservation and emission reduction to guide efficient resource use[82] - The company has implemented a comprehensive waste management strategy, achieving 100% classification of household waste[106] - The company has established a robust communication mechanism with stakeholders to assess its ESG performance[101] Employee and Governance - As of December 31, 2022, the company had a total of 598 employees, comprising 258 males and 340 females, achieving gender diversity[65] - Employee benefits expenses decreased by 13.5% to approximately RMB 102.9 million for the year ended December 31, 2022, down from RMB 119.0 million in 2021[35] - The company is committed to employee growth and development through a diversified assessment and promotion mechanism, providing clear career development paths[92] - The company has implemented a risk management and internal control system to manage and mitigate risks associated with daily operations, business objectives, asset misappropriation, and potential material misstatements[49] Technology and Innovation - The integration of AI and big data technology in short video advertising aims to maximize marketing effectiveness for clients[7] - The company launched an AI-driven online marketing solution platform called "Youliang Engine," which enhances short video product quality by collecting and analyzing feedback data in real-time[141] - The company has established an online short video research center to study popular trends and consumer needs, aiming to develop high-quality short videos[125] Financial Position and Cash Flow - Total assets increased to RMB 3,988.9 million in 2022 from RMB 3,415.6 million in 2021, while total liabilities rose to RMB 2,665.2 million[22] - The cash and cash equivalents decreased to RMB 288,660 thousand at the end of 2022 from RMB 499,943 thousand at the end of 2021, indicating a decline of approximately 42.2%[163] - The net cash used in operating activities for the year ended December 31, 2022, was RMB (218,522) thousand, compared to RMB (310,173) thousand for the year ended December 31, 2021, representing an improvement of approximately 29.5%[153] Compliance and Risk Management - The company did not report any significant violations related to corruption, bribery, fraud, or money laundering in 2022, indicating a strong compliance framework[159] - The company has implemented a conflict of interest declaration process to mitigate potential corruption risks among employees[147] - The board regularly reviews the ESG management strategy to assess its potential impact on overall strategy and to ensure effective risk management related to ESG issues[61]

Financial Performance - For the year ended December 31, 2022, total revenue reached RMB 8,336,069 thousand, an increase of approximately 6.3% from RMB 7,841,417 thousand in 2021[56] - The company's net profit attributable to owners for the year ended December 31, 2022, was RMB 113,579 thousand, a decrease of 55.3% compared to RMB 254,351 thousand in 2021[64] - The company's gross profit fell from RMB 429.4 million in the year ended December 31, 2021, to RMB 219.8 million in the year ended December 31, 2022, a decrease of 48.8%[158] - The net profit margin decreased from 3.2% for the year ended December 31, 2021, to 1.4% for the year ended December 31, 2022[154] - The company's revenue increased from RMB 783.4 million in the year ended December 31, 2021, to RMB 833.6 million in the year ended December 31, 2022, representing a growth of 6.3%[158] - The company's gross profit margin decreased from 5.5% in 2021 to 2.6% in 2022, while the net profit margin fell from 3.2% to 1.4% during the same period[19] Revenue Sources - The revenue from internet services grew by 40.1%, increasing from approximately RMB 1,274.2 million in 2021 to approximately RMB 1,785.3 million in 2022, attributed to acquiring new internet service clients[11] - The company's revenue from advertising distribution services was approximately RMB 252 million in 2022, down from RMB 1,292 million in 2021[8] - Total revenue from online marketing solutions increased by 5.8% from RMB 7,835.4 million in 2021 to RMB 8,288.1 million in 2022, accounting for 99.4% of total revenue[184] - E-commerce industry remains the largest client group, generating revenue of RMB 3,827.7 million in 2022, a slight decrease from RMB 3,946.5 million in 2021[167] Expenses and Costs - The group's cash and cash equivalents decreased from approximately RMB 499.9 million as of December 31, 2021, to approximately RMB 288.7 million as of December 31, 2022, primarily due to increased working capital needs for business expansion[18] - The cost of traffic acquisition and monitoring increased to RMB 7,951,800 thousand in 2022, up from RMB 7,248,283 thousand in 2021, reflecting higher operational costs[59] - Employee costs totaled approximately RMB 195.6 million for the year ended December 31, 2022, compared to RMB 181.7 million for the previous year, reflecting a focus on competitive compensation[135] - The group's employee benefit expenses decreased by 13.5% from approximately RMB 119.0 million in 2021 to approximately RMB 102.9 million in 2022, due to improved efficiency from the Youliang Engine platform[13] Investments and Future Plans - The group plans to expand its overseas e-commerce business, targeting regions with high platform activity and significant e-commerce growth potential[7] - The company plans to upgrade its AI capabilities and SaaS technology, allocating approximately 2.3% (HKD 17.0 million) of the net proceeds for this purpose, with an expected full utilization by December 31, 2023[103] - The company aims to enhance material production capabilities using AI technology, allocating approximately 6.6% (HKD 49.6 million) of the net proceeds for this initiative, expected to be fully utilized by the end of December 2024[103] - The company is seeking strategic investments and acquisitions, which will account for approximately 16.0% (HKD 119.9 million) of the net proceeds, with full utilization expected by December 31, 2023[118] Tax and Financial Management - The group’s income tax expense decreased by approximately 55.0% from RMB 78.2 million in 2021 to RMB 35.2 million in 2022, mainly due to a reduction in taxable profits[16] - The company maintains a prudent financial management approach, ensuring a stable liquidity position throughout the review period[90] - The company's effective tax rates for its subsidiaries in China are 25%, 20% for small and low-profit enterprises, and 15% for certain preferential enterprises[80] Market Trends and Projections - The live e-commerce market is projected to exceed RMB 4.9 trillion in 2023, with a penetration rate of 24.3% in the online shopping market, indicating strong growth potential[6] - The online advertising market in China was valued at RMB 508.8 billion in 2022, reflecting a structural adjustment in the market[179] - The number of monthly active mobile internet users in China reached 1.07 billion by December 2022, with an internet penetration rate of 75.6%[179] Customer and Accounts Receivable - As of December 31, 2022, accounts receivable increased by approximately RMB 442,500 thousand compared to December 31, 2021, aligning with the company's business expansion[44] - As of December 31, 2022, accounts receivable from a major customer amounted to approximately RMB 1,484,122,000, representing about 53% of the total accounts receivable[76] - The company has not identified any individual customer contributing more than 10% of total revenue for the years ended December 31, 2022, and 2021, indicating a diversified customer base[58] Research and Development - Research and development expenses for the year were RMB 17,506 thousand, an increase from RMB 13,728 thousand in 2021, highlighting a focus on innovation[196] - Research and development expenses primarily related to employee benefits for R&D staff were included in the overall expenses, reflecting the company's commitment to innovation[41] - Research and development expenses increased by 27.5% to RMB 17.5 million in 2022 from RMB 13.7 million in 2021, driven by increased staffing for platform upgrades and integration[171] Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.10 per share for the year ended December 31, 2021, totaling approximately HKD 60,000,000 (approximately RMB 50,184,000)[83] - The company plans to distribute a final dividend of HKD 0.02 per share for the year ended December 31, 2022, subject to approval at the annual general meeting[123]

Financial Performance - For the first half of 2022, the total revenue of UJU Holding Limited was approximately RMB 4,229.9 million, representing a 16.0% increase compared to RMB 3,646.9 million in the same period of 2021[9]. - The net profit attributable to the owners of the company for the first half of 2022 was RMB 119.9 million, a 21.1% increase from RMB 99.1 million in the first half of 2021[9]. - Revenue from online marketing solutions increased by 15.4% from approximately RMB 3,646.8 million for the six months ended June 30, 2021, to approximately RMB 4,208.7 million for the same period in 2022, accounting for 99.5% of total revenue[22]. - Revenue from live streaming e-commerce services rose significantly from approximately RMB 0.1 million for the six months ended June 30, 2021, to approximately RMB 14.1 million for the same period in 2022[23]. - The e-commerce sector generated revenue of approximately RMB 1,753.2 million, a 3.6% increase from RMB 1,691.6 million in the previous year[25]. - The gaming sector's revenue surged by 88.1% from approximately RMB 551.3 million to approximately RMB 1,036.9 million year-over-year[25]. - Internet services revenue increased by 54.0% from approximately RMB 551.5 million to approximately RMB 849.2 million year-over-year, attributed to acquiring new clients in the sector[25]. - For the six months ended June 30, 2022, the company recorded a gross profit of approximately RMB 214.9 million, an increase of 0.6% from RMB 213.7 million for the same period in 2021[28]. - The gross margin decreased from 5.9% for the six months ended June 30, 2021, to 5.1% for the same period in 2022, primarily due to the company's market expansion strategy impacting profit margins[28]. - The net profit margin for the same period was 2.8%, slightly up from 2.7% in 2021[55]. - The total comprehensive income for the six months ended June 30, 2022, was RMB 133,963 thousand, up from RMB 97,624 thousand in the same period of 2021, marking an increase of approximately 37.2%[104]. Assets and Liabilities - The total assets as of June 30, 2022, were RMB 3,951.9 million, a 15.7% increase from RMB 3,415.6 million as of December 31, 2021[9]. - The total liabilities increased by 20.7% to RMB 2,634.7 million as of June 30, 2022, compared to RMB 2,182.1 million as of December 31, 2021[9]. - As of June 30, 2022, accounts receivable increased by approximately RMB 610.5 million compared to December 31, 2021, consistent with the company's market expansion strategy[42]. - Cash and cash equivalents decreased from approximately RMB 499.9 million as of December 31, 2021, to approximately RMB 348.6 million as of June 30, 2022, primarily due to net cash outflows from operations[48]. - The company's liquidity and financial resources are primarily funded through bank loans, other borrowings, and proceeds from the initial public offering[44]. - As of June 30, 2022, bank borrowings amounted to approximately RMB 280.7 million, a decrease from RMB 299.9 million as of December 31, 2021[45]. - The company's total service costs for the six months ended June 30, 2022, were approximately RMB 4,015.0 million, an increase from RMB 3,433.2 million for the same period in 2021[27]. - The company's actual income tax rate decreased from 30.4% for the six months ended June 30, 2021, to 20.9% for the same period in 2022, primarily due to tax incentives[36]. Client and Market Strategy - The company served a total of 843 advertising clients in the first half of 2022, up from 737 clients in the same period of 2021[16]. - The company plans to continue investing in its proprietary platform, the Youliang Engine, to enhance digital marketing capabilities and improve advertising effectiveness[16]. - The company has established strategic partnerships with major platforms such as Douyin, Kuaishou, Tencent, Baidu, and Alibaba, enhancing its media matrix[15]. - The company aims to optimize its client structure and maintain solid cooperation with leading enterprises across various industries, including e-commerce, gaming, and financial services[16]. - The company anticipates a gradual economic recovery, which will provide new opportunities for digital marketing services[16]. - The company plans to expand its e-commerce self-operated business, focusing on upstream supply chain development in the food and beverage category[18]. - The company offers a comprehensive solution for brand live streaming operations, including store design, product planning, and data analysis[18]. Research and Development - Research and development expenses increased by 451.6% to approximately RMB 11.6 million for the six months ended June 30, 2022, from RMB 2.1 million for the same period in 2021, driven by increased investment in upgrading and developing the company's platform and SaaS technology[32]. - The company plans to enhance AI-driven content production capabilities, allocating 6.6% of the net proceeds, approximately HKD 49.6 million, with an expected full utilization by December 31, 2024[67]. Corporate Governance and Compliance - The company has committed to maintaining high corporate governance standards, complying with the corporate governance code as of June 30, 2022[72]. - The audit committee reviewed the financial data for the six months ended June 30, 2022, confirming compliance with applicable accounting standards and regulations[74]. - The company is focused on upgrading its internal management systems, with 0.6% of the net proceeds, approximately HKD 4.4 million, allocated for this purpose, expected to be fully utilized by December 31, 2023[67]. - The company has not engaged in any purchase, sale, or redemption of its listed securities during the six months ended June 30, 2022[74]. Shareholder Information - As of June 30, 2022, the major shareholder Supreme Development held approximately 40.6% of the company's shares, totaling 243,648,000 shares[85]. - As of the report date, the total shares held by the company's director, Ma Xiaohui, amounted to 438,983,000 shares, representing about 73.2% of the total issued share capital[83]. - Vast Business, another major shareholder, held approximately 21.6% of the company's shares, totaling 129,600,000 shares[86]. - The stock option plan is valid for a period of ten years from the adoption date, expiring on October 7, 2031[77]. Risk Management - The company faces various financial risks, including market risk (primarily foreign exchange risk and cash flow interest rate risk), credit risk, and liquidity risk, with a focus on mitigating potential adverse impacts on financial performance[116]. - The company has not made any changes to its risk management policies since December 31, 2021[118].

Financial Performance - For the year ended December 31, 2021, the total media billings amounted to RMB 10.99 billion, a year-on-year increase of 25% from RMB 8.77 billion for the year ended December 31, 2020[14]. - Total revenue for the year ended December 31, 2021, was RMB 7.84 billion, representing a 23% increase compared to RMB 6.36 billion for the year ended December 31, 2020[14]. - The net profit for the year ended December 31, 2021, reached RMB 254.4 million, a significant increase of 91% from RMB 133.2 million for the year ended December 31, 2020[14]. - The pre-tax profit increased by 87% to RMB 332,512 thousand in 2021 from RMB 178,198 thousand in 2020[21]. - The company reported a 91% increase in net profit attributable to shareholders, reaching RMB 254,351 thousand in 2021 compared to RMB 133,179 thousand in 2020[21]. - Gross profit for the year ended December 31, 2021, was approximately RMB 429.4 million, a 32.0% increase from approximately RMB 325.4 million in 2020[31]. - Gross margin improved from 5.1% in 2020 to 5.5% in 2021, driven by operational efficiency and reduced average traffic acquisition costs[31]. - The company's net profit margin increased from 2.1% for the year ended December 31, 2020, to 3.2% for the year ended December 31, 2021[41]. - Return on equity for the year ended December 31, 2021, was 20.6%, a significant decrease from 57.4% in 2020[58]. - Return on assets for the year ended December 31, 2021, was 7.4%, compared to 5.5% in 2020[59]. Business Expansion and Strategy - The company successfully listed on the main board of the Stock Exchange on November 8, 2021, attracting investments from notable institutions[8]. - The company aims to enhance its technological capabilities in content production and precise targeting systems to solidify its leading position in the industry ecosystem[8]. - The company plans to enhance its AI-driven marketing platform and aims to commercialize the material production platform in 2022[18]. - The company aims to optimize its live e-commerce product matrix and enhance operational efficiency in 2022, targeting a significant share of the growing live e-commerce market[19]. - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[76]. - Market expansion efforts include entering three new international markets by Q3 2024, aiming for a 20% increase in global market share[78]. - The company has completed two strategic acquisitions in the past year, enhancing its product offerings and customer base[74]. Operational Efficiency and Investments - The company has increased its investment in content production and smart technology research and development to meet customer demands for efficiency and effectiveness[7]. - The company has improved its operational efficiency, resulting in a 10% reduction in costs compared to the previous year[72]. - The company is investing in new technology development, allocating approximately $10 million towards R&D initiatives in the upcoming year[74]. - The company established live e-commerce bases in Beijing, Hangzhou, and Guangzhou, achieving a GMV of RMB 43 million by December 31, 2021[17]. - The company’s content creation team consists of 291 members, producing over 26,000 short video marketing materials monthly[16]. Corporate Governance - UJU Holding Limited is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance accountability[90][91]. - UJU Holding Limited has adopted the Corporate Governance Code as its governance framework since its listing, ensuring compliance with applicable standards[91]. - The company has a dedicated company secretary with over 14 years of experience in corporate services, supporting its governance and compliance efforts[88]. - The board of directors consists of 6 members, including 3 executive directors and 3 independent non-executive directors, ensuring a balanced composition[97]. - The company has complied with listing rules regarding the appointment of independent non-executive directors, with at least three independent directors on the board[98]. - The board plans to hold at least four regular meetings annually to discuss overall strategy and operational performance[103]. - The company has established a clear division of responsibilities between the board and management, with the board retaining decision-making authority on significant matters[100]. Environmental, Social, and Governance (ESG) Initiatives - The group emphasizes the importance of ESG management, integrating it into daily operations and promoting green practices[156]. - The group has established environmental goals for 2022, focusing on energy saving, water conservation, and waste reduction[173]. - The group aims to be a leader in online short video marketing solutions while fulfilling social responsibilities[156]. - The report is the group's first ESG report, with a commitment to maintain consistency in future disclosures[149]. - The group has committed to transparency, ensuring the report contains no false or misleading statements[150]. Employee Management and Training - Total number of employees is 925, with 884 under labor contracts and 41 interns[183]. - Employee turnover rate is 45%, with a breakdown of 39% for those under 30 years old and 64% for those aged 30 to 50[183]. - The company provides comprehensive benefits, including social insurance and housing fund contributions for all employees[184]. - A systematic training system is in place, covering management systems, company culture, and skills training for all employees[190]. - The company has established a promotion management manual to ensure systematic management of employee promotions[189]. - The company emphasizes a healthy work-life balance, providing statutory leave and a comprehensive overtime management system[182].