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].