Financial Data and Key Metrics Changes - Overall revenue increased by 34.5% year-on-year, with subscription revenue reaching 706 million, up 21.4% [30][34] - The net loss narrowed significantly to 470 million from 1.26 billion in the previous year, with adjusted net loss decreasing from 1.548 billion to 254 million [42][49] - Gross profit margin improved, with overall group GP margin rising from 52.2% to 67.5% [40] Business Line Data and Key Metrics Changes - SaaS subscription revenue grew by 21.4%, while the number of merchants increased by 58.3% [30][32] - Smart retail revenue surged by 44%, with ARPU up by 26% [37] - Advertising gross income rose by 66.1%, with a significant recovery in the advertising market [38] Market Data and Key Metrics Changes - Revenue from the three-party ecosystem on Waymoq Cloud grew by 247% year-on-year, with a key customer penetration rate of 76.3% [4] - Video accounts contributed over 20% to overall growth, with significant potential for future expansion [10][80] Company Strategy and Development Direction - The company is focusing on industrialization and ecologicalization strategies to enhance operational efficiency and customer engagement [1][20] - There is an emphasis on deepening vertical industry solutions and expanding into new markets, including Kuaishou and Little Red Book [14][25] - The integration of AI with SaaS is seen as a critical opportunity for future growth [21][67] Management's Comments on Operating Environment and Future Outlook - The macro environment remains challenging, but the company expects to achieve breakeven in the second half of the year and aims for profitability in 2024 [15][52] - Management highlighted the importance of refined management and operational efficiency in navigating the current economic landscape [28][49] Other Important Information - The company has made significant investments in R&D, particularly in the development of its AI capabilities [2][74] - There is a strong focus on customer integration and providing tailored solutions to meet the needs of key customers [60][66] Q&A Session Summary Question: Potential for Key Customer Strategy - Management acknowledged the potential for expanding service scale among existing customers and emphasized the importance of digital operation and integration [55][57] Question: Industrial Strategies for Smart Retail - Management confirmed that industrial strategies are critical for the growth of smart retail and outlined the necessary capabilities for success [56][66] Question: AI Product Development and Commercialization - Currently, around 200 merchants are using the AI product, with plans for future investment in talent and capabilities to enhance its development [70][71] Question: Video Accounts Growth Potential - Management indicated that video accounts have significant growth potential, with a current market share of 12-13% expected to increase [80][81] Question: Advertising Business Outlook - The advertising business is expected to see stable growth, with a focus on high-quality customers and new industry opportunities [83][89]

[0 -> 26] 各位投资人朋友以及分析师朋友大家晚上好非常欢迎参加威猛的半年度业绩会那接下来我可能对2023年上半年的整个业绩情况做一个简单的介绍首先讲一下业绩的大概的情况 [27 -> 55] 大家应该知道整个2023年确实整个宏观经济是充满挑战那威猛我们管理层认为这次半年度的成绩单整体还算满意那整体我们全年的收入12.1亿同比增长34.5这个可能比我们之前的预期还要高一些我们的毛利8.16亿同比增长了36.6 [56 -> 86] 我们的整体的经调整的净亏损是2.54个亿同比大幅收窄了51%经调整的e-beta大概是亏损9300万大幅收窄了76%那我们认为因为在整个整个类似于像这种2B的公司其实QE属于一个淡季因为一月和二月的原因所以我们认为如果说 [86 -> 113] 到下半年可能整体公司的亏损还要会变得可能会受到的更小现在预计可能下半年的整体的亏损会达到盈亏平衡从目前来看整体我们认为实现这一目标的确定性还是蛮大的从业务来看的话 [114 -> 143] 上半年的整個業務整個增長是受到一定的沉壓的但整體增長也非常不錯超過了20%達到了21.4%整體收入達到了7.06億那主要來源於我們的每個商戶的平 ...

Financial Performance - Total revenue for the first half of 2023 reached RMB 1,209.6 million, a year-on-year increase of 34.5%[2] - Gross profit increased by 36.6% to RMB 816.3 million, with an overall gross margin improvement[3] - Adjusted net loss narrowed by 55.2% to RMB 254.2 million, reflecting effective cost control and recovery in subscription and merchant solutions revenue[3] - Subscription solutions revenue was approximately RMB 706 million, up 21.4%, with the number of paying merchants slightly down by 3% to 100,092[3] - Merchant solutions revenue grew by 58.3% to RMB 504 million, with the number of paying merchants increasing by 51.3% to 40,494[3] - Total revenue increased by 34.5% to RMB 1,209.6 million for the six months ended June 30, 2023, compared to RMB 899.6 million for the same period in 2022[15] - The company reported an operating loss of RMB 385.3 million for the six months ended June 30, 2023, an improvement from a loss of RMB 630.6 million in the same period last year[11] - The net loss for the period was RMB 469.6 million, an improvement from a net loss of RMB 658.8 million in the previous period[33] Revenue Breakdown - Subscription solutions revenue reached RMB 706 million, a year-on-year increase of 21.4%, with a decline in paid merchants by 3% to 100,092[6] - Smart retail revenue amounted to RMB 312 million, growing 32% year-on-year, accounting for 44% of subscription solutions revenue, with 6,428 merchants[6] - Merchant solutions revenue was approximately RMB 504 million, a year-on-year increase of 58.3%, with paid merchants growing by 51.3% to 40,494[9] - Merchant solutions gross revenue rose by 66.1% from RMB 4,208.1 million for the six months ended June 30, 2022, to RMB 6,987.8 million for the six months ended June 30, 2023, primarily due to an increase in the number of paying merchants from 26,770 to 40,494[18] Cost and Expenses - Total sales costs increased by 30.3% from RMB 301.9 million for the six months ended June 30, 2022, to RMB 393.3 million for the six months ended June 30, 2023, primarily due to increased advertising traffic costs and operational service costs[20] - Subscription solutions sales costs rose by 4.9% from RMB 227.9 million for the six months ended June 30, 2022, to RMB 239.0 million for the six months ended June 30, 2023, mainly due to increased amortization of intangible assets[22] - Merchant solutions sales costs surged by 108.5% from RMB 74.0 million for the six months ended June 30, 2022, to RMB 154.3 million for the six months ended June 30, 2023, driven by increased operational service costs and advertising traffic costs[23] - Sales and distribution expenses increased by 7.8% from RMB 782.9 million for the six months ended June 30, 2022, to RMB 844.1 million for the six months ended June 30, 2023[26] - General and administrative expenses decreased by 30.1% from RMB 543.7 million to RMB 380.0 million, primarily due to a reduction in R&D and administrative staff costs[27] Profitability Metrics - The gross profit margin was 67.5% for the six months ended June 30, 2023[35] - The operating profit margin was (31.9%) for the same period[35] - The net loss margin was (38.8%) for the six months ended June 30, 2023[35] - The overall gross profit margin improved from 66.4% for the six months ended June 30, 2022, to 67.5% for the six months ended June 30, 2023[24] Cash and Financial Position - Cash and bank deposits amounted to approximately RMB 2,613 million, indicating a healthy financial position[3] - As of June 30, 2023, the company's cash and bank balance was RMB 2,613.4 million, with cash and cash equivalents amounting to RMB 2,110.5 million[37] - The company reported a significant increase in prepaid expenses and other assets, rising to RMB 1,421,274 thousand from RMB 1,054,327 thousand[47] - The company reported a cumulative loss of RMB (2,889,011) thousand, reflecting an increase of 608,548 thousand in losses[52] Strategic Initiatives - The company launched the "千方百计" plan aiming to achieve over 100 clients with revenues exceeding RMB 10 million by 2027[5] - The AI application product Weimob WAI was introduced, enhancing the integration of AI technologies with SaaS offerings[5] - The company aims to deepen its focus on large clients and accelerate industry-specific sales, enhancing the contribution of large client revenue to overall income[10] - The company plans to leverage the "AI + SaaS" strategy to enhance operational efficiency and reduce costs for merchants[10] Employee and Operational Metrics - The company had 5,704 full-time employees as of June 30, 2023, with 1,697 in sales and marketing and 1,471 in research and development[43] - Employee benefits expenses decreased to RMB 767,549 thousand in H1 2023 from RMB 1,023,459 thousand in H1 2022, a reduction of approximately 25%[64] Awards and Recognition - The company was recognized in various awards, including "China's New Economy Top 500" and "Digital Advertising Leading Enterprises"[5] Future Outlook - Future outlook includes continued focus on subscription and merchant solutions to drive revenue growth and market expansion[60] - The company anticipates that macroeconomic recovery and the rise of AIGC trends will drive digital transformation across industries in 2023[10]

Financial Performance - Total revenue for 2022 was RMB 1,838,988, a decrease of 31.5% from RMB 2,685,686 in 2021[7] - Gross profit for 2022 was RMB 1,090,651, down 28.1% from RMB 1,516,475 in the previous year[7] - Operating loss for 2022 was RMB (1,849,652), compared to a loss of RMB (761,061) in 2021[7] - Net loss for the year was RMB (1,918,874), an increase from RMB (853,243) in 2021[7] - Adjusted net loss for 2022 was RMB (1,548,000), compared to RMB (566,031) in 2021, indicating a worsening financial position[7] - The adjusted net profit margin for equity holders was -77.0% in 2022, compared to -24.7% in 2021[34] - Total revenue decreased by 6.5% from approximately RMB 1,966.9 million in 2021 to approximately RMB 1,839.0 million in 2022, primarily due to a decline in merchant solutions revenue[37] - The company reported a net loss attributable to equity holders of RMB 1,828,566 for 2022, significantly higher than the loss of RMB 783,023 in 2021[29] Assets and Liabilities - Total assets decreased to RMB 7,970,716 in 2022 from RMB 9,436,561 in 2021, a decline of 15.6%[8] - Total liabilities increased to RMB 5,729,670 in 2022 from RMB 5,222,743 in 2021, an increase of 9.7%[8] - Equity attributable to owners of the company decreased to RMB 2,149,545 in 2022 from RMB 4,063,473 in 2021, a decline of 47.1%[8] - The total equity as of December 31, 2022, was RMB 2,241.0 million, down from RMB 4,213.8 million in 2021[84] Revenue Streams - Subscription solution revenue reached RMB 1.292 billion, an increase of 8.7%, while the number of paying merchants decreased by 3.1% to 99,604[12] - The smart retail revenue for the year reached RMB 513 million, with a year-on-year growth of 20.4% and an internal growth of 45.5%[13] - Merchant solutions revenue was RMB 547 million, a year-on-year decline of 29.7%, with 53,855 paying merchants and average revenue per user down 24.5% to RMB 10,163[24] - Subscription solutions revenue decreased from RMB 1,501.5 million in 2021 to RMB 1,090.7 million in 2022, a decline of 27.4%[52] Operational Efficiency - The company aims to enhance its digital marketing capabilities by integrating various products, including Weimeng Micro Mall and Weimeng Enterprise Assistant, to create a comprehensive digital marketing matrix[24] - The company aims to deepen international business expansion through collaborations with mainstream media channels[27] - The company is actively exploring new technology applications, particularly in AI, to enhance operational efficiency and user experience[27] Employee and Management - The number of employees decreased from 8,562 in 2021 to 6,278 in 2022, while adjusted employee benefits rose to RMB 2,089.6 million[59] - The company plans to continue offering share-based incentive awards to motivate employees for future growth[92] - The management team has extensive experience in finance and investment banking, contributing to strategic financial management[103] Corporate Governance - The company has complied with all relevant laws and regulations in all material aspects as of December 31, 2022[110] - The independent non-executive directors confirmed their independence according to the listing rules, and the company considers them independent as of the report date[147] - The company is committed to maintaining high standards of corporate governance practices[196] Capital Management - The company completed a placement of 156,000,000 new shares on June 1, 2021, raising approximately HKD 2,315.6 million, with the net proceeds aimed at improving financial conditions and supporting long-term business development[132] - The company has sufficient cash and cash equivalents to meet its redemption obligations under the 2020 convertible bonds as of December 31, 2022[124] - The company raised approximately USD 146.6 million from the issuance of 2020 convertible bonds, with all proceeds utilized as planned by December 31, 2022[133] Environmental and Social Responsibility - The company emphasizes the importance of environmental protection and resource conservation in its operations[112] - The company has established significant relationships with employees, customers, and suppliers as part of its environmental and social governance strategy[112] - The company has not reported any environmental violations during the reporting period[112] Future Outlook - The company aims to enhance its R&D capabilities, with HKD 523.5 million utilized for this purpose by December 31, 2022, and an additional HKD 634.3 million remaining for future use[137] - The company plans to prepare for future acquisitions and continuously improve its technology to maintain market leadership[124]

Financial Data and Key Metrics Changes - The company's revenue for 2022 was $1.84 billion, a decrease of 6.5% year on year, primarily due to challenges in the merchant subscription and precise marketing business [3][32] - Adjusted net profit showed a significant loss of $550 million, with a total operating cash outflow of $730 million for the year [4][5] - The adjusted cash flow outflow in the second half of the year was $246 million, down 49.2% half on half, indicating improved cash flow management [5][6] - The company reported a fair value change and financial asset impairment of $568 million, leading to an adjusted net loss of approximately $1.55 billion [5][56] Business Line Data and Key Metrics Changes - Subscription Solutions revenue grew by 8.7% year on year, with a notable increase of 22.4% in the second half of the year [3][32] - Merchant Solutions revenue declined by 29.7%, primarily due to reduced advertising budgets from clients [33][34] - Smart Retail revenue was $53 million, reflecting a year-on-year increase of 5.5%, and accounted for 40% of the subscription solution revenue [7] Market Data and Key Metrics Changes - The company experienced a churn rate of 26% among merchants, with a 15% decline in the number of new merchants [42] - Advertising gross income for the year was $1 billion, with a 38% increase in the second half compared to the first half [34] - The subscription revenue accounted for 70% of total revenue, indicating a stable revenue model amidst market challenges [35] Company Strategy and Development Direction - The company is focusing on three major strategies: moving up market, ecosystem building, and globalization, aiming to enhance market share in various sectors [8][21] - Plans for 2023 include improving products and services, deepening relationships with large customers, and investing in technology infrastructure [21][24] - The company aims to achieve a revenue share of 50% from Smart Retail and targets 1,000 key customers by 2027 [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging external environment due to COVID-19 and its impact on consumer spending and advertising budgets [30][31] - The outlook for 2023 anticipates a recovery in subscription revenue growth of about 20%, with a focus on high-quality growth rather than just numerical growth [61][94] - The company expects to control operating losses to between $100 million and $400 million in 2023, with a potential turnaround in the second half of the year [63] Other Important Information - The company has streamlined operations, resulting in a reduction of staff costs by $320 million, which will continue to benefit financial performance in 2023 [36][54] - The introduction of AI technologies is expected to enhance operational efficiency and create new business models, with ongoing investments in AI applications [66][70] Q&A Session Summary Question: What changes will AI bring to the industry and potential business models? - Management highlighted that AI technologies like ChatGPT could significantly improve R&D efficiency by 10% to 20%, with potential for greater improvements in the future [67][69] Question: What is the outlook for smart retail products and order growth in the coming years? - Management noted a positive growth momentum in smart retail, emphasizing the need for deep vertical cultivation and a rich product system to encourage repeat purchases [76][78] Question: Will achieving breakeven require sacrificing revenue growth? - Management confirmed that while some revenue growth may be sacrificed, the focus is on achieving high-quality growth and maintaining a balance between revenue and cost control [89][91] Question: What is the progress and outlook for video accounts? - Management reported strong growth in video accounts, which are becoming a significant part of the advertising spend, and expressed optimism about future developments in this area [96][98]

Financial Performance - Total revenue for 2022 was RMB 1,839.0 million, a decrease of 6.5% compared to RMB 1,966.9 million in 2021[3] - Adjusted gross profit for 2022 was RMB 1,090.7 million, down 27.4% from RMB 1,501.5 million in 2021[3] - Operating loss for 2022 was RMB 1,849.7 million, representing a 159.7% increase from RMB 712.3 million in 2021[3] - Adjusted net loss for 2022 was RMB 1,548.0 million, a 199.3% increase from RMB 517.2 million in 2021[3] - The company reported a net loss of approximately RMB 1,918.9 million for the year ended December 31, 2022, compared to a net loss of RMB 815.7 million in 2021[46] - The adjusted net loss under non-HKFRS increased from RMB 517.2 million in 2021 to RMB 1,548.0 million in 2022, primarily due to increased impairment losses on receivables and significant fair value losses[49] - The company reported a total comprehensive loss of RMB 1,902,420,000 for the year 2022, compared to a loss of RMB 860,664,000 in 2021, highlighting a worsening financial position[59] Revenue Breakdown - Subscription solutions revenue for 2022 was RMB 1,292.0 million, an increase of 8.7% year-on-year, with a decrease in paid merchants by 3.1% to 99,604[5] - Smart retail revenue reached RMB 513.0 million in 2022, growing 20.4% year-on-year, with an expected increase in revenue share to nearly 50% in 2023[6] - Revenue from merchant solutions was RMB 547.3 million, a year-on-year decrease of 29.7%, with 53,855 paying merchants served, and average revenue per user down 24.5% to RMB 10,163[14] - The total gross revenue from precision marketing for merchants was RMB 10.01 billion, showing a year-on-year growth of 9.3% in the second half of 2022[14] - Subscription solutions revenue increased to RMB 1,291,676 in 2022 from RMB 1,187,826 in 2021, representing an increase of 8.7%[76] Cost and Expenses - Total sales costs increased by 60.8% from RMB 465.4 million in 2021 to RMB 748.3 million in 2022, driven by higher advertising traffic costs and operational service costs[25] - The adjusted sales cost rose from RMB 450.2 million in 2021 to RMB 719.1 million in 2022, marking a 59.7% increase[26] - Subscription solutions sales cost increased by 54.2% from RMB 338.9 million in 2021 to RMB 522.5 million in 2022, primarily due to increased operational service costs and amortization losses of intangible assets[28] - Merchant solutions sales cost rose by 78.6% from RMB 126.5 million in 2021 to RMB 225.8 million in 2022, driven by increased traffic costs and operational service costs[29] - General and administrative expenses increased by 23.6% from RMB 805.1 million in 2021 to RMB 995.4 million in 2022, largely due to rising employee costs[34] Assets and Liabilities - Total assets decreased from RMB 9,436,561 thousand in 2021 to RMB 7,970,716 thousand in 2022, a decline of approximately 15.6%[60] - Total liabilities increased from RMB 5,222,743 thousand in 2021 to RMB 5,729,670 thousand in 2022, an increase of approximately 9.7%[63] - Equity attributable to the company's equity holders decreased from RMB 4,213,818 thousand in 2021 to RMB 2,241,046 thousand in 2022, a decline of about 46.8%[62] - Cash and cash equivalents dropped from RMB 3,809,069 thousand in 2021 to RMB 1,710,103 thousand in 2022, a decrease of around 55.1%[60] Operational Highlights - The company added 115 quality ecosystem partners in 2022, with over 1,700 cloud market applications and services developed and released[7] - The company has partnered with major international media platforms like Google, Facebook, and TikTok to enhance its global presence[7] - The company launched a cash flow and new customer flow doubling plan for the restaurant industry, aiding digital upgrades post-pandemic[12] - The company’s CRM product "Xiaoke" has served over 30,000 enterprises, with paid seats exceeding 400,000[12] - The average daily live broadcast duration for top merchants reached 11 hours, with some brand merchants achieving over 200% of their GMV targets during promotional events[11] Strategic Initiatives - Continuous investment in product technology infrastructure is planned to maintain industry-leading status and develop a new digital business ecosystem through the WOS operating system[15] - The company aims to increase the proportion of revenue from large customers, targeting over 100 clients with revenues exceeding RMB 10 million and over 1,000 clients with revenues exceeding RMB 1 million by 2030[15] - The company plans to deepen international business expansion and enhance cooperation with mainstream media channels abroad[15] - The company is exploring opportunities in AI technologies, with initial applications planned in advertising, data intelligence, and user experience[15] Shareholder Information - The company did not recommend a final dividend for the year ended December 31, 2022[104] - The company’s shares have been listed on the Hong Kong Stock Exchange since January 15, 2019[68] - The annual performance announcement was published on the Hong Kong Stock Exchange and the company's website[112] - The annual report for the year ending December 31, 2022, will be sent to shareholders and published on the aforementioned websites[112]

Financial Performance - Total revenue for the first half of 2022 was RMB 899.6 million, a decrease of 6.2% compared to RMB 959.4 million in the same period last year[10]. - Gross profit for the first half of 2022 was RMB 597.7 million, down 21.4% from RMB 760.0 million year-on-year[10]. - Adjusted net loss for the first half of 2022 was RMB 567.4 million, a significant increase of 499.2% compared to RMB 94.7 million in the previous year[10]. - The company reported a gross loss of RMB 630.555 million for the first half of 2022, compared to a loss of RMB 163.677 million in the same period of 2021[30]. - The company reported a loss of RMB 658.8 million for the six months ended June 30, 2022, compared to a loss of RMB 560.2 million for the same period in 2021[65]. - Total comprehensive loss for the period was RMB 746,364, compared to RMB 600,057 in the same period last year, indicating a worsening financial position[142]. - The net loss attributable to equity holders of the company was RMB 608,548, compared to RMB 557,713 in the same period last year[140]. - Operating loss increased significantly to RMB 630,555 compared to RMB 163,677 in the previous year, reflecting a substantial decline in profitability[140]. Revenue Breakdown - Subscription solutions revenue reached RMB 581 million, representing a growth of 5.7% year-on-year, with the number of paying merchants increasing by 1.7% to 103,616[13]. - Merchant solutions revenue was RMB 319 million, a decline of 22.3% year-on-year, with the number of paying merchants decreasing by 2.6% to 26,770[13]. - The smart retail solutions revenue was RMB 236 million, representing a year-on-year growth of 28.9%, accounting for 40.7% of the subscription solutions revenue[20]. - In the first half of 2022, the company's gross revenue from precise marketing for merchants was RMB 4.208 billion, while revenue from merchant solutions decreased by 22.3% to RMB 319 million[23]. - Subscription solutions revenue for the six months ended June 30, 2022, was RMB 581,078,000, an increase from RMB 549,617,000 for the same period in 2021, representing a growth of 5.4%[185]. - Merchant solutions revenue decreased to RMB 318,534,000 in the first half of 2022 from RMB 409,755,000 in the same period of 2021, a decline of 22.2%[185]. Cost and Expenses - Total sales costs increased by 51.5% to RMB 301.9 million, up from RMB 199.3 million in the previous year[44]. - Employee costs rose significantly from RMB 25.7 million to RMB 49.9 million, reflecting growth in operational services for large clients[44]. - The cost of sales for subscription solutions increased by 59.4% from RMB 143.0 million for the six months ended June 30, 2021, to RMB 227.9 million for the six months ended June 30, 2022[47]. - The cost of sales for merchant solutions rose by 31.3% from RMB 56.3 million to RMB 74.0 million during the same period, driven by increased TSO traffic costs[48]. - Financial costs rose significantly to RMB 79,550,000 from RMB 27,995,000, marking an increase of approximately 184.5%[200]. - Employee benefit expenses increased to RMB 1,024,299,000 from RMB 736,061,000, reflecting a growth of about 39.1% year-on-year[195]. Cash and Financial Position - Cash and bank deposits as of June 30, 2022, amounted to RMB 3.682 billion, indicating a healthy financial position[13]. - The net debt-to-equity ratio stood at 17% as of June 30, 2022, compared to a net cash position of RMB 175.5 million in the previous year[72]. - The company had bank borrowings of approximately RMB 1.563 billion as of June 30, 2022, with various short-term loans and credit facilities listed[73]. - Cash and cash equivalents at the end of the period decreased to RMB 2,880,191 thousand from RMB 4,963,027 thousand year-over-year, reflecting a net decrease of RMB (1,047,803) thousand[148]. - The company reported a significant increase in bank borrowings, amounting to RMB 1,126,000 thousand, compared to RMB 543,000 thousand in the previous year[148]. Strategic Initiatives - The company aims to increase the revenue share from large customers in smart retail to nearly 50% by 2023 and close to 70% by 2025[14]. - The company continues to promote its strategies of large customer focus, ecological development, and internationalization to create value for customers and shareholders[13]. - The company plans to enhance its TSO full-link marketing services and expand into international markets, collaborating with platforms like Google and Facebook[25]. - The company is focusing on deepening ecosystem capabilities and expanding customer penetration through its cloud platform and new business operating system[28]. - The company has officially become an official operating service provider for WeChat video accounts, enhancing its SaaS business integration[14]. Shareholder Information - Major shareholders collectively hold 16.0% of the company’s issued ordinary shares, while public shareholders hold 84.0%[94]. - The company repurchased a total of 14,783,000 shares for a total consideration of HKD 90,451,712 during the six months ended June 30, 2022[87]. - The highest price paid per share during the repurchase was HKD 7.37, while the lowest was HKD 4.94[88]. - The company did not declare any interim dividend for the six months ended June 30, 2022[85]. Employee and Talent Management - The company has 6,907 full-time employees, with 2,074 in sales and marketing and 1,867 in research and development as of June 30, 2022[81]. - The 2018 Restricted Share Unit Plan is designed to attract and retain top talent, rewarding participants for their contributions to the group[122]. - The plan allows for a maximum of 2% of the total issued shares as new shares to be issued for the rewards under the plan, as approved by shareholders[137]. Market and Economic Conditions - The company achieved a record monthly performance in June 2022, indicating a strong recovery in business following the pandemic impact in April and May[19]. - The company donated 21 tons of emergency supplies and medical aid during the Shanghai pandemic, supporting local businesses and communities[16].

Financial Performance - Total revenue for 2021 reached RMB 2,685,686 thousand, representing a 30% increase from RMB 2,064,362 thousand in 2020[9] - Gross profit for 2021 was RMB 1,516,475 thousand, up 38% from RMB 1,098,167 thousand in 2020[9] - The company reported a net loss of RMB 853,243 thousand for 2021, an improvement from a net loss of RMB 1,166,379 thousand in 2020[9] - Total revenue for the year 2021 reached RMB 2.686 billion, a 36.4% increase from RMB 1.969 billion in 2020[15] - Gross profit rose by 51.3% from RMB 1.002 billion in 2020 to RMB 1.517 billion in 2021[15] - Adjusted net profit turned from a profit of RMB 108 million in 2020 to a loss of RMB 566 million in 2021, primarily due to increased R&D investments[15] - The company reported a net loss attributable to equity holders of RMB 783.0 million in 2021, with a net margin of (29.2%)[84] - The adjusted net loss for 2021 was RMB 566.0 million, reflecting a decrease from the previous year's adjusted net loss of RMB 1,156.6 million[84] - The company recorded a loss of approximately RMB 853.2 million for the year 2021, compared to a loss of RMB 1,166.4 million in 2020, indicating a reduction in losses[80] Revenue Segments - Digital business revenue totaled RMB 1.967 billion, a year-on-year increase of 70.9%[15] - Subscription solutions revenue was RMB 1.188 billion, up 90.9% year-on-year, with a 5% increase in paid merchants to 102,813[15] - The revenue from the merchant solutions segment reached RMB 780 million, reflecting a year-on-year growth of 47.5%[30] - Smart retail revenue amounted to RMB 426 million, a significant increase of 193.6% from RMB 145 million in 2020, accounting for 36% of subscription solutions revenue[21] - The digital media solutions revenue was RMB 719 million in 2021, a decrease of 12.1% compared to 2020, with a gross revenue of RMB 831 million[33] Assets and Liabilities - Non-current assets increased to RMB 2,918,998 thousand in 2021, compared to RMB 1,633,180 thousand in 2020[10] - The total assets of the company reached RMB 9,436,561 thousand in 2021, up from RMB 5,854,214 thousand in 2020[10] - Cash and cash equivalents as of December 31, 2021, amounted to RMB 3.809 billion, indicating a healthy financial structure[15] - The total equity as of December 31, 2021, was RMB 4,213.8 million, a significant increase from RMB 1,252.5 million in 2020[89] - The company had bank borrowings of approximately RMB 745 million as of December 31, 2021[89] R&D and Innovation - The number of R&D center employees exceeded 2,300, reflecting a significant increase in R&D investment[18] - The company launched new product solutions such as Weimob Enterprise WeChat Assistant and Smart Supermarket, aimed at fostering future revenue growth[12] - The company aims to explore full-link digital business capabilities for retail enterprises in 2022, focusing on system, technology, and ecosystem development[21] - Total R&D expenses rose by 208.8% from approximately RMB 251.0 million in 2020 to approximately RMB 775.0 million in 2021, driven by new hires and increased costs associated with R&D personnel[69] Market Position and Strategy - The company achieved a leading position in the market with a significant share of top 100 clients in industries such as fashion retail and commercial real estate[12] - The company’s international expansion efforts included the launch of the ShopExpress independent site product, catering to global customer needs[12] - Future growth strategies include a focus on cross-border e-commerce and global market expansion through a one-stop cross-border solution[37] - The company aims to solidify its leading position in the private domain sector with integrated product solutions for merchants[37] Shareholder and Capital Management - The company completed a fundraising of approximately USD 600 million through new share placements and convertible bonds to enhance industry layout[18] - The company issued convertible bonds totaling $150 million on May 15, 2020, with a conversion price of HKD 6.72 per share, potentially convertible into 173,035,715 new shares[120] - The company raised approximately USD 293.6 million from the issuance of convertible bonds in 2021, with no proceeds utilized as of December 31, 2021[146] - Major shareholders collectively hold 15.9% of the company’s issued ordinary share capital prior to the full conversion of the 2020 convertible bonds[125] Employee and Management - As of December 31, 2021, the company employed 8,562 full-time employees, primarily based in Shanghai, China[98] - The company provides competitive salaries and performance-based cash incentives as part of its human resources strategy[98] - The company has a strong training program for new hires and ongoing professional development tailored to departmental needs[98] - The executive team includes key figures such as the founder and CEO, who has received multiple awards for innovation and entrepreneurship[100] Environmental and Social Responsibility - The company emphasizes environmental protection and resource conservation, adhering to relevant environmental laws and regulations in China[118] - The company has faced no environmental violations during the reporting period[118] - The company is committed to maintaining economic, environmental, and social development through various resource-saving measures[118] Risks and Challenges - Key risks include reliance on Tencent's platform, inability to adapt to evolving customer needs, and potential cybersecurity threats[119] - The company faced foreign exchange risks primarily related to transactions in RMB, USD, and HKD, with no hedging strategies in place for foreign currency risks in 2021[95]

Financial Performance - Total revenue for the first half of 2021 reached RMB 1.383 billion, a 44.5% increase compared to RMB 957 million in the same period of 2020[10] - Adjusted gross profit increased to RMB 766.3 million, representing an 81.8% growth from RMB 421.5 million year-on-year[10] - The company reported a net loss of RMB 118.8 million, a significant decline from a profit of RMB 52.3 million in the previous year, reflecting a 327.2% decrease[10] - The company reported a total comprehensive loss of RMB 600.1 million, up from RMB 545.7 million in the previous year[31] - The company incurred a loss of RMB 584.3 million for the six months ended June 30, 2021, compared to a loss of RMB 545.7 million for the same period in 2020, reflecting an increase in losses from its subsidiaries in China[73] - The company reported a basic and diluted loss per share of RMB 0.24 for the six months ended June 30, 2021, consistent with the same period in 2020[145] Revenue Breakdown - Digital business revenue surged by 107.6% to RMB 959 million, with adjusted revenue growth of 72.8%[13] - Revenue from merchant solutions was RMB 410 million, representing a year-on-year increase of 63.8%[22] - Revenue from digital media solutions was RMB 424 million, a decrease of 14.4% compared to the first half of 2020[22] - The revenue from smart retail business reached RMB 183 million in the first half of 2021, with subscription solutions accounting for 33.4%[25] - Subscription solutions revenue increased by 159.2% from RMB 212.0 million for the six months ended June 30, 2020, to RMB 549.6 million for the six months ended June 30, 2021[41] - Merchant solutions revenue for the same period was RMB 409,755,000, compared to RMB 250,200,000 in 2020, reflecting a growth of 64%[185] Merchant and User Growth - The number of paid merchants for subscription solutions grew by 15.2% to 101,867, with average revenue per user increasing by 56.5% to RMB 5,395[13] - In the first half of 2021, the average revenue per paid merchant increased by 46.6% to RMB 14,909, serving 27,484 paid merchants[22] - The number of paid merchants increased to 101,867, up from 88,463 in the previous year, with a churn rate of 11.1%[33] - The number of advertisers increased to 2,229, up from 1,478 year-on-year[33] Financial Position - Cash and cash equivalents reached RMB 4.963 billion, indicating a healthy financial position[13] - The total assets increased by 65.1% to RMB 9.666 billion, with total liabilities rising by 44.9% to RMB 6.669 billion[11] - The total equity as of June 30, 2021, was RMB 2,997.6 million, compared to RMB 1,252.5 million as of June 30, 2020, reflecting a year-over-year increase of approximately 139.5%[80] - As of June 30, 2021, the company's cash and cash equivalents amounted to RMB 4,963.0 million, indicating a strong liquidity position[79] Expenses and Costs - Total sales costs increased by 15.2% from RMB 535.5 million to RMB 616.7 million, mainly due to rising broadband and hardware costs[49] - Sales and distribution expenses surged by 111.0% from RMB 386.7 million to RMB 815.9 million, primarily due to increased employee costs and marketing expenditures[60] - General and administrative expenses rose by 273.7% from RMB 84.0 million to RMB 314.1 million, mainly due to increased R&D investments[61] - Total expenses for the first half of 2021 were RMB 1,746,728,000, compared to RMB 1,006,285,000 in the first half of 2020, representing an increase of 73.5%[196] Strategic Initiatives - The company completed approximately USD 600 million in new share placements and convertible bond issuance to enhance R&D capabilities and fund potential investments and acquisitions[13] - The company aims to leverage its full-link smart growth solutions to empower the digital marketing and private traffic ecology of the hotel and travel industry[20] - The company aims to enhance its internationalization strategy, focusing on overseas service providers and international clients as new growth engines[27] - The company plans to deepen its big customer business, expanding into sectors such as commercial real estate, home improvement, and digital electronics[27] Shareholder Information - Major shareholders hold a total of 406,380,000 shares, representing 16.7% of the issued share capital[100] - Public shareholders own 2,025,217,427 shares, accounting for 83.3% of the total issued share capital[100] - The company issued convertible bonds totaling $150 million on May 15, 2020, with a conversion price of HKD 6.72 per share[96] Employee and Governance - The company has implemented competitive compensation and performance-linked cash incentives to attract and retain qualified personnel[89] - The audit committee, consisting of three independent non-executive directors, oversees the company's financial reporting and risk management[93] - The company has established a training program tailored to the needs of different departments, including online and offline training courses[89]