Core Viewpoint - Xuanwu Cloud (02392) has announced that its Xuantong aPaaS platform now fully supports the MCP protocol, enhancing its unique advantages in the low-code development field [1][2]. Group 1: MCP Protocol and Its Importance - MCP is an open standard protocol released by Anthropic, serving as a "universal socket" in the AI field, enabling seamless integration between large language models (LLMs) and external data sources and tools [1]. - The core function of the MCP protocol is to standardize the interaction rules between large models and business scenarios, allowing AI applications to interact safely and controllably with local or remote resources [1]. Group 2: Advantages of Xuantong aPaaS - The Xuantong aPaaS platform has three unique advantages in adapting to the MCP protocol: 1. Prominent atomic capabilities, allowing easy assembly like building blocks [2]. 2. Strong independence with non-intrusive expansion capabilities, featuring clear interface boundaries [2]. 3. Self-parsing semantic capabilities, enabling the system to "understand" business language [2]. Group 3: Impact on Existing Customers - The integration of MCP will not impose additional impacts on existing Xuantong aPaaS customers, with low integration costs requiring only the addition of publishing capabilities in the IDE and pairing with the MCP service adapter [2]. Group 4: Future Prospects - As the MCP protocol continues to evolve, the Xuantong aPaaS-MCP solution will deepen, exploring more application scenarios and collaborating with more partners and developers to create new growth in enterprise intelligence [2].

Group 1 - The core viewpoint of the news is that Xuanwu Cloud Technology Holdings Co., Ltd. has been recognized as a leading unit in the digital transformation of the plastics industry, partnering with a digital integration service provider to promote the digitalization process for small and medium-sized enterprises (SMEs) in the industry [1][2]. - The collaboration aims to help SMEs navigate the digital wave, achieve transformation upgrades, and drive high-quality development [1][2]. - The digital transformation initiative is part of the second batch of pilot projects announced by the Jieyang City government, highlighting the importance of digitalization in the plastics sector [1][2]. Group 2 - The digital solutions offered by Xuanwu Cloud include a smart CRM system that enhances customer relationship management by providing insights into customer needs and market changes [2][3]. - The system features a comprehensive process from lead generation to payment collection, integrating various stages such as market activities, lead management, and order management [2][3]. - The introduction of a lightweight SaaS version of the smart U-Customer service, starting at an annual fee of 20,000 yuan, aims to reduce digital investment costs for SMEs [3][5]. Group 3 - The plastics industry is recognized for its lightweight, corrosion-resistant, and easy-to-process characteristics, making it a cornerstone of modern manufacturing [5]. - The digitalization process in the plastics industry is expected to accelerate, supported by China's "14th Five-Year Plan," which emphasizes new materials and intelligent manufacturing [5]. - Xuanwu Cloud's smart U-Customer service has already been adopted by several leading companies in the plastics sector, indicating its effectiveness in transforming traditional customer relationship management [5][7].

Summary of Conference Call Company Overview - The conference call discusses the performance and business outlook of Xuanwu Cloud, a Chinese provider of intelligent CRM services driven by artificial intelligence and data [1] Key Points and Arguments Financial Performance - Xuanwu Cloud reported a total revenue of 1.15 billion RMB for 2024, with a year-on-year increase of 23.8% in SaaS revenue, which now accounts for 63.6% of total revenue, marking the first time it has exceeded 60% [2][25] - The company reduced its operating expenses by 3.6%, achieving an overall expense ratio of 7.9% [2] - The number of SaaS customers increased to 2,282, while PaaS customers decreased from 1,293 to 1,155 [24] - Core customer contribution per user decreased to 3 million RMB, down by 700,000 RMB year-on-year [24] - The net profit attributable to the parent company reached 6.9 million RMB, a significant improvement from a loss of 72.4 million RMB in 2023 [25] Business Strategy - The company is focusing on transitioning from PaaS to SaaS, emphasizing the growth of SaaS business [25] - Xuanwu Cloud aims to enhance its product standardization, operational precision, and global business expansion [17] - The company is actively reducing low-margin PaaS clients while concentrating on AI and SaaS business development [2][25] Market Trends - The CRM market in China is projected to grow at a compound annual growth rate (CAGR) of 16.1% over the next three years [4] - The AI marketing sector is expected to grow at a CAGR of 35%, while the AIGC industry is projected to grow at 59.3% [4] Product Development - The company has launched several AI-driven products, including a smart ice cabinet service that has been deployed in over 60,000 locations [10] - Xuanwu Cloud is developing an APaaS platform to allow clients to customize their solutions [9] - The company is focusing on integrating AI capabilities into its products to enhance customer engagement and operational efficiency [19][20] Customer Retention and Growth - The net revenue retention rate for SaaS core customers improved from 82% in 2023 to 83.9% in 2024 [24] - The company reported a customer base of 3,056, with 2,282 being SaaS clients [3] Cost Management - The company has successfully reduced sales and administrative expenses, leading to a 10% increase in operational efficiency [25][27] - R&D expenses were reduced by 29.2%, raising concerns about the impact on innovation and product competitiveness [36] Future Outlook - Xuanwu Cloud plans to continue enhancing its AI capabilities and product offerings, focusing on industry-specific models and solutions [12][19] - The company is exploring opportunities for localizing operations in overseas markets while expanding its ecosystem partnerships [22][23] Additional Important Information - The company is adapting to the emergence of deep learning models and their implications for the industry, emphasizing the need for precise industry-specific models [32][33] - The management addressed concerns regarding the impact of deep learning on project timelines and industry dynamics, stating that no projects have been delayed due to this [30][31] This summary encapsulates the key points discussed during the conference call, highlighting the financial performance, strategic direction, market trends, product development, customer retention, cost management, and future outlook of Xuanwu Cloud.

Core Insights - Xuanwu Cloud has been recognized in multiple categories, including "Top 30 High-Growth Listed Companies," "Best Retail Technology Service Provider," and "Best Financial Technology Service Provider," indicating strong market validation of its technology and business model [1][3] - CEO Chen Yonghui has been listed among the "Top 50 Best CEOs in the Technology Industry for 2024," showcasing leadership recognition alongside other notable tech entrepreneurs [1][3] Company Achievements - The recognition from the first new voice platform reflects a comprehensive acknowledgment of Xuanwu Cloud's technological leadership, product iteration, industry depth, and business model [3] - The evaluation process for the awards involved four months of in-depth research and interviews, emphasizing the credibility of the recognition [3] Product Development - Xuanwu Cloud has established a "Three Clouds" strategy focusing on Marketing Cloud, Sales Cloud, and Customer Service Cloud, targeting industries such as consumer goods, finance, government, and TMT [3] - Recent product updates include the release of version 9.1.3 for the Smart 100 product under Sales Cloud, enhancing features like "store documentation" and "order optimization" [4] - The Smart U Customer product for durable goods has launched version 10.0, integrating with Huawei Ascend to enhance capabilities [4] Technological Advancements - Xuanwu Cloud is the first domestic company to achieve full-stack self-research in AI technology, developing four foundational technology platforms to support customer relationship management [5] - The company has integrated AI applications across its product matrix, creating various agent applications to enhance operational efficiency for clients [5] Strategic Partnerships - Xuanwu Cloud has formed partnerships with major companies like Huawei and Amap, enhancing its product visibility and sales channels [5] - Internationally, collaborations with leading telecom operators in Thailand and the Middle East aim to support global enterprises in digital transformation [5] Market Strategy - In response to the AI 3.0 era, Xuanwu Cloud is transitioning CRM from a tool system to a value co-creation partner throughout the business lifecycle [5] - The company is actively pursuing an overseas expansion strategy, particularly in Southeast Asia and the Middle East, to broaden its business footprint [5]

Core Insights - The 2025 Government Work Report emphasizes accelerating high-quality development in key manufacturing industry chains, highlighting the importance of smart manufacturing as a national priority [1] - Xuanwu Cloud's subsidiary, Xuan Tong Smart U Customer, has released the V10.0 version of its product, which leverages Huawei's Ascend AI ecosystem and DeepSeek large model to enhance CRM capabilities for enterprise clients [1] Group 1 - The V10.0 version is built on Huawei's Ascend series chips and software stack, providing an enterprise-level AI computing foundation that enables efficient training and inference of large models with hundreds of billions of parameters, achieving "second-level response" for customer profiling and opportunity forecasting [1] - The new features of Smart U Customer include real-time data capture from bidding information across the internet, helping clients access vast amounts of tender information and recommend high-value clients and bids [2] - The product also integrates natural language processing capabilities to filter bidding projects based on multiple dimensions, enhancing the accuracy of opportunity analysis and increasing win rates for sales teams [2] Group 2 - The V10.0 version supports multiple languages, including simplified and traditional Chinese and English, facilitating global marketing efficiency and business expansion for enterprises [3] - Xuanwu Cloud has expanded its overseas cloud communication business to multiple countries in Asia, Europe, and South America, addressing the global outreach needs of clients [3] - The upgraded Smart U Customer aims to enhance integrated sales and service capabilities, improve process efficiency, increase customer satisfaction, and boost market competitiveness for leading enterprises in the electronic manufacturing sector [3]

Core Viewpoint - The Chinese SaaS market is undergoing a significant transformation in 2024, with a shift from general AI models to vertical scenario-based services becoming the key competitive factor. The focus is on translating AI's potential into enhanced productivity for enterprise clients [1]. SaaS Market Growth - The CRM market in China is expected to reach 38.5 billion RMB by 2026, with a compound annual growth rate (CAGR) of approximately 20% from 2021 to 2026. The integration of AI into CRM has become a consensus in the industry, driven by increasing demand for real-time data decision-making and intelligent supply chains in sectors like fast-moving consumer goods and finance [1]. Company Performance - In 2024, the company reported revenue of 1.15 billion RMB, a year-on-year decrease of 10.1%. However, it achieved a net profit of 6.914 million RMB, marking a turnaround from losses. This improvement was attributed to a reduction in low-margin businesses and an increase in high-margin SaaS business, which raised the overall gross margin to 18.2% [3][4]. Business Segment Analysis - The company's PaaS revenue decreased by 39.2% to 419.41 million RMB, while SaaS revenue grew by 23.8% to 731.87 million RMB, increasing its share of total revenue by 17.5 percentage points to 63.6%, making it the primary growth driver [3][4]. SaaS Sub-segment Growth - Within the SaaS segment, the marketing cloud grew by 23.4%, the sales cloud by 14.9%, and the customer service cloud by 55.8%, indicating strong development across all three areas [6]. AI Integration and Product Development - The company focuses on integrating AI large model technology with comprehensive marketing scenarios to enhance business efficiency and performance. Its self-developed large model for the consumer sector has shown a SKU recognition rate of 95% and processes over 8 million images daily, providing substantial data support for clients [8][10]. Ecosystem Collaboration - The company has actively collaborated with various cloud vendors to expand its market reach and enhance brand value. Partnerships, such as with Huawei Cloud, have allowed the company to leverage additional sales channels, broadening its market coverage [12]. Strategic Focus - The company aims to continue its strategic focus on product standardization, operational refinement, and global business expansion. It plans to deepen AI integration and enhance resource efficiency and profitability [16].

持续聚焦AI+SaaS 玄武云(02392)2024年归母净利润 同比扭亏为盈 智通财经APP获悉，玄武云(02392)3月26日发布了2024年度业绩。报告期内，公司录得收入11.5亿元， 实现毛利2.1亿元，同比增长2.5%。值得注意的是，基于聚焦AI+SaaS高毛利业务、优化产品体系、开拓 海外业务等具体行动，玄武云整体盈利能力得以持续提升，2024年实现归母净利润691.4万元，同比扭 亏为盈。 从各业务板块表现来看，公司SaaS业务实现营收达7.3亿元，同比增长23.8%，占总营收比重进一步提升 至63.6%，这也成为公司扭亏为盈的重要业务因素。而SaaS业务实现快速增长的动力则是客户服务 的"量价齐升"。玄武云于报告期内服务的总客户数达到3056家，这其中，SaaS客户数量达到2282家，同 比增长7.6%，SaaS板块的核心客户人均贡献值(ARPU)达到了260万元，同比增长7.5%，这也进一步验证 了公司近年来持续聚焦AI+SaaS战略的正确性。 AI领域，玄武云基于自有垂直于大消费领域的大模型结合其他开源大模型能力，持续丰富产品矩阵以 满足客户需求。报告期内，公司在原有AI标品的基础上新增8 ...

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 1,151,277, a decrease of 10.1% compared to RMB 1,281,276 in 2023[4] - Gross profit increased by 2.5% to RMB 209,777 from RMB 204,649 year-on-year[4] - Operating profit improved significantly to RMB 2,872 from a loss of RMB 68,901, representing a 104.2% increase[4] - The loss before tax decreased by 98.7%, from RMB 71,709 in 2023 to RMB 920 in 2024[4] - Net profit attributable to equity holders was RMB 6,914, a turnaround from a loss of RMB 72,364 in the previous year, marking a 109.6% improvement[4] - Basic earnings per share increased to RMB 0.012 from a loss of RMB 0.129, reflecting a 109.3% change[4] - The company reported a net loss before tax of RMB 920,000 for 2024, compared to a net loss of RMB 71,709,000 in 2023, reflecting a significant reduction in losses[21] - The company recorded a profit attributable to equity holders of RMB 6.9 million, a significant improvement from a loss of RMB 72.4 million in the previous year[70] Revenue Breakdown - PaaS revenue for 2024 was RMB 419,410,000, down 39.2% from RMB 690,291,000 in 2023, while SaaS revenue increased by 23.9% to RMB 731,867,000 from RMB 590,985,000[22] - SaaS revenue increased by 23.8% to RMB 731.9 million, representing 63.6% of total revenue, while PaaS revenue decreased by 39.2% to RMB 419.4 million, accounting for 36.4% of total revenue[58][60] - The marketing cloud segment achieved revenue of RMB 611.8 million, marking a year-on-year growth of 23.4%[47] - Sales Cloud achieved revenue of RMB 80.1 million, representing a year-on-year growth of 14.9%[50] - Customer Service Cloud generated revenue of RMB 40.0 million, with a significant year-on-year increase of 55.8%[50] Cost Management - Total operating expenses for 2024 were RMB 206,391,000, down from RMB 275,818,000 in 2023, showing a cost reduction strategy[20][24] - Sales and distribution expenses decreased by 24.2% to RMB 94.8 million, attributed to reduced travel and marketing expenses[63] - Administrative expenses decreased by 20.8% to RMB 46.0 million, due to lower employee benefits and audit fees[64] - R&D expenses decreased by 29.2% to RMB 65.5 million, primarily due to reduced employee benefits and server hosting costs[65] Assets and Liabilities - Total assets decreased to RMB 633,808 from RMB 691,016, a decline of approximately 8.3%[6] - Total liabilities decreased to RMB 305,739 from RMB 351,996, a reduction of about 13.1%[7] - Cash and cash equivalents dropped significantly to RMB 71,413 from RMB 192,278, a decrease of 62.9%[6] - The group's trade payables and other payables as of December 31, 2024, were RMB 108.8 million, a decrease of 10.0% from RMB 120.8 million as of December 31, 2023[72] Research and Development - The company continues to focus on research and development, with R&D expenses reduced to RMB 65,531 from RMB 92,616, indicating a strategic shift in resource allocation[5] - Research and development expenses for 2024 were RMB 65,531,000, down from RMB 92,616,000 in 2023, indicating a shift in investment strategy[20][24] Shareholder Actions - The board did not recommend the payment of a final dividend for the reporting period, consistent with the previous year[85] - The company repurchased 3,075,500 shares at a total price of HKD 2,707,207.40 during the reporting period under the buyback authorization[90] - The company believes that the share repurchase will enhance net asset value per share and/or earnings per share, benefiting long-term shareholder value[91] Strategic Focus - The company plans to continue focusing on AI and SaaS products to drive digital transformation for enterprise clients[39] - The company plans to deepen the integration of AI and SaaS, aiming to create differentiated product systems and explosive AI products by 2025[52] - The organization structure will be optimized to enhance profitability, focusing on sales management, customer service, and delivery management[54] Market Expansion - The company expanded its business into Asia, Europe, and South America, enhancing cooperation with mainstream telecom operators in these regions[42] - The company expanded its overseas business, covering countries such as Thailand, the Philippines, and Mexico, and signed contracts with major clients like Huawei and NetEase[51] Compliance and Governance - The financial figures in the comprehensive income statement and financial position statement have been confirmed by the external auditor, PwC[94] - No significant events that could impact the group occurred after the reporting period[95]

玄武雲科技控股有限公司 Xuan Wu Cloud Technology Holdings Limited (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號: 2392 2024 中期報告 INTERIM REPORT | --- | --- | |-------|--------------------------| | 目 | 錄 | | 02 | 公司資料 | | 04 | 財務摘要 | | 05 | 業務回顧及展望 | | 10 | 管理層討論及分析 | | 16 | 其他資料 | | 28 | 中期簡明綜合全面收入表 | | 29 | 中期簡明綜合財務狀況表 | | 31 | 中期簡明綜合權益變動表 | | 32 | 中期簡明綜合現金流量表 | | 33 | 中期簡明綜合財務資料附註 | | 58 | 釋義 | 公司資料 | --- | --- | |--------------------------------|------------------------- ...

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 647,469,000, representing a 22.2% increase from RMB 529,963,000 in the same period of 2023[2] - Gross profit for the same period was RMB 101,249,000, slightly up by 0.6% from RMB 100,611,000 year-on-year[2] - Operating loss decreased significantly to RMB 4,106,000, a 79.1% improvement compared to a loss of RMB 19,612,000 in the previous year[2] - Loss before tax was RMB 5,912,000, down 71.5% from RMB 20,715,000 in the prior period[2] - Total comprehensive loss for the period was RMB 6,140,000, a reduction of 69.5% from RMB 20,155,000 year-on-year[2] - Basic and diluted loss per share improved to RMB 0.012, compared to RMB 0.037 in the same period last year, reflecting a 67.9% decrease in loss per share[2] - Operating expenses decreased by 13.6% compared to the same period last year, leading to a significant reduction in net loss by 69.5% to RMB 6.1 million[37] - Net loss for the six months ended June 30, 2024, was RMB 6.1 million, a reduction from RMB 20.2 million in the same period of 2023, due to effective cost control measures[58] Revenue Breakdown - CRM PaaS service revenue was RMB 282,411 thousand, up from RMB 268,397 thousand, reflecting a growth of 5.0% year-over-year[16] - CRM SaaS service revenue increased significantly to RMB 365,058 thousand, compared to RMB 261,566 thousand, marking a growth of 39.5% year-over-year[16] - The company's SaaS revenue exceeded 50% of total revenue for the first time, reaching 56.4%, with a year-over-year growth of 39.6%[38] - CRM SaaS services accounted for 56.4% of total revenue, surpassing 50% for the first time, while CRM PaaS services contributed 43.6%[44] - Revenue from CRM PaaS services increased by 5.2% to RMB 282.4 million, attributed to higher per-user contribution from core users[46] - Revenue from CRM SaaS services surged by 39.6% to RMB 365.1 million, driven by increased demand and enhanced solution functionalities[48] - The marketing cloud segment achieved revenue of RMB 306.5 million, a year-over-year increase of 41.1%[38] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 661,416,000, down from RMB 691,016,000 at the end of 2023[4] - Total equity decreased to RMB 326,553,000 from RMB 339,020,000 at the end of 2023[5] - Non-current liabilities included lease liabilities of RMB 9,059,000, down from RMB 11,888,000 at the end of 2023[5] - Cash and cash equivalents decreased to RMB 94,074,000 from RMB 192,278,000 at the end of 2023, indicating a significant reduction in liquidity[4] - Trade receivables from third parties amounted to RMB 318.63 million as of June 30, 2024, up from RMB 279.48 million as of December 31, 2023, reflecting a growth of approximately 14%[31] - Trade payables increased from RMB 64.4 million as of December 31, 2023, to RMB 86.2 million as of June 30, 2024[35] - Trade receivables and other receivables increased by 15.1% to RMB 503.0 million as of June 30, 2024, compared to RMB 437.1 million on December 31, 2023[59] Expenses - Total operating expenses, including sales and distribution, administrative, and R&D expenses, amounted to RMB 106,967 thousand for the six months ended June 30, 2024, compared to RMB 122,618 thousand in 2023, showing a decrease of 12.7%[19] - Sales and distribution expenses decreased by 9.0% to RMB 49.9 million, attributed to reduced business entertainment and travel expenses[51] - Administrative expenses decreased by 12.2% to RMB 23.4 million, mainly due to lower employee benefits and office costs[52] - R&D expenses decreased by 20.5% to RMB 32.8 million, reflecting improved efficiency in R&D management[53] - Total employee costs for the six months ended June 30, 2024, amounted to RMB 98.3 million, slightly down from RMB 100.4 million in the same period of 2023[63] Government Support and Taxation - The company received government subsidies totaling RMB 1,123 thousand for the six months ended June 30, 2024, compared to RMB 313 thousand in 2023, reflecting a significant increase[20] - The company recognized an income tax expense of RMB 228,000 for the six months ended June 30, 2024, compared to an income tax expense of RMB 560,000 for the same period in 2023, showing a decrease of approximately 59%[26] - The company has a deferred tax liability of RMB 13,000 as of June 30, 2024, compared to a deferred tax asset of RMB 560,000 as of June 30, 2023, indicating a significant shift in tax position[26] - The company has no taxable profits generated in Hong Kong, resulting in no provisions for Hong Kong profits tax for the six months ended June 30, 2024[23] Future Plans and Strategy - The company plans to focus on top industry clients and leverage AI-driven products to enhance customer business upgrades in the consumer goods sector[40] - The marketing cloud will assist clients in data-driven marketing, enhancing operational management capabilities to ensure precise marketing reach and conversion[42] - The company aims to expand its overseas cloud communication business, particularly in Southeast Asia and Latin America, to support domestic clients' international marketing needs[43] - The company is committed to achieving breakeven in overall performance while enhancing profitability and shareholder returns in 2024[43] Corporate Governance and Compliance - The roles of the chairman and CEO are currently held by the same individual, which deviates from the corporate governance code, but the board believes this arrangement benefits operational efficiency[65] - The board has decided to extend the expected timeline for utilizing the net proceeds from the global offering due to slow economic growth and market uncertainties, allowing for greater flexibility in capital management and potential business opportunities[70] - The audit committee has reviewed the unaudited condensed consolidated interim results and found them to be prepared in accordance with applicable accounting standards and listing rules, with no objections to the accounting treatments used[74] - There have been no significant post-period events affecting the group from the end of the reporting period to the date of this announcement[75]