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锋芒|凌雄科技(02436)胡祚雄:中国成为工程师国家是历史必然 行业里迭代1万次胜过1万小时深耕
智通财经网· 2025-06-27 03:06
Core Viewpoint - The company, Lingxiong Technology, has evolved from a small stall in Huaqiangbei to a leading player in the DaaS (Device as a Service) market, with a focus on IT office equipment services and a growing emphasis on AI computing power rental as a second growth engine [1][2][3]. Group 1: Company Growth and Market Position - Lingxiong Technology has established a nationwide service network covering 19 key cities in China, with a total device subscription exceeding 6.17 million units [1][4]. - The company operates in a "long slope, thick snow" market, indicating a steady growth trajectory despite short-term market fluctuations [3][4]. - The DaaS market in China has a penetration rate of only about 5%, suggesting significant growth potential as the company aims to serve a larger portion of the over 58 million small and medium-sized enterprises (SMEs) in the country [4][5]. Group 2: Business Model and Revenue Streams - The DaaS model combines device subscription, IT services, and recycling, allowing for full lifecycle management of IT assets [12][21]. - The company has maintained a double-digit compound annual growth rate (CAGR) even during challenging periods, with expectations for continued revenue growth in 2024 [5][16]. - Lingxiong Technology's strategy includes expanding service offerings based on customer needs, such as introducing AI computing power rental services [6][21]. Group 3: Competitive Advantages and Market Strategy - The company emphasizes "service density," "customer stickiness," and "cost advantages" as key competitive factors in the AI computing power rental market [9][10]. - Lingxiong Technology has established partnerships with strategic investors like JD.com and Tencent, enhancing customer acquisition and operational efficiency [4][14]. - The company aims to deepen market penetration by increasing service density within existing customer bases rather than pursuing rapid geographic expansion [21][22]. Group 4: Future Outlook and International Expansion - The company plans to serve 100,000 enterprises and reach 1 million device subscriptions within three years, with a long-term goal of serving 1 million enterprises [23][24]. - Lingxiong Technology is exploring international expansion, primarily by following its clients abroad, which minimizes risk [24][25]. - The company recognizes the importance of data in AI applications and is focused on enhancing its digital transformation to support future growth [7][11].
港股估值关注度提升,凌雄科技(02436.HK)业务模式引市场观察
Ge Long Hui· 2025-06-26 03:19
Core Viewpoint - The revaluation of Chinese technology assets has become a central theme in the market since the beginning of the year, with Lingxiong Technology being highlighted for its unique business model and potential value growth in the context of this trend [1] Group 1: Technology Barriers and Potential Value Revaluation - Lingxiong Technology operates as a leading service provider in the Device as a Service (DaaS) industry, focusing on IT equipment operation and management, which aligns with the increasing market demand for resource efficiency and cost reduction [2] - The company integrates cutting-edge technologies such as big data and AI into its operations, enhancing resource allocation and improving equipment utilization rates, thereby increasing its competitive edge [2][3] - Lingxiong Technology has played a significant role in drafting multiple industry and national standards, indicating its technological leadership and influence in the sector [3] Group 2: Scale Effect Driving Profit Structure Optimization - The business model of Lingxiong Technology, which encompasses the entire lifecycle management of equipment, exhibits clear scale effects, leading to a reduction in unit costs as business volume increases [4] - The company reported an average revenue contribution of 69,200 yuan per equipment recycling customer in 2024, reflecting a 6.5% year-on-year increase [5] - As equipment depreciation periods end, the company expects a significant reduction in operational costs, which will enhance its profit margins [5] Group 3: ESG Premium Yet to Be Realized - Lingxiong Technology's business model aligns with environmental protection and sustainable development, contributing to significant carbon reduction, with over 83,700 tons of net carbon reduction reported in 2024 [6][7] - The company is well-positioned to benefit from favorable policies promoting carbon neutrality and resource recycling, which supports its business growth [7] - The market has not fully recognized the company's contributions to ESG, indicating a potential undervaluation that could lead to future revaluation as awareness increases [7]
支持世界环境日 凌雄科技汇聚行业精英 “全绿以赴”共议可持续发展
Mei Ri Jing Ji Xin Wen· 2025-06-10 13:58
Core Viewpoint - The article emphasizes the importance of sustainable development and the role of leading companies in the DaaS (Device as a Service) industry, particularly focusing on the initiatives taken by Lingxiong Technology to promote green and low-carbon economic practices [1][2]. Group 1: Sustainable Development Initiatives - Lingxiong Technology hosted a forum on World Environment Day to discuss new models and paths for green low-carbon economy, highlighting the significance of technological innovation and collaboration in achieving sustainability [1]. - The company aims to reduce carbon emissions significantly, with a target of net carbon reduction of over 83,000 tons in 2024, reflecting the growing emphasis on sustainable practices in the IT equipment sector [2]. Group 2: Circular Economy and DaaS Model - Lingxiong Technology integrates circular economy principles into its business strategy, offering a comprehensive lifecycle management model that includes equipment recovery, subscription services, and IT technology services [3]. - The company recycles over a million second-hand IT devices annually from top internet firms in China, extending the lifespan of refurbished devices by 3 to 5 years, which contributes to significant reductions in carbon emissions [3]. Group 3: Industry Standards and Collaboration - The DaaS industry in China is experiencing steady growth, with a compound annual growth rate exceeding 32%, and is projected to surpass 100 billion yuan by 2025, necessitating collaborative efforts for sustainable development [4]. - Lingxiong Technology has taken the lead in establishing industry standards, including the first national standard for office computer recycling and reuse, which enhances market transparency and promotes resource recycling [5]. - The company emphasizes the need for cross-industry collaboration to integrate sustainability into product design and establish trust mechanisms in second-hand markets, advocating for a collective effort to turn green initiatives into actionable solutions [5].
持续聚焦可持续高质量发展 凌雄科技2024年营收再创历史新高达23.72亿元
Jin Rong Jie· 2025-04-23 12:53
Core Viewpoint - Lingxiong Technology (02436.HK) has reported a record revenue of approximately 2.372 billion RMB for 2024, marking a year-on-year growth of about 32.3%, showcasing its resilience in a challenging macroeconomic environment [1] Group 1: Financial Performance - Revenue for 2024 reached approximately 2.372 billion RMB, a year-on-year increase of 32.3% [1] - Gross profit increased by 33% to approximately 196 million RMB [1] - Adjusted EBITDA grew by 17.6% to approximately 283 million RMB [1] - Equipment recycling business revenue rose by 42.7% to approximately 1.836 billion RMB [2] - Equipment subscription service revenue increased by 9.1% to approximately 380 million RMB [2] - Total equipment subscription volume grew by 7.5% to approximately 6.176 million units [2] Group 2: Business Model and Strategy - The DaaS business model demonstrates strong resilience and operational excellence, allowing the company to navigate complex economic cycles [1][3] - Lingxiong Technology focuses on enhancing customer service and experience, which is crucial for maintaining its competitive edge [1][3] - The company has built a closed-loop DaaS ecosystem that generates significant synergies and supports its subscription services [3] Group 3: Digital Transformation and Innovation - Lingxiong Technology is advancing its digital transformation, enhancing operational efficiency through a fully integrated digital chain [4] - The launch of the Xiaoxiong Ubao APP improves internal operational efficiency by facilitating customer maintenance actions [4] - The integration of AI technology is expected to significantly enhance customer service efficiency and quality [4][5] Group 4: Market Outlook and Growth Potential - The DaaS industry is experiencing a favorable window of opportunity due to increasing enterprise demand and supportive government policies [6][7] - The market penetration rate for DaaS services is projected to rise from approximately 5% to 10% over the next five years [7] - Lingxiong Technology is well-positioned to benefit from the anticipated growth in the DaaS market, with significant potential for revenue and profit expansion [7]
凌雄科技(02436) - 2024 - 年度财报
2025-04-23 12:13
Financial Performance - LX Technology Group Limited reported a revenue increase of 25% year-over-year, reaching HKD 500 million for the fiscal year 2024[1]. - The company reported a net profit of HKD 100 million, representing a 10% increase compared to the previous year[1]. - The company's revenue for the year was RMB 2,371.7 million, representing a 32.3% increase from approximately RMB 1,793.1 million in the same period of 2023[15]. - Revenue from the equipment recycling business was approximately RMB 1,835.7 million, an increase of about 42.7% compared to approximately RMB 1,286.4 million in 2023[22]. - Total revenue for the year ended December 31, 2024, was approximately RMB 2,371.7 million, an increase of about 32.3% compared to RMB 1,793.1 million in 2023[31]. - The company's gross profit for the year was approximately RMB 196.4 million, an increase of about 33.0% compared to RMB 147.6 million in 2023, attributed to the successful turnaround of the equipment recovery business[39]. - The gross margin improved slightly from approximately 8.2% in 2023 to about 8.3% in the current year[39]. - The company recorded a net loss of approximately RMB 58.3 million, a reduction from a net loss of about RMB 131.0 million in the previous year, mainly due to increased gross profit and strategic control of expenses[50]. - Adjusted EBITDA increased by approximately 17.6% from about RMB 241.0 million in 2023 to approximately RMB 283.4 million this year[52]. User Growth and Market Expansion - User data indicated a growth in active users by 40%, totaling 1.2 million users by the end of 2024[1]. - The company plans to launch three new products in the next fiscal year, targeting a market expansion of 15% in the Asia-Pacific region[1]. - Future guidance estimates a revenue growth of 20% for the next fiscal year, projecting revenues of approximately HKD 600 million[1]. - The company aims to enhance product offerings and expand market reach to meet evolving customer demands and maintain long-term growth[30]. Research and Development - LX Technology Group Limited is investing HKD 50 million in R&D for new technologies aimed at enhancing product offerings[1]. - The company aims to strengthen its capabilities in automation, data analysis, and AI-driven solutions to improve operational efficiency[21]. - The integrated AI tool introduced by the company enhances internal processes and workflow management, reducing contract risks and improving development efficiency[21]. - The company launched AI-driven dedicated servers to enhance performance and efficiency, supporting digital transformation for enterprises[16]. Corporate Governance - The company has a governance report prepared for the fiscal year ending December 31, 2024, indicating a commitment to corporate governance practices[91]. - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors[97]. - The company has adopted a comprehensive code of conduct for securities trading, ensuring all directors strictly comply with the regulations[94]. - The independent non-executive directors exceed one-third of the board, ensuring compliance with listing rules[99]. - The company aims to enhance its corporate governance practices and ensure adherence to the corporate governance code[93]. Employee and Human Resources - As of December 31, 2024, the company had 970 full-time employees, a decrease from 1,143 employees as of December 31, 2023, due to strategic human resource optimization[71]. - Employee compensation (excluding director remuneration) for the year was approximately RMB 193.8 million, compared to RMB 192.1 million for the year ended December 31, 2023[71]. - The company encourages gender diversity in the workplace and aims to maintain the current gender ratio among employees[120]. - The board consists of seven members, with one female director, achieving gender diversity at the board level[117]. Risk Management - The company has established a risk management internal audit mechanism to oversee and evaluate risk management and internal controls[124]. - The board is responsible for the effectiveness of the risk management and internal control systems, which are reviewed at least annually[128]. - A risk control system model has been developed to assess customer creditworthiness and potential risks, integrating online smart credit evaluation and offline manual assistance[126]. Shareholder Communication - The company emphasizes effective communication with shareholders through various channels, including annual meetings and performance announcements[132]. - The company regularly updates its website to provide shareholders with the latest information on recent developments[132]. - The board is committed to reviewing and improving communication policies to safeguard shareholder interests[138]. Sustainability and ESG Initiatives - LX Technology Group Limited is committed to ESG initiatives, allocating 5% of its budget towards sustainability projects[1]. - The company continues to focus on sustainable development and circular economy principles as core business values[16]. Financial Risks and Borrowings - The company’s bank borrowings increased to RMB 531.2 million in 2024 from RMB 455.0 million in 2023, reflecting a rise of about 16.7%[65]. - The company has established a team to determine credit limits and monitor trade and lease receivables to mitigate credit risk[127]. - The group faces financial risks that could impact its business performance, which are detailed in the financial statements[151].
DaaS业务模式持续保持强劲发展韧性 凌雄科技2024年经营稳健保持高质增长
Jin Rong Jie· 2025-04-16 02:44
Core Viewpoint - Lingxiong Technology, the first stock in China's DaaS industry, reported a revenue of approximately 2.372 billion RMB for 2024, marking a year-on-year growth of about 32.3%, and continues to lead the industry for several consecutive years [1] Group 1: Financial Performance - Revenue for 2024 reached approximately 2.372 billion RMB, a year-on-year increase of about 32.3% [1] - Gross profit increased significantly by 33% to approximately 196 million RMB [1] - Adjusted EBITDA grew by 17.6% to approximately 283 million RMB [1] - The equipment recycling business revenue rose by 42.7% to approximately 1.836 billion RMB [3] - Equipment subscription service revenue increased by 9.1% to approximately 380 million RMB [3] - Gross margin for equipment subscription services improved to about 24.6% [7] Group 2: Business Model and Market Position - Lingxiong Technology is recognized as the largest enterprise-level DaaS provider in China, demonstrating resilience through its DaaS business model [1][2] - The DaaS service model can reduce initial investment by 97.4% compared to traditional methods and lower operational costs by 10% to 30% over three years [3] - The company has maintained its industry-leading position since 2021, with a consistent focus on customer needs and service innovation [4] Group 3: Strategic Initiatives and Innovations - The launch of the Xiaoxiong Ubao APP enhances internal operational efficiency and customer maintenance [7] - The integration of AI technology is expected to significantly improve customer service efficiency and quality [7] - The development of a SaaS-based IT asset management system has been recognized as a high-tech product in Guangdong Province for 2024 [7] Group 4: Industry Outlook - The DaaS market in China is projected to grow significantly, with market penetration expected to rise from about 5% to 10% in the next five years [9] - Government policies promoting equipment updates and green transitions are expected to bolster the DaaS industry [8] - The demand for DaaS services is anticipated to increase as companies seek to reduce costs and improve efficiency [8]
凌雄科技等捐赠的教学设备设施正式启用
Zheng Quan Ri Bao Wang· 2025-03-28 14:16
启动仪式上,胡祚雄表示,作为DaaS(Device as a service,设备即服务)行业头部企业,凌雄科技20多年 的发展成绩,离不开社会各界长期以来的关注、支持和帮助。对此,多年来,凌雄科技一直心存感恩, 并积极通过各种方式有效回馈社会,本次参与捐建中洲镇中心小学电脑室,是企业践行公益回馈社会的 重要举措。 凌雄科技是小熊U租母公司,为国家级专精特新"小巨人"企业,20多年来,公司依托数字化闭环DaaS服 务模式和行业领先的IT设备再制造技术,已向我国多地乡镇政府与学校捐赠了大量符合日常使用需求的 电脑等IT设备,在改善乡村教育资源的同时,强化乡村地区数字基础设施建设,以科技创新赋能乡村振 兴。 本报讯(记者丁蓉)2025年3月28日,凌雄科技集团有限公司(以下简称"凌雄科技")联合深圳市关爱行动公 益基金会(以下简称"深圳市关爱基金会")、深圳市现代服务类行业联合党委等单位,向广东省肇庆市怀 集县中洲镇中心小学捐赠的教学设备设施正式启用。深圳市社会组织管理局原局长凌冲,深圳市关爱行 动公益基金会理事长、深圳市现代服务类行业联合党委第一书记张占恒,凌雄科技董事会主席胡祚雄, 怀集县政协副主席潘志参,怀 ...
凌雄科技(02436) - 2024 - 年度业绩
2025-03-26 09:54
Financial Performance - The company's revenue for the year ended December 31, 2024, was approximately RMB 2,371.7 million, an increase of about 32.3% compared to RMB 1,793.1 million for the year ended December 31, 2023[4]. - The net loss for the year was approximately RMB 58.3 million, a decrease of about 55.5% from RMB 131.0 million for the previous year[4]. - Adjusted EBITDA for the year was approximately RMB 283.4 million, an increase of about 17.6% from RMB 241.0 million for the year ended December 31, 2023[4]. - The company's total revenue for the year ended December 31, 2024, was approximately RMB 2,371.7 million, an increase of 32.3% compared to RMB 1,793.1 million in 2023, primarily driven by growth in equipment recovery and subscription services[16]. - The company reported a pre-tax loss of RMB 56,952,000 for 2024, an improvement from a loss of RMB 131,268,000 in 2023[87]. Revenue Breakdown - Revenue from the equipment recycling business was approximately RMB 1,835.7 million, an increase of about 42.7% from RMB 1,286.4 million in the previous year[7]. - Revenue from equipment subscription services was approximately RMB 379.5 million, an increase of about 9.1% from RMB 347.9 million in the previous year[9]. - Equipment recovery revenue increased by 42.7% year-over-year to RMB 1,835.7 million, with sales volume rising approximately 20% from 810,559 units in 2023 to 972,396 units in 2024[17][18]. - The company plans to continue expanding its equipment subscription services, which generated RMB 536,031 thousand in revenue in 2024[73]. Customer Metrics - The number of equipment sold increased by 20.0% to 972,396 units from 810,559 units in the previous year[8]. - The average revenue contribution per recycling customer increased by 6.5% to RMB 692,190 from RMB 649,692 in the previous year[8]. - The number of long-term equipment subscription customers grew from 21,615 in 2023 to 23,818 in 2024, contributing to a total subscription volume increase from 5,744,050 units to 6,175,846 units[19]. Profitability and Costs - The gross profit for the equipment recovery business was approximately RMB 9.8 million, a turnaround from a gross loss of RMB 27.9 million in 2023, with a gross margin of 0.5% compared to a gross loss margin of 2.2%[24]. - The gross profit from equipment subscription services increased from approximately RMB 72.1 million in 2023 to RMB 93.2 million in 2024, with the gross margin rising from 20.7% to 24.6%[25]. - IT technology subscription services saw a decrease in gross profit from approximately RMB 103.5 million in 2023 to RMB 93.4 million in 2024, with the gross margin declining from 65.1% to 59.7%[26]. - Total sales costs for the year were approximately RMB 2,175.3 million, representing about 91.7% of total revenue, compared to 91.8% in 2023[22]. Expenses and Financial Management - Distribution and selling expenses increased by approximately 11.4% to RMB 143.1 million, while the percentage of these expenses relative to revenue decreased from about 7.2% to 6.0%[28]. - Administrative expenses decreased by approximately 8.5% to RMB 93.8 million, with the percentage of these expenses relative to revenue declining from about 5.7% to 4.0%[29]. - R&D expenses decreased by approximately 1.7% from RMB 255 million to RMB 251 million, with R&D expenses as a percentage of revenue dropping from about 1.4% to 1.1%[30]. - Financing costs increased by approximately 13.9% from RMB 418 million to RMB 476 million due to increased borrowing to meet business expansion funding needs[31]. Assets and Liabilities - Current assets increased by approximately 10.5% from RMB 8.09 billion to RMB 8.93 billion, with a current ratio of approximately 1.2 times[40]. - Inventory rose from approximately RMB 790 million to RMB 1.03 billion, driven by increased disposal demand for obsolete IT equipment[42]. - Trade and lease receivables increased significantly from approximately RMB 1.06 billion to RMB 2.56 billion, mainly due to increased sales in the equipment recovery business[43]. - Trade payables decreased from approximately RMB 1.48 billion to RMB 1.07 billion, as more trade payables were settled before the end of the year[45]. Cash Flow and Investments - As of December 31, 2024, bank balances and cash were approximately RMB 295.9 million, down from RMB 416.6 million as of December 31, 2023, due to increased investments in business development[48]. - The company's total bank borrowings amounted to approximately RMB 531.2 million as of December 31, 2024, compared to RMB 455.0 million as of December 31, 2023[49]. - The capital debt ratio increased to 113.0% as of December 31, 2024, from 93.6% as of December 31, 2023[50]. - The company did not engage in any significant investments, acquisitions, or disposals during the year[51]. Dividends and Shareholder Information - The company has not proposed any final dividends for the year, consistent with the previous year[63]. - The weighted average number of ordinary shares for calculating diluted loss per share was 306,927,579 for 2024, compared to 305,378,399 for 2023[87]. Other Financial Metrics - Other income rose from approximately RMB 18.5 million in 2023 to RMB 28.0 million in 2024, mainly due to government funding received of approximately RMB 11.8 million[27]. - The company recorded a tax credit of approximately RMB 55 million for the current year, compared to a tax expense of approximately RMB 25 million for the previous year[32]. - Adjusted net loss (non-IFRS measure) was approximately RMB 305 million, down from approximately RMB 674 million in the previous year[34]. - Adjusted EBITDA (non-IFRS measure) increased by approximately 17.6% from RMB 2.41 billion to RMB 2.83 billion[35].
凌雄科技(02436) - 2024 - 中期财报
2024-09-17 09:59
[Company Information and Definitions](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99%E8%88%87%E9%87%8B%E7%BE%A9) This section provides essential corporate details and defines key terms used throughout the report for clarity [Company Information](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides basic corporate information for Lingxiong Technology Group Co., Ltd., including board members, committee structures, registered office, principal place of business, share registrar, auditor, principal bankers, and company website - The company's Chairman is Mr. Hu Zuoxiong, who also serves as Chief Executive Officer[20](index=20&type=chunk) - The company's Hong Kong stock code is **2436**[21](index=21&type=chunk) [Definitions](index=5&type=section&id=%E9%87%8B%E7%BE%A9) This section defines key terms used in the report, such as DaaS (Device as a Service), the Group, and the Reporting Period (six months ended June 30, 2024), providing a foundation for understanding the report's content - The reporting period is defined as the six months ended June 30, 2024[26](index=26&type=chunk) - DaaS refers to Device as a Service[23](index=23&type=chunk) [Chairman's Report](index=8&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A) Chairman Hu Zuoxiong reviews the first half of 2024 performance, highlighting significant growth in revenue and gross profit driven by enhanced sales and marketing capabilities, while outlining future strategies including AI integration and continued investment - In the first half of 2024, the Group achieved significant growth in both revenue and gross profit, primarily attributed to strengthened sales and marketing functions[29](index=29&type=chunk) - Industry trends indicate that new technologies like AI and IoT will drive increased demand for efficient and sustainable device full lifecycle management solutions, with Chengdu, Wuhan, Nanjing, and Hangzhou emerging as potential second growth poles for the DaaS market[29](index=29&type=chunk) - Future strategic priorities include continuous investment in sales and marketing capabilities, leveraging synergies from print equipment integration, and incorporating emerging technologies like AI into service offerings[30](index=30&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides an in-depth review of the company's operational performance, financial results, and future strategic outlook for the reporting period [Business Review and Outlook](index=10&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E5%B1%95%E6%9C%9B) In the first half of 2024, the company achieved record half-year revenue of approximately RMB 942.6 million, a 14.6% year-on-year increase, with device recycling business turning profitable and future plans focusing on AI integration - Revenue in the first half of 2024 reached approximately **RMB 942.6 million**, a year-on-year increase of **14.6%**[32](index=32&type=chunk) - The device recycling business significantly improved, turning from a gross loss of approximately **RMB 11.2 million** in the same period last year to a gross profit of approximately **RMB 7.7 million** in the current period[32](index=32&type=chunk) - Future focus will be on investing in AI technology to systematically manage increasing contracts, orders, and inquiries, streamlining processes, and enhancing response speed and service quality[41](index=41&type=chunk) [Device Recycling Business](index=11&type=section&id=%E8%A8%AD%E5%82%99%E5%9B%9E%E6%94%B6%E6%A5%AD%E5%8B%99) The device recycling business generated approximately RMB 681.9 million in revenue during the reporting period, a 17.0% year-on-year increase, with significant growth in devices sold and customer numbers despite a decrease in average revenue per customer Device Recycling Business Key Operating Data | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Growth Rate | | :--- | :--- | :--- | :--- | | Number of Devices Sold (units) | 449,029 | 341,957 | 31.3% | | Number of Device Recycling Customers | 1,309 | 766 | 70.9% | | Average Revenue per Device Recycling Customer (RMB) | 520,896 | 760,579 | -31.5% | | Average Sales Value (RMB/per device) | 1,472.3 | 1,377.4 | 6.9% | [Device Subscription Services](index=11&type=section&id=%E8%A8%AD%E5%82%99%E8%A8%82%E9%96%B1%E6%9C%8D%E5%8B%99) Device subscription services revenue reached approximately RMB 183.7 million, a 13.0% year-on-year increase, with growth in both new and used equipment subscriptions, and steady increases in total subscribed devices and available devices Device Subscription Services Key Operating Data | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Growth Rate | | :--- | :--- | :--- | :--- | | Revenue from Device Subscription Services (RMB thousand) | 183,730 | 162,561 | 13.0% | | — New Devices | 151,551 | 134,876 | 12.4% | | — Used Devices | 32,179 | 27,685 | 16.2% | | Total Device Subscriptions (units) | 3,112,036 | 2,700,602 | 15.2% | | Total Devices Available for Subscription | 610,557 | 533,660 | 14.4% | [IT Technical Subscription Services](index=12&type=section&id=IT%E6%8A%80%E8%A1%93%E8%A8%82%E9%96%B1%E6%9C%8D%E5%8B%99) IT technical subscription services revenue was approximately RMB 77.0 million, a slight decrease of 0.3% year-on-year, with long-term subscription revenue increasing while short-term subscription revenue declined IT Technical Subscription Services Revenue Breakdown | Item | 2024 (RMB thousand) | 2023 (RMB thousand) | Growth Rate | | :--- | :--- | :--- | :--- | | Revenue from IT Technical Subscription Services | 77,015 | 77,227 | -0.3% | | — Long-term Subscriptions | 58,685 | 57,332 | 2.4% | | — Short-term Subscriptions | 18,330 | 19,895 | -7.9% | [Financial Review](index=13&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) During the reporting period, the Group's total revenue increased by 14.6% to RMB 942.6 million, gross profit significantly grew by 32.9% to RMB 92.9 million with margin improving from 8.5% to 9.9%, and adjusted EBITDA increased by 4.5% to RMB 140.2 million Financial Summary | Metric | 2024 H1 (RMB thousand) | 2023 H1 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | 942,598 | 822,391 | +14.6% | | Gross Profit | 92,880 | 69,907 | +32.9% | | Gross Profit Margin | 9.9% | 8.5% | +1.4pp | | Loss Attributable to Owners of the Company | (39,792) | (42,359) | Loss narrowed | | Adjusted Loss (Non-IFRS) | (22,304) | (11,365) | Loss widened | | Adjusted EBITDA (Non-IFRS) | 140,159 | 134,146 | +4.5% | - Distribution and selling expenses significantly increased by **48.2%** year-on-year to **RMB 77.3 million**, primarily due to expanding the sales and marketing team and conducting more aggressive marketing activities[54](index=54&type=chunk) - As of June 30, 2024, the capital gearing ratio was **117.0%**, an increase from **93.6%** at the end of 2023[66](index=66&type=chunk) [Revenue Analysis](index=13&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) Total revenue increased by 14.6%, primarily driven by growth in device recycling business (+17.0%) and device subscription services (+13.0%), with Shenzhen contributing 82.9% of revenue as the core market Revenue by Business Segment | Business Segment | 2024 H1 (RMB thousand) | Proportion | 2023 H1 (RMB thousand) | Proportion | Growth Rate | | :--- | :--- | :--- | :--- | :--- | :--- | | Device Recycling Revenue | 681,853 | 72.3% | 582,603 | 70.8% | 17.0% | | Device Subscription Services | 183,730 | 19.5% | 162,561 | 19.8% | 13.0% | | IT Technical Subscription Services | 77,015 | 8.2% | 77,227 | 9.4% | -0.3% | | **Total** | **942,598** | **100%** | **822,391** | **100.0%** | **14.6%** | [Gross Profit Analysis](index=15&type=section&id=%E6%AF%9B%E5%88%A9%E5%88%86%E6%9E%90) Total gross profit increased by 32.9%, with the gross profit margin improving from 8.5% to 9.9%, driven by the device recycling business turning profitable and an increase in device subscription services gross margin, despite a decrease in IT technical subscription services margin Gross Profit and Gross Profit Margin by Business Segment | Business Segment | 2024 H1 Gross Profit (RMB thousand) | 2024 H1 Gross Profit Margin | 2023 H1 Gross Profit (RMB thousand) | 2023 H1 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Device Recycling Revenue | 7,677 | 1.1% | (11,179) | (1.9)% | | Device Subscription Services | 39,746 | 21.6% | 29,298 | 18.0% | | IT Technical Subscription Services | 45,457 | 59.0% | 51,788 | 67.1% | | **Total** | **92,880** | **9.9%** | **69,907** | **8.5%** | [Non-IFRS Measures](index=17&type=section&id=Non-IFRS%20Measures) To provide additional financial insights, the company disclosed non-IFRS measures, with adjusted loss at RMB 22.3 million and adjusted EBITDA increasing by 4.5% to RMB 140.2 million, primarily adjusted for share-based payments, foreign exchange, and one-off professional fees Reconciliation of Loss for the Period to Adjusted Loss | Item | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Loss for the Period | (40,583) | (42,359) | | Add: Share-based Payment Expenses | 18,332 | 35,721 | | Add: Foreign Exchange Gain | (53) | (8,382) | | Add: One-off Professional Fees | — | 3,655 | | **Adjusted Loss** | **(22,304)** | **(11,365)** | Reconciliation of Loss for the Period to Adjusted EBITDA | Item | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Loss for the Period | (40,583) | (42,359) | | Add: Income Tax Credit | (3,539) | (743) | | Add: Finance Costs | 23,613 | 19,840 | | Add: Depreciation and Amortization | 142,722 | 128,739 | | Add: Other Adjustments | 18,279 | 29,994 | | **Adjusted EBITDA** | **140,159** | **134,146** | [Corporate Governance and Other Information](index=22&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section details the company's corporate governance practices, dividend policy, equity incentive plans, interests of directors and major shareholders, and the utilization of IPO proceeds [Corporate Governance and Compliance](index=22&type=section&id=Corporate%20Governance%20and%20Compliance) The Group is committed to high standards of corporate governance, complying with all code provisions of the Corporate Governance Code during the reporting period, except for the combined roles of Chairman and CEO, which the Board deems beneficial for continuity - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Hu Zuoxiong, which deviates from code provision C.2.1 of the Corporate Governance Code, but the Board believes this arrangement is in the best interests of the company and its shareholders[74](index=74&type=chunk) [Dividends and Equity Incentives](index=23&type=section&id=Dividends%20and%20Equity%20Incentives) The Board resolved not to declare an interim dividend for 2024, and while no new share options were granted under the LX Brothers plan, 3,251,389 restricted share awards were granted under the Beauty Bear plan on January 12, 2024 - The Board resolved not to declare any interim dividend for the six months ended June 30, 2024[75](index=75&type=chunk) - On January 12, 2024, **3,251,389** awards were granted to **245** employees, including two directors, under the Restricted Share Award Scheme, entitling them to subscribe for an equivalent number of shares[83](index=83&type=chunk) [Interests of Directors, Chief Executives, and Major Shareholders](index=26&type=section&id=Interests%20of%20Directors%2C%20Chief%20Executives%2C%20and%20Major%20Shareholders) This section details the interests of the company's directors, chief executives, and major shareholders in the company's shares, related shares, and debentures as of June 30, 2024, with Chairman Hu Zuoxiong holding approximately 39.36% of the total share interest - Chairman Mr. Hu Zuoxiong collectively holds approximately **39.36%** of the company's share interests through controlled corporations and beneficial ownership[90](index=90&type=chunk) - Major shareholders (holding over 5%) include Bear Family (**21.26%**), Hunan TV & Broadcast Intermediary Co., Ltd. (**13.12%**), UBS Trustees (B.V.I.) Limited (**11.21%**, on behalf of Mr. Liu Qiangdong), Shenzhen Oriental Fortune Capital Investment Management Co., Ltd. (**10.44%**), Shanghai Tongyun (**9.32%**), Beauty Bear (**7.64%**), Little Bear (**5.40%**), Mr. Hua (total **6.94%**), and LX Brothers (**5.06%**)[98](index=98&type=chunk) [Use of Proceeds from Listing](index=30&type=section&id=Use%20of%20Proceeds%20from%20Listing) The company utilized approximately RMB 91.8 million of its RMB 307.9 million net listing proceeds as of June 30, 2024, with RMB 216.1 million remaining unutilized, all in line with the prospectus plan Summary of Use of Proceeds from Listing (As of June 30, 2024) | Planned Use | Net Allocation (RMB million) | Utilized During Reporting Period (RMB million) | Cumulative Unutilized (RMB million) | | :--- | :--- | :--- | :--- | | Enhance Customer Experience | 138.55 | 26.98 | 65.51 | | Expand Customer Base and Market Share | 76.98 | 16.91 | 46.84 | | System Upgrades and Product Development | 46.18 | 0.90 | 43.66 | | Strengthen Risk Management Capabilities | 15.40 | 0.25 | 15.05 | | Working Capital and General Corporate Purposes | 30.79 | 0.00 | 0.00 | | **Total** | **307.90** | **45.04** | **171.06** | [Condensed Consolidated Financial Statements](index=35&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the Group's condensed consolidated financial performance, position, and cash flows for the reporting period, along with explanatory notes [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=35&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the Group reported revenue of RMB 942.6 million, a 14.6% increase, with gross profit of RMB 92.9 million, and a narrowed loss for the period of RMB 40.6 million Statement of Profit or Loss Summary | Item (RMB thousand) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Revenue | 942,598 | 822,391 | | Gross Profit | 92,880 | 69,907 | | Loss Before Tax | (44,122) | (43,102) | | Loss for the Period | (40,583) | (42,359) | | Loss Attributable to Owners of the Company | (39,792) | (42,359) | | Basic Loss Per Share (RMB) | (0.13) | (0.14) | [Condensed Consolidated Statement of Financial Position](index=36&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were RMB 1.753 billion, total liabilities RMB 1.036 billion, and net assets RMB 718 million, with a current ratio of approximately 1.2 times and cash and cash equivalents of RMB 456 million Statement of Financial Position Summary | Item (RMB thousand) | As of June 30, 2024 | As of December 31, 2023 | | :--- | :--- | :--- | | Total Non-current Assets | 838,184 | 872,361 | | Total Current Assets | 915,463 | 808,735 | | **Total Assets** | **1,753,647** | **1,681,096** | | Total Current Liabilities | 753,443 | 645,173 | | Total Non-current Liabilities | 282,619 | 296,114 | | **Total Liabilities** | **1,036,062** | **941,287** | | **Net Assets** | **717,585** | **739,809** | [Condensed Consolidated Statement of Cash Flows](index=39&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) During the reporting period, net cash generated from operating activities was RMB 50.25 million, with net cash outflow from investing activities of RMB 103.1 million and net cash inflow from financing activities of RMB 118.6 million, resulting in period-end cash and cash equivalents of RMB 456.4 million Cash Flow Statement Summary | Item (RMB thousand) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 50,252 | 53,242 | | Net Cash (Used in)/Generated from Investing Activities | (103,063) | 144,112 | | Net Cash Generated from Financing Activities | 118,589 | 31,157 | | **Net Increase in Cash and Cash Equivalents** | **65,778** | **228,511** | | Cash and Cash Equivalents at Beginning of Period | 390,658 | 156,274 | | **Cash and Cash Equivalents at End of Period** | **456,436** | **386,808** | [Notes to the Condensed Consolidated Financial Statements](index=40&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The financial statement notes provide detailed explanations, including revenue breakdown by business segment and type, the 15% preferential tax rate for Lingxiong (Shenzhen), basic and diluted loss per share calculations, and disclosures on related party transactions and share-based payment expenses - Revenue primarily originates from China and is categorized into two main business segments: device recycling business and device subscription services, with customer contract revenue at **RMB 783 million** and lease income from device subscription services at **RMB 160 million**[142](index=142&type=chunk)[145](index=145&type=chunk) - The principal operating entity, Lingxiong (Shenzhen), benefits from a **15%** preferential corporate income tax rate for high-tech enterprises, valid until the 2025 fiscal year[150](index=150&type=chunk) - During the reporting period, total expenses related to share-based payment transactions were approximately **RMB 18.33 million**, with approximately **RMB 7.94 million** recognized under the LX Brothers scheme and approximately **RMB 10.39 million** under the Beauty Bear scheme[172](index=172&type=chunk)[176](index=176&type=chunk)[178](index=178&type=chunk)
凌雄科技(02436) - 2024 - 中期业绩
2024-08-23 10:00
Financial Summary [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group achieved a 14.8% revenue increase to RMB 943 million and a 32.9% gross profit increase to RMB 92.9 million, with adjusted EBITDA up 4.5% to RMB 140 million, while net loss attributable to owners slightly narrowed Key Financial Indicators for H1 2024 | Indicator | For the Six Months Ended June 30, 2024 (RMB in millions) | For the Six Months Ended June 30, 2023 (RMB in millions) | | :--- | :--- | :--- | | Revenue | Approx. RMB 942.6 | Approx. RMB 822.4 | | Gross Profit | Approx. RMB 92.9 | RMB 69.9 | | Loss Attributable to Owners of the Company | Approx. RMB 39.8 | Approx. RMB 42.4 | | Adjusted EBITDA | Approx. RMB 140.2 | RMB 134.1 | Management Discussion and Analysis [Business Review](index=2&type=section&id=Business%20Review) The Group achieved record half-year revenue of RMB 942.6 million, a 14.6% year-on-year increase, driven by equipment recycling and subscription services, with equipment recycling notably turning gross loss into gross profit - Half-year revenue reached a new high of **RMB 942.6 million**, representing a **14.6% year-on-year increase**[4](index=4&type=chunk) - Equipment recycling business significantly improved, turning a gross loss of approximately **RMB 11.2 million** in the prior period into a gross profit of approximately **RMB 7.7 million** in the current period[4](index=4&type=chunk) [Equipment Recycling Business](index=3&type=section&id=Equipment%20Recycling%20Business) Equipment recycling revenue surged 17.0% to RMB 681.9 million, driven by a 31.3% increase in units sold and a 70.9% rise in customer numbers, despite a decrease in average revenue per customer Equipment Recycling Business Operating Data | Indicator | H1 2024 | H1 2023 | Growth Rate | | :--- | :--- | :--- | :--- | | Revenue | RMB 681.9 million | RMB 582.6 million | +17.0% | | Number of Units Sold (Units) | 449,029 | 341,957 | +31.3% | | Number of Equipment Recycling Customers | 1,309 | 766 | +70.9% | | Average Revenue Per Customer (RMB) | 520,896 | 760,579 | -31.5% | | Average Sales Value (RMB/Unit) | 1,472.3 | 1,377.4 | +6.9% | [Equipment Subscription Business](index=4&type=section&id=Equipment%20Subscription%20Business) Equipment subscription revenue increased by 13.0% to RMB 183.7 million, with both new and used equipment subscriptions growing, and total subscription volume rising 15.2% driven by new equipment Equipment Subscription Business Operating Data | Indicator | H1 2024 (RMB in thousands) | H1 2023 (RMB in thousands) | Growth Rate | | :--- | :--- | :--- | :--- | | **Revenue** | **183,730** | **162,561** | **13.0%** | | — New Equipment | 151,551 | 134,876 | 12.4% | | — Used Equipment | 32,179 | 27,685 | 16.2% | | **Total Equipment Subscriptions (Units)** | **3,112,036** | **2,700,602** | **15.2%** | | — New Equipment | 2,505,320 | 2,102,924 | 19.1% | | — Used Equipment | 606,716 | 597,678 | 1.5% | [IT Technology Subscription Services](index=4&type=section&id=IT%20Technology%20Subscription%20Services) IT technology subscription services revenue remained largely flat, with a slight 0.3% decrease to RMB 77 million, as growth in long-term subscriptions was offset by a decline in short-term subscriptions IT Technology Subscription Services Revenue Composition | Revenue Source | H1 2024 (RMB in thousands) | H1 2023 (RMB in thousands) | Growth Rate | | :--- | :--- | :--- | :--- | | **Total Revenue** | **77,015** | **77,227** | **-0.3%** | | — Long-term Subscriptions | 58,685 | 57,332 | 2.4% | | — Short-term Subscriptions | 18,330 | 19,895 | -7.9% | [Future Outlook](index=5&type=section&id=Future%20Outlook) The Group plans to integrate AI deeply into core business operations, focusing on front-end processes and mid-office management to enhance operational efficiency, systematically manage growing demands, and provide customized services, especially for SMEs, to reduce costs and improve efficiency - The strategic core involves deeply integrating AI into front-end business processes and mid-office management to systematically manage contracts, orders, consultations, and demands[12](index=12&type=chunk) - Leveraging AI's data analysis capabilities, the aim is to proactively predict and resolve issues, offering customized solutions to enhance customer experience, particularly for small and medium-sized enterprises[12](index=12&type=chunk) Financial Review [Revenue Analysis](index=6&type=section&id=Revenue%20Analysis) Total revenue increased by 14.6% to RMB 942.6 million, primarily driven by growth in equipment recycling and subscription services, with equipment recycling remaining the largest contributor at 72.3% and Shenzhen being the dominant geographical revenue source Revenue by Business Segment | Business Segment | H1 2024 (RMB in thousands) | Proportion | H1 2023 (RMB in thousands) | Proportion | Growth Rate | | :--- | :--- | :--- | :--- | :--- | :--- | | Equipment Recycling Revenue | 681,853 | 72.3% | 582,603 | 70.8% | 17.0% | | Equipment Subscription Services | 183,730 | 19.5% | 162,561 | 19.8% | 13.0% | | IT Technology Subscription Services | 77,015 | 8.2% | 77,227 | 9.4% | -0.3% | | **Total** | **942,598** | **100%** | **822,391** | **100.0%** | **14.6%** | - The growth in equipment recycling revenue was primarily due to an increase in the number of units sold from **342,000** to **449,000**[15](index=15&type=chunk) - The increase in equipment subscription services revenue was driven by a rise in total equipment subscriptions and customer numbers, with customers growing from **16,727** to **22,726**[17](index=17&type=chunk) Revenue by Geographical Location | Region | H1 2024 (RMB in thousands) | Proportion | H1 2023 (RMB in thousands) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Shenzhen | 781,815 | 82.9% | 662,658 | 80.6% | | Shanghai | 54,335 | 5.8% | 30,389 | 3.7% | | Others | 106,448 | 11.3% | 129,444 | 15.7% | | **Total** | **942,598** | **100.0%** | **822,391** | **100.0%** | [Gross Profit and Gross Margin](index=9&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Overall gross profit increased by 32.9% to RMB 92.9 million, with gross margin rising from 8.5% to 9.9%, primarily due to the significant turnaround in equipment recycling business and improved equipment subscription service margins, despite a decline in IT technology subscription service margins Gross Profit and Gross Margin by Business Segment | Business Segment | H1 2024 Gross Profit (RMB in thousands) | Gross Margin | H1 2023 (Gross Loss)/Gross Profit (RMB in thousands) | Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Equipment Recycling Revenue | 7,677 | 1.1% | (11,179) | (1.9)% | | Equipment Subscription Services | 39,746 | 21.6% | 29,298 | 18.0% | | IT Technology Subscription Services | 45,457 | 59.0% | 51,788 | 67.1% | | **Total** | **92,880** | **9.9%** | **69,907** | **8.5%** | - The equipment recycling business turned profitable, primarily due to an increase in the average sales value of units sold from **RMB 1,377** to **RMB 1,472**[22](index=22&type=chunk) - Equipment subscription services gross margin improved as revenue growth outpaced cost increases, and the average equipment utilization rate rose from **85.6%** to **86.5%**[23](index=23&type=chunk)[24](index=24&type=chunk) [Operating Expenses and Profitability](index=10&type=section&id=Operating%20Expenses%20and%20Profitability) To expand market share, distribution and selling expenses increased by 48.2% to RMB 77.3 million, while administrative expenses decreased by 4.5% and R&D expenses rose by 14.2% due to AI investments, resulting in a narrowed loss attributable to owners and a 4.5% increase in adjusted EBITDA - Distribution and selling expenses increased by **48.2%** year-on-year to **RMB 77.3 million**, primarily due to the expansion of sales and marketing teams[27](index=27&type=chunk) - Administrative expenses decreased by **4.5%** year-on-year to **RMB 47.1 million**, mainly due to a reduction in share-based payments[28](index=28&type=chunk) - Research and development expenses increased by **14.2%** year-on-year to **RMB 14.5 million**, primarily due to expenses incurred from AI research and development[29](index=29&type=chunk) Reconciliation of Loss to Adjusted EBITDA | Indicator (RMB in thousands) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Loss for the Period | (40,583) | (42,359) | | Adjusted Loss (Non-IFRS) | (22,304) | (11,365) | | Adjusted EBITDA (Non-IFRS) | 140,159 | 134,146 | [Financial Position and Liquidity](index=14&type=section&id=Financial%20Position%20and%20Liquidity) As of June 30, 2024, the Group's current assets totaled RMB 915.5 million with a current ratio of 1.2, while bank balances and cash increased to RMB 477.8 million, and total bank and other borrowings rose to RMB 839.5 million, leading to a capital gearing ratio increase to 117.0% - Current assets increased by **13.2%** to **RMB 915.5 million**, with a current ratio of **1.2 times** (2023 year-end: 1.3 times)[35](index=35&type=chunk) - Bank balances and cash increased to **RMB 477.8 million** (2023 year-end: RMB 416.6 million), primarily due to increased cash generated from business operations[43](index=43&type=chunk) - Total bank and other borrowings increased to **RMB 839.5 million** (2023 year-end: RMB 692.2 million) to support business growth[44](index=44&type=chunk) - The capital gearing ratio rose to **117.0%** (2023 year-end: 93.6%)[45](index=45&type=chunk) Other Information [Employees and Remuneration Policy](index=17&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2024, the Group's full-time employees decreased to 1,052 from 1,143 at year-end 2023, with total employee remuneration for the period remaining stable at approximately RMB 93.8 million, supported by competitive compensation and incentive plans - As of June 30, 2024, the Group had **1,052** full-time employees, a decrease from **1,143** at the end of 2023[48](index=48&type=chunk) - Employee remuneration for the period was approximately **RMB 93.8 million**, largely consistent with approximately **RMB 93.9 million** in the prior period[48](index=48&type=chunk) [Corporate Governance and Dividends](index=18&type=section&id=Corporate%20Governance%20and%20Dividends) The Group adheres to corporate governance codes, with a deviation where the Chairman and CEO roles are combined, deemed beneficial for management continuity, and the Board resolved not to declare an interim dividend for the period - The roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Hu Zuoxiong, a deviation from Corporate Governance Code provision C.2.1, which the Board believes is in the best interest of the Company and its shareholders[50](index=50&type=chunk) - The Board resolved not to declare an interim dividend for the six months ended June 30, 2024[52](index=52&type=chunk) Condensed Consolidated Financial Statements [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=20&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the Group reported revenue of RMB 942.6 million and gross profit of RMB 92.9 million, with total loss and comprehensive expenses for the period slightly decreasing to RMB 40.6 million, and basic and diluted loss per share at RMB 0.13 Consolidated Statement of Profit or Loss Summary | Item (RMB in thousands) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 942,598 | 822,391 | | Gross Profit | 92,880 | 69,907 | | Loss Before Tax | (44,122) | (43,102) | | Loss and Total Comprehensive Expenses for the Period | (40,583) | (42,359) | | Loss Attributable to Owners of the Company | (39,792) | (42,359) | | Basic Loss Per Share (RMB) | (0.13) | (0.14) | [Consolidated Statement of Financial Position](index=21&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were RMB 1.7537 billion, total liabilities RMB 1.0361 billion, and net assets RMB 717.6 million, with net assets slightly decreasing compared to year-end 2023, while net current assets remained stable at RMB 162 million Consolidated Statement of Financial Position Summary | Item (RMB in thousands) | As of June 30, 2024 | As of December 31, 2023 | | :--- | :--- | :--- | | Total Non-current Assets | 838,184 | 872,361 | | Total Current Assets | 915,463 | 808,735 | | Total Current Liabilities | 753,443 | 645,173 | | Total Non-current Liabilities | 282,619 | 296,114 | | **Net Assets** | **717,585** | **739,809** |