Investment Strategy - The company has invested RMB 6.7 million in an unlisted fund primarily engaged in securities trading in China[1] - The company has invested RMB 50 million in structured deposits with Jiangsu Bank, which implement floating returns without fixed interest income distributions[3] - The cash management notes issued by Reynold Lemkins amount to USD 6 million (approximately RMB 42.8 million) and also implement floating returns[4] - The group adopts a prudent investment strategy, ensuring sufficient operating capital for business needs, operations, R&D, and capital expenditures[5] - The company is exploring offshore products for higher returns and flexibility in response to macroeconomic conditions[5] Financial Assets - As of June 30, 2024, the group's financial assets acquired before listing accounted for over 8% of total assets[2] Governance - The board of directors includes executive and non-executive members, ensuring diverse oversight and governance[6]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 258,715,000, representing a 48.0% increase compared to RMB 174,763,000 in the same period of 2023[15]. - Gross profit for the same period was RMB 56,374,000, reflecting a 61.8% increase from RMB 34,850,000 year-on-year[15]. - Net profit after deducting listing expenses was RMB 20,289,000, up 41.9% from RMB 14,303,000 in the previous year[15]. - Revenue increased by 48.0% from RMB 174.8 million for the six months ended June 30, 2023, to RMB 258.7 million for the six months ended June 30, 2024, primarily due to increased revenue from the API market and data management solutions[27]. - Revenue from the query business rose by 49.7% from RMB 122.6 million to RMB 183.5 million, driven by increased procurement from existing customers[28]. - Revenue from data management solutions surged by 122.7% from RMB 15.0 million to RMB 33.4 million, attributed to an increase in the number of projects delivered and overall project revenue[29]. - Gross profit increased by 61.6% from RMB 34.9 million for the six months ended June 30, 2023, to RMB 56.4 million for the six months ended June 30, 2024, primarily due to increased revenue from API market and data management solutions[31]. - Overall gross margin rose from 19.9% for the six months ended June 30, 2023, to 21.8% for the six months ended June 30, 2024, mainly due to an increase in gross margin from query business[31]. - Net profit for the period increased by 6.3% from RMB 7.9 million to RMB 8.4 million, while net profit after deducting listing expenses rose by 42.0% from RMB 14.3 million to RMB 20.3 million[39]. Cash and Assets - Cash and cash equivalents increased to RMB 384,177,000, a significant rise of 208.8% from RMB 124,417,000 as of December 31, 2023[16]. - Total assets increased by 44.6% from approximately RMB 772.1 million to approximately RMB 1,116.2 million, mainly due to an increase in cash balance from the net proceeds of the global offering[40]. - Trade receivables increased from RMB 175.1 million to RMB 248.4 million, primarily due to extended payment terms granted to several key customers[42]. - Cash and cash equivalents rose significantly from RMB 124.4 million to RMB 384.2 million, mainly due to funds raised from the global offering[43]. - Total liabilities decreased to RMB 127,235 thousand from RMB 143,642 thousand, a reduction of approximately 11.4%[80]. - The company's net assets rose to RMB 989,001 thousand, up from RMB 628,417 thousand, representing an increase of about 57.4%[80]. - Current assets reached RMB 855,278 thousand, up from RMB 480,963 thousand at the end of 2023, indicating a significant increase of about 77.7%[79]. - Trade receivables, net of impairment losses, increased to RMB 248,384,000 as of June 30, 2024, compared to RMB 175,077,000 as of December 31, 2023, representing a growth of 41.8%[105]. Research and Development - The company launched ChatArts, a private deployment large language model for vertical industries, which passed algorithm review in June 2024[21]. - The company achieved full domestic replacement in the RPA field with its product QuickBot, which is now compatible with various domestic hardware and software[20]. - The company plans to enhance its research and development capabilities and expand its technical advantages to meet digital transformation demands[24]. - Research and development costs decreased by 6.2% to RMB 6.1 million from RMB 6.5 million, primarily due to a reduction in salaries and a slight decrease in the number of R&D personnel allocated to data management solutions[36]. Market and Business Expansion - The API market processed over 70 billion API requests in the first half of 2024, with over 790 proprietary APIs developed since its launch[18]. - The company has expanded its digital police project to cover over 115 provincial-level administrative units by June 30, 2024[19]. - The company’s data management solutions are tailored for various sectors, including government, manufacturing, finance, and telecommunications[19]. - The company aims to facilitate digital transformation through its comprehensive API data circulation services and customized data management solutions[17]. - The company aims to explore cooperation opportunities with the government in data openness, leveraging the increasing number of state-owned data exchanges[23]. Shareholder and Governance - As of June 30, 2024, major shareholders include Mr. Zuo with a beneficial interest of 39.40% in H shares, and Mr. Qiu with 8.06%[62]. - The total number of issued shares as of June 30, 2024, is 50,118,200[63]. - The company has confirmed compliance with the Corporate Governance Code, emphasizing the importance of good governance for enhancing management and protecting shareholder interests[67]. - The Audit Committee, consisting of one non-executive director and two independent non-executive directors, reviewed the interim financial results for the six months ending June 30, 2024, and found them to comply with applicable accounting standards[72]. - The company has established a strong board structure with four executive directors, two non-executive directors, and three independent non-executive directors, ensuring effective governance[67]. Financial Instruments and Investments - The company invested RMB 92,761,000 in financial assets measured at fair value through profit or loss during the six months ended June 30, 2024, compared to RMB 85,000,000 in the same period of 2023[84]. - The company reported a significant increase in inventory, which rose to RMB 22,916 thousand from RMB 20,850 thousand, an increase of approximately 9.9%[79]. - The fair value of non-listed equity investments decreased to RMB 36,589 thousand from RMB 61,700 thousand, a decline of 40.7%[102]. - The company recorded a decrease in contract liabilities of RMB 4,719,000 for the six months ended June 30, 2024, compared to an increase of RMB 1,701,000 in the same period of 2023[84]. Initial Public Offering - The company completed its initial public offering on June 28, 2024, which led to the release of obligations related to the repurchase of its own equity instruments[124]. - The offering price for shares is set at HKD 83.33, excluding a 1.0% brokerage commission and other fees[128]. - The company raised approximately RMB 366,442,000 from the issuance of new shares at HKD 83.33 per share on June 28, 2024, with RMB 345,052,000 allocated to share premium after deducting issuance costs[120].

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 258,715,000, a 48.0% increase from RMB 174,763,000 in the same period of 2023[1] - Gross profit for the same period was RMB 56,374,000, reflecting a 61.8% increase from RMB 34,850,000 year-over-year[1] - Net profit after deducting listing expenses reached RMB 20,289,000, up 41.9% from RMB 14,303,000 in the previous year[1] - Revenue increased by 48.0% from RMB 174.8 million for the six months ended June 30, 2023, to RMB 258.7 million for the six months ending June 30, 2024, primarily due to growth in the API market and data management solutions[10] - Revenue from the API market rose by 49.7% from RMB 122.6 million to RMB 183.5 million, driven by increased procurement from existing customers[11] - Revenue from data management solutions surged by 122.7% from RMB 15.0 million to RMB 33.4 million, attributed to a higher number of delivered projects and increased revenue per project[12] - Net profit for the period rose by 6.3% from RMB 7.9 million to RMB 8.4 million, while net profit after deducting listing expenses increased by 42.0% from RMB 14.3 million to RMB 20.3 million[21] - The company reported a total comprehensive loss of RMB 13,694 thousand for the six months ended June 30, 2024, compared to a comprehensive income of RMB 6,016 thousand in 2023[45] - The company reported a net profit before tax of RMB 27,637 thousand for the six months ended June 30, 2024, compared to RMB 9,247 thousand for the same period in 2023, indicating a significant increase of about 198.5%[56] Assets and Liabilities - As of June 30, 2024, cash and cash equivalents amounted to RMB 384,177,000, a significant increase of 208.8% compared to RMB 124,417,000 at the end of 2023[1] - The company's net assets increased to RMB 989,001,000, representing a 57.4% rise from RMB 628,417,000 as of December 31, 2023[1] - Total assets increased by 44.6% from approximately RMB 772.1 million as of December 31, 2023, to approximately RMB 1,116.2 million as of June 30, 2024, primarily due to cash balance increase from global offering proceeds[22] - The company's total equity increased to RMB 989,001 thousand as of June 30, 2024, compared to RMB 628,417 thousand as of December 31, 2023, reflecting a growth of approximately 57.4%[48] - The debt-to-equity ratio decreased from 22.9% as of December 31, 2023, to 12.9% as of June 30, 2024, mainly due to an increase in total equity following the IPO[29] - The asset-liability ratio decreased from 18.6% as of December 31, 2023, to 11.4% as of June 30, 2024, primarily due to the increase in total assets from the IPO[28] Research and Development - The company plans to increase R&D investment to enhance its competitiveness and industry influence[5] - Research and development costs decreased by 6.2% from RMB 6.5 million to RMB 6.1 million, mainly due to a reduction in salaries and a slight decrease in the number of R&D personnel allocated to data management projects[18] - The company plans to enhance R&D capabilities and attract industry talent to strengthen its technological advantages and meet digital transformation demands[8] - The company is involved in RPA (Robotic Process Automation), indicating a focus on technological advancements[66] - The company is focused on developing new products and technologies to enhance its competitive edge[66] Market and Product Development - The API market processed over 70 billion API requests in the first half of 2024, with over 790 proprietary APIs developed since its launch in June 2011[2] - The company launched ChatArts, a private deployment large language model, in June 2024, aimed at various business sectors including public security and government affairs[4] - The company aims to diversify data circulation across various sectors, including industrial, medical, and educational data, to promote government and public data sharing[10] - The company will focus on upgrading existing data management solutions and enhancing sales and marketing capabilities to mitigate potential fluctuations in service demand[9] - The company aims to expand its market presence and explore new strategies for growth[66] Governance and Compliance - The board of directors consists of four executive directors, two non-executive directors, and three independent non-executive directors, ensuring strong independence in governance[37] - The board is committed to transparency and accountability in its financial reporting and governance practices[66] - There were no significant lawsuits or arbitrations reported since the listing date, indicating a stable legal environment for the company[39] - The company has no significant contingent liabilities as of June 30, 2024[30] Financial Management - The company maintained a conservative treasury policy to minimize financial risks and ensure sufficient financial resources for operations and future investments[36] - The company plans to utilize the net proceeds from the global offering, totaling approximately HKD 344.0 million, for various purposes including upgrading API products and enhancing data management solutions by December 2026[32] - The company did not declare or recommend any dividends for the interim period, consistent with the previous year[58] - The company benefits from a reduced tax rate of 15% for certain subsidiaries registered as high-tech enterprises in China, compared to the standard rate of 25%[57] Employee and Operational Insights - Employee benefits expenses, including salaries and allowances, amounted to approximately RMB 25.0 million for the six months ended June 30, 2024[34] - The average number of ordinary shares for calculating basic and diluted earnings per share was 45,379,421 for the six months ended June 30, 2024, slightly up from 45,300,000 for the same period in 2023[59] - The company has established an employee stock ownership platform through a partnership formed in September 2016[66] Financial Reporting - The company published its prospectus on June 20, 2024, detailing its financial performance for the six months ending June 30, 2024[66] - The company has adopted several amendments to the International Financial Reporting Standards effective from January 1, 2024, which did not have a significant impact on its financial position or performance[51] - The company's income tax expense for the six months ended June 30, 2024, was RMB 1,544,000, compared to RMB 521,000 for the same period in 2023, reflecting a significant increase[57]