Core Insights - The company, Weitian Yuntong, reported impressive financial results for 2024, with revenue reaching 7.54 billion yuan, a year-on-year increase of approximately 34.3% [1] - The total settlement freight amount on the platform (online GTV) reached 38.4 billion yuan, reflecting a year-on-year growth of 11.7% [1] - The adjusted net profit surged to 53.68 million yuan, marking a staggering year-on-year increase of about 117.5 times [1] Group 1: Industry Challenges and Solutions - The Chinese road freight market is the largest globally, with the full truckload transportation market accounting for 57% of the total [2] - The industry faces long-standing issues such as high fragmentation, inefficiency, and insufficient stability in supply of transport resources, which hinder healthy development [2] - Weitian Yuntong aims to address these challenges through its unique "regulated capacity pool" model, promoting a shift from a fragmented market to a more centralized and standardized operation [2][3] Group 2: Digital Transformation and Efficiency - The company advocates for enhanced digitalization and transparency in the transportation process to foster trust and cooperation among industry participants [2] - By leveraging a full-chain digital freight platform, the company connects shippers, logistics firms, and truck drivers, breaking down information barriers in the traditional supply chain [2] - This approach aims to improve the efficiency of resource allocation and the quality of logistics delivery [3] Group 3: Driver Support and Community Building - Weitian Yuntong focuses on creating a sustainable logistics ecosystem centered around truck drivers, establishing the largest truck driver community in China, known as "Kafu District" [4] - The community has over 3.5 million registered users online and covers 298 cities nationwide [4] - The company has implemented various initiatives to enhance the rights and working conditions of truck drivers, including legal aid and safety services for over 120,000 drivers [4] Group 4: Social Value and Business Integration - The company integrates social value with business operations, supporting the establishment of a rights protection system for truck drivers and promoting their social recognition [4][5] - In May 2024, the company held the first platform-wide employee representative conference, signing the industry's first collective contract for truck drivers [5] - This innovative model of co-creating value among multiple stakeholders positions the company as a leader in the industry's transformation towards sustainable development [5]

Core Insights - The company reported a revenue of 7.542 billion RMB for the fiscal year ending December 31, 2024, representing a year-on-year growth of 34.29% [1] - The net profit attributable to the parent company was 50.034 million RMB, marking a turnaround from a loss to profit [1] - Adjusted net profit reached 53.681 million RMB, showing a significant increase of 11,750.11% year-on-year [1] - Earnings per share stood at 0.04 RMB [1] Financial Performance - Revenue for the year was 7.542 billion RMB, up 34.29% compared to the previous year [1] - The company achieved a net profit of 50.034 million RMB, compared to a loss in the prior year [1] - Adjusted net profit was 53.681 million RMB, reflecting a substantial increase of 11,750.11% [1] Strategic Initiatives - The CEO emphasized that 2024 is a year for foundational strengthening and breakthrough [1] - The company is enhancing its core business capabilities through digital product applications and innovative service models, with online GTV reaching approximately 38.4 billion RMB, a year-on-year increase of 11.7% [1] - AI technology is being integrated into business scenarios to build an intelligent operational system, improving operational efficiency [1] Industry Positioning - The company is positioned as a pioneer in the digital freight industry and is actively involved in industry policy research and standard system construction [2] - It aims to drive the transformation and upgrading of the entire logistics industry chain, injecting sustainable momentum into long-term development [2] - Future strategies include deepening the integration of digital economy and logistics, constructing a digital governance system based on data elements, and promoting the intelligent transformation of organizations [2]

Financial Performance - The company's online GTV reached approximately RMB 38.4 billion, representing a year-on-year growth of 11.7%[4] - The gross profit for the year ending December 31, 2024, is projected to be RMB 397,949 thousand, compared to RMB 313,264 thousand for the previous year, reflecting a growth rate of 27.03%[3] - The adjusted net profit attributable to the parent company is expected to be RMB 59,225 thousand for the year ending December 31, 2024, compared to RMB 11,467.38 thousand for the previous year[3] - The operating cost for the year ending December 31, 2024, is projected to be RMB 7,143,977 thousand, compared to RMB 5,302,952 thousand for the previous year, indicating a growth rate of 34.72%[3] - The profit for the year ended December 31, 2024, was approximately RMB 44.5 million, a significant turnaround from a loss of approximately RMB 29.6 million in 2023[66] - Adjusted net profit (non-IFRS measure) was approximately RMB 53.7 million, a substantial increase of RMB 53.2 million (or 10,640.0%) compared to approximately RMB 0.5 million in 2023, driven by enhanced digital product applications and AI integration[71] - Total revenue for 2024 reached RMB 7,541,926 thousand, a 34.3% increase from RMB 5,616,216 thousand in 2023[102] - Gross profit for 2024 was RMB 397,949 thousand, up 27.0% from RMB 313,264 thousand in 2023[102] - Operating expenses decreased to RMB 278,425 thousand in 2024 from RMB 300,333 thousand in 2023, reflecting a reduction of 7.3%[102] - The company reported a basic earnings per share of RMB 0.04 for 2024, recovering from a loss per share of RMB 0.02 in 2023[102] Digital Transformation and Technology Investment - The company is increasing its investment in AI and digital technology R&D to promote the digital transformation of its logistics business[5] - The company aims to enhance operational efficiency by integrating AI technology into its business scenarios[4] - The digital freight platform utilizes big data, IoT, and AI technologies to create a complete digital chain covering resource management, transportation process management, and settlement services[9] - The AI technology is utilized for intelligent risk prevention, business process diagnosis, and operational efficiency improvement, significantly enhancing service quality on the digital freight platform[17] - The company is focusing on building a digital governance system based on data elements to lead industry standardization upgrades[6] - The company aims to implement AI-driven solutions in smart risk prevention and business process optimization by 2024[44] Market and Industry Insights - The digital freight market in China is projected to reach approximately RMB 850 billion in 2024, representing a growth of 21.4% compared to 2023[13] - As of June 2024, the number of digital freight companies in China has reached 3,286, with a growth rate that has decreased from over 140% in 2021 to about 20% in 2023, indicating a shift towards a more mature development phase[12] - The top ten digital freight companies contributed approximately RMB 270 billion to the total freight market, accounting for about 32% of the market, an increase of 2 percentage points from 2023[13] - The digital freight industry is expected to maintain growth momentum in 2024, driven by market demand and policy support, despite emerging new trends[11] Community and Social Impact - The company emphasizes the integration of social benefits with business operations, enhancing the social status and working conditions of truck drivers[21] - The community "Truck Friends Zone" has registered approximately 3.5 million users and 3.33 million followers on social media platforms by December 31, 2024[32] - The company launched mutual assistance and accident hospitalization insurance products for truck drivers, helping nearly 850 families and covering over 160,000 truck drivers[34] - Over 120,000 truck drivers received safety operation services during the reporting period, enhancing their transportation efficiency and safety[34] - The company has guided 181,000 drivers in Anhui to join unions, influencing an additional 500,000 drivers across four provinces[34] Operational Efficiency and Cost Management - The core business's ability to generate revenue continues to strengthen, with effective cost and expense management implemented[4] - Selling expenses decreased by approximately RMB 37.1 million (or approximately 29.6%) to RMB 88.3 million, attributed to the integration of AI technology improving operational efficiency[59] - Management expenses increased by approximately RMB 9.5 million (or approximately 10.0%) to RMB 104.5 million, mainly due to an increase in employee costs[60] - Research and development expenses rose by approximately RMB 5.7 million (or approximately 7.1%) to RMB 85.6 million, driven by increased application of AI technology[61] Corporate Governance and Structure - The company has maintained a high standard of corporate governance to protect shareholder interests and enhance corporate value[146] - The board of directors consists of three executive directors, two non-executive directors, and three independent non-executive directors, ensuring a high level of independence[146] - The audit committee consists of three independent non-executive directors, including Mr. Li Dong as the chairman[152] - The company has established an equity incentive plan for its employees[91] Future Plans and Projections - The company aims to enhance its digital freight business to meet deeper customer needs in a more diversified business landscape, targeting a user experience improvement of 45% by 2031[95] - The company plans to increase the penetration rate among existing customers by 15%, reaching a target of 11.4 million by 2027[95] - The company intends to strengthen its research and development capabilities, aiming for a 20% increase in technical capabilities by 2025[95] - The company is focusing on expanding its cardholder area and card service offerings, with a goal of increasing commercialization opportunities by 7.5% by 2027[95] Financial Position and Assets - Current assets as of December 31, 2024, were approximately RMB 2,610.1 million, an increase of about RMB 287.6 million (or 12.4%) from RMB 2,322.5 million in 2023[72] - Current liabilities increased to approximately RMB 2,006.5 million, up by about RMB 229.9 million (or 12.9%) from RMB 1,776.6 million in 2023, primarily due to increased bank borrowings[72] - Cash and cash equivalents were approximately RMB 547.2 million as of December 31, 2024, primarily generated from operating income[73] - The total assets as of December 31, 2024, amounted to RMB 2,727,770 thousand, compared to RMB 2,450,762 thousand in 2023, indicating a growth of 11.3%[103] Employee Engagement and Development - The company is committed to establishing a competitive and fair compensation and benefits system for its employees[91] - The company provides customized training programs covering corporate culture, internal policies, and professional skills[92] - The company continuously improves its compensation and incentive policies based on market research[91] Regulatory Compliance and Reporting - The financial statements are prepared in accordance with International Financial Reporting Standards, ensuring compliance and transparency[107] - The company has adopted revised International Financial Reporting Standards this year, which did not have a significant impact on the consolidated financial statements[114] - The company is planning to apply new and revised International Financial Reporting Standards once they become effective[115]

Market Overview - The digital freight platform market in China is projected to reach RMB 510 billion by the end of 2024, accounting for 12.5% of the full truckload transportation market [2]. - As of June 30, 2024, there are 3,286 companies operating digital freight platforms in China, indicating significant market participation [2]. - The logistics industry is experiencing a strong demand for quality improvement and cost reduction, driven by intense market competition [2]. Operational Efficiency and Technology - Logistics companies utilizing digital management have achieved approximately a 30% increase in transportation efficiency and over a 20% reduction in labor costs [4]. - The company has developed a digital freight ecosystem that integrates various stakeholders, including shippers, logistics companies, and truck drivers, enhancing operational efficiency [4]. - The digital freight platform facilitates a seamless connection across the entire business process, from order receipt to financial settlement [4]. - The company emphasizes long-termism and continuous innovation in technology application and service models to support traditional logistics companies in their digital transformation [4]. - The logistics sector is increasingly investing in technological innovation to improve business management and operational digitization levels [2]. - The company has introduced artificial intelligence technology to improve operational efficiency and service quality in logistics projects, significantly reducing operational costs [28]. User Engagement and Community Support - As of June 30, 2024, the company has served over 15,700 shippers and 3.42 million truck drivers, completing more than 51 million shipping orders on its platform [8]. - The company operates the largest truck driver community in China, with over 3.43 million registered users as of June 30, 2024 [11]. - The company has established a community support system for truck drivers, addressing their business and living conditions through various initiatives [11]. - The Kafei Community has established offline communities in 298 cities across China, operated by local truck drivers [18]. - The company provides legal assistance and various insurance services to truck drivers through the Kafei Community, enhancing their operational safety [18]. Financial Performance - The company's total revenue for the six months ended June 30, 2024, was approximately RMB 3,257.2 million, an increase of about RMB 646 million (or approximately 24.7%) compared to RMB 2,611.2 million for the same period in 2023 [39]. - The gross profit increased from approximately RMB 139.5 million for the six months ended June 30, 2023, to approximately RMB 174.2 million for the same period in 2024, representing an increase of about RMB 34.7 million (or approximately 24.9%) with a stable gross margin of around 5.35% [40]. - The company recorded a net profit of approximately RMB 24.0 million for the six months ended June 30, 2024, compared to a net loss of approximately RMB 26.2 million for the same period in 2023 [51]. - The adjusted net profit for the six months ended June 30, 2024, was approximately RMB 25.0 million, an increase of RMB 28.4 million compared to an adjusted loss of RMB 3.4 million for the same period in 2023 [55]. Assets and Liabilities - Current assets as of June 30, 2024, were RMB 2,531.4 million, an increase of approximately RMB 208.9 million (or 9.0%) from RMB 2,322.5 million as of December 31, 2023 [56]. - Current liabilities increased to RMB 1,955.2 million as of June 30, 2024, up approximately RMB 178.6 million (or 10.1%) from RMB 1,776.6 million as of December 31, 2023 [56]. - The company's total liabilities as of June 30, 2024, were RMB 1,489,042,000, reflecting a slight increase from RMB 1,464,746,000 as of December 31, 2023 [178]. - The company’s total assets as of June 30, 2024, were RMB 1,759,094,000, compared to RMB 1,633,006,000 as of December 31, 2023, indicating an increase of 7.7% [176]. Future Plans and Strategic Initiatives - The company plans to actively participate in the development of industry standards and promote high-quality expansion of digital freight platforms in response to the new regulations effective from July 1, 2024 [35]. - The company aims to explore effective ways to incorporate data assets into financial statements following the new accounting regulations effective from January 1, 2024 [35]. - The company intends to leverage its digital advantages to collaborate with quality logistics companies to expand digital logistics delivery services [35]. - The company plans to enhance its digital freight business, aiming for a user experience improvement, with 45.0% of the proceeds allocated for this purpose [83]. - The company plans to pursue strategic acquisitions to enhance its logistics capabilities, with a budget of RMB 500 million allocated for this purpose [192]. Sustainability and Corporate Governance - The company aims to reduce carbon emissions by 20% by 2025 as part of its sustainability strategy [192]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests [79]. - The company has a comprehensive training program for employees to enhance necessary skills and professional ethics [72]. Shareholder Information - As of June 30, 2024, the total number of issued domestic shares is 866,444,180 and H shares is 527,431,924, resulting in a total of 1,393,876,104 shares [93]. - Mr. Feng Lei, the Chairman and Executive Director, holds 273,447,680 domestic shares, representing 31.56% of the domestic shares and 19.62% of the total shares [91]. - The total shareholding of major shareholders Shanghai Yunxin and Yanwa Group amounts to 189,051,104 shares, accounting for approximately 13.56% of the total issued shares [98].

Financial Performance - The company reported a revenue of RMB 3,257,164 thousand for the six months ended June 30, 2024, representing a 24.74% increase compared to RMB 2,611,202 thousand in the same period of 2023[2]. - Operating costs increased to RMB (3,082,955) thousand, up 24.73% from RMB (2,471,696) thousand year-over-year[2]. - Gross profit for the period was RMB 174,209 thousand, reflecting a 24.88% increase from RMB 139,506 thousand in the previous year[2]. - The company achieved a net profit of RMB 21,803 thousand for the period, a significant recovery from a loss of RMB (26,166) thousand in the same period last year[2]. - Revenue from freight services accounted for 95.01% of total revenue, amounting to RMB 3,094.5 million, while freight platform services contributed 4.54% with RMB 148.0 million[31]. - The company recorded a profit before tax of 25,239 thousand RMB, compared to a loss of 25,190 thousand RMB in the previous year, marking a significant turnaround[61]. - The net profit attributable to the parent company was 24,037 thousand RMB, compared to a loss of 26,166 thousand RMB in the same period last year[62]. - Adjusted net profit (non-IFRS measure) was approximately RMB 25.0 million, an increase of RMB 28.4 million compared to an adjusted net loss of RMB 3.4 million for the six months ended June 30, 2023[45]. - The company’s gross profit and revenue increased due to improvements in online GTV and operational efficiency[45]. Market and Industry Insights - The digital freight platform market in China is projected to reach RMB 510 billion by the end of 2024, accounting for 12.5% of the total truck transportation market[5]. - The logistics industry has seen a 30% increase in transportation efficiency and over a 20% reduction in labor costs after adopting digital operational management[6]. - The logistics market in China remains competitive, with a strong demand for cost reduction and operational efficiency improvements among logistics companies[3]. Digital Freight Platform Development - The company aims to enhance digital capabilities across the supply chain, integrating various stakeholders including shippers, logistics companies, and truck drivers[4]. - The digital freight platform is designed to streamline the entire business process from order placement to financial settlement, improving transparency and efficiency[4]. - The company has established a collaborative operational team to drive the application of digital freight services through data production, transparency, processing analysis, and optimization[6]. - The digital freight business enhances operational efficiency and cost reduction for logistics companies through data analysis[12]. - The company aims to deepen digital solutions across various industries, including pharmaceuticals and beverages, by mid-2024[12]. Customer Engagement and Community Initiatives - As of June 30, 2024, the company has served over 15,700 shippers and 3.42 million truck drivers, completing more than 51 million shipping orders on its platform[7]. - The annual retention rate for major shipper customers was 91.8% in the first half of 2024, indicating strong customer loyalty[7]. - The registered user count for the truck driver community, "Ka You Di Dai," exceeded 3.43 million as of June 30, 2024, making it the largest truck driver community in China[10]. - The company aims to improve the social status and working conditions of truck drivers through various community initiatives and support services[11]. - The digital freight business has provided stable order sources for truck drivers, enhancing their income through increased order volume and optimized processes[11]. Operational Metrics - The total settlement amount of transactions on the platform, referred to as online GTV, reached RMB 17.7 billion for the first half of 2024[7]. - The online GTV for freight services reached approximately RMB 3.4 billion as of June 30, 2024[13]. - The online GTV for freight platform services was approximately RMB 14.3 billion as of June 30, 2024[14]. - Approximately 4.7 million orders were completed on the platform in the first half of 2024, with an online GTV of about RMB 17.7 billion[22]. - The number of active truck drivers on the platform was 225.9 thousand in the first half of 2024, with 75% of the total sales orders completed by active drivers[22]. Financial Management and Strategy - The company plans to actively participate in the development and implementation of industry standards and regulations to drive the high-quality expansion of the digital freight platform[29]. - The company aims to explore effective ways to incorporate data assets into financial statements to enhance financial performance and promote continuous innovation in its business model[29]. - The company plans to continue investing in technology development to refine its operations and enhance service delivery[45]. - The company has maintained a prudent financial management policy to ensure sufficient liquidity for operational and capital expenditure needs[46]. Corporate Governance - The company maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[108]. - The board of directors consists of three executive directors, three non-executive directors, and three independent non-executive directors, ensuring a high level of independence[108]. - The company adhered to the corporate governance code and relevant regulations throughout the reporting period[108]. - The Audit Committee consists of three independent non-executive directors and has confirmed compliance with applicable accounting principles and sufficient disclosure for the six-month interim results ending June 30, 2024[112].

Stock Incentive Plans - The 2019 Hefei Weitian stock incentive plan aims to attract and retain key employees and directors, remaining effective until all options vest or expire, not exceeding 72 months[1]. - The maximum entitlement per participant in the 2019 Hefei Weitian stock incentive plan is not capped[4]. - The plan includes rewards for directors and senior management, with specific vesting conditions tied to the company's IPO[5]. - The 2020 Hefei Weitian equity incentive plan allows for a total of 515,015 restricted shares to be granted, which translates to 8,240,240 shares post-split[9]. - The 2021 Hefei Weitian equity incentive plan allows for a total of 742,000 restricted shares to be granted, which translates to 11,872,000 shares post-split[14]. - The purpose of both incentive plans is to attract and retain employees deemed critical to the company's success[8][13]. Restricted Shares and Vesting - As of December 31, 2023, there are 8,000 restricted shares pending grant under the 2019 Hefei Weitian stock incentive plan, representing approximately 0.0006% of the total issued shares[3]. - The vesting period for Hefei Weitian options ranges from 19 to 55 months, with 25% vesting at various intervals post-grant[5]. - The total number of restricted shares granted under the plan amounts to 2,684,300, with a fair value of RMB 42,948,800[6]. - As of December 31, 2023, there are 1,012,800 restricted shares remaining to be granted under the 2020 plan, accounting for approximately 0.07% of the total issued shares[9]. - As of December 31, 2023, there are 32,000 restricted shares remaining to be granted under the 2021 plan, accounting for approximately 0.0023% of the total issued shares[14]. - The vesting period for the 2020 restricted shares is generally between 2 to 5 years, with 25% vesting at various intervals[11]. - The restricted shares granted to senior management under the 2021 Hefei Weitian equity incentive plan will vest 12 months after the IPO date[16]. - 25% of the rewards for employees other than senior management will vest after 2 years from the grant date, with subsequent 25% vesting each year thereafter for a total of 5 years[16]. Forfeitures and Cancellations - A total of 848,000 restricted share awards were forfeited due to employee departures during the fiscal year ending December 31, 2023[7]. - A total of 720,000 restricted shares were forfeited due to employee departures as of December 31, 2023, with no grants being canceled or invalidated[12]. - As of December 31, 2023, a total of 272,000 restricted share rewards were forfeited due to employee departures[17]. - No restricted share awards were canceled or expired during the fiscal year ending December 31, 2023[7]. - No restricted share rewards granted under the 2021 Hefei Weitian equity incentive plan were canceled or expired as of December 31, 2023[17]. Grant Prices and Fair Value - The fair value of restricted shares is calculated based on the market price on the grant date minus the grant price[7]. - The grant price for shares before the split was RMB 2.50, and after the split, the weighted grant price is RMB 0.15625[5]. - The grant price per share before the stock split was RMB 2.50, and after the stock split, the weighted grant price per share is RMB 0.15625[16]. - The fair value of the restricted shares is calculated based on the market price of the company's shares on the respective grant dates minus the grant price[17]. Governance and Reporting - The company’s board of directors includes both executive and non-executive members, ensuring diverse governance[17]. - The report is signed by the chairman and executive director, Feng Lei, indicating official endorsement of the information presented[17]. - Only one of the five highest-paid individuals received rewards under the 2021 Hefei Weitian equity incentive plan as of December 31, 2023[17]. - The total number of restricted shares granted as of December 31, 2023, is 11,840,000[16].

Financial Performance - Total revenue for 2023 was RMB 5,616,216 thousand, a decrease of 9.4% compared to RMB 6,204,473 thousand in 2022[10] - Gross profit for 2023 was RMB 313,264 thousand, down from RMB 341,767 thousand in 2022, reflecting a gross margin of approximately 5.57%[10] - The company reported a net loss of RMB 29,623 thousand for 2023, compared to a profit of RMB 1,393 thousand in 2022[10] - Adjusted net profit for 2023 was RMB 453 thousand, significantly lower than RMB 45,109 thousand in 2022[10] - Revenue from freight services was RMB 5,318.5 million, accounting for 94.7% of total revenue, down 9.6% from RMB 5,880.2 million in the previous year[74] - The group recorded a loss attributable to owners of approximately RMB 29.6 million for the reporting period, compared to a profit of approximately RMB 1.4 million in 2022[198] - Adjusted profit for the reporting period was approximately RMB 0.5 million, a decrease of RMB 44.6 million (or 99.0%) compared to approximately RMB 45.1 million in 2022, mainly due to lower-than-expected growth in logistics market demand and increased R&D expenses for digital upgrades[93] Assets and Liabilities - Total assets increased to RMB 2,450,762 thousand in 2023 from RMB 2,172,985 thousand in 2022[10] - Total liabilities rose to RMB 1,798,156 thousand in 2023, compared to RMB 1,618,492 thousand in 2022[10] - The group's capital debt ratio as of December 31, 2023, was approximately 22.6%[187] - The group had bank borrowings of RMB 120 million as of December 31, 2023, compared to no borrowings as of December 31, 2022[186] Digital Freight Business - The company aims to enhance its digital logistics services and actively participate in industry standard construction in 2024[16] - The focus for 2024 will be on high-quality, efficient, and standardized development trends in the logistics industry[16] - The company plans to prioritize the deepening of full-chain digital operation capabilities and leverage data as a new production factor[16] - The digital freight industry is transitioning from a phase of rapid growth to a more regulated development stage, with increasing emphasis on the substantive value of digitalization[22] - The company's digital freight solutions enhance collaboration among ecosystem participants, improving transparency and efficiency in logistics services[25] - The digitalization strategy includes three key areas: digital capacity procurement, digital business operations, and digital financial settlement[24] - The company aims to transform traditional logistics management into a digitalized model, enhancing operational efficiency and cost-effectiveness[24] - The company focuses on creating a digital ecosystem that connects truck drivers, shippers, and logistics companies to improve operational efficiency[43] User Engagement and Community - As of December 31, 2023, the registered user count for the "Kayu Community" exceeded 3.4 million, making it the largest truck driver community in China[36] - The annual retention rate for major shipper clients was 91.2% in 2023, indicating strong customer loyalty[24] - The company has served over 14,400 shippers and 3.2 million truck drivers, completing over 46.5 million shipping orders on its platform[24] - The platform facilitated approximately 8.7 million completed shipping orders in 2023, with an online GTV of about RMB 34.4 billion[52] - The number of shippers who completed orders on the platform reached 6,619 in 2023, with a cumulative total of 14,415 shippers, an increase of 2,418 from the end of 2022[52] Operational Efficiency and Technology - The company aims to enhance its digital delivery capabilities and participate in the development of industry standards to drive the rapid expansion of the digital freight platform[69] - The new DDCS (Digital Driven Customer Success) platform significantly reduced customer request processing time and improved satisfaction[55] - The upgraded product "Luge New Continent" assists logistics companies in establishing their own collaborative networks, enhancing operational efficiency[57] - The digital freight business is designed to enhance the digital delivery capabilities through real-time recording and transmission of first-hand operational data[32] Market and Industry Insights - The total market size of China's road freight exceeds RMB 7 trillion, with the full truckload segment being the largest[20] - In 2022, the total freight volume increased by 8.68%, while the total order volume completed through digital freight platforms grew by 40.9% year-on-year[22] - As of December 31, 2023, there are 3,069 companies operating digital freight platforms in China, a 20.97% increase from the previous year[22] - The logistics market competition has intensified compared to previous years, resulting in a decline in online GTV[93] Governance and Management - The company has established a robust governance structure with independent non-executive directors overseeing board activities[126] - The company has a strong management team with extensive experience in finance and technology, including former senior positions at Alibaba and Huawei[113][119] - The company is committed to maintaining a strong governance structure, ensuring that board members can dedicate sufficient time to their responsibilities despite multiple directorships[135] - All independent non-executive directors have confirmed their independence according to the Listing Rules[137] Future Plans and Investments - The company aims to enhance its digital freight business user experience, with a planned allocation of 45.0% of the net proceeds, amounting to HKD 34.2 million[162] - The company plans to strengthen its technology capabilities and R&D efforts, allocating 20.0% of the net proceeds, which is HKD 15.2 million[162] - The company is focused on expanding its market presence and exploring new business opportunities to adapt to changing market demands[170]

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 5,616,216 thousand, a decrease of 9.48% compared to RMB 6,204,473 thousand in 2022[1] - The net loss attributable to shareholders was RMB (29,623) thousand, a significant decline from a profit of RMB 1,393 thousand in 2022, representing a change of -2,226.56%[1] - Non-IFRS adjusted net profit was RMB 453 thousand, a drastic drop of 99.00% from RMB 45,109 thousand in the previous year[1] - Total revenue for the reporting period was approximately RMB 5,616.2 million, a decrease of about RMB 588.3 million (or approximately 9.5%) compared to RMB 6,204.5 million for the year ended December 31, 2022[40] - Revenue from freight services was RMB 5,318.5 million, accounting for 94.7% of total revenue, down 9.6% from RMB 5,880.2 million in the previous year[40] - Gross profit for the year was RMB 313,264 thousand, down 8.34% from RMB 341,767 thousand in 2022[1] - The company reported a net loss of RMB 29,623 thousand for the year, a significant decrease of 2,226.56% compared to a profit of RMB 1,393 thousand in 2022[80] - The company recorded a significant increase in other expenses, amounting to approximately RMB 60.9 million, which is an increase of about 37.8% compared to RMB 44.2 million for the year ended December 31, 2022[157] Operational Efficiency - Operating costs decreased by 9.55% to RMB (5,302,952) thousand from RMB (5,862,706) thousand in the previous year[1] - The company has optimized its organizational structure and personnel allocation, gaining important new development momentum despite facing industry challenges and rising costs in 2023[25] - The company has focused on optimizing operational costs through organizational restructuring and digital technology implementation[24] - The digital freight solutions facilitate collaboration among ecosystem participants, improving transparency and synergy within the logistics sector[32] - The upgraded logistics product allows real-time monitoring and analysis of freight quality, enhancing operational efficiency for logistics companies[121] Digital Transformation - The company has initiated key measures for future value, including the establishment of a digital freight operation upgrade centered on AI applications[8] - The company is actively participating in the digitalization of the logistics industry, contributing to the establishment of standards for digital service delivery[8] - The outlook for the future indicates that the company will continue to focus on digital transformation and operational efficiency to achieve optimal business results[9] - The digital freight industry is transitioning from a phase of rapid growth to a more regulated development phase, with customers increasingly valuing the substantive benefits of digitalization[29] - The company aims to enhance the digital delivery capabilities of logistics companies by providing real-time order status visibility and improving cost-effective transportation services[32] Market Position and Community Engagement - The logistics market in China is valued at over RMB 7 trillion, with the full truckload segment being the largest part of the road freight market[10] - The company has served over 14,400 freight forwarders and 3.2 million truck drivers, completing over 4.65 million freight orders on its platform by December 31, 2023[14] - The registered user count for the truck driver community exceeded 3.4 million by December 31, 2023, with a social media following of about 3.7 million[71] - The number of truck drivers completing freight orders on the platform reached 3.2 million by December 31, 2023, with active truck drivers accounting for over 80% of total sales orders[78] - The company achieved a net profit of 330,000 registered truck drivers by the end of 2023 through the launch of the "Driver Service Platform" which simplified the registration process[56] Research and Development - Research and development expenses increased to approximately RMB 79.9 million, up RMB 3.7 million (or approximately 4.9%) from RMB 76.2 million for the previous year[46] - The company aims to enhance its technology capabilities with a target increase of 20.0% in R&D strength by 2025[111] Future Goals and Strategic Initiatives - The company plans to leverage market opportunities in the digital freight industry, focusing on the development of industry standards and business management regulations[65] - The company plans to improve user penetration rates by 15.0% by 2027, focusing on existing customer groups[111] - The company is targeting a 15.0% increase in platform service customers by 2031, aiming to attract more freight service users[111] - The company intends to strengthen its supply chain system for card services, with a goal of a 2.5% enhancement by 2027[111] - The company has established a legal assistance center to provide free legal support to truck drivers, addressing various business and personal issues[73] Corporate Governance and Compliance - The company has amended its articles of association to expand its business scope, which was formally approved at the annual general meeting held on June 20, 2023[129] - The company has not engaged in any derivative activities or hedging activities related to foreign exchange risks during the reporting period[127] - The financial statements are prepared in accordance with International Financial Reporting Standards, with no significant impact from new amendments adopted this year[168][174] - The company is currently evaluating the impact of new amendments to the International Financial Reporting Standards, expecting no significant effect on financial performance[177]

Financial Performance - As of June 30, 2023, the group's prepaid items, other receivables, and other assets amounted to RMB 1,399.2 million, an increase of approximately RMB 34.8 million (or about 2.6%) compared to RMB 1,364.4 million as of December 31, 2022, primarily due to increased freight receivables not yet collected [3]. - The company reported a loss attributable to owners of approximately RMB 26.2 million for the reporting period, compared to a profit of RMB 3.1 million for the six months ended June 30, 2022 [102]. - The company reported a net loss of RMB 26.166 million for the first half of 2023, compared to a profit of RMB 3.14 million in the same period of 2022, representing a significant decline [103]. - Adjusted net loss for the period was RMB 3.416 million, a decrease of RMB 21.924 million (or approximately 118.4%) from an adjusted profit of RMB 18.508 million in the first half of 2022, primarily due to lower logistics demand and increased competition [117]. - In the first half of 2023, the company's freight service revenue was RMB 2,475,284,000, accounting for 94.79% of total revenue, compared to RMB 2,866,156,000 (94.68%) in the same period of 2022 [67]. - The company's total operating costs for the reporting period were approximately RMB 2,471.7 million, a decrease of about RMB 392.8 million (or approximately 13.7%) from RMB 2,864.5 million for the six months ended June 30, 2022 [67]. Market and Industry Insights - The digital freight industry is transitioning from a growth phase to a regulatory development phase, with customers increasingly focusing on the tangible value of digitalization [25]. - The total market size of China's road freight market is expected to reach RMB 7.5 trillion in 2023, with the full truckload segment projected to be the largest, estimated at RMB 4.2 trillion [24]. - The number of companies operating digital freight platforms in China increased by approximately 24.3% year-on-year to 2,818 by mid-2023 [43]. - The penetration rate of digital freight platforms is expected to reach 13.1% of the overall freight transport market by the end of 2023 [43]. - The volume of shipping orders in the first half of 2023 grew by 23.5% compared to the same period in 2022, highlighting increasing market activity [43]. Operational Metrics - As of June 30, 2023, the company has served over 13,100 shippers and 3.0 million truck drivers, completing a total of over 42.0 million shipping orders on its platform [45]. - The online Gross Transaction Value (GTV) for the first half of 2023 reached RMB 16.4 billion, reflecting a strong operational performance [45]. - The online GTV for freight platform services was RMB 13.7 billion for the first half of 2023, showcasing the growth of the platform [48]. - The annual retention rate for major shipper customers was 91.9% in the first half of 2023, indicating high customer loyalty [45]. - The registered user count for the company's app exceeded 3.4 million, with over 3.75 million followers on social media platforms as of June 30, 2023 [76]. Cash Flow and Assets - Cash and cash equivalents as of June 30, 2023, were approximately RMB 569.6 million, up from RMB 520.7 million at the end of 2022, reflecting positive cash flow from operating activities [119]. - Trade receivables and notes receivable decreased by approximately RMB 30.4 million (or about 24.5%) to RMB 93.5 million as of June 30, 2023, due to improved settlement processes [140]. - Current assets as of June 30, 2023, were approximately RMB 2,077.7 million, a slight increase of RMB 8.0 million (or 0.4%) from RMB 2,069.7 million at the end of 2022 [106]. - Current liabilities decreased by approximately RMB 81.4 million (or 5.0%) to RMB 1,536.5 million, mainly due to a reduction in other payables and accrued expenses [106]. - The current ratio improved to 1.35 as of June 30, 2023, compared to 1.28 at the end of 2022, indicating better short-term financial health [106]. Strategic Initiatives - The company aims to enhance user experience in its digital freight business, targeting a 45% increase in customer acquisition for freight services and platform services by 2031 [7]. - The company plans to leverage digital logistics delivery services to expand its customer base and increase profitability in the digital freight industry [90]. - The company has set a timeline to fully utilize the net proceeds for the planned purposes by 2031 [180]. - The company plans to expand its card service network and car service offerings, allocating 15.0% of the net proceeds for this purpose, which amounts to HKD 9.5 million [180]. - The company aims to enhance its R&D capabilities and strengthen its technological capabilities, dedicating 20.0% of the net proceeds, equating to HKD 12.6 million [180]. Corporate Governance and Compliance - The board of directors decided not to recommend the payment of an interim dividend for the six months ended June 30, 2023, consistent with the previous year [160]. - The board confirmed compliance with applicable accounting principles and standards for the unaudited interim consolidated results for the six months ended June 30, 2023 [159]. - The company has confirmed compliance with the "Standard Code" regarding the trading of its securities by all directors and supervisors since the listing date [175]. - The board consists of four executive directors, two non-executive directors, and three independent non-executive directors, ensuring a high level of independence [174]. - The group has implemented a competitive and fair compensation and benefits system for employees, including basic salaries and performance bonuses [142].

Financial Performance - The total revenue for the group during the reporting period was approximately RMB 2,611.2 million, a decrease of approximately RMB 415.9 million (or about 13.7%) compared to RMB 3,027.1 million for the six months ended June 30, 2022[30]. - The group recorded a loss of RMB 26.2 million for the reporting period, compared to a profit of RMB 3.1 million for the same period in 2022[37]. - The company reported a total comprehensive income of approximately RMB (人民幣) -26,166 thousand for the year, reflecting a decrease compared to the previous period[126]. - The company reported a loss of RMB 26,166 thousand for the six months ended June 30, 2023, compared to a profit of RMB 3,140 thousand in the same period of 2022[194]. - The company incurred a loss before tax of RMB 25,190 thousand for the first half of 2023, compared to a loss of RMB 976 thousand in the same period last year[181]. - The company reported a net cash flow from operating activities of RMB (128,450) thousand for the six months ended June 30, 2023, compared to RMB (95,976) thousand for the same period in 2022[101]. Assets and Liabilities - The group’s inventory as of June 30, 2023, was approximately RMB 1.0 million, a decrease of approximately RMB 1.4 million (or about 58.3%) compared to approximately RMB 2.4 million as of December 31, 2022[40]. - The group’s prepayments, other receivables, and other assets amounted to approximately RMB 1,399.2 million as of June 30, 2023, an increase of approximately RMB 34.8 million (or about 2.6%) compared to approximately RMB 1,364.4 million as of December 31, 2022[42]. - The company’s total liabilities decreased significantly, with a reduction in other payables and accrued expenses by RMB (121,373) thousand compared to RMB (221,905) thousand in the previous year[101]. - Current liabilities decreased to RMB 1,536,539 thousand as of June 30, 2023, from RMB 1,617,866 thousand as of December 31, 2022, a reduction of 5.0%[184]. - Total equity attributable to equity holders of the parent increased to RMB 638,433 thousand as of June 30, 2023, up from RMB 554,493 thousand at the end of 2022[164]. Cash Flow and Financing - The net cash flow from financing activities for the first half of 2023 was RMB 138,252 thousand, compared to a net outflow of RMB 85,453 thousand in the same period of 2022[104]. - The net increase in cash and cash equivalents was RMB 48,923 thousand, a significant improvement from a decrease of RMB 219,591 thousand in the first half of 2022[104]. - Cash and cash equivalents rose to RMB 569,637 thousand as of June 30, 2023, up from RMB 520,714 thousand as of December 31, 2022, indicating an increase of 9.4%[184]. - As of June 30, 2023, the group reported a cash and cash equivalents balance of approximately RMB 569.6 million, an increase from RMB 520.7 million as of December 31, 2022[49]. Research and Development - Research and development expenses for the reporting period were approximately RMB 39.2 million, an increase of approximately RMB 1.8 million (or about 4.8%) compared to RMB 37.4 million for the six months ended June 30, 2022[33]. - The company plans to enhance its R&D capabilities and strengthen its technological capabilities, allocating 20% of its net proceeds for this purpose[112]. - Research and development expenses increased to RMB 39,168 thousand, compared to RMB 37,380 thousand in the previous year, indicating a focus on innovation[181]. Strategic Initiatives - The group aims to leverage digital logistics services to expand its customer base and increase profitability in the competitive market environment[11]. - The group plans to actively participate in the formulation and implementation of industry standards to promote high-quality development in the digital freight platform sector[11]. - The company is focused on upgrading and strengthening its digital freight business as part of its strategic initiatives[84]. - The company is focused on expanding its market presence through strategic initiatives and potential acquisitions in the digital freight sector[106]. Corporate Governance - The company has adopted a high standard of corporate governance to protect shareholder interests and enhance corporate value[80]. - The company’s board consists of four executive directors, two non-executive directors, and three independent non-executive directors, ensuring a high level of independence[94]. - The audit committee confirmed that the interim consolidated results for the six months ended June 30, 2023, comply with applicable accounting principles and have been adequately disclosed[136]. Shareholder Information - Major shareholders include Shanghai Yunxin, holding approximately 8.32% of domestic shares and 22.17% of H shares, totaling around 13.56% of the company's issued shares[148]. - The total number of shares held by the chairman and CEO is 273,447,680, representing 31.56% of the internal shares[120]. - The total number of shares held by the executive director is 9,763,739, representing 1.13% of the internal shares[120]. - The total number of issued shares as of June 30, 2023, was 1,393,876,104[166]. Compliance and Reporting - The company’s financial statements are prepared in accordance with International Financial Reporting Standards and reported in RMB[91]. - The interim financial statements are unaudited and include a consolidated income statement and a consolidated statement of financial position[160][163]. - The company is focused on compliance with relevant accounting standards and regulations, ensuring transparency in its financial reporting[136].