Financial Performance - Revenue for the six months ended June 30, 2022, reached RMB 945.18 million, a 19% increase from RMB 791.47 million for the same period in 2021[5] - Gross profit amounted to RMB 677.58 million, with a gross margin of 71.7%, up from RMB 577.27 million in the previous year[7] - Net profit for the period was RMB 93.37 million, with a net profit margin of 9.9%[7] - Adjusted net profit reached RMB 125.91 million, a 28% increase from RMB 98.75 million in the same period last year[5] - The company reported a profit of RMB 93.37 million for the six months ended June 30, 2022, a significant recovery from a loss of RMB 3,638.88 million in the same period of the previous year[27] - The company’s EBITDA for the six months ended June 30, 2022, was RMB 135.88 million, a recovery from a loss of RMB 3.59 billion in the prior year[31] - Non-IFRS profit for the same period was RMB 125.91 million, compared to RMB 98.75 million in 2021, reflecting a year-over-year increase of 27.5%[30] - The company reported a significant increase in financial assets at fair value through profit or loss, rising to RMB 582,808 thousand from RMB 300,334 thousand year-over-year[82] - The company reported a net cash outflow from operating activities of RMB (102,429) thousand for the six months ended June 30, 2022, compared to a cash inflow of RMB 94,265 thousand in the same period of 2021[87] Revenue Breakdown - Smart analysis and operation services generated RMB 443.52 million, reflecting a 46% year-over-year growth[5] - Revenue from intelligent analysis and operation services rose by 46% to RMB 443.52 million, driven by improved product ecosystem and increased demand from financial service providers[19] - Smart operation business revenue surged by 297% year-on-year to RMB 96.53 million, contributing 21.8% to the total intelligent analysis and operation revenue[10] - Precision marketing business revenue was RMB 220.33 million, a decrease of 10% year-on-year, attributed to a high historical base from the previous year[13] - Insurance marketing service revenue grew by 15.8% year-on-year to RMB 281.33 million despite overall industry challenges[15] - New policy contribution revenue in insurance marketing reached RMB 230.58 million, an increase of 11% year-on-year[16] Customer Metrics - The number of core customers increased to 200, up from 177, representing a 13% growth[6] - Core customer retention rate improved to 94%, up from 88% in the previous year[6] - The number of core financial service provider clients rose to 141, an increase of 16 clients compared to the same period last year[10] - The average revenue per core client increased by 31.5% to RMB 2.59 million[12] Expenses and Investments - Research and development expenses increased by 40% to RMB 159.95 million, primarily due to higher employee costs to support product and technology development[22] - Sales and marketing expenses surged by 63% to RMB 388.44 million, attributed to increased advertising and IT service costs[24] - Employee costs increased significantly to RMB 334,570 thousand in 2022 from RMB 207,925 thousand in 2021, representing a growth of approximately 60.8%[97] Corporate Governance - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee, each with clear written terms of reference[44] - The Corporate Governance Committee is responsible for ensuring the company operates in the interests of all shareholders and complies with listing rules[46] - The company has adopted a securities trading policy that regulates all securities transactions by directors and relevant employees, ensuring compliance with the standard code[43] - The company has committed to regularly reviewing and monitoring its corporate governance practices to ensure compliance with the latest corporate governance code[42] - The company has deviated from the corporate governance code by having the same individual serve as both Chairman and CEO, which is believed to ensure consistent internal leadership[42] Shareholder Structure - The company has a dual-class share structure with A shares having 10 votes per share and B shares having 1 vote per share, allowing significant voting control despite not holding the majority of economic interests[41] - As of June 30, 2022, the beneficial owner of the different voting rights, Mr. Zhang, holds 82,806,129 A shares, representing approximately 65.90% of the company's voting rights, and controls 16,493,486 B shares, representing about 1.31% of the voting rights[41] - The company has a diverse shareholder base, with multiple entities holding significant stakes in both Class A and Class B shares[56] Employee Incentives - The company has implemented a stock option plan and a share incentive plan to motivate employees[40] - The 2019 Employee Stock Ownership Plan aims to align participants' interests with shareholders and incentivize outstanding performance[58] - The maximum number of Class B shares that can be issued under the 2019 Employee Stock Ownership Plan is 49,817,780 shares[59] - As of June 30, 2022, the company has conditionally granted stock options to 198 participants under the 2019 Employee Stock Ownership Plan[59] Market Outlook - The market for intelligent operations in financial services is projected to reach RMB 60 billion by 2026, highlighting a significant growth opportunity[18] - The wealth management sector is transitioning from a product-centric to a customer-centric model, increasing the demand for data analysis and precise matching technologies[18] Legal and Compliance - No significant litigation or arbitration was reported during the reporting period, indicating a stable legal environment for the company[75] - The company is actively monitoring regulatory developments to ensure compliance with qualification requirements for foreign investment in telecommunications[74] Cash and Liquidity - As of June 30, 2022, the company had cash and cash equivalents of RMB 2.86 billion, down from RMB 3.55 billion at the end of 2021[33] - The company’s cash and cash equivalents saw a decline of approximately 65% compared to the previous year, indicating a need for improved cash management strategies[82] Other Financial Metrics - The company reported a total of RMB 11,664 thousand in share-based payment expenses for the six months ending June 30, 2022[131] - The company’s intangible asset amortization increased to RMB 4,878 thousand in 2022 from RMB 487 thousand in 2021, marking a significant rise[98]

Financial Performance - The company's revenue for the year ended December 31, 2021, was RMB 1,623.46 million, representing a 43% increase from RMB 1,136.53 million in 2020[10]. - The gross profit for the same period was RMB 1,194.63 million, also a 43% increase compared to RMB 838.14 million in 2020[10]. - The operating profit surged by 151% to RMB 80.04 million from RMB 31.83 million in the previous year[10]. - The net loss for the year was RMB 3,604.03 million, a significant increase from RMB 109.06 million in 2020, primarily due to losses from the fair value changes of redeemable convertible preferred shares[10]. - The company reported a non-IFRS EBITDA of RMB 233.46 million, a 40% increase from RMB 166.51 million in 2020[10]. - Total revenue increased by 42.8% from RMB 1,136.53 million in 2020 to RMB 1,623.46 million in 2021, driven by industry growth and enhanced product and service capabilities[32]. - Gross profit increased by 42.5% from RMB 838.14 million in 2020 to RMB 1,194.63 million in 2021, maintaining a gross margin of approximately 73.7% for both years[34]. - The company reported a net loss of RMB 3,604.03 million for the year 2021, compared to a net loss of RMB 109.06 million in 2020[26]. - The total comprehensive loss for the year amounted to RMB (3,604,033) thousand, compared to RMB (109,061) thousand in 2020, indicating a challenging financial environment[199]. Client Growth and Retention - The number of financial service provider clients served reached over 5,700, with 3,318 being paid clients, a 27.5% increase from 2,602 in 2020[12]. - The retention rate for core financial service provider clients was 91.6%, with 217 out of 237 remaining as paid clients[12]. - The average revenue per paid financial service provider client increased by 24.8% to RMB 5.12 million[12]. - The net income expansion rate for core financial service provider clients was 118.1% in 2021, indicating strong long-term value and revenue growth potential[13]. - The number of paying financial service provider clients increased by 23% to 1,551 in 2021 from 1,257 in 2020[18]. - Average revenue per paying financial service provider client rose by 14% to RMB 0.48 million in 2021 from RMB 0.42 million in 2020[18]. Revenue Breakdown by Service - Revenue from intelligent analysis and operation services reached RMB 736.58 million in 2021, a 38.1% increase from RMB 533.38 million in 2020[15]. - Precision marketing services revenue grew by 59.7% to RMB 422.42 million in 2021, up from RMB 264.51 million in 2020[19]. - Insurance distribution services revenue increased by 37.2% to RMB 464.46 million in 2021, compared to RMB 338.64 million in 2020[22]. - Core financial service provider client revenue increased by 31% to RMB 615.91 million in 2021 from RMB 468.93 million in 2020[18]. - Regular core financial service provider client revenue rose by 44% to RMB 534.60 million in 2021 from RMB 371.42 million in 2020[18]. Operational Efficiency and Investments - The company is focused on leveraging AI and big data technologies to enhance its cloud services for financial service providers, aiming to improve operational efficiency and risk management[12]. - The company plans to enhance its technological capabilities by investing in AI algorithms and real-time analysis to provide more secure and scalable services[24]. - The company aims to expand its product offerings, including cloud-based AI solutions and digital transformation consulting services for financial service providers[25]. - The company is focusing on strategic acquisitions to strengthen its position in the financial services sector, particularly targeting complementary cloud-based SaaS platforms[25]. Expenses and Financial Management - Research and development expenses rose by 25.4% from RMB 201.03 million in 2020 to RMB 252.01 million in 2021, driven by an increase in R&D personnel and project expansion[36]. - General and administrative expenses increased by 31.5% from RMB 199.86 million in 2020 to RMB 262.76 million in 2021, mainly due to higher professional service fees and employee costs[37]. - Sales and marketing expenses grew by 31.0% from RMB 439.56 million in 2020 to RMB 575.99 million in 2021, primarily due to increased demand for precision marketing services[38]. - The company incurred a net financing cost of RMB 585 thousand, a decrease from RMB 10,161 thousand in the previous year, suggesting improved financial management[198]. Corporate Governance and Management - The company has a diverse board with members holding significant experience in finance, technology, and academia, enhancing its strategic decision-making capabilities[106]. - The board consists of nine members, including three executive directors, two non-executive directors, and four independent non-executive directors[113]. - The company has complied with all provisions of the corporate governance code since its listing, except for the recommendation regarding the separation of the roles of chairman and CEO[111]. - The independent directors bring a wealth of experience from various sectors, which is expected to contribute positively to the company's governance and strategic direction[106]. - The company has established four committees: audit, remuneration, nomination, and corporate governance, each with specific written terms of reference[121]. Risk Management and Compliance - The company has faced significant risks, including a rapidly evolving market, regulatory challenges, and potential non-compliance with data privacy laws, which could adversely impact business performance[60]. - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to take to achieve its strategic objectives[135]. - The audit committee assists the board in overseeing the risk management and internal control systems, providing reports and recommendations as necessary[135]. - The company has adopted a policy for the proper disclosure of inside information to ensure timely and comprehensive communication with the market and stakeholders[137]. Shareholder Structure and Dividends - The company operates under a dual-class share structure, with Class A shares having ten votes per share and Class B shares having one vote per share, allowing significant control by certain beneficiaries[79]. - The company has no fixed dividend payout ratio and intends to retain most of its available funds for operations and business expansion[129]. - No final dividend was recommended for the year ended December 31, 2021[183]. - The company has not distributed any dividends or other distributions to the equity holders of the consolidated affiliated entities during the reporting period[76]. Employee Incentives and Stock Options - The employee stock option plan allows for the potential issuance of additional Class B shares upon exercise of options granted[152]. - The maximum number of shares that can be issued to any individual under the 2021 Employee Share Ownership Plan is limited to 1% of the total issued shares within any 12-month period[166]. - The company has established performance targets that must be met before the stock options can be exercised[170]. - A total of 14,257,500 reward shares have been granted to 131 selected participants under the Share Award Scheme as of December 31, 2021[174].

Financial Performance - Total revenue increased by 67% to RMB 791.47 million for the six months ended June 30, 2021, compared to RMB 474.30 million for the same period in 2020[8] - Gross profit also rose by 67% to RMB 577.27 million, up from RMB 345.70 million year-on-year[8] - Non-IFRS EBITDA surged by 251% to RMB 149.06 million, compared to RMB 42.45 million in the previous year[9] - Revenue from data analysis and other services rose by 33% from RMB 227.56 million to RMB 302.79 million, attributed to strong demand for data analysis services and the introduction of post-loan scenario products[15] - Precision marketing services revenue surged by 160% from RMB 94.64 million to RMB 245.69 million, due to stronger-than-expected customer acquisition demand and improved efficiency and accuracy in user matching and recommendations[15] - The company reported a net loss of RMB 3,638.88 million, primarily due to a loss from the fair value change of redeemable convertible preferred shares[8] - The total loss for the six months ended June 30, 2021, increased to RMB 3,638.88 million from RMB 86.85 million for the same period in 2020, primarily due to the increase in the fair value of redeemable convertible preferred shares[25] - Non-IFRS loss for the six months ended June 30, 2021, was RMB 98.75 million, compared to RMB 3.64 million for the same period in 2020[28] Client Metrics - The number of paid financial service provider clients increased by 10.5% to 2,876 as of June 30, 2021, from 2,602 at the end of 2020[10] - The retention rate for core financial service provider clients was 89%, with 210 out of 237 remaining as paid clients[10] - Average revenue per paid financial service provider client rose by 24.7% to RMB 3.53 million[10] Expenses and Costs - Research and development expenses rose by 13% from RMB 100.72 million to RMB 114.07 million, primarily due to an increase in personnel costs from a growing R&D team[18] - General and administrative expenses increased by 44% from RMB 86.28 million to RMB 124.16 million, mainly due to a rise in professional service fees related to a global offering[19] - Sales and marketing expenses grew by 26% from RMB 189.32 million to RMB 237.75 million, driven by increased advertising and IT service costs due to higher demand for precision marketing services[20] - Total compensation costs for the six months ended June 30, 2021, amounted to RMB 207.93 million, an increase from RMB 182.01 million for the same period in 2020, reflecting a growth of approximately 14.4%[35] Corporate Governance - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee to oversee specific areas of company affairs[41] - The Corporate Governance Committee is responsible for ensuring the company operates in the interests of all shareholders and complies with listing rules[43] - The company is committed to reviewing and monitoring its corporate governance policies and compliance with legal and regulatory requirements[43] - The company has confirmed that it has taken sufficient corporate governance measures to manage potential conflicts of interest with different voting rights beneficiaries, ensuring operations align with the interests of all shareholders[44] Shareholder Structure - As of June 30, 2021, Mr. Zhang holds 84,299,615 Class A shares, representing approximately 67.23% of the voting power post-global offering, and controls 15,000,000 Class B shares, representing about 1.20% of the voting power[36] - Major shareholders include Genisage Tech Inc. and Genisage Holdings Limited, both holding 100% of Class A shares, and Zhuhai Hillhouse Tiancheng Investment Management Co., Ltd. holding 11.20% of Class B shares[49] - The company has a significant shareholder structure, with 中金資本運營有限公司 and 中國國際金融股份有限公司 each holding 6.25% of the shares[51] Cash Flow and Financing - As of June 30, 2021, the company had cash and cash equivalents of RMB 2,781.36 million, significantly up from RMB 41.95 million as of December 31, 2020[31] - The net financing cost for the six months ended June 30, 2021, was RMB 566 million, compared to RMB 54.4 million for the same period in 2020, primarily due to increased foreign exchange losses[22] - Net cash generated from financing activities was RMB 3,121,242 thousand, a significant increase from a net cash used of RMB 32,099 thousand in the same period of 2020[79] Market Presence and Strategy - The company plans to enhance its technological leadership by investing in cutting-edge technologies and expanding its cloud infrastructure to improve service capabilities and reliability[12] - Strategic acquisitions will continue to strengthen the company's value proposition to financial service provider clients, despite a focus on internal growth[13] - The company aims to ensure effective communication with shareholders regarding compliance with listing rules, particularly concerning potential conflicts of interest[44] Listing and IPO - The company successfully listed on the main board of the Stock Exchange on March 31, 2021, providing access to international capital markets[11] - The company completed its initial public offering on March 31, 2021, selling 123,822,500 ordinary shares at a price of HKD 31.80 per share, resulting in the conversion of all redeemable convertible preferred shares into ordinary shares[116] Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 4,335,616 thousand, compared to RMB 1,075,480 thousand as of December 31, 2020[73] - The company's total liabilities decreased from RMB 2,304,917 thousand as of December 31, 2020, to RMB 79,703 thousand as of June 30, 2021, indicating a reduction of about 97%[74] - The company's total equity attributable to shareholders as of June 30, 2021, was RMB 4,157,527 thousand, a significant recovery from a negative equity of RMB 1,274,818 thousand as of December 31, 2020[76] Employee Engagement - The company has adopted a stock option plan and a share incentive plan following its initial public offering[35] - The company has implemented employee stock plans in 2019 and 2021, aimed at incentivizing employees post-IPO[140] - The company’s employee shareholding plans are designed to align participant interests with those of shareholders, promoting performance and value creation[56]

Financial Performance - Total revenue for 2020 was RMB 1,136.5 million, a decrease of 9.9% compared to RMB 1,261.9 million in 2019[6]. - Gross profit for 2020 was RMB 838.1 million, down 13.8% from RMB 971.8 million in 2019[6]. - Operating profit for 2020 was RMB 32.6 million, a significant improvement from an operating loss of RMB 11.3 million in 2019[6]. - Net loss for 2020 was RMB 109.1 million, an increase of 15.8% from a net loss of RMB 94.1 million in 2019[6]. - Non-IFRS profit for 2020 was RMB 80.0 million, a substantial increase of 512.4% from RMB 13.1 million in 2019[6]. - Non-IFRS EBITDA for 2020 was RMB 167.3 million, up 91.5% from RMB 87.4 million in 2019[6]. - Total revenue for the nine months ending September 30, 2020, decreased by 17.1% to RMB 764.2 million from RMB 922.3 million in the same period of 2019[15]. - The net loss increased from RMB 57.7 million for the nine months ending September 30, 2019, to RMB 115.9 million for the same period in 2020[15]. - Total revenue decreased by 9.9% from RMB 1,261.9 million in 2019 to RMB 1,136.5 million in 2020, primarily due to the negative impact of COVID-19, especially on precision marketing services[23]. - Gross profit decreased from RMB 971.8 million in 2019 to RMB 838.1 million in 2020, indicating a decline in overall profitability[23]. - Operating profit turned from a loss of RMB 11.3 million in 2019 to a profit of RMB 32.6 million in 2020, showing a recovery in operational performance[23]. - Non-IFRS net loss increased from RMB 94.1 million in 2019 to RMB 109.1 million in 2020, highlighting ongoing financial challenges[20]. - The company reported a net loss attributable to equity shareholders of RMB 93.2 million in 2019, which increased to RMB 110.6 million in 2020[23]. - The company reported a net loss of RMB 109,061 thousand for 2020, compared to a net loss of RMB 94,140 thousand in 2019, representing an increase in losses[164]. Revenue Breakdown - Revenue from data analysis services increased by 1.8% in 2020, while revenue from precision marketing services decreased by 34.7%[9]. - Data analysis services revenue increased by 1.8% from RMB 522.7 million in 2019 to RMB 532.0 million in 2020, rebounding as the COVID-19 situation in China improved[24]. - Precision marketing services revenue dropped significantly from RMB 404.8 million in 2019 to RMB 264.5 million in 2020, reflecting the adverse effects of the pandemic[23]. - Insurance distribution services revenue increased by 1.9% from RMB 332.2 million in 2019 to RMB 338.6 million in 2020, driven by enhanced collaboration with insurance companies on various products[26]. - Other services revenue fell by 43.5% from RMB 2.3 million in 2019 to RMB 1.3 million in 2020, as the company reduced the volume of experimental micro-loan transactions[27]. - The group generated revenue from data analysis services, precision marketing services, and insurance distribution services amounting to RMB 532 million, RMB 265 million, and RMB 339 million respectively for the year ended December 31, 2020[155]. Customer Metrics - The company served over 4,500 financial service provider clients, including 2,602 paying clients, as of December 31, 2020[9]. - The number of cumulative paid financial service provider customers increased from 2,031 in 2019 to 2,602 in 2020, representing a growth of 28%[12]. - The average annual revenue per paid financial service provider customer decreased from RMB 0.84 million in 2019 to RMB 0.80 million in 2020, a decline of 4.76%[12]. - The core customer count rose from 196 in 2019 to 237 in 2020, an increase of 20.9%, while the contribution to revenue from core customers increased from 73% to 86%[12]. - The core customer retention rate improved significantly from 89% in 2019 to 96% in 2020[13]. - The net revenue expansion rate for core customers was 92% in 2020, indicating strong long-term value from existing customer relationships[13]. Operational Efficiency - The company maintained acceptable levels of key operational metrics despite the impact of COVID-19[11]. - The fourth quarter of 2020 saw a rebound in business performance as the pandemic was largely controlled in China[9]. - Research and development expenses decreased from RMB 216.4 million in 2019 to RMB 201.0 million in 2020, indicating a potential shift in investment strategy[23]. - General and administrative expenses decreased by 9.9% from RMB 221.8 million in 2019 to RMB 199.9 million in 2020, mainly due to reductions in professional service fees and office expenses[31]. - Trade receivables decreased by 8.2% from RMB 196.0 million in 2019 to RMB 179.9 million in 2020, reflecting improved collection management[41]. - Trade payables increased by 34.4% from RMB 39.5 million in 2019 to RMB 53.1 million in 2020, primarily due to increased data service costs and advertising expenses[42]. Market Position - The company's market share was approximately 9.0% as of December 31, 2020, an increase of 0.3% from 2019[15]. - The company plans to continue investing in technology and expand its product offerings to meet evolving customer needs[17]. - Strategic acquisitions are anticipated to enhance the company's value proposition to financial service provider customers[17]. Governance and Compliance - The company has established a governance framework to ensure effective decision-making and execution of strategies[104]. - The board consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors[106]. - The company has adopted a securities trading management policy to regulate securities transactions by directors and relevant employees[105]. - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee to oversee specific areas of governance[112]. - The Audit Committee is responsible for reviewing the financial statements and monitoring the risk management and internal control systems[113]. - The company has not purchased insurance to cover liabilities arising from legal actions against directors and senior management due to corporate activities[111]. Risks and Challenges - The company faced significant risks including rapid market changes, regulatory challenges, and potential non-compliance with data protection laws, which could adversely affect business performance[51]. - The company has experienced past net losses and negative operating cash flows, with the potential to continue this trend in the future[52]. - The company relies on contractual arrangements to control its operations in China due to foreign ownership restrictions, which may pose operational risks[56]. Investment and Future Plans - The company plans to acquire ownership and assets of Beijing Bairong, which may incur significant costs and restrictions[58]. - The company is committed to fulfilling social responsibilities and promoting sustainable growth, with details to be included in the upcoming environmental, social, and governance report[53]. - The company plans to continue focusing on data analysis services and exploring new market opportunities despite the challenges posed by the pandemic[24]. Financial Reporting and Audit - The financial statements are prepared in accordance with all applicable International Financial Reporting Standards and Hong Kong Companies Ordinance disclosure requirements[177]. - The auditors did not identify any significant misstatements in the other information included in the annual report[157]. - The audit identified revenue recognition as a key audit matter due to inherent risks associated with potential manipulation to meet targets[155]. - The group’s financial statements were prepared in accordance with International Financial Reporting Standards and reflect a true and fair view of the financial position as of December 31, 2020[154].