Revenue Performance - Revenue for Q1 2023 was RMB 926 million, a decrease from RMB 1,019 million in the same period last year[4]. - Total revenue for Q1 2023 decreased by 9.1% to RMB 926 million from RMB 1,019 million in the same period last year, primarily due to a focus on high-value products and a reduction in low-margin customized projects[43]. - Revenue from customer service decreased by 57.3% to RMB 49 million, mainly due to reduced transaction volumes in retail banking customer service modules[43]. - Revenue from Ping An Group was RMB 536.854 million, down 2.2% year-over-year, while revenue from Lufax decreased by 44.7% to RMB 71.357 million[65]. - The digital banking segment's revenue decreased by 33.2% to RMB 258.738 million, primarily due to a reduction in transaction volumes for customer service and risk management services[69]. - Cloud service platform revenue was RMB 292 million, a slight decrease of 1.2% year-on-year, while virtual banking business revenue grew by 51.6% to RMB 32 million[9]. - The virtual banking business recorded a revenue increase of 51.6% to RMB 32.120 million in the first quarter of 2023[69]. Profitability and Loss - Net loss attributable to shareholders narrowed to RMB 109 million, compared to RMB 318 million in the same period last year, with basic and diluted loss per American depositary share improving from RMB -8.58 to RMB -3.00[15]. - The net loss attributable to shareholders decreased by 65.7% to RMB 109 million, compared to RMB 318 million in the same period last year, with a net loss margin improvement of 19.4 percentage points to -11.8% from -31.2%[38]. - For the first quarter of 2023, the company's operating loss decreased by 67.8% to RMB 114 million, compared to RMB 355 million in the same period last year, with an operating loss margin narrowing from 34.8% to 12.4%[64]. - Operating loss narrowed to RMB 114,411 thousand compared to RMB 354,895 thousand in the prior year, reflecting improved operational efficiency[80]. - The company aims to continue narrowing the net loss margin for sustainable growth in 2023[41]. Expenses Management - R&D expenses decreased from RMB 363 million to RMB 288 million, representing 31.1% of revenue, down from 35.6% in the previous year[13]. - General and administrative expenses reduced significantly from RMB 211 million to RMB 107 million, accounting for 11.6% of revenue, down from 20.7%[14]. - Sales and marketing expenses were reduced to RMB 64 million from RMB 109 million year-over-year, with the percentage of sales and marketing expenses to revenue decreasing from 10.7% to 6.9%[73]. - Operating expenses decreased from RMB 700 million to RMB 486 million, with operating expenses as a percentage of revenue dropping by 16.2 percentage points to 52.5%[47]. - The cost of revenue for the first quarter of 2023 decreased by 13.0% to RMB 583 million, primarily due to reduced service fees and the elimination of low-value projects[71]. Financial Position - The total liabilities decreased from RMB 5,604.3 million to RMB 5,288.4 million[22]. - Total assets amounted to RMB 8,406,382 thousand, down from RMB 8,882,382 thousand year-on-year[57]. - Cash and cash equivalents at the end of the period were RMB 1,646,431 thousand, an increase from RMB 1,270,695 thousand year-over-year[87]. - The company reported a net cash used in operating activities of RMB 613,264 thousand, an improvement from RMB 1,118,694 thousand in the previous year[87]. - Cash used in operating activities was RMB 613 million, while cash generated from investing activities was RMB 407 million[50]. Strategic Focus - The company expressed confidence in the potential of the Chinese fintech industry, with total technology spending by financial institutions expected to reach RMB 799.3 billion by 2025[6]. - The company continues to focus on customer deepening strategies and digital transformation amid a challenging macro environment[6]. - The company aims to strengthen product integration and deepen customer relationships in 2023, focusing on high-quality clients to support effective growth for financial institutions[67]. - The company has established long-term partnerships with financial institutions to meet their digital transformation needs and has successfully exported technology solutions to overseas financial institutions[76]. - The company continues to focus on maintaining and expanding its customer base while navigating regulatory challenges in the financial services sector[78].

Financial Performance - Total revenue for 2022 increased by 8.0% year-on-year to RMB 4.46 billion, with third-party customer revenue growing by 6.5% to RMB 1.48 billion[15]. - The gross profit margin improved by 1.8 percentage points to 36.6% compared to the previous year[15]. - Adjusted net profit margin improved by 13 percentage points to -18.0% year-on-year, reflecting operational efficiency improvements[15]. - The net loss attributable to shareholders for the year ended December 31, 2022, was RMB 872.3 million, an improvement from RMB 1,281.7 million for the year ended December 31, 2021[36]. - Operating loss decreased to RMB 981.6 million, improving the operating margin from -34.0% to -22.0% year-over-year[49]. - Net loss attributable to shareholders was RMB 872.3 million, with a net margin of -19.5%, improving from -31.0% year-over-year[38]. - The company reported a pre-tax loss of RMB 990.2 million for the year ended December 31, 2022, down from RMB 1,442.6 million in 2021[85]. - The company's loss decreased from RMB 1,330.5 million in the same period of 2021 to RMB 928.0 million for the year ended December 31, 2022[87]. Customer Growth and Revenue - The number of premium customers increased by 9 to 221, indicating a continued expansion in the customer base[15]. - Revenue from Ping An Group rose by 9.1% to RMB 2,526.7 million, while revenue from Lufax increased by 7.3% to RMB 459.4 million[38]. - The number of premium customers increased from 649 to 796, with a net expansion rate of 81%[45]. - The average revenue per premium customer rose from RMB 2.2 million to RMB 2.8 million[45]. - Interest and commission income from virtual banking surged by 210.4% to RMB 106.5 million, driven by rapid customer demand[54]. Operational Efficiency - The company has established strategic partnerships, including a collaboration with a leading private bank for wealth management transformation[17]. - The company continues to upgrade its core system products to meet domestic needs, offering over 400 basic core APIs[17]. - The digital credit service platform received recognition from the China Academy of Information and Communications Technology for innovation in digital inclusive finance[17]. - The company plans to continue investing in R&D activities to enhance the technology and applications used in its solutions, optimizing product structure by integrating single-module products into more comprehensive solutions[22]. - The company will maintain a prudent operating strategy, focusing on increasing third-party customer revenue and net profit margin in 2023[22]. Technology and Innovation - The digital banking solutions provided by the company include comprehensive offerings for retail and corporate banking, enhancing marketing and risk management efficiency[16]. - The company is actively expanding its digital insurance solutions, focusing on automating the entire claims process and improving service quality[18]. - By 2025, total technology spending by Chinese financial institutions is projected to reach RMB 799.3 billion, highlighting the growth potential in the sector[15]. - Revenue from technology solutions grew by 6.3% from RMB 4,098.0 million in 2021 to RMB 4,357.5 million in 2022, driven by increases in implementation services and cloud service platform revenue[73]. Expenses and Cost Management - The cost of revenue increased by 4.9% to RMB 2,829.0 million, primarily due to rising costs in technology solutions[57]. - Research and development costs increased by 4.8% from RMB 1,353.0 million in 2021 to RMB 1,417.7 million in 2022, driven by investments in existing solutions and innovation[59]. - Sales and marketing expenses decreased by 30.1% from RMB 588.4 million in 2021 to RMB 411.4 million in 2022, resulting in a reduction of the expense-to-revenue ratio from 14.2% to 9.2%[59]. - General and administrative expenses decreased by 2.0% from RMB 841.7 million in 2021 to RMB 824.7 million in 2022, with adjusted expenses at RMB 754.9 million, accounting for 16.9% of revenue[60]. Corporate Governance and Risk Management - The company has adopted corporate governance practices based on the principles and code provisions set out in Appendix 14 of the Listing Rules[127]. - The company’s risk management framework includes monitoring interest rate risks associated with floating and fixed-rate financial instruments[122]. - The company’s board believes that high corporate governance standards are essential for safeguarding shareholder interests and enhancing corporate value[126]. - The audit committee held 7 meetings during the year ended December 31, 2022, discussing unaudited financial performance for all four quarters[151]. Future Outlook and Strategic Plans - The company aims to explore opportunities in overseas markets with strong unmet digital transformation needs, leveraging solutions validated in China[22]. - The company expects that the opening of pandemic control measures in China and the introduction of economic support policies will be beneficial for long-term economic development[22]. - The company has no significant future plans for major investments or capital assets as of December 31, 2022[94]. - The company plans to establish a credit reporting service in Hong Kong, expected to commence operations by the end of 2023[109]. Employee and Organizational Structure - As of December 31, 2022, the group had a total of 64.8% male and 35.2% female full-time employees, including senior management[166]. - As of December 31, 2022, the board consisted of 11 directors, with 36% being female and 64% male, reflecting the company's diversity policy[200].

Revenue Performance - Revenue for Q3 2022 reached RMB 1,069 million, a year-on-year increase of 0.4% from RMB 1,065 million[9] - Revenue from Ping An Group was RMB 599 million, a decrease of 0.3% year-on-year, while revenue from third-party clients remained stable at RMB 351 million[10] - Revenue from Lufax increased by 5.2% year-on-year to RMB 118 million, and revenue from third-party clients increased by 6.4% to RMB 1,036 million over nine months[10] - In Q3 2022, total revenue increased by 0.4% year-on-year to RMB 1,069 million, driven by growth in operational support services and implementation revenue[16] - Revenue from operational support services grew by 4.8% year-on-year, benefiting from increased demand for smart voice products[15] - The implementation revenue rose by 7.0% year-on-year to RMB 202 million, supported by ongoing digital transformation efforts[15] Profitability Metrics - Gross margin for Q3 2022 was 35.1%, slightly down from 35.5% in the same period last year[9] - The company reported a non-IFRS gross margin of 38.4%, down from 42.2% year-on-year[10] - The net profit margin improved significantly from -25.3% to -12.4%, an optimization of 13 percentage points[13] - The operating loss margin for Q3 2022 was -14.5%, an improvement from -26.6% in the previous year[10] - The operating loss for Q3 2022 was RMB 155 million, an improvement from RMB 283 million in the same period last year, with the operating margin improving from -26.6% to -14.5%[21] Net Loss and Earnings Per Share - Net loss attributable to shareholders was RMB 133 million, improving from a net loss of RMB 270 million in the previous year, resulting in a net margin of -12.4% compared to -25.3%[9] - Basic and diluted loss per American Depositary Share was RMB -0.36, improving from RMB -0.72 in the same period last year[9] - The net loss attributable to the company’s owners for the three months ended September 30, 2022, was RMB (140,709) thousand, compared to RMB (132,563) thousand in the same period of 2021, representing an increase in loss of approximately 6%[34] Expenses and Cost Management - In Q3 2022, total operating expenses amounted to RMB 548 million, down from RMB 624 million in the same period last year, representing a decrease from 58.6% to 51.3% of revenue[20] - R&D expenses in Q3 2022 decreased to RMB 287 million from RMB 323 million year-over-year, accounting for 26.9% of revenue compared to 30.4% in the previous year[20] - Sales and marketing expenses fell to RMB 94 million in Q3 2022 from RMB 131 million in the same period last year, reducing the percentage of revenue from 12.3% to 8.8%[20] Customer and Market Development - The company aims to maintain and expand its customer base while enhancing customer engagement[4] - The number of high-quality customers grew from 154 to 163, an increase of 9 customers year-on-year[13] - The company launched a new digital management platform for life insurance agents, enhancing its digital capabilities in the insurance sector[13] - The company announced the launch of a small and medium enterprise financing platform in Abu Dhabi, marking its expansion into the UAE market[13] Cash Flow and Financial Position - Cash used in operating activities for Q3 2022 was RMB 128 million, while cash generated from investing activities was RMB 25 million and from financing activities was RMB 62 million[24] - Cash and cash equivalents as of September 30, 2022, were RMB 1,455,767 thousand, compared to RMB 1,399,370 thousand as of December 31, 2021, showing a slight increase of about 4%[40] - Total assets as of September 30, 2022, amounted to RMB 8,963,926 thousand, an increase from RMB 9,340,607 thousand as of December 31, 2021[40] - Total liabilities as of September 30, 2022, were RMB 5,430,720 thousand, a decrease from RMB 5,505,525 thousand as of December 31, 2021[40] Future Outlook - Future outlook includes addressing regulatory changes and maintaining relationships with key partners like Ping An Insurance[4]

Financial Performance - Revenue for the six months ended June 30, 2022, increased by 20.4% to RMB 2,152.7 million from RMB 1,787.5 million in the same period of 2021[6]. - Gross profit margin for the six months ended June 30, 2022, was 35.3%, compared to 34.0% in the same period of 2021[6]. - Operating loss for the six months ended June 30, 2022, was RMB 632.5 million, an improvement from RMB 741.5 million in the same period of 2021, resulting in an operating profit margin of -29.4%[6]. - Net loss attributable to shareholders for the six months ended June 30, 2022, was RMB 562.4 million, compared to RMB 653.7 million in the same period of 2021, improving the net profit margin from -36.6% to -26.1%[7]. - Adjusted operating loss for the six months ended June 30, 2022, was RMB 564.2 million, compared to RMB 741.5 million in the same period of 2021, with an adjusted operating profit margin of -26.2%[6]. - Basic and diluted loss per share for the six months ended June 30, 2022, was RMB 0.51, compared to RMB 0.59 in the same period of 2021[7]. - Adjusted net loss attributable to shareholders for the six months ended June 30, 2022, was RMB 494.0 million, improving the adjusted net profit margin from -36.6% to -22.9%[7]. - The company reported a net loss of RMB 590,192 thousand, compared to RMB 697,370 thousand in the previous year, showing a reduction in losses[134]. - The total comprehensive loss for the period was RMB 352,758 thousand, a significant improvement from RMB 767,954 thousand in the previous year[137]. Revenue Breakdown - Revenue from Ping An Group for the six months ended June 30, 2022, was RMB 1,231.3 million, representing a 23.1% increase from RMB 1,000.3 million in the same period of 2021[10]. - Revenue from Lufax for the six months ended June 30, 2022, was RMB 236.5 million, a 43.6% increase from RMB 164.6 million in the same period of 2021[10]. - Revenue from third-party customers for the six months ended June 30, 2022, was RMB 685.0 million, a 10.0% increase from RMB 622.6 million in the same period of 2021[10]. - The company's revenue increased by 20.4% from RMB 1,787.5 million in the six months ended June 30, 2021, to RMB 2,152.7 million in the same period of 2022, primarily due to the growth in technology solutions revenue[38]. - Technology solutions revenue rose by 18.4% from RMB 1,780.3 million to RMB 2,107.0 million, driven by the launch of the Gama platform's intelligent voice services and other products[38]. - The operating support services revenue increased by 17.5% from RMB 486.7 million to RMB 572.1 million[38]. - Cloud service platform revenue surged by 50.3% from RMB 442.6 million to RMB 665.2 million, reflecting increased demand due to ongoing digital transformation within Ping An Group[38]. - Interest and commission income from the virtual banking business skyrocketed by 534.1% from RMB 7.2 million to RMB 45.7 million, attributed to rapid growth in the Hong Kong virtual bank operations[38]. Cost and Expenses - Revenue cost increased by 18.2% from RMB 1,179.4 million for the six months ended June 30, 2021, to RMB 1,393.4 million for the same period in 2022, primarily due to the rise in costs associated with technology solutions[41]. - Research and development expenses increased by 15.7% from RMB 640.0 million for the six months ended June 30, 2021, to RMB 740.5 million for the same period in 2022, driven by investments in existing solutions and innovation[43]. - Selling and marketing expenses decreased by 25.4% from RMB 292.7 million for the six months ended June 30, 2021, to RMB 218.3 million for the same period in 2022, attributed to reduced marketing activities due to the pandemic[44]. - General and administrative expenses increased by 2.6% from RMB 391.6 million for the six months ended June 30, 2021, to RMB 401.9 million for the same period in 2022, mainly due to higher professional service fees related to listing expenses[46]. Cash Flow and Financial Position - Cash and cash equivalents as of June 30, 2022, amounted to RMB 1,445.1 million, an increase from RMB 1,399.4 million as of December 31, 2021[59]. - Short-term borrowings decreased from RMB 815.3 million as of December 31, 2021, to RMB 266.6 million as of June 30, 2022[60]. - The weighted average interest rate on outstanding borrowings increased from 3.93% as of December 31, 2021, to 4.47% as of June 30, 2022[60]. - Operating cash flow for the six months ended June 30, 2022, was RMB (793,056) thousand, an improvement from RMB (1,228,518) thousand in the same period of 2021, representing a decrease of 35.5%[160]. - Net cash generated from investing activities was RMB 1,507,894 thousand, significantly up from RMB 312,427 thousand in the previous year, indicating a growth of 381.5%[160]. - The total cash and cash equivalents at the end of the period reached RMB 1,445,058 thousand, up from RMB 920,826 thousand at the end of the previous year[160]. - The company reported a significant reduction in cash used in financing activities, which was RMB (692,275) thousand compared to RMB (1,203,316) thousand in the previous year, a decrease of 42.4%[160]. Shareholder Information - As of the listing date, the total number of shares issued by the company is 1,169,980,653, including 81,418,938 shares issued for the incentive plan[84]. - The major shareholder, Rongxun Limited, holds 385,077,588 shares, representing approximately 32.91% of the total shares[92]. - The company has granted performance share units to its directors, with Dr. Ye Wangchun receiving 1,572,000 units, subject to vesting conditions[85]. - The company has entered into a stock lending agreement allowing the lending of up to 122,847,968 shares[96]. - The maximum number of shares that can be issued under the share incentive plan is currently set at 101,271,020 shares[102]. - The total number of shares that may be issued or transferred under all share incentive plans cannot exceed 10% of the total issued shares post-listing, which is 116,998,065 shares[102]. - The share incentive plan aims to attract and retain top talent, promoting long-term sustainable development and maximizing shareholder value[100]. - The vesting schedule for granted rewards is set to occur over four years, with a maximum of 25% vesting each year[105]. Governance and Compliance - The company has complied with all applicable code provisions of the corporate governance code since the listing date, except for the separation of roles between the chairman and the CEO[118]. - The company has adopted the standard code for securities transactions by directors as set out in the listing rules, confirming compliance by all directors since the listing date[119]. - The audit committee, consisting of three members, reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2022[121]. - The company has not granted any options during the period leading up to the announcement of its financial results[107]. Market and Strategic Outlook - The company is expanding its international business and providing integrated technology solutions to financial institutions, including digital banking and insurance solutions[26]. - The digital transformation in the financial sector is expected to drive technology spending in China to RMB 799.3 billion by 2025, with a compound annual growth rate of 23.6% from 2020 to 2025[27]. - The company believes that its "technology + business" model is a key competitive advantage that drives new business acquisition and deepens customer collaboration[26]. - The company aims to deepen customer engagement and expand its financial services ecosystem and overseas markets[28]. - The company has established partnerships with major banks and financial institutions, resulting in a near doubling of loan volumes within six months of product launch[28].