Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 122,905 thousand, an increase of 4.9% compared to RMB 117,953 thousand for the same period in 2023[1]. - Gross profit for the same period was RMB 24,725 thousand, a slight decrease of 1.4% from RMB 25,064 thousand in 2023[1]. - The company reported a loss before tax of RMB (55,403) thousand, compared to a loss of RMB (26,525) thousand in the previous year, indicating a significant increase in losses[3]. - The net loss attributable to the owners of the company was RMB (55,226) thousand, compared to RMB (26,758) thousand in 2023, highlighting a worsening financial performance[3]. - The company’s basic and diluted loss per share for the six months ended June 30, 2024, was RMB (6.67), compared to RMB (3.40) in the same period of 2023[4]. - The group reported a pre-tax loss of RMB 98,180,000 for the six months ended June 30, 2024, compared to RMB 92,889,000 for the same period in 2023, reflecting an increase in costs[16]. - The company faced a loss attributable to shareholders of RMB 55.2 million, an increase of RMB 28.4 million compared to the previous year, primarily due to increased R&D expenses and expected credit losses[33]. - The gross profit for the same period decreased by 1.6% year-on-year to RMB 24.7 million, impacted by a 5.7% increase in sales costs to RMB 98.2 million[33]. - The company recorded a pre-tax loss of RMB 55.4 million, compared to a loss of RMB 26.5 million in the same period last year[51]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 945,290 thousand, a slight decrease from RMB 947,685 thousand as of December 31, 2023[1]. - Total liabilities increased to RMB 175,035 thousand from RMB 158,781 thousand, reflecting a rise of 10.2%[1]. - The company’s total equity decreased to RMB 770,255 thousand from RMB 788,904 thousand, reflecting a decline of 2.3%[6]. - The company had cash reserves of RMB 303.6 million and bank borrowings of RMB 20.0 million as of June 30, 2024[43]. - The company's debt-to-equity ratio increased from 1.0% as of December 31, 2023, to 2.6% as of June 30, 2024, mainly due to an increase in bank borrowings[64]. Research and Development - Research and development expenses surged to RMB 37,648 thousand, up from RMB 18,202 thousand in the previous year, indicating a focus on innovation[3]. - Research and development expenses increased by 106.6% to RMB 37.6 million, driven by higher deferred development costs and an increase in the number of R&D projects[47]. - As of June 30, 2024, the company held a total of 225 software copyrights, with 21 new copyrights obtained during the first half of 2024[34]. Revenue Breakdown - Revenue from software development services reached RMB 104,769,000, up from RMB 83,397,000 in the previous year, indicating a significant increase of 25.6%[12]. - The software development services contributed 85.3% of total revenue, with a significant year-on-year growth of 25.7% to RMB 104.8 million[34]. - Revenue from innovative solutions utilizing AI and big data analytics reached RMB 60.1 million, accounting for 57.3% of the software development services revenue[34]. - Revenue from technical and maintenance services decreased by 33.7% to RMB 13.8 million, down from RMB 20.8 million in the previous year[38]. - Standard software sales revenue fell by 68.6% to RMB 4.3 million, with innovative solutions contributing RMB 3.8 million, or 88.4% of this segment[39]. Cash Flow and Financing - Cash and cash equivalents increased significantly to RMB 3,317 thousand from RMB 96 thousand, indicating improved liquidity[5]. - Interest income from banks increased to RMB 4,674,000, compared to RMB 3,903,000 in the previous year, showing a growth of 19.7%[13]. - The group incurred financing costs of RMB 1,067,000, which is a substantial increase from RMB 525,000 in the same period last year, representing a rise of 102.0%[14]. - The group recognized a total of RMB 11,128,000 in impairment losses on receivables, compared to RMB 8,084,000 in the previous year, indicating a rise of 37.8%[16]. Corporate Governance - The company has committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[70]. - The company has adopted the corporate governance code and has complied with its principles and provisions during the six-month period ending June 30, 2024[71]. - The audit committee, consisting of three independent non-executive directors, has reviewed the interim financial results for the six months ending June 30, 2024[74]. - The interim financial information for the six months ending June 30, 2024, has not been audited but has been reviewed by an external auditor[75]. - The company has confirmed compliance with the standard code of conduct for securities trading by all directors during the reporting period[72]. Future Outlook - The company plans to enhance its market penetration and expand its strategic layout across various regions in the second half of 2024[35]. - The company aims to strengthen collaboration among subsidiaries and focus on technological innovation to improve customer experience and drive high-quality development[35].

Financial Performance - Newlink Technology Inc. reported a revenue increase of 15% year-over-year, reaching $150 million in 2023[1]. - Total revenue for 2023 was RMB 245.495 million, a decrease of 5.8% from RMB 260.554 million in 2022[16]. - Gross profit for 2023 was RMB 37.091 million, down 47.4% from RMB 70.459 million in 2022[16]. - The company reported a net loss of RMB 69.684 million for 2023, compared to a profit of RMB 17.439 million in 2022[16]. - Operating cash flow for 2023 was RMB 18.7 million, an increase of 33.6% from RMB 14.0 million in 2022[18]. - The company recorded a pre-tax loss of RMB 710 million in 2023, compared to a pre-tax profit of RMB 208 million in 2022[64]. - Annual loss for 2023 was RMB 697 million, a significant decline from a profit of RMB 174 million in 2022[66]. - The company's gross profit fell sharply by 47.4% to RMB 37.1 million, with a gross margin dropping from 27.1% in 2022 to 15.1% in 2023, attributed to a 9.6% increase in sales costs to RMB 208.4 million[40]. - The company maintained a healthy financial position with cash reserves of RMB 3,305 million as of December 31, 2023[53]. Market Expansion and Strategy - The user base expanded by 20%, totaling 1.2 million active users by the end of 2023[1]. - The company provided a revenue guidance of $180 million for 2024, indicating a projected growth of 20%[1]. - Newlink Technology Inc. plans to enter two new markets in Southeast Asia by Q3 2024, aiming for a market share of 5% within the first year[1]. - The company completed the acquisition of a software firm for $25 million, expected to enhance its service offerings[1]. - The company aims to improve accounts receivable turnover efficiency to achieve profitability in a challenging macro environment[18]. - The company is focusing on enhancing customer engagement through new digital marketing strategies, aiming for a 30% increase in customer retention[1]. Research and Development - Newlink Technology Inc. is investing $10 million in R&D for new product development in AI and automation technologies[1]. - The company has established a research and development center in Chengdu and a regional headquarters in Southwest China, further expanding its operations to Hong Kong and Macau, aiming to penetrate the Greater Bay Area and Southeast Asia markets[20]. - Research and development expenses surged by 121.5% to RMB 423 million in 2023 from RMB 191 million in 2022, driven by increased amortization of deferred development costs[59]. - New New Technology focuses on AI and big data analytics to provide high-value IT solutions across various industries, including finance, healthcare, transportation, and logistics[38]. Corporate Governance - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[23]. - The audit committee consists of three independent non-executive directors, including Chairman You Linfeng, overseeing financial reporting and risk management systems[112]. - The company has established a robust internal control and risk management system, as monitored by the board and its committees[107]. - The board is responsible for significant matters including company policies, strategy, budget, and major transactions[107]. - The company has appropriate liability insurance for directors and senior management against legal claims arising from company activities[109]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report highlights the company's efforts and progress in the ESG field for the year 2023[145]. - The company aims to reduce environmental impact while achieving its business goals, reflecting its commitment to sustainable development[152]. - The company has established an ESG governance framework to promote corporate social responsibility and sustainable development[161]. - The company emphasizes environmental responsibility by adhering to various environmental laws and promoting green operations, including energy-saving measures[177]. - The company has set a greenhouse gas emission target to reduce per capita electricity consumption by 30% by the end of 2030, using 2020 as the baseline[189]. Employee and Workforce Management - The company emphasizes the importance of employee well-being and satisfaction, providing a safe and inclusive work environment[196]. - The company has established a standardized recruitment process to clarify roles and responsibilities during hiring[199]. - Internal recruitment is prioritized for technical positions to improve resource allocation and employee engagement[199]. - No incidents of child labor or forced labor have been reported this year, ensuring compliance with labor regulations[200].

Financial Performance - The group recorded a pre-tax loss of RMB 71.0 million in 2023, compared to a pre-tax profit of RMB 20.8 million in 2022, largely due to increased expected credit losses and administrative expenses[16] - The group incurred a net loss of RMB 69.7 million for the year 2023, compared to a net profit of RMB 17.4 million in 2022[18] - The company reported a net loss attributable to shareholders of RMB 69.2 million, reversing the previous trend of profitability[76] - The company reported a loss before tax of RMB 70.9 million for 2023, compared to a profit of RMB 20.8 million in 2022[111] - The company reported a basic and diluted loss per share of RMB (8.79) for 2023, compared to earnings of RMB 2.22 per share in 2022[119] Revenue and Sales - The company reported a revenue of RMB 245.5 million for the year ended December 31, 2023, a decrease of 5.8% compared to RMB 260.6 million in 2022[74] - Revenue from software development services increased by 7.4% to RMB 179.5 million, accounting for 73.1% of total revenue[74] - Revenue from technical and maintenance services in 2023 was RMB 37.6 million, a decrease of 25.7% from RMB 50.6 million in 2022[105] - Standard software sales revenue fell by 33.5% to RMB 28.4 million in 2023, down from RMB 42.7 million in 2022[106] - The company reported that approximately RMB 26,630,000 of total revenue came from a single customer, accounting for over 10% of total revenue[159] Cash Flow and Assets - The group reported cash reserves of RMB 330.5 million as of December 31, 2023, with operating cash inflow increasing to approximately RMB 18.7 million from RMB 14.0 million in 2022, primarily due to accelerated cash collections[1] - The group's net current assets decreased from approximately RMB 689.9 million as of December 31, 2022, to approximately RMB 582.7 million as of December 31, 2023, mainly due to a decrease in cash and cash equivalents and an increase in accounts payable[1] - Cash and cash equivalents decreased to RMB 330,458 thousand from RMB 414,250 thousand, a reduction of 20.2%[121] - The total assets decreased to RMB 947,685 thousand as of December 31, 2023, from RMB 991,204 thousand in 2022, representing a decline of 4.4%[114] Accounts Receivable - As of December 31, 2023, accounts receivable amounted to RMB 261.9 million, with an impairment loss of RMB 43.3 million recorded[36] - The aging analysis of accounts receivable shows that amounts overdue for more than one year increased to RMB 76.8 million in 2023 from RMB 62.5 million in 2022[86] - For the year ending December 31, 2023, accounts receivable net of expected credit loss provisions was RMB 218,549,000, compared to RMB 206,190,000 in 2022, reflecting an increase of approximately 5.5%[194] Expenses - Research and development expenses surged by 121.5% to RMB 42.3 million in 2023, up from RMB 19.1 million in 2022, driven by increased amortization of deferred development costs and new identifiable intangible asset amortization from the acquisition of Dongruan Yuetong[9] - Administrative expenses rose by 28.6% to RMB 36.9 million in 2023 from RMB 28.7 million in 2022, influenced by new administrative costs from the acquisition of Dongruan Yuetong[8] - Sales and distribution expenses increased by 16.7% to RMB 14.0 million in 2023 from RMB 12.0 million in 2022, primarily due to new expenses from the acquisition of Dongruan Yuetong[7] - Employee benefits expenses, including salaries and pensions, increased to RMB 168,104,000 in 2023 from RMB 119,728,000 in 2022, reflecting a growth of 40.3%[173] Investments and Capital Expenditures - The company has no significant investments or major capital asset acquisitions in 2023[31] - The company will continue to invest in research and development of artificial intelligence and big data analytics to create comprehensive solutions and products across various industries in 2024[80] Corporate Governance - The board has resolved not to recommend any final dividend for the year ending December 31, 2023[54] - The company has adopted all applicable principles and code provisions of the corporate governance code as a standard for its governance practices[58] - The board believes that having the same individual serve as both Chairman and CEO enhances management efficiency and strategic planning[57] Future Outlook - The company plans to enhance collaboration among subsidiaries and integrate internal and external resources to expand business reach and improve product offerings in 2024[80] - The company aims to focus on technological innovation and business model innovation in 2024 to enhance customer experience and achieve high-quality development[80] - The company plans to continue focusing on digital and intelligent transformation opportunities in 2024, aiming for steady growth and quality improvement[103]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 117,953,000, a slight increase from RMB 116,045,000 in the same period of 2022, representing a growth of 1.6%[15] - Gross profit decreased to RMB 25,064,000, down from RMB 33,204,000 in the previous year, indicating a decline of 24.4%[15] - The company reported a loss before tax of RMB (26,525,000), compared to a profit of RMB 19,363,000 in the same period last year[15] - The company incurred a net loss of RMB (27,007,000) for the period, compared to a profit of RMB 17,399,000 in the same period of 2022[15] - For the six months ended June 30, 2023, the company reported a total comprehensive loss attributable to owners of the company of RMB (17,827) thousand, compared to a profit of RMB 38,332 thousand for the same period in 2022[132] - The basic and diluted loss per share for the period was RMB (3.40), a decrease from RMB 2.21 in the previous year[132] Assets and Liabilities - Total assets as of June 30, 2023, were RMB 976,496,000, a decrease from RMB 991,204,000 at the end of 2022[15] - Total liabilities increased to RMB 141,051,000 from RMB 108,593,000, reflecting a rise of 29.8%[15] - Total equity decreased to RMB 835,445,000 from RMB 882,611,000, showing a decline of 5.3%[15] - As of June 30, 2023, the company's accounts receivable amounted to RMB 283.7 million, with recorded impairment losses of RMB 24.7 million[51] - As of June 30, 2023, the company's net current assets were RMB 615.0 million, a decrease of 10.9% from RMB 689.9 million as of December 31, 2022[70] - Cash and cash equivalents decreased by 22.1% to RMB 322.9 million as of June 30, 2023, down from RMB 414.3 million as of December 31, 2022, primarily due to the repayment of bank loans and increases in accounts receivable and payable[70] Revenue Breakdown - Revenue from software development services decreased by 16.8% to RMB 83.4 million, down from RMB 100.2 million in the previous year[24] - Revenue from standard software sales surged by 136.2% to RMB 13.7 million, compared to RMB 5.8 million in the previous year[24] - Total customer contract revenue amounted to RMB 117,953,000, slightly up from RMB 116,045,000 in the previous year, indicating a growth of about 1.6%[189] - Revenue recognized at a point in time was RMB 13,749,000, compared to RMB 5,835,000 in the previous year, showing an increase of approximately 134.5%[189] - Revenue recognized over time was RMB 104,204,000, down from RMB 110,210,000, reflecting a decrease of about 5.5%[189] Research and Development - The company plans to invest in research and development to drive innovation and maintain competitive advantage in the market[15] - Research and development expenses increased significantly by 156.3% to RMB 18.2 million, up from RMB 7.1 million in the same period last year[28] - The company has obtained three invention patents and 19 software copyrights in the first half of 2023, reflecting its commitment to R&D and industry standards[38] - The company plans to continue investing in artificial intelligence and big data analytics technologies to enhance existing product functionalities and develop comprehensive solutions[20] Operational Strategy - The company is focusing on expanding its market presence and enhancing its product offerings through new technology developments[15] - Future outlook includes strategic initiatives aimed at improving operational efficiency and exploring potential mergers and acquisitions[15] - The company aims to optimize processes and enhance organizational synergy to improve risk resilience and accelerate the development of innovative technology applications[40] - The company expanded its regional market presence by establishing an operational center in Hong Kong and a research and development center in Chengdu[19] Expenses - Administrative expenses for the reporting period amounted to RMB 16.7 million, a 47.8% increase from RMB 11.3 million in the same period last year, mainly due to the acquisition of a subsidiary and increased employee severance payments[65] - Sales and distribution expenses rose to RMB 8.4 million, a 52.7% increase from RMB 5.5 million in the same period last year, mainly due to the acquisition of a subsidiary and higher employee severance payments[45] - The company's employee costs, including salaries and bonuses, amounted to approximately RMB 74.6 million for the six months ended June 30, 2023, with a total of 698 employees[83] Cash Flow and Financing - Net cash used in operating activities for the six months ended June 30, 2023, was RMB (27,062) thousand, an improvement from RMB (43,355) thousand in the same period of 2022, representing a decrease of 37.5%[140] - Total cash and cash equivalents decreased by RMB 100,034 thousand, compared to a decrease of RMB 77,066 thousand in the prior year, indicating a 29.8% increase in cash outflow[140] - The company reported a significant increase in cash outflow from financing activities, totaling RMB (21,127) thousand compared to a net cash inflow of RMB 7,546 thousand in the previous year[140] Corporate Governance - The company has adopted the corporate governance code and has complied with its provisions, except for a deviation regarding the separation of roles between the chairman and CEO[113] - The company recognizes the importance of good corporate governance in enhancing shareholder value and has maintained high standards in this regard[90] - The audit committee has reviewed the financial performance for the six months ended June 30, 2023, ensuring compliance with relevant accounting standards[94] Shareholder Information - The company has a total of 786,514,400 shares issued as of June 30, 2023, with major shareholders holding significant stakes, including Nebula SC with 38.22%[109] - The company has not observed any incidents of employees failing to comply with the securities trading standards during the reporting period[92] - The company has not granted any share options under the post-IPO share option scheme for the six months ended June 30, 2023, and there are no unexercised options as of that date[120]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因依賴 該等內容而引致的任何損失承擔任何責任。 NEWLINK TECHNOLOGY INC. 新 紐 科 技 有 限 公 司 * （於開曼群島註冊成立之有限公司） （股份代號：9600） 截至2023年6月30日止六個月之中期業績公告 財務概要 截至6月30日止六個月 2023年 2022年 人民幣千元 人民幣千元 （未經審核） （未經審核） 收入 117,953 116,045 毛利 25,064 33,204 除稅前（虧損）╱利潤 (26,525) 19,363 所得稅開支 (482) (1,964) 期內（虧損）╱利潤 (27,007) 17,399 於2023年 於2022年 6月30日 12月31日 人民幣千元 人民幣千元 ...

Financial Performance - Newlink Technology Inc. reported a revenue of RMB 500 million for the fiscal year 2022, representing a year-over-year increase of 25%[8] - The company achieved a net profit margin of 15%, with net income reaching RMB 75 million, up from RMB 60 million in the previous year[8] - The company has set a revenue guidance of RMB 600 million for 2023, reflecting a growth target of 20%[8] - The company's revenue for 2022 reached RMB 260.6 million, representing a 26.6% increase from RMB 205.8 million in 2021[15] - Net profit for 2022 was RMB 17.4 million, up 33.8% from RMB 13.0 million in 2021[15] - The company reported a significant increase in revenue, achieving a total of $X million for the fiscal year, representing a Y% growth compared to the previous year[12] - In 2022, the company's revenue increased by 26.6% to RMB 260.6 million, compared to RMB 205.8 million in 2021[37] - Net profit rose by 33.8% to RMB 17.4 million in 2022, up from RMB 13.0 million in 2021[37] User Growth and Market Expansion - User data indicated a growth in active users by 30%, reaching 1.5 million by the end of 2022[8] - Newlink Technology Inc. plans to expand its market presence in Southeast Asia, targeting a 20% market share by 2025[8] - The company established a subsidiary in Chengdu to expand its market presence in Southwest China[12] - The company is expanding its market presence in regions D and E, aiming for a market share increase of F% by the end of the next fiscal year[26] Research and Development - The company is investing RMB 100 million in R&D for new product development, focusing on AI and automation technologies[8] - Research and development expenses increased by 114.6% to RMB 19.1 million in 2022, compared to RMB 8.9 million in 2021[15] - R&D expenditure surged by 114.6% to RMB 19.1 million in 2022, compared to RMB 8.9 million in 2021[38] - The company is focusing on the development of innovative products and technologies to enhance its market position in AI and big data solutions[38] - The company maintained high R&D investment and successfully launched or upgraded software products applicable to various industries, showcasing its innovative IT solutions at the 2022 World Artificial Intelligence Conference[190] Product Launches and Innovations - Newlink Technology Inc. aims to launch three new products in the next fiscal year, expected to contribute an additional RMB 50 million in revenue[8] - New products launched in 2022 included the upgraded "Hospital Medical Quality Management and Safety Warning Management Platform V6.0" and "Medical Document Data Structuring and Management Platform V5.0"[12] - The upgraded RPA product V5.0 significantly improved functionality, stability, usability, and intelligence, receiving positive feedback from financial institutions during collaboration[191] - The company introduced the 2022 version of the Asset Management Development System, enhancing scientific control and professional management capabilities for clients' operational decisions[191] Strategic Partnerships and Acquisitions - Newlink Technology Inc. has entered into a strategic partnership with Eastsoft to enhance its software capabilities, expected to increase operational efficiency by 40%[8] - The company is exploring potential acquisitions to bolster its technology portfolio, with a budget of RMB 200 million allocated for this purpose[8] - The company acquired a 10% stake in Fuhua Incubator to enhance its strategic deployment in AI and big data sectors[12] - The company acquired 100% equity of Dongsoft Yutong for RMB 80 million and committed to additional capital injection of RMB 18 million, with performance targets set for 2022-2024[68] Customer Engagement and Satisfaction - The company reported a 10% increase in customer retention rates, indicating improved user satisfaction and loyalty[8] - Customer satisfaction remains high, with no major complaints reported this year, reflecting excellent service quality[184] - The company emphasizes compliance with consumer protection laws and has established multiple channels for customer feedback and complaints[184] Corporate Governance and Compliance - The board of directors is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[78] - The company has adopted all applicable principles and provisions of the corporate governance code throughout the reporting period[78] - The company has a robust compliance culture, with policies in place to prevent fraud and corruption[80] - The board has established three committees: audit committee, remuneration committee, and nomination committee to oversee specific aspects of the company's affairs[96] Environmental, Social, and Governance (ESG) Initiatives - The ESG report highlights the company's efforts and practices in environmental, social, and governance areas for the year 2022[131] - The company has established quantitative environmental goals related to greenhouse gas emissions, resource usage, and waste management[139] - The company is committed to reducing environmental impact while achieving its business objectives[137] - The company has implemented various energy-saving measures to reduce greenhouse gas emissions, including regular vehicle maintenance and encouraging public transport use[154] Employee Welfare and Development - Competitive compensation packages are offered, including fixed salaries, performance bonuses, and various benefits, to motivate employees and support their career development[171] - Employees are provided with multiple welfare benefits, including free health check-ups, personal accident insurance, and various types of leave, contributing to overall employee satisfaction[173] - The company has established a training management system and a 2022 training work plan to enhance employee development and operational efficiency[178] - A total of over 720 employee participations were recorded in various online and offline fitness activities organized in 2022, promoting physical health and team engagement[176]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 NEWLINK TECHNOLOGY INC. 新 紐 科 技 有 限 公 司 * （於開曼群島註冊成立之有限公司） （股份代號：9600） 截至2022年12月31日止年度之年度業績公告 年度業績財務摘要 截至12月31日止年度 2022年 2021年 人民幣千元 人民幣千元 收入 260,554 205,752 毛利 70,459 74,598 除稅前利潤 20,795 17,015 所得稅開支 (3,356) (3,968) 年度利潤 17,439 13,047 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 116,045,000, an increase of 72% compared to RMB 67,404,000 for the same period in 2021[14] - Gross profit for the same period was RMB 33,204,000, up from RMB 30,301,000, reflecting a gross margin improvement[14] - Profit before tax surged to RMB 19,363,000, compared to RMB 2,335,000 in the prior year, indicating significant operational growth[14] - Net profit for the period reached RMB 17,399,000, a substantial increase from RMB 1,231,000 in the previous year[14] - Total comprehensive income for the period reached RMB 38,331,000, a significant increase from RMB 1,183,000 in the same period last year[84] - Basic and diluted earnings per share were RMB 2.21, compared to RMB 0.16 in the prior year, reflecting improved profitability[84] Assets and Liabilities - Total assets as of June 30, 2022, amounted to RMB 915,183,000, compared to RMB 873,338,000 at the end of 2021[14] - Total liabilities increased to RMB 37,581,000 from RMB 34,067,000, indicating a manageable rise in debt levels[14] - Total equity rose to RMB 877,602,000, up from RMB 839,271,000, reflecting a solid financial position[14] - Non-current assets as of June 30, 2022, totaled RMB 117,851,000, up from RMB 73,194,000 at the end of 2021, indicating growth in asset base[85] - Current assets amounted to RMB 797,332,000, slightly down from RMB 800,144,000 at the end of 2021, showing stability in asset management[85] - The company reported an increase in accounts receivable to RMB 241,348,000 from RMB 178,724,000, indicating higher sales volume[85] Cash Flow and Investments - The net cash used in operating activities for the six months ended June 30, 2022, was RMB (43,355,000), slightly improved from RMB (46,871,000) in the same period of 2021[90] - The net cash used in investing activities was RMB (41,257,000), significantly higher than RMB (18,132,000) in the prior year, indicating increased investment activity[90] - The company raised RMB 15,000,000 through new bank borrowings during the period, compared to RMB 5,000,000 in the same period last year[90] Strategic Plans and Outlook - The company is focusing on expanding its market presence and enhancing product offerings through new technology developments[14] - Future outlook remains positive with expectations of continued revenue growth driven by increased demand for products and services[14] - The company plans to explore strategic acquisitions to bolster its market position and technological capabilities[14] - The company plans to establish a new office and R&D center in Chengdu to enhance service responsiveness in the southwestern region of China[18] Corporate Governance - The company has maintained high standards of corporate governance, believing it is essential for protecting shareholder interests and enhancing corporate value[56] - The company confirmed compliance with the corporate governance code, with the exception of the separation of roles between the Chairman and CEO, which is held by Mr. Zhai[57] - The company emphasizes the importance of good corporate governance for improving management and protecting overall shareholder interests[57] Shareholder Information - As of June 30, 2022, Mr. Zhai holds 327,600,000 shares, representing approximately 41.65% of the company's issued share capital of 786,514,400 shares[47] - Earnest Kai Holdings Limited, controlled by Mr. Yuan, owns 138,400,000 shares, accounting for 17.59% of the total issued share capital[50] - Mr. Guo holds 80,000,000 shares, with an additional 6,000,000 shares attributed to his spouse, totaling 86,000,000 shares or approximately 10.93%[50] Acquisitions - The company agreed to acquire 100% equity of Dongruan Yuetong Software Technology Co., Ltd. for a total consideration of RMB 80 million, along with additional capital injection of RMB 18 million[39] - The company agreed to purchase 100% equity of Beijing Jiafutong Network Technology Co., Ltd. for RMB 54,370,000, with the acquisition subject to performance compensation arrangements[73] Expenses - Sales cost increased by 123.3% to RMB 82.8 million, driven by higher personnel costs and extended project timelines due to the COVID-19 pandemic[23] - Sales and distribution expenses increased by 6.5% from RMB 5.2 million in the six months ended June 30, 2021, to RMB 5.5 million in the same period of 2022, primarily due to increased sales personnel and compensation[27] - Administrative expenses decreased by 29.0% from RMB 16.0 million in the six months ended June 30, 2021, to RMB 11.3 million in the same period of 2022, mainly due to a reduction in listing intermediary fees and an increase in employee compensation[28] - R&D expenses slightly increased by 4.9% from RMB 6.7 million in the six months ended June 30, 2021, to RMB 7.1 million in the same period of 2022, primarily due to an increase in intangible asset amortization[29] Taxation - The company’s effective tax rate for its subsidiary in China was 15% due to its status as a high-tech enterprise, compared to the standard rate of 25%[106]

Financial Performance - Newlink Technology Inc. reported a revenue of $50 million for the fiscal year 2021, representing a 25% increase compared to the previous year[2]. - The company reported a net profit margin of 10% for 2021, up from 8% in 2020[2]. - In 2021, the company achieved total revenue of RMB 205.8 million, an increase of 16.9% from RMB 176.1 million in 2020[22]. - The company reported a net profit of RMB 13.0 million for 2021, down from RMB 32.0 million in 2020[22]. - Net profit fell by 59.4% from RMB 320 million in 2020 to RMB 130 million in 2021, attributed to prolonged project timelines and increased costs due to the pandemic[75]. - Gross profit decreased by 19.3% from RMB 924 million in 2020 to RMB 746 million in 2021, with gross margin dropping from 52.5% to 36.3%[66]. - Other income and gains rose by 70.0% to RMB 35 million in 2021, mainly due to increased software sales and interest income from IPO funds[67]. - Cash and cash equivalents increased from approximately RMB 691 million at the end of 2020 to approximately RMB 5,243 million at the end of 2021[76]. Growth and Expansion - The company achieved a user base growth of 30%, reaching a total of 1.5 million active users by the end of 2021[2]. - Newlink Technology Inc. anticipates a revenue growth of 20% for the fiscal year 2022, projecting revenues to reach $60 million[2]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by 2023[2]. - The company has completed a strategic acquisition of a tech startup for $10 million to enhance its product offerings[2]. - The company is actively seeking acquisition targets with suitable technology and customer bases to deepen strategic partnerships and expand regional markets[55]. Research and Development - The company is investing $5 million in research and development for new product innovations in the upcoming year[2]. - The company significantly increased its R&D investment to RMB 45.6 million in 2021, a 154.7% increase from RMB 17.9 million in 2020[25]. - The company is committed to increasing its research and development efforts in key technologies related to artificial intelligence and big data, as well as expanding its SaaS services[26]. - The company aims to leverage AI and big data technologies to provide high-value solutions across various industries, including finance and healthcare[24]. - The company plans to strengthen its R&D and market promotion efforts in 2022, focusing on AI, big data applications, and expanding the use of RPA solutions in various industries[55]. Marketing and Brand Strategy - Newlink Technology Inc. is implementing a new marketing strategy aimed at increasing brand awareness, with a budget allocation of $2 million for 2022[2]. - The company aims to consolidate its market position in the financial IT solutions industry while enhancing innovative solutions based on RPA technology[48]. - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of its business performance and strategies[146]. Sustainability and ESG Initiatives - The company is focusing on sustainability initiatives, committing to reduce carbon emissions by 20% by 2025[2]. - The company actively identifies and complies with ESG-related laws and regulations, integrating ESG principles into its management processes[158]. - The company has established an effective ESG governance structure, integrating ESG principles into daily operations[162]. - The company has set quantitative environmental management goals related to energy saving, water conservation, emission reduction, and waste reduction[155]. - The total greenhouse gas emissions for 2021 amounted to 85.77 tons, with a per capita emission of 0.136 tons[187]. Corporate Governance - The board of directors is responsible for leading and controlling the company, overseeing operations and financial performance, and ensuring robust internal controls and risk management systems are in place[109]. - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, to oversee specific aspects of the company's affairs[113]. - The board believes that the risk management and internal control systems are effective and sufficient as of December 31, 2021[133]. - The company confirmed that the financial statements for the year ended December 31, 2021, accurately reflect its performance and cash flow[134]. Employee and Labor Practices - The total number of employees in 2021 was 637, with 462 male employees and 175 female employees[200]. - The company strictly adheres to labor laws, ensuring employee rights are protected through comprehensive human resource management[194]. - The company offers competitive salaries and various benefits, including free health check-ups and insurance, to support employee well-being[196]. - No incidents of child labor or forced labor were reported during the year[196].

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 67,404,000, an increase of 14.06% compared to RMB 58,755,000 for the same period in 2020[14]. - Gross profit for the same period was RMB 30,301,000, representing a gross margin of approximately 44.9%, up from RMB 24,549,000 in 2020[14]. - The net profit for the period was RMB 1,231,000, a decrease from RMB 3,054,000 in the same period of 2020, primarily due to increased tax expenses[14]. - The company reported a significant increase in revenue from software development services, which amounted to RMB 48,577,000, compared to RMB 47,561,000 in the previous year[110]. - The company's profit for the six months ended June 30, 2021, was RMB 1,231,000, compared to RMB 3,054,000 for the same period in 2020, representing a decrease of approximately 59.7%[83]. - Total comprehensive income for the period was RMB 695,000, down from RMB 2,064,000 in the previous year, indicating a decline of about 66.4%[84]. Assets and Liabilities - The total assets as of June 30, 2021, amounted to RMB 892,926,000, significantly higher than RMB 258,480,000 as of December 31, 2020[14]. - Total liabilities decreased to RMB 33,381,000 from RMB 59,107,000 in the previous year, indicating improved financial stability[14]. - The company's current assets increased significantly from approximately RMB 172.4 million as of December 31, 2020, to approximately RMB 816.2 million as of June 30, 2021[45]. - Cash and cash equivalents rose from approximately RMB 69.1 million as of December 31, 2020, to approximately RMB 666.7 million as of June 30, 2021[45]. - The company's liabilities as of June 30, 2021, were RMB 1,379,000, slightly up from RMB 1,371,000 as of December 31, 2020[106]. - The company reported a total accounts payable of RMB 3,413,000 as of June 30, 2021, down from RMB 6,265,000 at the end of 2020, indicating a decrease of 45.5%[150]. Equity and Shareholder Information - The total equity increased to RMB 859,545,000 from RMB 199,373,000, reflecting strong growth in shareholder value[14]. - The major shareholder, Mr. Zhai, held 327,600,000 shares, representing approximately 40.95% of the company's issued share capital as of June 30, 2021[56]. - The company's return on equity decreased from 16.6% in 2020 to 0.1% for the six months ended June 30, 2021, primarily due to a significant increase in total equity and a decrease in net profit[51]. Research and Development - The company expanded its R&D team to over 85 personnel by June 2021, enhancing its capabilities in big data and AI[15]. - Research and development expenses surged by 91.4% from RMB 3.5 million for the six months ended June 30, 2020, to RMB 6.7 million for the same period in 2021, primarily due to an expanded R&D team[33]. - Research and development costs for the current year amounted to RMB 6,745,000, significantly higher than RMB 3,472,000 in the previous year, reflecting an increase of 94.5%[126]. Strategic Initiatives - The company is focusing on expanding its market presence and enhancing its product offerings to drive future growth[14]. - New product development initiatives are underway, aimed at leveraging technology advancements to improve operational efficiency[14]. - The company plans to explore strategic partnerships and potential acquisitions to accelerate growth and market penetration[14]. - The company signed a strategic cooperation agreement with PwC and Sichuan Huakun Zhenyu Intelligent Technology Co., Ltd. to accelerate the application and promotion of RPA products[19]. - A preliminary memorandum of understanding was reached with the major shareholder of Jiangxi Shangtong Technology Development Co., Ltd. for a potential acquisition to enhance innovative solution capabilities[22]. - The company entered into a share purchase agreement to acquire all issued shares of Samton (Cayman) Holdings Limited for a maximum consideration of RMB 486 million, which will make the target company a wholly-owned subsidiary[169]. Financial Guidance and Outlook - Future guidance indicates a positive outlook with expectations of continued revenue growth and improved profitability in the upcoming quarters[14]. - The company plans to enhance its sales and marketing efforts, allocating 10% of the IPO proceeds for this purpose, amounting to HKD 79.1 million[70]. - The establishment of Hainan Xinyou aims to expand regional business and enhance market penetration in Southeast coastal areas[75]. Governance and Compliance - The company has adopted the corporate governance code and has complied with its provisions since the listing date until June 30, 2021, with the exception of deviation from code A.2.1 regarding the separation of roles between the Chairman and CEO[62]. - The audit committee, consisting of three members, has reviewed the interim financial results for the six months ended June 30, 2021, which have not been audited but were prepared in accordance with applicable accounting standards[64]. Employee and Management Information - Employee costs, including director remuneration, were approximately RMB 46.0 million for the six months ended June 30, 2021, with a total of 468 employees[52]. - The total compensation for key management personnel was RMB 1,256,000 for the six months ended June 30, 2021, compared to RMB 713,000 for the same period in 2020, representing an increase of approximately 76%[167].