Summary of Beisen Holdings Conference Call Company Overview - Beisen Holdings is the first and only provider of integrated cloud applications in the HCM (Human Capital Management) sector, holding a market share of 15% and focusing on medium to large enterprises. It is expected to exceed 5,800 clients by FY2025, with over 70% being Fortune 500 companies, indicating high customer stickiness [2][4][9]. Financial Performance - For the period from April to September 2024, Beisen reported revenues of 440 million RMB, a year-on-year increase of 9%. The full-year revenue for FY2025 is projected to be between 923 million and 950 million RMB, achieving double-digit growth. The adjusted gross margin for the first half was 66%, with an expected range of 66%-67% for the full year. The adjusted net loss is anticipated to be between -5% and -7%, with a subscription revenue retention rate of 108% [2][7][36]. AI Integration and Product Development - Beisen has fully integrated AI technology, forming seven AI scenarios and serving over 150 AI product users, with an annual recurring revenue (ARR) of approximately 3 to 4 million RMB. This is expected to reach several million by the end of March 2025. AI products enhance customer unit price and strengthen product competitiveness [2][10][14]. E-Learning Market Position - Following the acquisition of Ku Academy, Beisen has risen to the second position in the e-learning sector, with Ku Academy expected to contribute around 80 million RMB in revenue. The integration aims to optimize cost structures, with expectations of positive cash flow and double-digit revenue growth in FY2025, while controlling losses between -5% and -7% [2][8][12]. HCM Product Performance - The integrated HCM module has shown significant growth, with an ARR increase of 28% year-on-year as of September 2024, and a retention rate of 114% in terms of revenue. The performance cloud grew by 17% in the first half of the year, and the learning module is expected to reach an ARR of 30 million RMB by the end of March [3][11]. Competitive Advantages - Beisen holds a 15% market share in the HCM sector, significantly ahead of competitors like Gongxin and Dongsen, which hold 6% and 3% respectively. The company offers comprehensive HR products and modules that are difficult for competitors to replicate, supported by a unique PaaS platform that allows for rapid customization to meet the needs of medium to large clients [4][13][6]. Future Growth and Strategy - Beisen anticipates an ARPU (Average Revenue Per User) of several million RMB by FY2025, with revenue expected to reach 30 to 40 million RMB by FY2026. The company plans to deepen AI applications, enhance product forms, expand its customer base, and optimize cost structures for higher efficiency and growth [5][28][29]. M&A Strategy - The acquisition of Ku Academy and Yunxuetang has positioned Beisen as a strong player in the e-learning market. The company aims to increase its market share from 15% to 22% over the next three years through organic growth and strategic acquisitions [12][44]. Customer Base and Retention - Beisen primarily serves medium to large enterprises, with over 5,800 clients expected by March 2025. The company has a high retention rate, with a renewal rate of 94%-95% for its core HR products [9][34]. AI Product Effectiveness - The AI interviewer significantly enhances recruitment efficiency by replacing traditional interview steps, reducing the time taken from 60 minutes to just 1 minute per interview. The cost per initial interview is reduced from approximately 200 RMB to around 25 RMB, demonstrating substantial cost savings [18][19]. Conclusion - Beisen Holdings is well-positioned for future growth with its innovative AI applications, strong market presence in HCM, and strategic acquisitions. The company is focused on maintaining its competitive edge while expanding its customer base and optimizing its financial performance [36][37][38].

北森控股 2024 财年总收入为 4.4 亿元（截至 9 月底），预计 2025 财年总收入 为 9.2 亿元，同比增长约 10%。其中，纯产品经常性收入占比 77.6%，实施服务 收入占比 22%左右。截至 2024 年 9 月底，公司客户数量为 5,623 家，到 2025 年 1 月底增至 5,700 多家。北森定位于中大型客户，其中 70%为中国财富五百 强企业。 北森控股 摘要 Q&A 北森控股在云端人力资源解决方案领域的市场地位和主要业务标签是什么？ 北森控股是中国最大的云端人力资源解决方案提供商，市占率为 15%，基于 IDC 的报告。公司提供一体化的云端应用平台，涵盖员工从入职、转岗、调离到薪 酬计算、组织人事、绩效继任测评和在线学习等所有模块。北森是中国唯一一 家具有全模块一体化解决方案并构建了统一开放 PaaS 平台的人力资源软件提供 商。其 PaaS 平台能够快速配置个性化需求，为中大型客户提供万人以上规模的 • 北森控股 2024 财年总收入 4.4 亿元，预计 2025 财年达 9.2 亿元，同比增 长约 10%，纯产品经常性收入占比 77.6%。客户数量稳定增长，截至 2024 年 ...

Financial Performance - Revenue for the six months ended September 30, 2024, was RMB 436,581,000, representing a 9.0% increase from RMB 400,533,000 in the same period of 2023[11]. - Gross profit for the same period was RMB 281,753,000, an increase of 18.9% compared to RMB 237,010,000 in 2023[11]. - Adjusted net loss for the period was RMB (34,157,000), a 60.2% improvement from RMB (85,920,000) in the previous year[11]. - The company reported a loss for the period of RMB (99,040,000), significantly reduced from RMB (3,058,067,000) in the previous year[11]. - Total revenue reached RMB 436.6 million for the Reporting Period, representing an increase of 9.0% compared to the same period last year[19]. - Revenue from cloud-based HCM solutions was RMB 338.8 million, reflecting a growth of 14.3% year-over-year[19]. - Revenue from professional services was RMB 97.8 million, a year-on-year decrease of 6.0%, accounting for 22.4% of total revenue[67]. - The gross profit margin for the six months ended September 30, 2024, was 65.7%, up by 2.0 percentage points year-on-year[30]. - The company incurred net losses of RMB 99.0 million, a significant reduction from RMB 3,058.1 million in the same period of 2023[68]. - Adjusted net loss decreased from RMB 86.0 million to RMB 34.2 million, representing a year-on-year decrease of 60.2%[68]. Operational Efficiency - Net cash used in operating activities decreased by 44.2% to RMB 97,041,000 from RMB 173,990,000 in the prior period[11]. - The company is committed to improving operational efficiency and reducing net losses in the upcoming periods[11]. - Selling and marketing expenses were RMB 192.0 million, a year-on-year decrease of 17.3%, with expenses as a percentage of revenue decreasing from 44.5% to 39.5%[87]. - General and administrative expenses were RMB 82.7 million, representing a year-on-year decrease of 17.5%[87]. - Research and development expenses were RMB 154.8 million, a year-on-year decrease of 17.2% from RMB 187.0 million in the same period of 2023[89]. Market Position and Growth - Beisen maintained the largest market share in China's HCM SaaS market for eight consecutive years since 2016, with a market share of 15% in 2023[15]. - Beisen is the only integrated cloud-based HCM solutions provider in China with a unified and open PaaS infrastructure[15]. - The digital economy and digital talent industry are expected to continue flourishing, leading to continuous growth for Beisen[15]. - The company has consistently maintained its market dominance in the assessment business for many years[15]. - Beisen is a top-ranking participant in China's Core HCM, recruitment management, and performance management markets in terms of market share[15]. Product Development and Innovation - Beisen launched seven major AI assistants based on large models, leading the HCM industry towards a new era of intelligence and efficiency[19]. - The digital transformation of human resources management is being enhanced through AI, creating a personalized and intelligent employee experience[19]. - New products introduced include Mr. Sen, AI Interviewer, and AI Interview Assistant, expanding Beisen's AI Family product range[19]. - The AI Interviewer has been commercialized, with sales exceeding 50 clients, significantly improving recruitment efficiency for various leading companies[34]. - The company aims to assist enterprises in improving management effectiveness and optimizing talent allocation through innovative products[19]. Customer Metrics - As of September 30, 2024, the Annual Recurring Revenue (ARR) from the core HCM integration business accounted for 55%, representing a 28% increase compared to the ARR as of September 30, 2023, with a cumulative customer count nearing 2,100[32]. - The total number of customers as of September 30, 2024, was 5,623, with a subscription revenue retention rate of 107%[30]. - The number of customers for cloud-based HCM solutions grew from over 5,300 to over 5,600 during the reporting period[75]. Investment and Future Outlook - Future outlook includes ongoing investments in technology and product development to drive further growth[11]. - The company continues to invest in the manufacturing and retail chain sectors to improve product capabilities and widen the competitive gap[30]. - The company plans to utilize 15% of the proceeds (approximately HK$23.3 million) to further upgrade integrated cloud-based HCM solutions by December 31, 2028[130]. Shareholder Information - The Company repurchased a total of 20,075,200 shares at an aggregate consideration of HK$89,591,860 during the Reporting Period[121]. - The Company received net proceeds of approximately HK$155.0 million from the Global Offering, which was listed on 13 April 2023[128]. - The total number of shares issued is 720,745,587 as of September 30, 2024[142]. - Major shareholder Zhaosen Holding Limited is deemed to be interested in 81,054,370 shares, representing approximately 11.25% of total shares[167]. Corporate Governance - The Company complied with all corporate governance code provisions during the Reporting Period[117]. - The Audit Committee reviewed the unaudited Interim Financial Information for the six months ended September 30, 2024 and found it compliant with applicable accounting standards[119]. - The public float of the Company complies with the requirements of Rule 8.08 of the Listing Rules[124].

Financial Performance - For the six months ending September 30, 2024, the company reported revenue of RMB 436,581,000, an increase of 9.0% compared to RMB 400,533,000 for the same period in 2023[2]. - Gross profit for the same period was RMB 281,753,000, reflecting an 18.9% increase from RMB 237,010,000 year-over-year[2]. - The adjusted net loss (non-IFRS) for the six months was RMB (34,157,000), a 60.2% improvement compared to RMB (85,920,000) in the previous year[2]. - The company's total revenue for the reporting period was RMB 436.6 million, representing a year-on-year growth of 9.0%[16]. - Revenue from cloud HCM solutions reached RMB 338.8 million, an increase of 14.3% compared to the same period last year, accounting for 77.6% of total revenue, up 3.6 percentage points year-on-year[16]. - The gross margin (non-IFRS) for the company was 65.7%, improving by 2.0 percentage points year-on-year, while the gross margin for cloud HCM solutions was 81.1%, up 3.0 percentage points year-on-year[24]. - The company reported a significant increase in trade receivables, which rose to RMB 43,892 thousand from RMB 31,161 thousand, representing an increase of about 40.9%[59]. - The company reported government subsidies of RMB 24,984 thousand for the six months ended September 30, 2024, compared to RMB 11,482 thousand in the previous year, reflecting a significant increase of 118.5%[89]. - The total expenses for the six months ended September 30, 2024, amounted to RMB 584,337 thousand, a decrease of 14.5% from RMB 682,963 thousand in the previous year[91]. - The company reported a net loss of RMB 99.0 million, a significant improvement compared to a net loss of RMB 3,058.1 million in the same period last year[149]. Market Position and Strategy - The company maintained a leading market share of 15% in the HCM SaaS market in China for the year 2023, further widening the gap with the second competitor[11]. - The company is positioned to benefit from the ongoing digital transformation in human resource management, driven by advancements in AI and cloud computing technologies[9]. - The company has established itself as the only integrated cloud HCM solution provider in China with a unified open PaaS infrastructure[9]. - The company aims to enhance its global service capabilities and data analytics to better manage overseas talent and optimize global human resource allocation[8]. - The company aims to deepen its focus on integrated HCM SaaS opportunities targeting large clients, particularly in manufacturing and retail sectors[24]. - The strategic focus on large clients includes partnerships with major enterprises in sectors like new energy, retail, and biopharmaceuticals[26]. - The company is focusing on international product capabilities development based on its PaaS platform, supporting multiple languages, currencies, and time zones[15]. - The company will focus on supporting Chinese enterprises going global, enhancing its HCM SaaS capabilities in multilingual, multi-time zone, and multi-currency environments[47]. Product Development and Innovation - The company launched several new AI-based products, including Mr. Sen, AI Interviewer, and AI Interview Assistant, enhancing its AI Family product lineup[15]. - The AI Interviewer has successfully commercialized, with over 50 clients, and has reduced the traditional three-round interview process to one round, shortening candidate response time by 83%[28]. - The introduction of AI-based products, such as the AI Course Assistant and AI Practice Assistant, aims to automate course creation and enhance training effectiveness[34]. - The company upgraded four AI products during the reporting period, including the second-generation AI interviewer based on large language models, enhancing assessment capabilities through AIGC technology[35]. - The company is leveraging its 20 years of experience in talent management to enhance its AI capabilities and develop vertical industry models[23]. Customer Metrics and Retention - As of September 30, 2024, the annual recurring revenue from customers using at least two modules accounted for 75.0%[23]. - The company has 5,623 customers, with a subscription revenue retention rate of 107% as of September 30, 2024[24]. - The number of customers for cloud HCM solutions increased from over 5,300 to over 5,600 during the reporting period[152]. - The subscription revenue retention rate for cloud HCM solutions reached 107% during the reporting period[152]. - Core HCM integrated solution's annual recurring revenue increased by 27.6% from RMB 339.2 million to RMB 432.9 million, accounting for 55% of total revenue as of September 30, 2024[153]. - The number of Core HCM integrated solution customers grew by 272, reaching nearly 2,100, with a subscription revenue retention rate of 114%[153]. Financial Position and Assets - As of September 30, 2024, total assets amounted to RMB 1,698,326 thousand, a decrease from RMB 1,906,390 thousand as of March 31, 2024, representing a decline of approximately 10.9%[59]. - The company's equity attributable to owners was RMB 1,035,610 thousand, down from RMB 1,154,868 thousand, representing a decrease of about 10.3%[61]. - Total liabilities were RMB 662,716 thousand, a reduction from RMB 751,522 thousand, indicating a decrease of approximately 11.8%[61]. - Cash and cash equivalents increased significantly to RMB 516,636 thousand from RMB 234,101 thousand, marking an increase of approximately 120.5%[59]. - The company's debt-to-asset ratio as of September 30, 2024, was 39.0%, a slight decrease from 39.4% as of March 31, 2024[188]. Cost Management and Efficiency - The company incurred a net loss of RMB 2,777 thousand from foreign exchange for the six months ended September 30, 2024, compared to a loss of RMB 2,159 thousand in the same period of 2023[89]. - Employee benefit expenses decreased to RMB 485,901 thousand for the six months ended September 30, 2024, down 16.5% from RMB 582,254 thousand in 2023[91]. - Total sales cost reduced by 5.3% from RMB 163.5 million to RMB 154.8 million, with adjusted sales cost (excluding stock-based compensation) increasing by 3.0%[158]. - Sales and marketing expenses decreased by 17.3% from RMB 232.3 million to RMB 192.0 million, with adjusted expenses (excluding stock-based compensation) down by 3.3%[165]. - Research and development expenses decreased by 17.2% from RMB 187.0 million to RMB 154.8 million, with adjusted expenses (excluding stock-based compensation) down by 1.4%[168]. Risk Management - The company faces various financial risks, including foreign exchange risk, credit risk, and liquidity risk, and has implemented risk management procedures to mitigate potential adverse impacts on financial performance[191]. - The company ensures that foreign currency transactions are managed to maintain net risk at acceptable levels, particularly concerning HKD and RMB[192]. - Credit risk is primarily associated with cash and cash equivalents, restricted cash, and trade receivables, with a focus on transactions with reputable banks and financial institutions[194]. - The company maintains sufficient cash and cash equivalents to meet liquidity needs, regularly monitoring liquidity risk[197].

Financial Performance - Revenue for the year ended 31 March 2024 was RMB 854.7 million, representing a year-on-year increase of 13.8%[15] - Loss for the year was RMB 3,208.6 million, reflecting a year-on-year increase of 23.5%[15] - Adjusted net loss was RMB 105.4 million, showing a year-on-year decrease of 64.9%[15] - Operating cash flow for the year was RMB 82.5 million, representing a year-on-year decrease of 44.6%[23] - The company reported a net loss of RMB 3,208.6 million for the year, which is a year-on-year increase of 23.5%[20] - Adjusted net loss for the year was RMB 105.4 million, reflecting a year-on-year decrease of 64.9%[20] - The company reported a loss for the year of RMB 3,208.6 million, an increase from RMB 2,599.0 million in FY2023[181] Revenue Breakdown - Revenue from cloud-based HCM solutions was RMB 632.2 million, accounting for 74.0% of total revenue, with a year-on-year increase of 17.7%[16] - Revenue from professional services was RMB 222.5 million, representing 26.0% of total revenue, with a year-on-year increase of 4.1%[17] - Revenue from cloud-based HCM solutions accounted for 74% of total revenue, with a year-on-year increase of 17.7%, amounting to RMB 632.2 million[21][26] - Revenue from cloud-based HCM solutions increased by 17.7% from RMB 537.3 million in FY2023 to RMB 632.2 million in the Reporting Period[132] Customer Metrics - The company had over 5,500 cloud-based HCM solutions customers, achieving a subscription revenue retention rate of 106%[27] - The total number of Core HCM Integration customers reached approximately 1,900, with an ARR growth rate of 30.7%[27] - The total number of customers reached 5,532 as of March 31, 2024, showcasing the company's growth in client acquisition[75] - The number of customers for cloud-based HCM solutions grew by 8.1%, from over 5,110 as of March 31, 2023, to over 5,530 as of March 31, 2024[132] Assets and Liabilities - Total assets as of 31 March 2024 were RMB 1,906.4 million, compared to RMB 1,870.8 million in 2023[13] - Total liabilities as of 31 March 2024 were RMB 751.5 million, a decrease from RMB 10,227.4 million in 2023[13] - Equity attributable to owners of the Company was RMB 1,154.9 million as of 31 March 2024, compared to a deficit of RMB 8,356.6 million in 2023[13] - Cash and cash equivalents decreased to RMB 234.1 million as of March 31, 2024, down from RMB 408.7 million as of March 31, 2023[193] Research and Development - Beisen has invested in nearly 1,000 new functional features in its integrated HCM SaaS, focusing on customer value creation and successful commercialization of new products[36] - The company aims to maintain stable investment in R&D to enhance integrated product advantages and meet customer needs[42] - R&D expenses for the reporting period amounted to RMB 350.9 million, a year-on-year increase of 15.7% compared to RMB 303.3 million in FY2023[163] - The proportion of R&D expenses to revenue decreased from 37.9% in FY2023 to 30.2% in the reporting period[163] Market Position and Strategy - Beisen maintained its position as the top-ranking company in the IDC China HCM SaaS market for the eighth consecutive year[28] - Beisen's new three-year strategy aims to expand market share and enhance its position in the market[40] - Beisen holds a 15.3% market share in China's HCM SaaS market for the first half of 2023, maintaining its leading position for eight consecutive years[48] - The company is intensifying its focus on strategically significant sectors, particularly targeting state-owned enterprises and large-scale clients to drive growth in HCM SaaS[112] Product Development and Innovation - An explicit "AI-first" product strategy has been defined, focusing on AI recruitment, training, employee services, and leadership development[42] - The integrated HCM SaaS is advancing towards a more intelligent and data-driven direction, leveraging AI-generated content[46] - Beisen's AI Interviewer, an AI-powered solution, aims to accurately identify and nurture talent, creating a dual-driven talent innovation system[111] - The introduction of the People Analytics 3.0 product helped organizations identify areas for improving workforce performance[88] Financial Ratios and Metrics - The gross profit margin for the reporting period was 64.0%, up by 7.6 percentage points from FY2023, with cloud-based HCM solutions gross margin increasing by 3.8 percentage points to 78.8%[74] - Overall gross profit increased from RMB 415.6 million in FY2023 to RMB 514.9 million in the Reporting Period, with gross margin improving from 55.3% to 60.2%[148] - The company's gearing ratio improved to 39.4% as of March 31, 2024, compared to 546.7% as of March 31, 2023, due to the reduction of redeemable convertible preferred shares in total liabilities[194] Government Grants and Other Income - Other income totaled RMB 70.7 million, an increase of 88.9% from RMB 37.4 million in FY2023, driven by a significant rise in government grants[167] - Government grants increased from RMB 3.7 million in FY2023 to RMB 27.5 million in the reporting period, reflecting a growth of 641.9%[167]

Financial Performance - The company's revenue for the fiscal year ending March 31, 2024, was RMB 854,741,000, representing a 13.8% increase from RMB 750,914,000 in the previous year[3]. - Gross profit increased by 23.9% to RMB 514,927,000, up from RMB 415,564,000 year-over-year[3]. - Adjusted net loss (non-IFRS) improved significantly to RMB (105,366,000), a 64.9% reduction from RMB (300,555,000) in the prior year[3]. - Operating cash flow decreased by 44.6% to RMB 82,469,000 from RMB 148,795,000 in the previous year[3]. - The company reported a net loss of RMB 3,208.587 million for the year ended March 31, 2024, compared to a net loss of RMB 2,598.992 million in the previous year, reflecting an increase in losses of approximately 23.5%[30]. - The company's total assets as of March 31, 2024, amounted to RMB 1,906.390 million, a slight increase from RMB 1,870.778 million in the previous year[31]. - The company’s cash and cash equivalents decreased to RMB 234.101 million as of March 31, 2024, down from RMB 408.709 million in the previous year, indicating a decline of approximately 42.6%[31]. - The company reported a total equity of RMB 1,154,868,000, recovering from a loss of RMB 8,356,629,000 in 2023[32]. - The company recorded a loss before income tax of RMB 3,194.1 million for the reporting period, compared to RMB 2,604.9 million in FY2023[85]. Market Position and Strategy - The company maintained a market share of 15.3% in the Chinese HCM SaaS market during the first half of 2023, continuing its leadership position for eight consecutive years[6]. - The company is adjusting its target industries to capture emerging business opportunities in sectors such as retail, consumer goods, manufacturing, new energy, and infrastructure[8]. - The company is focusing on expanding its product development speed and applying generative AI models to complex HR scenarios, aiming to enhance digital talent development[8]. - The company aims to expand its market presence in China, focusing on enhancing its cloud HCM solutions and professional services[33]. - The business strategy will focus on deepening industry penetration, particularly in sectors like "Internet," "Healthcare," "Manufacturing," "Retail," and "New Energy" to drive high growth in HCM SaaS[26]. Product Development and Innovation - The company is the only integrated cloud HCM solution provider in China with a unified open PaaS infrastructure, positioning it uniquely in the market[5]. - The company launched a new comprehensive compensation 2.0 product, enhancing budget control capabilities for large enterprises[13]. - The company introduced new products focused on job qualification and talent assessment, promoting employee growth and long-term organizational development[13]. - The launch of the "Beisen AI Interviewer" represents a significant advancement in candidate evaluation, utilizing generative AI models for comprehensive assessments[14]. - The introduction of the People Analytics 3.0 product enhances organizational understanding and identifies efficiency improvement points[17]. - The company has secured 15 national invention patents, emphasizing its commitment to technological innovation in HR solutions[19]. Customer Metrics and Retention - As of March 31, 2024, the number of customers reached 5,532, with a subscription revenue retention rate of 106%[12]. - Core HCM solutions accounted for 51% of ARR, which grew by 31% compared to fiscal year 2023, with nearly 1,900 customers[13]. - The integrated recruitment and assessment product achieved an ARR contribution of 22% as of March 31, 2024[13]. - The retention rate for subscription revenue reached 106% during the reporting period[70]. - The number of cloud HCM solution customers grew by 8.1% from over 5,110 as of March 31, 2023, to over 5,530 as of March 31, 2024[70]. Financial Management and Costs - Employee costs for the year ended March 31, 2024, reached RMB 1,108,384,000, compared to RMB 940,074,000 in 2023, showing an increase of 17.9%[49]. - Sales and marketing expenses increased by 13.2% to RMB 437.8 million in FY2024, but decreased by 6.2% when excluding share-based compensation[75]. - Research and development expenses rose by 15.7% to RMB 350.9 million in FY2024, while R&D expenses excluding share-based compensation decreased by 9.5%[77]. - The company has implemented a series of service strategies to enhance overall service efficiency and provide a richer service experience for customers[11]. Corporate Governance and Compliance - The company has adopted corporate governance standards to ensure transparency and accountability since its listing on April 13, 2023[120]. - The audit committee consists of three independent non-executive directors, with Mr. Zhao Hongqiang serving as the chairman, possessing financial management expertise as per listing rules[124]. - The auditor, KPMG, confirmed that the financial statements for the year ending March 31, 2024, are consistent with the group's audited consolidated financial statements[125]. Future Outlook - The company plans to support Chinese enterprises going global by enhancing its products for multi-language, multi-time zone, and multi-currency capabilities by September 2024[23]. - The company aims to implement an all-in AI strategy, integrating generative AI with HCM SaaS to enhance talent management across various scenarios[25]. - Future outlook includes a strategic emphasis on enhancing Core HCM functionalities to meet evolving customer needs[132]. - The company plans to leverage PaaS and SaaS models to improve service delivery and customer engagement[132].

Investment Rating - The report assigns an "Invest" rating with a "Buy" recommendation for the company [1] Core Views - The company is a leader in China's cloud-based HCM (Human Capital Management) solutions market, offering a comprehensive suite of HR SaaS products through its iTalentX platform [2] - The company has experienced rapid revenue growth, with a CAGR of 18.4% from FY2019 to FY2023, reaching RMB 751 million in FY2023 [2] - The cloud-based HCM solutions market in China is expected to grow significantly, with the market size projected to reach RMB 304 billion by 2027, up from RMB 55 billion in 2021 [2] - The company has a strong customer base, with over 1,600 Core HCM integrated solution clients as of the 2024 interim report [2] - The company is actively embracing AI, collaborating with major AI model providers to develop the SenGPT human resources model, which enhances HR scenarios such as intelligent recruitment and talent management [2] Financial Performance and Valuation - Revenue is forecasted to grow from RMB 854 million in FY2024E to RMB 1,146 billion in FY2026E, with year-over-year growth rates of 13.7%, 15.1%, and 16.5% respectively [1] - Net losses are expected to narrow significantly, from RMB -3,216 million in FY2024E to RMB -112 million in FY2026E [1] - The company's P/S ratio is projected to be 4x, 3x, and 3x for FY2024E, FY2025E, and FY2026E respectively [1] - The company's gross margin is expected to improve from 55.34% in FY2023 to 65.3% in FY2026E, driven by the high-margin cloud-based HCM solutions [38] Market and Industry Analysis - China's HCM market is expected to grow from RMB 6,608 billion in 2021 to RMB 16,259 billion by 2027, with a CAGR of 16.2% [22] - The cloud-based HCM solutions market in China is growing rapidly, with the market size increasing from RMB 55 billion in 2021 to an estimated RMB 304 billion by 2027 [23] - The company holds a leading position in the HCM SaaS market, with a 15.3% market share in 2023, and is the top player in Core HR, recruitment management, and performance management SaaS segments [29] Product and Technology - The company's Core HCM integrated solution has shown strong growth, with annual recurring revenue increasing by 35.1% from RMB 251.0 million in September 2022 to RMB 339.2 million in September 2023 [33] - The company's SenGPT human resources model, developed in collaboration with AI model providers, offers intelligent services across various HR scenarios, including recruitment, talent management, and employee services [35] Customer and Business Strategy - The company has a diversified customer base across various industries, with a focus on "business-human integration" to provide seamless HR solutions [2] - The company's Core HCM integrated solution has a high customer retention rate of around 95%, with clients increasingly adopting additional HR modules for cross-selling opportunities [32]

2024年5月8日 公司研究 云端 HCM 解决方案龙头，汇聚核心人力管理 ——北森控股（9669.HK）首次覆盖报告 要点 买入（首次） 北森控股是中国最大的云端人力资源管理（HCM）解决方案提供商。公司以测 当前价：4.78港元 评服务起家，目前已经转型成为HR SaaS厂商，业务可覆盖全人力资源管理生 命周期。公司的核心竞争力在于：1）市占率领先：2016 年起，北森连续七年 作者 保持中国HCM SaaS市场第一，根据IDC，2023年上半年按照收入计算的北森 分析师：付天姿 市场份额达到 15.3%。2）行业首创：北森是行业内首个也是唯一一个提供一 执业证书编号：S0930517040002 体化云端应用程序的平台，同时也是唯一一个已构建统一开放 PaaS 平台的云 021-52523692 端HCM解决方案的供应商。 futz@ebscn.com HCM 数字化可期，云端部署成为新趋势。1）我国人力资源管理数字化转型提 升空间较大。我国数字化HCM市场规模在2021年达到189亿元，数字化率仅 联系人：杨朋沛 021-52523878 2.9%，远低于美国的 9.9%，灼识咨询预计 2027 年有 ...

智通财经APP获悉，北森控股(09669)涨超9%，截止发稿涨9.61%，报5.02港元，成交额281万港元。 据悉，根据IDC数据，北森控股在2023H1HCMSaaS市占率达15.1%，连续7年市占率维持第一，且从 2021年开始市占率持续提升，截止FY2024H1，公司客户达5300多家。公司坚持公有云订阅模式，金额 留存率达到104%，公司是行业内少有的一体化HCM软件公司，其中核心人力模块产品力较强，2023财 年公司收入7.51亿元，其中云订阅占比达72%，ARR超过7亿。 天风证券认为HCMSaaS是一条长坡厚雪的大赛道，北森是行业中的龙头企业，且竞争力在不断增强。 随着公司多模块产品售卖带来的客单价提升和新增客户数提升，预测FY2024-FY2026公司总收入分别为 8.87/10.78/13.40亿元。考虑到北森的龙头属性、港股的流动性和公司的收入中订阅费占比较高，该行给 予到2024年5X的PS，根据北森2025财年(2024年4月1日-2025年3月31日)的收入预测，给予目标市值 59.30亿港币，对应股价8.27港元。 ...

Financial Performance - Revenue increased by 14.2% to RMB 400.533 million in the first half of 2023 compared to RMB 350.766 million in the same period of 2022[8] - Gross profit rose by 25.2% to RMB 237.010 million from RMB 189.315 million year-over-year[8] - Adjusted gross profit (non-IFRS) grew by 34.4% to RMB 255.338 million compared to RMB 189.970 million in the previous year[8] - Net loss for the period significantly increased to RMB 3.058 billion, a 1,778.2% rise from RMB 162.822 million in 2022[8] - Adjusted net loss (non-IFRS) improved by 43.5% to RMB 85.920 million from RMB 152.139 million in the prior year[8] - Net cash used in operating activities decreased by 5.9% to RMB 175.166 million from RMB 186.144 million[8] - Total revenue for the six-month period ending September 30, 2023 reached RMB 400.5 million, a 14.2% increase year-over-year[14] - Cloud-based HCM solutions generated RMB 296.5 million in revenue, a 17.1% increase year-over-year, contributing 74.0% of total revenue[14] - Beisen's gross profit margin (non-IFRS) for the six-month period ending September 30, 2023 was 63.7%, up 9.5 percentage points year-over-year[14] - Cloud-based HCM solutions gross margin (non-IFRS) increased by 3.2 percentage points to 78.1%[14] - Total revenue for the reporting period was RMB400.5 million, a year-on-year increase of 14.2%, driven by cloud-based HCM solutions which contributed RMB296.5 million, up 17.1% year-on-year, accounting for 74.0% of total revenue[40] - Revenue from professional services was RMB104.0 million, a year-on-year increase of 6.7%, accounting for 26.0% of total revenue[40] - Total revenue for the reporting period was RMB 400.5 million, a year-on-year increase of 14.2%, driven by growth in cloud-based HCM solutions subscription revenue[42][44][45] - Revenue from cloud-based HCM solutions increased by 17.1% to RMB 296.5 million, accounting for 74.0% of total revenue[42][46] - Professional services revenue grew by 6.7% to RMB 104.0 million, representing 26.0% of total revenue[42][46] - The company's net loss decreased by 43.5% year-on-year to RMB 86.0 million, primarily due to proactive cost control measures[43] - Net cash used in operating activities decreased to RMB 175.2 million from RMB 186.1 million in the same period last year[43][44] - Overall gross profit rose by 25.2% to RMB 237.0 million, and the gross margin increased from 54.0% to 59.2%[52] - Adjusted gross profit (non-IFRS) increased to RMB 255.3 million, with the adjusted gross margin rising from 54.2% to 63.7%[53] - Cloud-based HCM solutions' adjusted gross profit (non-IFRS) increased to RMB 231.7 million, with the adjusted gross margin rising from 74.9% to 78.1%[54] - Professional services turned from a gross loss of RMB 0.1 million to a gross profit of RMB 12.5 million, with the gross margin improving from -0.1% to 12.0%[54] - Adjusted gross profit (non-IFRS) for professional services increased to RMB 23.6 million, with the adjusted gross margin rising from 0.3% to 22.7%[54] - Loss before income tax increased significantly to RMB 3,056.6 million from RMB 167.1 million in the same period last year[57] - Income tax expense was RMB 1.5 million, compared to an income tax credit of RMB 4.3 million in the same period last year[57] - Loss for the period increased to RMB 3,058.1 million from RMB 162.8 million in the same period last year[57] - Adjusted gross profit and adjusted net loss are used as non-IFRS measures to facilitate comparisons of operating performance, though they may not be comparable to similarly titled measures from other companies[58][59] - Adjusted gross profit (non-IFRS measure) increased by 34.4% to RMB 255.3 million in the six months ended September 30, 2023, compared to RMB 189.97 million in the same period in 2022[62] - Adjusted net loss (non-IFRS measure) decreased by 43.5% to RMB 85.92 million in the six months ended September 30, 2023, compared to RMB 152.14 million in the same period in 2022[62] Market Position and Growth - Beisen is the only integrated cloud-based HCM solutions provider in China covering all main HCM-using scenarios of the entire employment lifecycle[11] - The company has successfully built a unified and open PaaS infrastructure, enabling comprehensive and integrated multi-function solutions[11] - The cloud-based HCM solutions market in China is still fragmented with over 500 players in 2022[11] - Beisen is well-positioned to capitalize on the growth of the cloud-based HCM solutions sector supported by China's 14th Five-Year Plan[11] - Beisen holds a 15.3% market share in China's HCM SaaS market in the first half of 2023, maintaining its leading position for seven consecutive years[12][13] - Beisen's contract value in September 2023 increased by 37.0% compared to September 2022, with a 15.9% growth in contract value for the six-month period ending September 30, 2023[14] - Beisen's annual recurring revenue (ARR) from clients engaged in at least two modules stood at 71.4% as of September 30, 2023[14] - The number of Beisen's customers exceeded 5,300 as of September 30, 2023, with a subscription revenue retention rate of 104%[15] - Core HCM integration business ARR accounted for 48.4%, a 35.1% increase year-over-year, with 300 new customers secured during the reporting period[15] - As of September 30, 2023, Beisen's customer base exceeded 5,300, with a subscription revenue retention rate of 104% during the reporting period[16] - Core HCM Cloud's ARR reached 48.4% as of September 30, 2023, with a year-on-year growth of 35.1% and 300 new customers added during the reporting period[17] - Performance Management Cloud's ARR increased by 32.3% year-on-year as of September 30, 2023, with 169 new customers added during the reporting period[19] - E-Learning Cloud's ARR grew by 84.5% year-on-year as of September 30, 2023, with 130 new customers added during the reporting period[22] - E-Learning Cloud engaged over 5,000 employees across more than 1,000 chain stores nationwide, achieving a 90% training participation rate[22] - The number of cloud-based HCM solutions customers increased from over 4,900 to over 5,300, with a subscription revenue retention rate of 104%[47] - Core HCM Integration ARR grew by 35.1% to RMB 339.2 million, accounting for 48.4% of total ARR, with a subscription revenue retention rate of 114%[47] - Total bookings increased by 15.9% to RMB 482.2 million, compared to RMB 415.9 million in the same period last year[47] Product and Service Innovations - Beisen's Payroll Cloud 2.0 has enhanced payroll accounting, salary management, and budget control, enabling 100% online payroll processing for nearly 10,000 staff across eight schools, reducing tax filing time from one week to 40 minutes[16] - Beisen's recruitment system for a renowned automobile company automated the handling of thousands of on-campus recruitment CVs, improving efficiency by 30%[18] - Beisen launched AI-powered leadership coaching tool Mr. Sen and upgraded its AI Interview platform, collaborating with AI technology leaders like Baidu ERNIE Bot[23] - Beisen launched advanced workforce management products in September 2023, focusing on intelligent scheduling, lean work hours, and workforce analytics, particularly for large group companies with over 5,000 employees[26][29] - The company introduced the AI Family product suite, integrating generative AI and SenGPT large-scale manpower model into HCM SaaS, offering intelligent solutions across HR domains[31][34] Strategic Focus and Industry Targeting - Beisen is targeting key industries such as internet, healthcare, manufacturing, retail chains, and new energy, aiming to boost customer acquisition efficiency and market penetration[32][35] - The company is committed to enhancing client service efficiency through digital tools for meticulous working hours management and project cost settlement processes[33][36] - Beisen is expanding its ecosystem partnerships to provide seamless services across various HR-related scenarios like recruitment, business travel, training, and benefits[38] - The company remains committed to its 100% public cloud-based pure SaaS model, achieving sustainable growth and reducing losses despite economic challenges[39] Operational Efficiency and Cost Management - Cost of revenues, excluding share-based compensation, decreased by 9.7% to RMB 145.2 million, representing 36.3% of revenue[48] - Sales cost increased by 1.2% year-on-year to RMB 163.5 million, while adjusted sales cost (excluding share-based compensation) decreased by 9.7% to RMB 145.2 million, with the cost-to-revenue ratio dropping from 45.8% to 36.3%[50] - Gross profit for cloud-based HCM solutions increased by 18.5% to RMB 224.5 million, with a stable gross margin of 75.7%[51] - Selling and marketing expenses increased by 30.9% to RMB 232.3 million, while adjusted expenses (excluding share-based compensation) rose by 2.3% to RMB 178.4 million, with the expense-to-revenue ratio decreasing from 49.7% to 44.5%[54] - General and administrative expenses increased by 55.6% to RMB 100.2 million, while adjusted expenses (excluding share-based compensation) decreased by 4.0% to RMB 61.7 million, with the expense-to-revenue ratio decreasing from 18.3% to 15.4%[54] - R&D expenses increased to RMB 187.0 million, up 29.1% YoY, but decreased by 4.5% YoY to RMB 136.4 million after excluding share-based compensation, with the percentage of revenue dropping from 40.7% to 34.1%[56] - Net impairment losses on financial assets and contract assets rose to RMB 4.6 million, up from RMB 2.6 million in the same period last year, due to increased asset size[56] - Other income increased to RMB 31.3 million, up from RMB 17.3 million, driven by a RMB 9.2 million increase in government grants and a RMB 5.3 million increase in VAT refunds[56] - Other gains, net decreased to RMB 6.3 million from RMB 19.3 million, primarily due to a RMB 11.9 million decrease in net fair value gains on financial assets and a RMB 1.6 million increase in net foreign exchange losses[56] - Net finance income increased to RMB 3.7 million from RMB 1.4 million, driven by a RMB 1.7 million increase in finance income and a RMB 0.7 million decrease in lease liability interest expenses[56] - Fair value changes of redeemable convertible preferred shares resulted in a loss of RMB 2,810.8 million, compared to a loss of RMB 5.0 million in the same period last year, due to changes in the company's valuation[57] Financial Position and Liquidity - Cash and cash equivalents increased by 43.3% to RMB 585.8 million as of September 30, 2023, compared to RMB 408.7 million as of March 31, 2023[65] - The company's gearing ratio significantly decreased to 36.7% as of September 30, 2023, from 546.7% as of March 31, 2023, primarily due to the conversion of redeemable convertible preferred shares into ordinary shares[66] - Capital commitments for fixed assets and office renovations decreased by 52.3% to RMB 1.31 million as of September 30, 2023, compared to RMB 2.75 million as of March 31, 2023[74] - The company recorded a one-time fair value change of RMB 2.81 billion due to the conversion of redeemable convertible preferred shares into ordinary shares after the completion of the Global Offering[63][68] - The company's functional currency is USD, and it is primarily exposed to changes in HKD/RMB and USD/RMB exchange rates[76] - The company entered into foreign currency forwards for financial assets denominated in foreign currency that do not satisfy hedge accounting requirements[77] - The company had unutilized banking facilities of RMB 40.0 million as of September 30, 2023[65] - The company did not have any material contingent liabilities as of September 30, 2023[67][72] - The company's maximum exposure to credit risk is represented by the carrying amounts of cash and cash equivalents, restricted cash, term deposits, trade receivables, and other receivables[80][84] - The company manages credit risk by transacting only with state-owned financial institutions in China or reputable banks and financial institutions with high credit quality in China, Hong Kong, and the United States[81][85] - The company's trade receivables and contract assets are subject to ongoing credit evaluations, with the main exposure being the carrying value of these assets at each reporting date[83] - The company's other receivables are assessed for recoverability based on historical settlement records and past experience, with impairment measured as twelve-month expected credit losses[83] - The company aims to maintain sufficient cash and cash equivalents to meet liquidity requirements and regularly monitors liquidity risk[86][87] - As of 30 September 2023, the company did not recognize any redeemable convertible preferred shares, as all such shares were automatically converted to ordinary shares after the completion of the Global Offering on 13 April 2023[88] - The company did not pledge any assets as of 30 September 2023[89] - The company's wealth management products had an aggregated outstanding principal amount of RMB993.5 million as of 30 September 2023, representing 53.2% of the company's total assets[91] - The outstanding principal amount of wealth management products subscribed from Bank of China was RMB694.0 million, with a fair value of RMB701.4 million, accounting for 37.6% of the company's total assets as of 30 September 2023[91] - The expected return rate for the wealth management products from Bank of China ranged from 1.1% to 3.5%[91] - No assets were pledged as of September 30, 2023[92] - The total unredeemed principal amount of wealth management products was RMB 993.5 million, accounting for 53.2% of the company's total assets[92] - The unredeemed principal amount of wealth management products from Bank of China was RMB 694.0 million, with a fair value of RMB 701.4 million, representing 37.6% of the company's total assets[92] - The expected return rate of Bank of China's wealth management products ranged from 1.1% to 3.5%[92] Human Resources and Employee Management - The company had 1,901 employees as of September 30, 2023, a decrease from 2,295 employees in the same period last year[98] - Total staff costs for the reporting period were RMB 582.3 million[98] - The company did not have plans for material investments and capital assets as of September 30, 2023[97] - No material acquisitions, disposals of subsidiaries, associates, or joint ventures occurred during the reporting period[95] Corporate Governance and Compliance - The company complied with all code provisions of the Corporate Governance Code since its listing date[104] - No incidents of non-compliance with the Model Code by employees were noted since the listing date[105] - The company's public float complies with the requirements of Rule 8.08 of the Listing Rules as of the report date[119] - The interim financial information for the six months ended 30 September 2023 was reviewed by PricewaterhouseCoopers in accordance with International Standard on Review Engagement 2410[113] Shareholder and Equity Information - Mr. Wang holds a long position of 81,054,370 shares, representing 11.33% of the total shareholding[134] - Mr. Ji holds a long position of 80,644,370 shares, representing 11.27% of the total shareholding[134] - Ms. Liu holds a long position of 1,112,160 shares, representing 0.16% of the total shareholding[134] - Total issued shares as of 30 September 2023 are 715,297,060[134] - Zhaosen Holding Limited is deemed to be interested in 81,054,370 shares, with Mr. Wang, Ark Trust (Singapore) Ltd., Sen Talent Holdings Limited, and Huisen Holding Limited having indirect interests[135] - Mr. Wang was granted 1,500,000 options under the Pre-IPO Share Option Plan on 1 March 2023, and directly held 4,200 shares as of 30 September 2023[136] - Ms. Zhou Dan, Mr. Wang's spouse, was granted 783,410 options on 1 January 2019, all exercised, and 1,277,160 options on 1 March 2023, which were not vested[136] - Weisen Holding Limited owns 80,644,370 shares, with Mr. Ji, Ark Trust (Singapore) Ltd., Sen Platform Holdings Limited, and Guosen Holding Limited deemed to have interests in these shares[136] - Ms. Liu was granted 2,843,150 options, including 1,730,990 exercised options and 1,