Core Viewpoint - The Chinese government emphasizes the importance of expanding domestic demand as a long-term strategy to drive economic growth amidst increasing external uncertainties [1] Company Strategy - Huitongda Network (09878) is actively seizing the opportunity presented by the national strategy to expand domestic demand, optimizing its business structure since 2024 to promote sustainable and high-quality development [2] - The company has significantly improved its gross margin from 3.3% in 2023 to 3.8% in 2024, with the second half of 2024 reaching a high of 4.3%, reflecting a 23% quarter-on-quarter increase [2] - Huitongda Network has maintained positive operating cash flow for six consecutive years, indicating a strengthening of its financial health [2] Customer Structure Improvement - The company focuses on enhancing member store density and loyalty by targeting 21 provinces, 25,000 towns, and over 248,000 member stores, while advancing its AI+ strategy to drive internal growth [3] - Huitongda Network anticipates an increase in member store numbers and transaction scale, projecting a rise from 39% in 2023 to 44% in 2024 in terms of member store transaction scale [3] Supply Chain Enhancement - The company is implementing three major projects to improve supply chain capabilities, including enhancing partnerships with top brands and developing its own brand ecosystem [3] - Huitongda Network aims to increase its gross margin through these strategies, with plans to expand strategic cooperation with 5-10 top brands by 2025 [3] Growth Outlook - Huitongda Network is positioned to enter a new growth cycle, driven by a dual growth engine of "internal and external" strategies, targeting a compound annual revenue growth rate of no less than 10% and a net profit growth rate of no less than 30% over the next three years [4] - The company plans to initiate a dividend plan by 2025 to enhance shareholder returns, indicating a focus on long-term growth and profitability [4] Market Position - The company's stock price has adjusted to a relatively low level, presenting a potential historical opportunity for a bottom reversal, supported by strong growth momentum and favorable policies [5] - The anticipated dividend plan will allow investors to benefit from the company's high-quality growth [5]

Core Insights - The company reported a gross margin increase of 0.5 percentage points to 3.8% for the fiscal year 2024, with a net profit of 460 million RMB and positive operating cash flow for six consecutive years [1] - Membership store density and engagement improved, with registered member stores increasing by 5% to 248,000 and active member stores exceeding 95,000 [1] - The company shifted its operational strategy from scale-oriented to profit and cash flow-oriented, resulting in a 15% increase in overall gross margin and a 2% decrease in expenses as a percentage of gross profit [1] Financial Performance - The company achieved a net profit of 460 million RMB for the year 2024 [1] - Operating cash flow has been positive for six consecutive years [1] - The overall gross margin increased by 15% year-on-year, while the expense-to-gross profit ratio decreased by 2% [1] Strategic Initiatives - The company is focusing on "transformation and innovation, quality improvement, and efficiency enhancement" to drive strategic upgrades [1] - It has optimized its supply chain structure and adjusted its operational orientation to promote high-quality development [1] - The company is expanding its omnichannel operations, achieving sales of 3.6 billion RMB through new channels by the end of 2024 [1] Digital Transformation - The company is accelerating its AI + SaaS foundational layout, enhancing digital capabilities in customer acquisition, supply chain collaboration, and management efficiency [2] - The "QianCheng Cloud SaaS+" platform has integrated mainstream large models and launched applications like "AI Employee" [2] - The company aims to enhance the efficiency of the entire supply chain through its AI Agent initiatives [2] Future Outlook - The company plans to maintain a profit and cash flow-oriented development strategy in 2025, focusing on increasing membership store density and customer value [2] - It aims to improve the proportion of top brand procurement and its own brand and new product categories to drive steady growth in gross margin [2] - The company is positioned to re-enter a growth cycle by enhancing its operational strategies and digital capabilities [2]

Financial Performance - For the fiscal year ending December 31, 2024, the company achieved a revenue of RMB 60.059 billion, with a gross margin of 3.8%, an increase of 0.5 percentage points year-on-year, and a net profit of RMB 462 million[4]. - In 2023, the company's revenue was RMB 82,432.5 million, which decreased by 27.1% compared to 2024's revenue of RMB 60,059.3 million[22]. - The trading business segment's revenue fell from RMB 81,618.1 million in 2023 to RMB 59,269.5 million in 2024, representing a decline of 27.4%[24]. - The revenue from consumer electronics in 2024 was RMB 34,883.1 million, down 22.3% from RMB 44,887.9 million in 2023[23]. - Total revenue for the year ended December 31, 2024, was RMB 60,059,328 thousand, a decrease of 27% compared to RMB 82,432,520 thousand in 2023[50]. - Gross profit for 2024 was RMB 2,308,895 thousand, down from RMB 2,739,724 thousand in 2023, reflecting a decline in gross margin[50]. - Operating profit decreased to RMB 597,925 thousand in 2024 from RMB 794,013 thousand in 2023, representing a decline of approximately 25%[50]. - Net profit for the year was RMB 461,769 thousand, a decrease of 34% from RMB 697,299 thousand in 2023[51]. - Basic and diluted earnings per share for 2024 were both RMB 0.49, down from RMB 0.80 in 2023[50]. Membership and Store Performance - The total number of registered member retail stores reached 248,560, representing a year-on-year growth of 4.8%, while active member retail stores increased to 95,111, up 4.9%[13]. - The total number of SaaS+ subscription users decreased to 107,929, a decline of 18.1% year-on-year, with paid SaaS+ users at 38,172, down 20.6%[13]. Strategic Initiatives - The company has established over 10 proprietary brands across various sectors, including major appliances and beauty products, enhancing its vertical integration from production to consumption[7]. - The company has deepened collaborations with leading brands such as Apple and Siemens, strengthening resource factory partnerships to enhance operational efficiency[8]. - The company plans to enhance its supply chain capabilities by establishing strategic partnerships with over 100 leading brands and aims to develop 5 to 10 additional top brands in high-growth categories by 2025[19]. - The company will focus on AI-driven efficiency improvements and digital capabilities, enhancing member store density and engagement across 21 provinces and 25,000 towns by 2025[20]. - The company aims to implement a new strategy focusing on "new categories, new channels, and new models" to drive industry upgrades and expand market boundaries by 2025[21]. Operational Efficiency - The company has focused on high-value new consumption demands, driving the development of new categories, models, and channels, forming a new industrial cluster[9]. - The company has upgraded its digital infrastructure, integrating multiple software products into a standardized digital platform to enhance customer transaction experiences[15]. - AI applications have been implemented, including smart customer service and AI-driven marketing, significantly improving operational efficiency and customer satisfaction for retail stores[16]. - The gross profit margin improvement reflects the company's strategic shift from scale-driven to profit and cash flow-oriented operations[5]. Cash Flow and Financial Management - The company reported an operating cash inflow of RMB 275 million, indicating strong cash flow management amidst market changes[4]. - Cash and cash equivalents decreased from RMB 3,748.9 million to RMB 2,781.3 million, indicating sufficient operating funds[42]. - Net cash generated from operating activities was RMB 275,278 thousand, down from RMB 470,810 thousand in 2023[54]. Cost Management - Cost of revenue decreased by 27.5% to RMB 57,750.4 million, with gross profit down 15.7% to RMB 2,308.9 million, leading to an increase in gross margin from 3.3% to 3.8%[27]. - Sales and marketing expenses decreased by 22.1% to RMB 1,075.4 million, representing 1.8% of revenue[28]. - R&D costs fell by 28.3% to RMB 67.1 million, attributed to improved efficiency and a reduction in R&D personnel[31]. Shareholder Returns and Governance - The company is committed to creating sustainable returns for shareholders and society by driving efficiency through technology and creating value through supply chain improvements[21]. - The company did not recommend any dividends for the years ended December 31, 2024, and 2023[84]. - The audit committee reviewed the financial statements for the year ended December 31, 2024, ensuring compliance with accounting standards[93]. - The company maintained compliance with corporate governance codes throughout the reporting period[91]. Miscellaneous - The company has received multiple honors, including ranking 296th in the "China Top 500 Enterprises" and 26th in the "Top 100 Internet Comprehensive Strength Enterprises" in 2024[17]. - The company operates primarily in China, with all revenue and non-current assets generated from this region[66]. - The company approved the Restricted Share Unit Plan on November 28, 2022, allowing for the issuance of up to 5% of the total issued H shares as restricted share units[80].

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company is focusing on three major supply chain strategies to enhance efficiency and is integrating DeepSeek to accelerate its intelligent upgrade [3] - The company is actively developing its own brand portfolio, which is expected to further improve profitability [9] Financial Summary - Revenue for 2023 is projected at 82,433 million RMB, with a growth rate of 3% compared to the previous year [7] - Net profit for 2023 is estimated at 448 million RMB, reflecting a 10% increase year-on-year [7] - The company has adjusted its forecast for net profit for 2024-2026 to 312 million, 588 million, and 839 million RMB respectively, with growth rates of -30%, 89%, and 43% [9] Strategic Initiatives - The three supply chain strategies include: 1. "Brand Express Project" focusing on meeting brand-preferred demands through a digital tool [9] 2. "Own Brand Ecosystem Project" aimed at creating a flexible supply chain to meet cost-effective demands [9] 3. "Open Smart Supply Chain Platform Project" designed to cater to long-tail demands in rural markets [9] - The company has launched a cluster of self-owned brands across four major categories, enhancing user engagement and competitive advantage [9] Technology Integration - The company has fully integrated its self-developed "Qiancheng Cloud SaaS+" platform with DeepSeek, which has led to significant reductions in operational costs and improved efficiency [9]

Financial Performance - The company reported a consolidated profit of RMB 500 million for the six months ended June 30, 2024, representing a 15% increase compared to the same period last year[50]. - Revenue for the six months ended June 30, 2024, was RMB 32,855,766, a decrease of 24.3% compared to RMB 43,376,803 for the same period in 2023[15]. - Profit attributable to equity shareholders for the period was RMB 229,269, down 40.1% from RMB 382,957 in 2023[15]. - The profit attributable to equity shareholders of the Company amounted to approximately RMB 0.13 billion, representing a year-on-year decrease of 49.0%[19]. - The overall gross profit margin improved to 3.5%, an increase of 0.5 percentage points compared to the same period last year[19]. - Gross profit for the period was RMB 1,142,231, representing 3.5% of total revenue, a decline of 11.7% from RMB 1,293,539 in the previous year[15]. - Basic earnings per share for the period was RMB 0.23, compared to RMB 0.44 for the same period last year[163]. - Total comprehensive income for the period was RMB 229,298, down from RMB 382,948 in 2023[165]. Revenue and Sales - Revenue from commerce business was RMB 32,385,207, accounting for 98.6% of total revenue, down 24.7% from RMB 42,989,790 in 2023[15]. - Revenue from member retail stores increased to 43.8% from 35.6% for the same period last year[19]. - In the first half of 2024, the Group recorded total revenue of approximately RMB 32.86 billion, representing a year-on-year decrease of 24.3%[19]. - Revenue from the service business increased by 12.0% year-on-year, totaling RMB 384,499,000 for 2024 compared to RMB 343,162,000 for 2023[52]. - SaaS+ subscription revenue grew by 13.6% year-on-year, reaching RMB 306,849,000 in 2024, driven by enhanced customer service capabilities[53]. User and Market Growth - User data showed a growth of 20% in active users, reaching 10 million by June 30, 2024[50]. - Total number of registered member retail stores increased to 246,287, a growth of 13.2% from 217,592 in the previous year[16]. - Number of active member retail stores rose to 92,493, reflecting a 19.3% increase compared to 77,514 in 2023[16]. - Total number of SaaS+ subscription users reached 127,363, up 5.1% from 121,209 in the previous year[16]. - Paid SaaS+ users increased to 47,887, marking a significant growth of 28.8% from 37,182 in 2023[16]. Strategic Initiatives - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by the end of 2025[50]. - The Group focused on building independent supply chain capacity and deepening cooperation with leading brands across various sectors[22]. - The Group aims to enhance corporate operation capability and risk management in the second half of 2024, laying the foundation for achieving strategic objectives over the next five years[36]. - The Group plans to optimize its digital product matrix and provide customized services for large enterprises and SaaS services for SMEs[42]. - The Group will continue to attract industry-leading talents to support breakthroughs in new industries and models[42]. Cost Management and Efficiency - The management discussed plans to enhance operational efficiency, aiming for a 5% reduction in costs by the end of 2024[50]. - Selling and marketing expenses decreased by 8.0% to RMB 572,554,000 in 2024, representing 1.7% of revenue[59]. - Administrative and other operating expenses fell by 7.2% to RMB 160,052,000 in 2024, accounting for 0.5% of revenue[61]. - Research and development expenses increased by 18%, totaling RMB 80 million, focusing on innovative technologies[50]. - Research and development costs decreased by 15.8% to RMB 38,600,000 in 2024, reflecting improved efficiency in R&D capabilities[66]. Financial Position and Cash Flow - The company reported a cash flow of RMB 200 million, reflecting a strong liquidity position[58]. - Net cash generated from operating activities was RMB 125,087, a decrease of 49.0% from RMB 245,128 in the previous year[15]. - Cash and cash equivalents amounted to RMB 3,473.5 million and RMB 3,748.9 million as at June 30, 2024 and December 31, 2023, respectively[69]. - The net cash generated from operating activities for the six months ended June 30, 2024, was RMB 248,976,000, a decrease of 58% from RMB 599,597,000 in the same period of 2023[190]. - The net decrease in cash and cash equivalents for the six months ended June 30, 2024, was RMB (275,288) thousand, compared to an increase of RMB 590,238 thousand for the same period in 2023[192]. Shareholder and Corporate Governance - The Company has been listed on the "Fortune China 500" for three consecutive years, indicating its strong market position[33]. - The Company granted a total of 4,842,500 RSUs on April 6, 2023, representing approximately 0.86% of the total issued shares and 2.69% of the total H Shares as of the Latest Practicable Date[126]. - The Company’s RSU Scheme allows the Board to determine vesting criteria and conditions during its validity[126]. - The Company does not issue or allot additional new Shares in connection with the RSU grants, ensuring no dilution effect on existing shareholders[128]. - The Company has established an audit committee consisting of three independent non-executive directors[138]. Compliance and Audit - The independent auditor's review confirmed the accuracy of the financial statements, ensuring compliance with regulatory standards[48]. - The interim financial report was authorized for issue on August 28, 2024, and prepared in accordance with International Accounting Standard 34, ensuring compliance with relevant regulations[197]. - The independent auditor's review did not identify any issues that would suggest the interim financial report is not prepared in accordance with International Accounting Standard 34[159]. - The Company is in compliance with the relevant provisions of the Listing Rules and International Accounting Standards for the preparation of the interim financial report[155].

Investment Rating - The report maintains a Neutral rating for the company, with a target price adjusted to HKD 21.00 from HKD 30.00, indicating a potential upside of 3.7% [1][3]. Core Insights - The company's performance in the first half of 2024 was under pressure due to organizational restructuring and strategic adjustments, leading to a projected 14% year-on-year decline in revenue for the full year [1][2]. - Despite the short-term challenges, the company is expected to recover in 2025, with revenue and profit projected to increase by 17% and 53% year-on-year, respectively, reaching historical highs [1][2]. - The gross margin is expected to improve, with a forecasted gross margin of 3.5% for 2024, up 0.5 percentage points year-on-year, driven by optimization of product categories and reduction of low-efficiency businesses [2][5]. Financial Performance Summary - For the first half of 2024, the company reported revenue of RMB 32.856 billion, a decrease of 24% year-on-year, primarily due to a contraction in market demand and strategic adjustments [2][5]. - The adjusted net profit for the first half of 2024 was RMB 1.3 billion, corresponding to a net profit margin of 0.4% [2][5]. - The company’s trading business saw a revenue decline of 25%, while service business revenue increased by 12% [2][5]. - The forecast for 2024 includes total revenue of RMB 71.218 billion, a decrease of 16.5% from previous estimates, with a projected operating profit of RMB 603 million [3][9]. Revenue Breakdown - The trading business is expected to generate RMB 70.381 billion in 2024, down 16.7% from previous forecasts, while service business revenue is projected at RMB 737 million [3][9]. - The company aims to focus on deepening brand partnerships and expanding into new categories such as cleaning and new energy products [2][5].

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，概不會就本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Huitongda Network Co., Ltd. 匯通達網絡股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：9878） 截至2024年6月30日止六個月中期業績公告 匯通達網絡股份有限公司董事會欣然宣佈，本公司及其附屬公司截至2024年6月 30日止六個月之未經審計合併中期業績。該等業績乃根據適用的上市規則披露要 求及國際會計準則第34號中期財務報告編製，並已經審計委員會審閱。本公告符 合上市規則中有關中期業績初步公告附載的資料要求。 本公告內的「我們」指本公司，倘文義另有所指，則指本集團。 摘要 財務概覽 截至6月30日止六個月 2024年 2023年 佔收入 佔收入 | --- | --- | --- | --- | --- | --- | |--------------------------|------------|--------|------------|--- ...

Investment Rating - The report assigns a "Buy" rating for 汇通达网络 (9878 HK) with a target price of HK$30.00, indicating a potential upside of 31.0% from the current price of HK$22.90 [3][4]. Core Insights - 汇通达网络 is committed to returning at least 15% of its distributable profits as cash dividends to shareholders over the next three years (2024-2026) [1]. - The company is focusing on a production and sales integration strategy and expanding its overseas operations, particularly in Southeast Asia and Central Asia [2]. - The company aims for a 30% profit growth target for the year, despite short-term revenue pressures due to industry adjustments and external factors such as the price reduction of Apple smartphones [2]. Summary by Sections Business Development - As of June 2024, the company has 240,000 registered member stores and 90,000 active member stores, representing year-on-year growth of 12% and 19% respectively. The average procurement amount per store remains at RMB 350,000 [1]. - Revenue from member stores has increased to 44% in the first five months of 2024, up from 35% in the same period last year [1]. - The company has improved its profit structure by increasing its own brand offerings, with the headquarters supply chain accounting for 51% of total sales, and the average gross margin for key product categories rising by 21% year-on-year [1]. Sector Performance - In the consumer electronics sector, smartphone sales have benefited from price reductions by Apple, with expectations of recovery in the second half of the year due to supportive sales policies from brands [1]. - The home appliance sector faces short-term growth challenges but is focusing on developing its own brands, such as the air conditioning brand 阿尔蒂莎, which has already received initial orders [1]. - The new energy transportation sector is expanding into new car sales, used car sales, and battery recycling, along with new photovoltaic-related businesses [1]. - The agricultural inputs sector is experiencing a downturn, with price and sales declines in fertilizers and pesticides, prompting a strategic reduction in general fertilizer scale [1]. - In daily chemical products, the company plans to deepen cooperation with cleaning brands and launch its own household cleaning products [1]. Overseas Expansion - The company is leveraging its supply chain capabilities to expand into Southeast Asia and Central Asia, with a focus on aligning products with local consumer habits [2]. - The partnership with 极兔 is expected to enhance its market presence in Southeast Asia, supported by the existing network of its affiliate, 五星控股 [2].

匯通達網絡股份有限公司 HUITONGDA NETWORK CO., LTD. （於中華人民共和國註冊成立的股份有限公司） (A joint stock company incorporated in the People’s Republic of China with limited liability) 股份代號 Stock Code : 9878 2023 ANNUAL REPORT 年報 匯通達網絡股份有限公司 目目錄錄 CCoonntteennttss 2 公司資料 Corporate Information 5 釋義 Definitions 9 財務摘要及運營參數 Financial Summary and Operating Metrics 11 董事長致辭 Chairman’s Statement 18 管理層討論與分析 Management Discussion and Analysis 34 董事、監事及高級管理人員 Directors, Supervisors and Senior Management 47 董事會報告 Report of the Board 81 監事會報告 Rep ...

股 票 研 究 [Table_industryInfo] 批零贸易业 [ Table_Main[汇I Tnaf 通bol]e 达_Ti网tle]络 （9878） [评Tab级le_：Inv est] 增持 当前价格（港元）： 30.80 强化底层能力建设，拥抱长期发展韧性 2024.04.07 海 ——汇通达网络 2023 年年报点评 [ 交Ta易bl数e_M据a rket] 外 刘越男(分析师) 陈笑(分析师) 52周内股价区间（港元） 25.00-34.40 当前股本（百万股） 563 公 021-38677706 021-38677906 当前市值（百万港元） 17,327 司 liuyuenan@gtjas.com chenxiao015813@gtjas.com 证书编号 S0880516030003 S0880518020002 （ [ Table_PicQuote] 中 本报告导读： 52周内股价走势图 国 公司进一步提升供应链建设及会员服务能力，业务结构优化利好长期健康稳定发展。 汇通达网络 恒生指数 香 14% 摘要： 港 6% [维Ta持ble增_S持um。m2a0r2y3] 年营收824 ...