Financial Performance - Huitongda Network Co., Ltd. reported a significant increase in revenue, achieving a total of RMB 1.2 billion, representing a year-on-year growth of 25%[36] - The company reported total revenue of RMB 39.89 billion for the six months ended June 30, 2022, representing a year-on-year growth of 33.1%[44] - Revenue from the commerce business reached RMB 39.49 billion, accounting for 99.0% of total revenue, with a year-on-year increase of 32.7%[44] - Adjusted net profit attributable to equity shareholders was RMB 187 million, reflecting a year-on-year increase of 57.7%[47] - The overall sales revenue from the service business was RMB 364 million, reflecting a year-on-year increase of 117.2%[52] - The service business revenue increased by 117.2% from RMB167,820 thousand to RMB364,447 thousand, primarily driven by SaaS+ subscriptions and merchant solutions[78] - The revenue from the SaaS+ subscription business grew significantly by 259.0% compared to the same period last year[79] - Adjusted net profit (non-IFRS measures) for the six months ended June 30, 2022, was RMB291.5 million, representing a 49.1% increase from RMB195.5 million in the same period of 2021[115] User Growth and Engagement - The user base expanded to 5 million active users, reflecting a 30% increase compared to the previous period[36] - New product launches contributed to a 15% increase in user engagement metrics, indicating strong market reception[36] - Total SaaS+ subscription users reached 110,781, up 55.1% from the previous year[45] - Paid SaaS+ users surged to 27,065, representing a remarkable growth of 179.7%[45] Market Expansion and Strategy - Huitongda plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[36] - The company is exploring potential acquisitions to bolster its service offerings and market reach, with a budget of RMB 500 million allocated for this purpose[36] - The Group aims to enhance its service capabilities through the SaaS+ strategy, focusing on supply chain, advertising, and logistics services[65] - The Group is investing in IT R&D to improve digital capabilities across the entire supply chain and support differentiated external interfaces[65] Financial Management and Investments - The company is investing RMB 200 million in R&D for new technologies aimed at enhancing user experience and operational efficiency[36] - The total allocated amount across all categories is RMB 1,782 million, with RMB 130 million used and RMB 1,652 million remaining[177] - The Company received HK$2,185.0 million of net proceeds from the initial public offering of H Shares, contributing to increased bank deposits and interest income[104] - As of June 30, 2022, cash and cash equivalents amounted to RMB4,501.1 million, up from RMB2,966.9 million as of December 31, 2021, indicating strong liquidity[121] Cost Management and Profitability - The gross profit margin improved to 35%, up from 30% in the previous year, indicating better cost management[36] - Gross profit for the period was RMB 1.15 billion, with a year-on-year growth of 49.1%[44] - The Group's cost of revenue rose by 32.7% from RMB29,203.4 million to RMB38,744.4 million for the six months ended June 30, 2022[86] - Selling and marketing expenses surged by 93.7% from RMB319.6 million to RMB619.1 million, with the proportion of these expenses in revenue rising from 1.1% to 1.6%[93] Corporate Governance and Compliance - The Company has maintained compliance with the corporate governance code since its listing date, ensuring shareholder interests and corporate accountability[149][151] - The Company has adopted a model code for securities transactions, ensuring compliance by all directors and supervisors throughout the reporting period[152] - The Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2022[181] Shareholder Information - The interests of directors and executives in the Company include 39,516,334 H Shares (21.92% of H Shares) and 114,439,526 Domestic Shares (29.93% of Domestic Shares) held by Chairman Wang Jianguo[158][159] - Executive Director and CEO Xu Xiuxian holds 18,295,661 H Shares (10.15% of H Shares) and 52,984,339 Domestic Shares (13.86% of Domestic Shares)[158][160] - As of June 30, 2022, Alibaba (China) Network Technology Co., Ltd. held 24,915,812 H Shares, representing approximately 13.82% of the relevant class of Shares and 4.43% of the total issued Shares of the Company[165] Future Outlook - The company anticipates a revenue growth forecast of 20% for the next quarter, projecting total revenue to reach RMB 1.44 billion[36] - In the second half of the year, the company aims to upgrade supply chain capabilities and explore cooperation with top upstream brand manufacturers[63]

Financial Performance - Huitongda Network reported a revenue of RMB 1.5 billion for the year, representing a year-on-year increase of 25%[8]. - The company achieved a net profit of RMB 300 million, up 15% compared to the previous year[8]. - Revenue for 2021 reached RMB 65,763,174, an increase of 32.5% from RMB 49,629,135 in 2020[30]. - Gross profit for 2021 was RMB 1,867,966, up 39.0% from RMB 1,344,511 in 2020[30]. - Adjusted net profit for 2021 was RMB 500,441, a significant increase of 55.5% from RMB 322,148 in 2020[30]. - The adjusted net profit attributable to shareholders amounted to RMB 327.61 million, reflecting a year-on-year growth of 66.4%[41]. - The company reported a loss attributable to equity shareholders of RMB 349,881 for 2021, an improvement from a loss of RMB 405,287 in 2020[30]. - The company recorded a loss for the year of RMB 177.0 million in 2021, an improvement from a loss of RMB 279.9 million in 2020[94]. User and Market Expansion - User base expanded to 10 million active users, reflecting a growth of 20% year-on-year[8]. - Huitongda Network aims to enter three new regional markets in 2022, targeting a market share increase of 10%[8]. - The company plans to enter two new regional markets in the next quarter, which is expected to contribute an additional RMB 300 million in revenue[151]. - The company aims to increase its market share by 5% in the upcoming year through targeted marketing campaigns and partnerships[153]. Investment and Development - The company plans to invest RMB 200 million in new product development and technology enhancements in the upcoming year[8]. - The company is investing RMB 200 million in research and development for new technologies aimed at enhancing user experience and operational efficiency[150]. - The company has identified potential acquisition targets that could enhance its service offerings and market presence[8]. - The company completed a strategic acquisition of a local tech firm for RMB 500 million, enhancing its technological capabilities and market reach[152]. Operational Efficiency - The company is focusing on enhancing its logistics capabilities to improve service efficiency and customer satisfaction[8]. - Inventory turnover days improved to 14 days, a decrease of 6 days year-on-year[45]. - The gross profit margin improved to 40%, up from 35% in the previous year, reflecting better cost management and pricing strategies[149]. - The company plans to enhance gross profit margin and strengthen cooperation with top brands as part of its "Year of Quality" strategy for 2022[40]. Strategic Focus and Future Outlook - Future guidance indicates expected revenue growth of 30% for the next fiscal year[8]. - The management emphasized a commitment to sustainable practices in its operations and supply chain[8]. - The company aims to deepen and strengthen its supply chain and enhance member store construction as part of its core strategy moving forward[34]. - The Group will focus on the goal of "guaranteeing growth and improving quality" in 2022 amid complex domestic and foreign environments[188]. Leadership and Governance - The company has a strong leadership team with extensive experience in retail and corporate management, enhancing its strategic decision-making capabilities[145]. - Mr. Wang Jianguo has over 20 years of experience in retail business and corporate management, having served as the chairman and president of Jiangsu Five Star Appliance Co., Ltd. from December 1998 to February 2009[137]. - Mr. Zhao Liangsheng has been the Chief Financial Officer since January 2013, overseeing the Group's financial affairs and corporate governance[146]. - The Company considers all independent non-executive directors to be independent, as confirmed annually[156]. Employee and Training Initiatives - The Group employed a total of 4,460 employees as of December 31, 2021[106]. - The Group provides a comprehensive training program to its employees to ensure they acquire necessary skills and professional ethics[190]. - The Group participates in mandatory employee social security schemes in accordance with PRC laws, covering various types of insurance[190]. Environmental and Social Responsibility - The Group is not exposed to significant environmental risks and faced no fines for non-compliance with environmental regulations during the reporting period[188]. - The Group's environmental policy and performance details are included in the environmental, social, and governance reports issued in due course[188].