Financial Performance - For the year ended December 31, 2022, the company's main business revenue was RMB 924.2 million, a decrease of 22.9% compared to RMB 1,198.0 million in 2021[3]. - The company's adjusted profit for the year was RMB 196.0 million, with an adjusted profit margin of 21.2%, down from 25.2% in 2021[3]. - The total revenue and income decreased by 22.9% from RMB 1,198.0 million in 2021 to RMB 924.2 million in 2022[21]. - The gross profit for the same period was RMB 774,535 thousand, down from RMB 927,250 thousand, reflecting a gross margin decline[58]. - Adjusted profit for the year ended December 31, 2022, was RMB 196.0 million, compared to RMB 301.6 million for the year ended December 31, 2021[39]. - The annual loss decreased from RMB 12,990.7 million for the year ended December 31, 2021, to RMB 21.9 million for the year ended December 31, 2022[37]. - The company reported a pre-tax profit of RMB 17,942 thousand, a significant recovery from a pre-tax loss of RMB 12,915,271 thousand in 2021[58]. - The net loss for the year was RMB 21,855 thousand, a substantial improvement compared to a net loss of RMB 12,990,673 thousand in the previous year[59]. Customer and Market Metrics - The number of core enterprise customers increased by 83.9% to 401 in 2022, compared to 218 in 2021[4]. - The total number of partners rose by 63.5% to 1,110 in 2022, up from 679 in 2021[4]. - The company maintained a customer retention rate of 96% in 2022, slightly down from 97% in 2021[4]. - The company ranked first in market share among third-party supply chain financial technology solution providers in China, with a market share of 20.6%[8]. - The company processed supply chain asset transactions exceeding RMB 5 billion across nine industries in 2022, including real estate and infrastructure[17]. Revenue Breakdown - The total revenue from core enterprise cloud decreased by 25.3% to RMB 503.8 million in 2022, primarily due to pricing adjustments and structural changes[22]. - The total revenue from financial institution cloud decreased by 21.8% to RMB 362.6 million in 2022, attributed to a decline in the number of supply chain assets processed[22]. - Revenue from cross-border cloud services increased by 29.0% to RMB 34.8 million for the year ended December 31, 2022, compared to RMB 27.0 million for the year ended December 31, 2021[23]. - Revenue from SME credit technology solutions decreased by 28.8% to RMB 23.1 million for the year ended December 31, 2022, down from RMB 32.4 million for the year ended December 31, 2021[23]. - The group's revenue from supply chain fintech solutions for the year ended December 31, 2022, was RMB 866,341,000, a decrease of 24% from RMB 1,138,645,000 in 2021[69]. Research and Development - The company's R&D investment reached RMB 351.1 million in 2022, a 26.6% increase year-over-year, accounting for 38.0% of total revenue[9]. - Research and development expenses increased to RMB 351,118 thousand from RMB 277,409 thousand, indicating a focus on innovation despite overall revenue decline[58]. - R&D expenses increased by 26.6% to RMB 351.1 million for the year ended December 31, 2022, from RMB 277.4 million for the year ended December 31, 2021[26]. Financial Position - The company's cash and cash equivalents totaled RMB 5.9 billion as of December 31, 2022, ensuring a solid financial position for future growth[10]. - The outstanding balance of supply chain assets funded by the company's own capital was RMB 2,588.5 million as of December 31, 2022[41]. - The company's capital-to-debt ratio as of December 31, 2022, was 0.6%, down from 12.9% as of December 31, 2021, indicating a substantial improvement in financial leverage[46]. - The company had unused bank credit facilities of RMB 9,950.0 million as of December 31, 2022[45]. - Cash and cash equivalents increased by RMB 803.5 million to RMB 5,731.4 million as of December 31, 2022, compared to RMB 4,927.9 million as of December 31, 2021[43]. Operational Challenges and Future Outlook - The company faced challenges due to macroeconomic pressures, but identified long-term growth opportunities in supply chain finance and digital transformation[7]. - The company expects the overall market to gradually recover in 2023 due to policy support and industry demand rebound[15]. - The company plans to expand its collaboration with financial institutions in 2023 to regain growth in the e-chain cloud business[15]. - The company aims to enhance the efficiency of the supply chain financial technology solutions to alleviate financing difficulties for SMEs and drive economic recovery[19]. - The company plans to continue expanding its supply chain financial technology solutions and innovative data-driven solutions in both domestic and international markets[64]. Employee Metrics - The total number of employees as of December 31, 2022, was 981, with 604 in R&D, 156 in sales and marketing, and 221 in general administration[49]. - Total employee costs increased to RMB 479,492 thousand in 2022 from RMB 424,132 thousand in 2021, representing a growth of approximately 13%[1]. Corporate Governance and Compliance - The company has complied with all corporate governance code provisions during the reporting year, with a noted exception regarding the roles of the Chairman and CEO being held by the same individual[51]. - The company did not declare or pay any dividends for the years ended December 31, 2022, and 2021, but the board recommended a special dividend of HKD 0.25 per ordinary share, subject to shareholder approval[88]. Asset and Liability Management - The total amount of supply chain assets for small and medium-sized enterprise credit technology solutions was RMB 150,709 thousand, with a significant increase from the previous period[101]. - The overdue amounts for supply chain assets as of December 31, 2022, included RMB 3,535 thousand overdue for 1 to 90 days, RMB 17,800 thousand overdue for 90 days to 1 year, and RMB 16,696 thousand overdue for 1 to 2 years[103]. - The total liabilities, including current and non-current, amounted to RMB 1,809,857 thousand as of December 31, 2022, compared to RMB 681,390 thousand in 2021, reflecting a substantial increase[110].

Financial Performance - Total revenue for the six months ended June 30, 2022, was RMB 510,468,000, a decrease of 3.1% compared to RMB 526,572,000 in 2021[7] - Adjusted profit for the period (non-IFRS) was RMB 127,951,000, down 16.0% from RMB 152,279,000 in the previous year[7] - The company's main business revenue for the first half of 2022 was RMB 510.5 million, a decrease of 3.1% from RMB 526.6 million in the first half of 2021[15] - Operating profit for the six months ended June 30, 2022, was RMB 90.8 million, down from RMB 157.7 million in the same period of 2021[40] - The company reported a profit of RMB 35.2 million for the six months ended June 30, 2022, compared to a loss of RMB 13,032.9 million for the same period in 2021[61] - For the six months ended June 30, 2022, the adjusted profit was RMB 127.951 million, a decrease from RMB 152.279 million in the same period of 2021, representing a decline of approximately 15.9%[64] Gross Profit and Margins - Gross profit increased by 4.2% to RMB 424,033,000, with a gross margin of 83.1%, up from 77.3% in the previous year[7] - Gross profit for the first half of 2022 was RMB 424.0 million, an increase of 4.2% from RMB 406.9 million in the first half of 2021, with a gross margin rising to 83.1%[15] - The gross profit for the six months ended June 30, 2022, was RMB 424,033,000, compared to RMB 406,884,000 for the same period in 2021, representing an increase of 4.2%[144] Customer Metrics - The number of core enterprise customers rose by 31% to 285, compared to 218 in the previous year[9] - Customer retention rate decreased to 95% from 97% in the previous year[9] - The number of financial institution partners increased by 6% to 308, up from 291 in the previous year[9] - The company maintained a high customer retention rate of 95% in the first half of 2022, with 62% of new clients being referrals from existing customers or partners[15] Supply Chain Assets and Technology Solutions - The total amount of supply chain assets processed by the company's technology solutions reached RMB 115,898.3 million, an increase of 13.8% from RMB 101,823.7 million in 2021[13] - In the first half of 2022, the total transaction volume processed by the company's technology solutions reached RMB 115.9 billion, a year-on-year increase of 13.8% compared to RMB 101.8 billion in the same period of 2021[15] - The total supply chain assets processed by the company's supply chain financial technology solutions reached RMB 110.7 billion, a year-on-year increase of 13.0%[19] - The total supply chain assets processed through the core enterprise cloud amounted to RMB 61.5 billion, reflecting a growth of 21.4% year-on-year[20] - The total supply chain assets processed through the Financial Institution Cloud in the first half of 2022 amounted to RMB 49.2 billion, representing a year-on-year growth of 4.1%[23] Research and Development - Research and development investment reached RMB 160.2 million in the first half of 2022, an increase of 33.3% year-on-year, accounting for 31.4% of revenue and earnings[34] - Research and development expenses rose by 33.3% to RMB 160.2 million, primarily due to an increase in the number of employees and related costs[49] - Research and development expenses accounted for RMB 114,111 thousand, representing a 22.7% increase from RMB 93,016 thousand in the previous year[146] Market Outlook and Strategy - The company aims to expand its market presence and enhance its technology solutions to drive future growth[12] - The company anticipates a market rebound in the second half of 2022 due to policy support and a recovery in market demand[25] - The company aims to diversify its customer base and reduce reliance on the real estate sector, especially in light of recent downturns[39] - The company plans to optimize internal resource allocation, focusing on high-growth areas such as multi-level circulation cloud and e-chain cloud[39] Financial Position and Cash Flow - The company's cash and cash equivalents increased to RMB 5,285.4 million as of June 30, 2022, up from RMB 4,927.9 million at the end of 2021, marking an increase of RMB 357.5 million[69] - The company's borrowings amounted to RMB 1,767.0 million as of June 30, 2022, compared to RMB 1,190.3 million at the end of 2021, reflecting an increase of approximately 48.4%[71] - The equity-to-debt ratio was 18.4% as of June 30, 2022, up from 12.9% at the end of 2021, indicating a shift in the company's capital structure[73] - The company reported a net cash inflow from operating activities of RMB 93,603 thousand for the six months ended June 30, 2022, compared to a net cash outflow of RMB 1,661,412 thousand for the same period in 2021[127] Corporate Governance - The board is committed to high levels of corporate governance to safeguard shareholder interests and enhance corporate value[79] - The company has complied with all applicable provisions of the corporate governance code during the reporting period, with the exception of the separation of roles between the Chairman and CEO[80] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the six months ended June 30, 2022[83] - The corporate governance committee has ensured compliance with the corporate governance code and reviewed the company's governance policies and practices[86] Shareholder Structure and Equity Incentives - As of June 30, 2022, Mr. Song holds 269,239,647 Class A shares and 10,008,029 Class B shares, representing approximately 57.23% of the voting rights in the company[88] - The company emphasizes the potential risks associated with its dual-class share structure, where the interests of different voting rights beneficiaries may not align with those of other shareholders[88] - Major shareholders include Cabnetvic with 82.76% of Class A shares, Tencent Holdings with 16.86% of Class B shares, and CITIC Capital Holdings with 11.16% of Class B shares[97] - The 2019 equity incentive plan allows for the issuance of up to 174,618,156 Class B shares, with 122,565,086 restricted share units granted to 393 employees, representing approximately 5.33% of the company's issued share capital[104] Legal and Compliance - The company has not been involved in any significant litigation or arbitration during the reporting period[109] - The company will report its compliance with the latest corporate governance code in the corporate governance report for the year ending December 31, 2022[80]

Financial Performance - Total revenue for the year ended December 31, 2021, was RMB 1,198,013,000, representing a 16.5% increase from RMB 1,028,541,000 in 2020[7] - Gross profit for the year was RMB 927,250,000, with a gross margin of 77.4%, up from 61.3% in the previous year, indicating a 16.1 percentage point increase[7] - Adjusted profit for the year (non-IFRS) was RMB 289,440,000, a 50.4% increase from RMB 192,482,000 in 2020[7] - The company reported a significant loss attributable to equity shareholders of RMB (12,991,790,000), compared to a loss of RMB (717,056,000) in the previous year, marking a 1,711.8% increase in losses[7] - The company's gross profit for 2021 was RMB 927.3 million, up from RMB 630.4 million in 2020[36] - Operating profit for 2021 was RMB 318.0 million, slightly down from RMB 320.4 million in 2020[36] - The net loss for the year escalated from RMB 715.5 million in 2020 to RMB 12,990.7 million in 2021[55] - The adjusted profit for the year ended December 31, 2021, was RMB 289.4 million, compared to RMB 192.5 million in 2020, reflecting a year-over-year increase of 50.4%[58] - The adjusted EBITDA for the year ended December 31, 2021, was RMB 554.8 million, up from RMB 395.2 million in 2020, representing a growth of 40.4%[59] Customer Metrics - The number of core enterprise customers increased by 101.9% to 218 from 108 in 2020, while the total number of core enterprises rose by 97.4% to 679[8] - Customer retention rate was 97%, slightly down from 99% in 2020, while net expansion rate decreased to 93% from 112%[8] - The total number of financial institution partners increased by 44.1% to 291 from 202 in 2020[8] - The company served over 670 core enterprises by the end of 2021, including 36 of China's top 100 enterprises[19] - The number of new core enterprise customers increased to 113 in 2021, up 101.9% from 108 in 2020, with significant expansion into 18 out of 31 industry categories[20] Revenue Breakdown - Supply chain financial technology solutions revenue was RMB 1,138,645,000, a 23.7% increase from RMB 920,823,000 in 2020[7] - Emerging solutions revenue decreased by 44.9% to RMB 59,368,000 from RMB 107,718,000 in the previous year[7] - Revenue from core enterprise cloud solutions rose by 42.1% from RMB 474.8 million in 2020 to RMB 674.7 million in 2021, driven by an increase in supply chain asset volume[38] - Revenue from financial institution cloud solutions increased by 4.0% from RMB 446.0 million in 2020 to RMB 463.9 million in 2021, despite a decrease in product pricing[38] - Revenue from cross-border cloud solutions grew by 6.4% from RMB 25.4 million in 2020 to RMB 27.0 million in 2021, supported by an increase in supply chain asset volume[39] - Revenue from SME credit technology solutions decreased by 60.7% from RMB 82.4 million in 2020 to RMB 32.4 million in 2021 due to a strategic reduction in financing amounts[39] Operational Efficiency - The total transaction volume processed by the company's technology solutions increased by 50.7% from RMB 171.4 billion in 2020 to RMB 258.3 billion in 2021[14] - The company's supply chain financial technology solutions processed a total supply chain asset volume of RMB 248.4 billion in 2021, a 51.7% increase from RMB 163.8 billion in 2020[17] - The automation rate for asset processing and review stages in the AMS cloud business reached 94%, with 79 out of 84 stages supported by AI[30] Research and Development - Research and development expenses increased to RMB 277.4 million in 2021, accounting for 23.2% of total revenue and 43.8% of all operating expenses[30] - Research and development expenses surged by 167.4% from RMB 103.7 million in 2020 to RMB 277.4 million in 2021, primarily due to increased headcount and related costs[42] - The company aims to enhance R&D investment to strengthen technological leadership and integrate AI, blockchain, and big data into supply chain finance solutions[35] Strategic Initiatives - The company plans to continue expanding its product offerings and enhancing customer collaboration within the supply chain ecosystem[16] - The company is focused on international expansion to become a leading global provider of supply chain financial technology solutions[16] - The company plans to accelerate overseas expansion and explore innovative models in supply chain finance, with a new subsidiary established in Singapore[35] - The company has established Linklogis International Company Limited in March 2019 in Hong Kong to expand its overseas business operations[138] Corporate Governance - The board of directors consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[197] - The company is committed to maintaining high standards of corporate governance through the appointment of qualified independent directors[158] - The company has a dual-class share structure, with Class A shares having ten votes per share and Class B shares having one vote per share, allowing significant control by certain shareholders[163] Shareholder Information - As of December 31, 2021, the beneficial owner of the different voting rights, Mr. Song, indirectly held 269,866,906 Class A shares and 9,380,770 Class B shares, representing approximately 57.22% of the voting rights for matters other than reserved matters[163] - Tencent Holdings Limited holds 342,121,980 Class B shares, representing 16.82% of the total[172] - The company has a significant number of shares held by various controlled corporations and trusts, indicating a complex ownership structure[175] Risks and Challenges - The group faces various risks, including credit risk related to supply chain financial technology solutions[80] - The company is subject to risks related to its contractual arrangements, including potential penalties from the Chinese government if found non-compliant with foreign investment regulations[129] - The company’s business operations in China are heavily influenced by the regulatory environment, which poses significant uncertainties[131] Miscellaneous - The company made charitable donations of RMB 1 million for the year ended December 31, 2021[94] - The company has not been involved in any significant litigation or arbitration as of December 31, 2021[190] - There have been no significant events affecting the company since the end of the reporting period[149]

Financial Performance - Total revenue for the six months ended June 30, 2021, was RMB 526,572 thousand, a slight decrease of 0.3% compared to RMB 528,188 thousand in the same period of 2020[7]. - Revenue from supply chain financial technology solutions increased by 4.1% to RMB 493,554 thousand, up from RMB 474,230 thousand in 2020[7]. - Gross profit rose by 31.1% to RMB 406,884 thousand, with a gross margin of 77.3%, up from 58.8% in the previous year, representing an increase of 18.5 percentage points[7]. - The adjusted profit for the period (non-IFRS) was RMB 152,279 thousand, an increase of 81.4% from RMB 83,969 thousand in 2020, with an adjusted profit margin of 28.9%[7]. - The company reported a substantial loss attributable to equity shareholders of RMB 13,033,313 thousand, compared to a loss of RMB 288,734 thousand in the same period last year, marking an increase of 4,414%[7]. - The company reported a total comprehensive loss of RMB (279,191) thousand for the six months ended June 30, 2021, compared to a total comprehensive loss of RMB (278,958) thousand for the same period in 2020[116]. - Basic and diluted loss per share was RMB 11.06, compared to RMB 0.78 in the same period last year[108]. Customer Metrics - The number of core enterprise partners increased by 37.5% to 473, compared to 344 in the previous year[8]. - Customer retention rate decreased to 97% from 99% in the previous year[8]. - The number of core enterprise clients for the supply chain fintech solutions increased by 36.1% to 147, while financial institution clients grew by 15.3% to 98[13]. - The customer retention rate reached 97% in the first half of 2021, indicating strong customer loyalty and product usage[13]. Asset Management - Total supply chain assets processed by the company's technology solutions reached RMB 97,949 million, a 36.6% increase from RMB 71,697.9 million in 2020[11]. - The outstanding balance of self-financed transactions facilitated by the SME credit technology solutions was RMB 282.9 million as of June 30, 2021, a decrease of 10.4% from RMB 315.8 million at the end of 2020[20]. - The total amount of supply chain assets for small and medium-sized enterprise credit technology solutions reached RMB 282,927 thousand, with a book value of RMB 300,802 thousand[155]. Research and Development - R&D investment increased, with technical staff rising from 397 to 537, accounting for 67.5% of total employees[23]. - The company filed 40 new patent applications and 9 software copyright applications in the first half of 2021[23]. - R&D expenses increased by 147.2% to RMB 120.1 million for the six months ended June 30, 2021, compared to RMB 48.6 million in the prior year[33]. - The R&D expenses for the six months ended June 30, 2021, were RMB 93,016,000, significantly higher than RMB 33,975,000 in the same period of 2020, reflecting a focus on innovation[130]. Strategic Initiatives - The company is actively pursuing a multi-product strategy and enhancing R&D for new products and technologies to capture structural growth opportunities in supply chain finance[17]. - The company launched a new "Supply Chain Central Control Platform" solution to enhance supply chain data integration for core enterprises and their partners[17]. - The company proposed a joint venture with Standard Chartered to establish a digital trade financing platform, enhancing international growth strategy[25]. - The company is actively registering trademarks outside of China to promote its business internationally[95]. Financial Position - The total cash and cash equivalents increased from RMB 587.3 million on December 31, 2020, to RMB 4,433.0 million as of June 30, 2021, primarily due to net proceeds from a global offering[59]. - The capital-to-debt ratio as of June 30, 2021, was 22.1%, reflecting a stable financial position compared to the previous period[62]. - The company’s total liabilities decreased to RMB 1,543,612 thousand as of June 30, 2021, from RMB 2,710,037 thousand as of December 31, 2020, reflecting a reduction of approximately 43%[167]. Governance and Compliance - The company has complied with all corporate governance codes since its listing, ensuring accountability and shareholder protection[68]. - The governance committee has ensured compliance with corporate governance policies and regulations, including insider trading and board diversity policies[72]. - The company emphasizes the potential risks associated with investing in companies with different voting rights structures, as the interests of different voting rights beneficiaries may not align with those of all shareholders[75]. Market Presence - The company was included in the Hang Seng Composite Index and other indices effective September 6, 2021, enhancing its market visibility[61]. - The company went public on April 9, 2021, with B shares listed on the Hong Kong Stock Exchange[194]. - The company successfully completed its IPO on April 9, 2021, on the Hong Kong Stock Exchange, raising significant capital for future expansion[173]. Shareholder Structure - The company has a dual-class share structure, with Class A shares having ten votes per share and Class B shares having one vote per share[75]. - The ownership structure indicates significant control by major shareholders, including Tencent and CITIC Capital, impacting strategic decisions[86]. - As of June 30, 2021, Mr. Song holds 273,171,564 Class A shares, representing 57.12% of the voting rights, and 4,998,612 Class B shares, representing 0.24% of the voting rights[75].