Core Insights - The core update of "Qiancheng AI Super Store Manager" by Huitongda Network includes the launch of 9 Agent assistants, enhancing various operational scenarios from product procurement to community promotion and conversion [1][4] Group 1: AI Assistant Features - The newly launched 9 Agent assistants facilitate tasks such as intelligent product recommendations, promotional activity creation, and multimedia content generation through voice commands [4][5] - The "AI Designer" allows store owners to create promotional posters with a single command, streamlining marketing efforts [2][4] Group 2: Strategic Implementation - Huitongda's "AI + SaaS" strategy is being effectively implemented, with a focus on optimizing services and product functionalities for member stores [1][5] - The upcoming "Analysis Agents" aim to leverage data insights to guide store owners in operational strategies and promotional activities, enhancing customer conversion and retention [5] Group 3: Data Utilization - The integration of self-developed industry models with mainstream models like Alibaba Tongyi and DeepSeek allows for personalized and precise responses from the Agent assistants, improving their effectiveness over time [5]

Group 1 - The company announced a share repurchase plan with a maximum amount of RMB 500 million, intending to buy back up to 10% of its issued H shares, which equates to 18,026,633 shares, reflecting management's confidence in the company's future prospects and long-term investment value [1] - The company is a leading industrial internet platform in China that empowers rural family stores through digital technology and supply chain capabilities, focusing on the "AI+ strategy" to enhance its operations [1] - The company aims to deepen its efforts in three main areas: "AI+ industrial platform," "AI+ SaaS," and "AI+ smart terminals," to achieve a digital upgrade across the entire supply chain from factories to member stores [1] Group 2 - In February, the company was the first in the industry to integrate mainstream large models like DeepSeek and launched "AI employees" [2] - In April, the company officially released its AI+ strategy and product matrix, including the self-developed "Qiancheng Cloud AI Smart Model" and "Qiancheng AI Super Store Manager" app [2] - The new version of the "Qiancheng AI Super Store Manager" was released on June 5, enhancing AI capabilities and supporting conversational interactions for more efficient store management [2]

Financial Performance - The company reported a revenue of RMB 1.2 billion for the fiscal year, representing a year-over-year increase of 15%[10]. - The company reported a total revenue of RMB 60.06 billion for the year ended December 31, 2024, a decrease of 27.0% compared to RMB 82.43 billion in 2023[11]. - The company achieved a net profit of RMB 461.77 million for the year, down from RMB 697.30 million in 2023[11]. - Net profit decreased by 33.8% to RMB 461.8 million in 2024, down from RMB 697.3 million in 2023[56]. - The company reported a net profit margin of 18%, an improvement from 15% in the previous year[10]. - Cash flow from operations increased by 30% to RMB 400 million, indicating strong operational efficiency[10]. - The effective tax rate slightly decreased from 12.5% in 2023 to 11.1% in 2024, with income tax expenses falling by 42.4% to RMB 57.5 million[52][53]. User and Market Growth - User data showed an increase in active users to 5 million, up 20% from the previous year[10]. - The number of registered retail member stores reached 248,560, representing a year-over-year growth of 4.8%[12]. - Active retail member stores increased to 95,111, up 4.9% from the previous year[12]. - The total number of SaaS and subscription users was 107,929, a decrease from 131,810 in 2023[12]. Strategic Initiatives - The company provided guidance for the next fiscal year, expecting revenue growth of 10% to 12%[10]. - Market expansion efforts are focused on Southeast Asia, with a target of entering three new countries by the end of the fiscal year[10]. - The company is investing RMB 200 million in R&D for AIaaS technologies over the next two years[10]. - 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[30][31]. - The company is focusing on new growth strategies, including new product categories, channels, and business models, to enhance market resilience and expand its ecosystem[34]. Acquisitions and Partnerships - The company completed an acquisition of a local tech firm for RMB 500 million to enhance its service offerings[10]. - The company acquired 100% equity of Nanjing Haoxiangjia Engineering Technology Co., Ltd. and has profit commitments for the fiscal years ending December 31, 2023, 2024, and 2025, with promised net profits of RMB 64.78 million, RMB 77.80 million, and RMB 83.97 million respectively[183]. Technology and Innovation - The company is focusing on AI applications, enhancing its SaaS+ platform with features like AI-driven marketing and customer service, which is expected to improve operational efficiency and customer satisfaction[27]. - The company is committed to leveraging technology to drive efficiency and create value in the supply chain, aligning with its mission to improve the lives of farmers[35]. Financial Management and Capital Structure - Cash and cash equivalents decreased to RMB 2.78 billion from RMB 3.75 billion in 2023[11]. - The company's capital debt ratio as of December 31, 2024, was 14.5%, calculated as total borrowings divided by equity[70]. - The group’s bank loans and other borrowings amounted to RMB 1,297.7 million as of December 31, 2024, primarily at fixed interest rates[122]. Governance and Leadership - Mr. Sun Chao has been appointed as Executive Director since February 2023 and has extensive experience in retail operations management[84]. - The company has seen significant leadership changes, with various board members bringing diverse expertise in investment and corporate management[85][86][90]. - The management team has a strong academic background, with degrees from prestigious institutions such as Fudan University and the University of Pennsylvania[87][89]. - The company is committed to improving its governance structure by including independent non-executive directors with extensive industry experience[88][90]. Risks and Compliance - Major risks include the potential loss of existing customers or failure to attract new ones, which could adversely affect financial conditions and business operations[111]. - The company has not faced significant environmental risks and has not incurred fines or penalties for non-compliance with environmental regulations during the reporting period[114]. - The company has confirmed compliance with the disclosure requirements of the Listing Rules regarding related party transactions for the fiscal year ending December 31, 2024[187]. Employee and Social Responsibility - The group employed 3,845 full-time employees, with a gender distribution of approximately 49.08% male and 50.92% female[115]. - The company made charitable donations totaling approximately RMB 23,000 for the year ending December 31, 2024[151]. - The group is committed to maintaining and promoting employee diversity, particularly gender diversity, as part of its sustainable development goals[115]. Shareholder Information - The board of directors has decided not to recommend a final dividend for the year ending December 31, 2024, consistent with the previous year[110]. - The total number of issued shares is 562,569,837, comprising 180,266,339 H-shares and 382,303,498 domestic shares[179]. - The total percentage of shares held by major shareholders, including Alibaba and its affiliates, indicates significant control over the company[180].

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].

现在有请主持人开始发言，谢谢。对投资者大家晚上好，非常感谢大家参加我们今天的电 话会。我们今天非常有幸请到了汇通达网络的李总来跟大家进行交流。互通达可以说也是 AI 相关标的的一个核心的这样的一个标的了。那么今天的这个电话会照以往一样待会儿先 麻烦公司领导介绍一下，就公司资金的一个情况，后面的话会给各位投资者也有问答的这 个时间。李总要不您先帮我们再更新一下公司最近的一些情况。 发言人 3 0:00:42 好的，谢谢越南总，各位线上的投资者，大家晚上好啊。非常荣幸今天通过国君的电话会 议平台，跟大家针对汇通达网络最近的一些情况来进行交流因为汇通达网络是一家在香港 主板上市的上市公司，估计可能很多机构的领导对汇通达还不是特别的了解，我用几分钟 的时间简单的把汇通达的情况向各位领导做一个简单的介绍。汇通达网络我们的公司总部 是在江苏南京。公司的创始人是最早创办了五星电器，有三位联合创始人，因为是汪建国 是我们的董事长，另外一个是总裁徐秀贤，还有一个是集团的总裁王建宙。 所以我们配送到店之后，大家如果熟悉农村生活场景的话，就会知道有可能就是谁路过这 个小店就自己把东西拿回去了。或者这个小店骑个电瓶车就给你送货上门了 ...

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].

Financial Performance - Total revenue for the six months ended June 30, 2024, was approximately RMB 32.86 billion, a decrease of 24.3% compared to RMB 43.38 billion in the same period of 2023[2] - The trading business segment generated revenue of RMB 32.39 billion, accounting for 98.6% of total revenue, down 24.7% year-on-year[2] - The company reported a net profit attributable to shareholders of RMB 125.09 million, a decline of 49.0% from RMB 245.13 million in the previous year[2] - Revenue from the self-operated business decreased by 24.7% to RMB 32,385 million for the six months ending June 30, 2024, compared to RMB 42,988 million for the same period in 2023[14] - Revenue from the consumer electronics segment fell by 15.5% to RMB 19,528 million, while the home appliance segment saw a decline of 34.2% to RMB 4,314 million[14] - The agricultural production materials segment's revenue dropped by 38.7% to RMB 4,140 million, influenced by a complex international economic environment[14] - Net profit for the six months ended June 30, 2024, was RMB 229.3 million, a decline of 40.1% compared to RMB 383.0 million in the same period last year[26] - Basic earnings per share for the six months ended June 30, 2024, was RMB 0.23, compared to RMB 0.44 in 2023, representing a decline of approximately 47.7%[36] Membership and Customer Engagement - The total number of registered retail store members increased to 246,287, representing a growth of 13.2% year-on-year[3] - Active retail store members reached 92,493, up 19.3% from 77,514 in the same period last year[3] - Cumulative SaaS+ subscription users exceeded 127,000, up 5.1% year-on-year, with paid SaaS+ users nearing 48,000, an increase of 28.8%[8] - The group hosted 6 national promotional events in the first half of 2024, covering personalized activities across 27,000 stores[8] Operational Efficiency and Cost Management - The company achieved a gross margin of 3.5%, an increase of 0.5 percentage points compared to the same period last year[4] - The group's cost of revenue decreased by 24.6% to RMB 31,713.5 million, while gross profit fell by 11.7% to RMB 1,142.2 million, primarily due to a decline in revenue[18] - Sales and marketing expenses decreased by 8.0% to RMB 572,554 thousand, representing 1.4% of revenue, indicating improved organizational efficiency[19] - Administrative and other operating expenses fell by 7.2% to RMB 160,052 thousand, mainly due to cost reduction measures[20] - Research and development costs decreased by 15.8% to RMB 38.6 million, as the group improved its R&D efficiency[22] Strategic Initiatives and Future Plans - The company is actively expanding into new industries and high-margin product categories, including home cleaning and personal care products[7] - The company aims to enhance supply chain capabilities and focus on high-margin categories, particularly in the home appliance and personal care sectors[31] - The integration of production and sales processes is expected to improve operational efficiency and product quality through data-driven market insights[32] - The company plans to expand its B2B digital service platform and enhance its SaaS offerings for small and medium enterprises[34] - The group plans to deepen its strategic transformation and industry upgrade in the second half of 2024, focusing on enhancing operational capabilities and risk management[30] Shareholder and Corporate Governance - The company was included in the MSCI Global Small Cap Index, attracting more global investor attention and diversifying its shareholder structure[11] - The company has adopted corporate governance codes to enhance shareholder rights and corporate accountability[80] - The company has complied with the corporate governance code throughout the reporting period[80] - The interim financial report for the six months ending June 30, 2024, was reviewed by KPMG according to the relevant standards[83] Assets and Liabilities - As of June 30, 2024, total assets amounted to RMB 28,400,691 thousand, an increase from RMB 27,449,473 thousand as of December 31, 2023[39] - The company's total liabilities increased to RMB 20,649,576 thousand as of June 30, 2024, from RMB 19,316,777 thousand as of December 31, 2023, indicating a rise of approximately 6.9%[40] - The net current assets decreased to RMB 7,751,115 thousand as of June 30, 2024, from RMB 8,132,696 thousand as of December 31, 2023, a decrease of approximately 4.7%[40] Miscellaneous - The company did not recommend any dividend payments during the reporting period[73] - There were no significant post-reporting period events affecting the group as of the announcement date[84] - The company clarified that the net profit of Nanjing Haoxiangjia Engineering Technology Co., Ltd. for the year ending December 31, 2023, was approximately RMB 55.765 million, which did not meet the committed net profit of RMB 64.775 million[85]

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching RMB 1.2 billion in the latest fiscal year[9]. - Revenue for the year ended December 31, 2023, reached RMB 82,432.52 million, a slight increase from RMB 82,105.99 million in 2022[35]. - Revenue from commerce business was RMB 81,618.10 million, compared to RMB 81,177.33 million in the previous year[35]. - Gross profit for 2023 was RMB 2,739.72 million, up from RMB 2,588.10 million in 2022, reflecting a gross margin improvement[35]. - Operating profit increased to RMB 794.01 million from RMB 714.65 million in 2022, indicating operational efficiency[35]. - Profit attributable to equity shareholders of the Company was RMB 448.28 million, compared to RMB 316.38 million in the prior year[35]. - The Group achieved operating revenue of RMB 82.43 billion in 2023, representing a year-on-year increase of 0.4%[44]. - Profit attributable to equity shareholders of the Company was RMB 448 million, reflecting a year-on-year growth of 41.7%[44]. - The adjusted net profit for 2023 was RMB 697.3 million, an increase of 7.3% from RMB 649.6 million in 2022[95]. - The adjusted net profit attributable to equity shareholders for 2023 was RMB 448.3 million, representing a growth of 9.8% from RMB 408.2 million in 2022[99]. User Growth and Market Expansion - User data showed a growth of 20% in active users, totaling 5 million by the end of the reporting period[9]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[9]. - The total number of registered member retail stores exceeded 237,000, a year-on-year growth of 15.0%[47]. - The number of active member retail stores surpassed 90,000, with a year-on-year increase of 19.1%[47]. - Total SaaS+ subscription users reached approximately 132,000, up 15.6% year-on-year, with paid SaaS+ users exceeding 48,000, a growth of 61.4%[47]. Strategic Initiatives - New product launches contributed to a 25% increase in sales in the last quarter, with three major products introduced[9]. - A strategic acquisition of a local competitor was completed, expected to enhance market penetration and operational efficiency[9]. - The Group conducted over 456 joint promotional events with 35 core brand factories to enhance operational efficiency for member retail stores[47]. - The Group aims to enhance the value of its digital platform by optimizing vertical industrial Internet platforms and developing AI high-value products[62]. - The Group plans to deepen strategic cooperation with partners to explore broader market opportunities and improve operational efficiency[67]. Financial Management and Cost Control - The company aims to improve its gross margin by 5% through cost optimization strategies in the upcoming year[9]. - Research and development expenses increased by 18%, focusing on innovative technologies and product enhancements[9]. - Selling and marketing expenses increased by 1.8% from RMB 1,356.4 million in 2022 to RMB 1,380.8 million in 2023, maintaining a stable proportion of revenue[82]. - Administrative and other operating expenses decreased by 6.8% from RMB 401.3 million in 2022 to RMB 373.8 million in 2023, attributed to improved digital capabilities and personnel structure adjustments[85]. - Research and development costs decreased by 17.4% from RMB 113.2 million in 2022 to RMB 93.5 million in 2023, due to prior significant investments in digital infrastructure[87]. Corporate Governance and Management - The Company is committed to maintaining high standards of corporate governance and transparency in its operations[171]. - The management team emphasizes the importance of technological leadership and innovation in driving future growth[163]. - The Company aims to enhance its operational efficiency and financial performance through improved management practices and strategic oversight[166]. - The Company is focused on corporate governance, with Ms. Ni overseeing governance practices since September 2023[192]. - The Company has multiple subsidiaries under the management of senior executives, enhancing operational efficiency and market reach[190]. Employee Incentives and Performance Targets - The Group's equity incentive plan granted approximately 4.84 million RSUs to 494 employees, with a key vesting condition of a year-on-year increase in net profit of no less than 30%[53]. - The RSU Scheme aims to recognize contributions from eligible persons, attract talent, and align their interests with the Group's long-term development goals[108]. - The company aims for a net profit growth of no less than 30% for shareholders in 2023, 2024, and 2025[129]. - The vesting criteria for the RSUs will be determined by the Board or its delegatee while the RSU Scheme is in force[109]. - The fair value of the RSUs granted on April 6, 2023, was based on the closing price of HK$31.15, while the price before the grant was HK$31.10[124]. Cash Flow and Financial Position - Cash and cash equivalents decreased to RMB 3,748.94 million from RMB 4,082.24 million in the previous year[35]. - Net cash inflow from operating activities reached RMB 471 million, marking an increase of 80.1% year-on-year[44]. - The company's gearing ratio as of December 31, 2023, was 7.4%, indicating a normal range for business vitality and market exploration[137]. - The company has structured deposits and wealth management products pledged for bills payable amounting to RMB 1,810.2 million as of December 31, 2023[134]. - The company has no specific plans for material investments or acquisitions of capital assets as of December 31, 2023[137].

Revenue and Profit Performance - Revenue for 2023 reached RMB 82.43 billion, a year-on-year increase of 0.4%[2] - Revenue in 2023 increased slightly to RMB 82,432.5 million from RMB 82,106.0 million in 2022, representing a marginal growth[11] - Revenue for 2023 was RMB 82,432.5 million, slightly up from RMB 82,105.9 million in 2022[31] - Total revenue for 2023 reached RMB 82,432,520 thousand, with a slight increase from RMB 82,105,987 thousand in 2022[47] - Net profit attributable to equity holders of the company was RMB 448.275 million, up 41.7% year-on-year[2] - Net profit attributable to equity holders surged by 41.7% to RMB 448.3 million in 2023, up from RMB 316.4 million in 2022[21] - Net profit attributable to equity holders was RMB 448.3 million in 2023, up from RMB 316.4 million in 2022[31] - Profit attributable to equity holders of the company increased to RMB 448,275 thousand in 2023 from RMB 316,378 thousand in 2022[62] - Adjusted net profit for 2023 was RMB 697.3 million, a 7.3% increase from RMB 649.6 million in 2022[22] - Adjusted net profit attributable to equity holders was RMB 448.3 million in 2023, up 9.8% from RMB 408.2 million in 2022[23] Business Segments and Revenue Breakdown - The transaction business segment revenue grew by 0.5% to RMB 81,618.1 million in 2023, with consumer electronics showing a significant increase of 19.0%[12][13] - The service business segment revenue decreased by 17.6% to RMB 654.7 million in 2023, primarily due to a 64.5% decline in merchant solutions[15] - Transaction business segment contributed RMB 81,618,095 thousand in revenue, while the service business segment contributed RMB 654,719 thousand[53] - Total revenue for 2023 was RMB 2,488,862 thousand, a decrease of 16.8% compared to RMB 2,992,653 thousand in 2022[73] Gross Profit and Margin - Gross profit increased by 5.9% to RMB 2,739.7 million in 2023, with the gross margin slightly improving to 3.3% from 3.2% in 2022[16] - Gross profit increased to RMB 2,739.7 million in 2023 from RMB 2,588.1 million in 2022[31] - Gross profit rose to RMB 2,588,101 thousand post-restatement, compared to RMB 2,496,846 thousand previously[42] Operating Profit and Expenses - Operating profit rose to RMB 794.0 million in 2023 from RMB 714.7 million in 2022[31] - Operating profit increased to RMB 714,650 thousand after restatement, up from RMB 663,120 thousand[42] - Sales and marketing expenses rose by 1.8% to RMB 1,380.8 million in 2023, maintaining a stable ratio to revenue at 1.7%[17] - R&D costs decreased by 17.4% to RMB 93.5 million in 2023, reflecting improved efficiency and reduced infrastructure investments[18] - R&D costs decreased to RMB 93,502 thousand in 2023 from RMB 113,234 thousand in 2022[59] - Employee costs increased to RMB 697,986 thousand in 2023, up from RMB 668,183 thousand in 2022[57] - Other income, including government grants, totaled RMB 44,941 thousand in 2023[56] - Financial costs decreased to RMB 259,457 thousand in 2023 from RMB 286,551 thousand in 2022[58] - Total tax expense increased to RMB 99,723 thousand in 2023 from RMB 96,225 thousand in 2022[61] Cash Flow and Financial Position - The company achieved net cash inflow from operating activities of RMB 471 million, up 80.1% year-on-year[4] - Cash and cash equivalents decreased to RMB 3,748.9 million in 2023 from RMB 4,082.2 million in 2022[24] - Cash and cash equivalents rose to RMB 4,082,240 thousand after restatement, compared to RMB 4,038,408 thousand previously[44] - Bank deposit interest income decreased to RMB 263,295 thousand in 2023 from RMB 225,869 thousand in 2022[58] - Capital expenditure decreased to RMB 33.0 million in 2023 from RMB 55.0 million in 2022, primarily used for property and equipment purchases[26] - Restricted deposits, pledged deposits, and fixed deposits totaled RMB 1,278,600 thousand in 2023, down from RMB 2,165,981 thousand in 2022[75] Assets and Liabilities - Total assets increased to RMB 27,449,473 thousand in 2023 from RMB 27,393,062 thousand in 2022[34] - Non-current assets increased to RMB 1,660,597 thousand in 2023 from RMB 1,995,679 thousand in 2022[33] - Property, plant, and equipment increased to RMB 81,725 thousand in 2023 from RMB 77,077 thousand in 2022[33] - Investment properties increased to RMB 25,298 thousand in 2023 from RMB 15,881 thousand in 2022[33] - Equity in associates increased to RMB 11,831 thousand in 2023 from RMB 9,660 thousand in 2022[33] - Equity in a joint venture was RMB 14,700 thousand in 2023, compared to none in 2022[33] - Current liabilities decreased to RMB 19,316,777 thousand in 2023 from RMB 19,703,648 thousand in 2022[35] - Net current assets increased to RMB 8,132,696 thousand in 2023 from RMB 7,689,414 thousand in 2022[35] - Total equity decreased to RMB 9,495,029 thousand in 2023 from RMB 9,610,170 thousand in 2022[35] - Total assets minus current liabilities amounted to RMB 9,685,093 thousand, with net assets of RMB 9,610,170 thousand[45] - Total equity attributable to shareholders was RMB 8,101,286 thousand, with non-controlling interests of RMB 1,508,884 thousand[45] - Financial liabilities measured at fair value through profit or loss amounted to RMB 89,381 thousand[45] - Deferred revenue stood at RMB 17,000 thousand, with total deferred income of RMB 74,923 thousand[45] - Total contract liabilities amounted to RMB 2,821,954 thousand, with a significant portion from trade payables and notes[45] - Trade payables and notes payable within 3 months increased to RMB 9,495,937 thousand in 2023 from RMB 7,927,072 thousand in 2022[78] - Contract liabilities at the end of 2023 were RMB 2,426,677 thousand, a decrease from RMB 2,821,954 thousand at the beginning of the year[79] Inventory and Receivables - Inventory remained stable at RMB 2,581.1 million in 2023 compared to RMB 2,553.1 million in 2022, with inventory turnover days reduced from 13 days to 12 days[25] - Inventory grew to RMB 2,553,074 thousand after restatement, compared to RMB 2,443,800 thousand previously[44] - Inventory decreased to RMB 2,581,063 thousand in 2023 from RMB 2,553,074 thousand in 2022[70] - Trade receivables and bills receivable decreased to RMB 2,830,982 thousand in 2023 from RMB 3,206,462 thousand in 2022[72] - Trade receivables and bills increased to RMB 3,206,462 thousand after restatement, up from RMB 3,127,285 thousand[44] - Prepayments, deposits, and other receivables increased to RMB 9,312,440 thousand in 2023 from RMB 9,037,748 thousand in 2022[74] Membership and SaaS+ Growth - Total registered member retail stores reached 237,238, a 15.0% increase year-on-year[3] - Active member retail stores increased to 90,708, up 19.1% year-on-year[3] - SaaS+ subscription users totaled 131,810, with paid SaaS+ users reaching 48,069, a 61.4% increase year-on-year[3] - The company expanded its membership network to over 237,000 retail stores and more than 20,000 service providers and channel partners[5] AI and Product Development - The company independently deployed AI big model service capabilities to support multi-scenario applications for customers, operations, and R&D[7] - The company launched the Qiancheng series of service products, focusing on addressing pain points of member retail stores[6] Employee Compensation and Share Units - The company granted 4.84 million restricted share units to 494 employees, with performance-based unlocking conditions tied to net profit growth[9] - The company granted 8,912,400 restricted share units in 2023, with a weighted average grant date fair value of RMB 26.26 per unit[82] - Total expenses recognized in the consolidated income statement for restricted share units were RMB 24,972 thousand in 2023[83] - The employee stock purchase plan resulted in total expenses of RMB 2,819 thousand in 2023, down from RMB 3,755 thousand in 2022[84] Acquisitions and Restatements - The company completed the acquisition of Nanjing Haoxiangjia Engineering Technology Co., Ltd. for RMB 504,299,500 in 2023[37] - The company's revenue increased to RMB 82,105,987 thousand after restating the financial performance to include Nanjing Haoxiangjia Engineering Group, up from RMB 80,354,775 thousand[42] - Non-current assets increased to RMB 27,393,062 thousand after restatement, up from RMB 26,783,980 thousand[44] - Property, plant, and equipment rose to RMB 77,077 thousand after restatement, compared to RMB 76,685 thousand previously[44] - Right-of-use assets increased to RMB 106,875 thousand after restatement, up from RMB 103,657 thousand[44] Financial Instruments and Investments - Non-current portion of financial assets at fair value through profit or loss increased to RMB 361,834 thousand in 2023 from RMB 312,460 thousand in 2022[67] - Current portion of financial assets at fair value through profit or loss increased to RMB 3,332,713 thousand in 2023 from RMB 2,877,207 thousand in 2022[69] Dividends and Shareholder Information - No dividends were recommended for the years ended December 31, 2023, and 2022[85] - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[86] Audit and Compliance - The audit committee reviewed the company's audited annual results for the year ended December 31, 2023, and confirmed compliance with accounting standards and sufficient disclosures[90] - The company's auditor, KPMG, verified the consolidated financial statements for the year ended December 31, 2023, and found consistency with the preliminary announcement[92] - No significant post-reporting period events affecting the group occurred after the reporting period and up to the announcement date[93] - The annual results announcement was published on the Hong Kong Stock Exchange website and the company's website, with the annual report to be published and distributed to H-share shareholders in due course[93] Board and Governance - The company's board includes Chairman and Non-Executive Director Wang Jianguo, Executive Directors Xu Xiuxian, Zhao Liangsheng, and Sun Chao, Non-Executive Directors Cai Zhongqiu and Wang Ran, and Independent Non-Executive Directors Yu Lixin, Liu Xiangdong, and Diao Yang[95]

Financial Performance - For the six months ended June 30, 2023, the company reported a total revenue of RMB 1.2 billion, representing a year-on-year increase of 15%[42]. - The net profit for the same period was RMB 300 million, which is a 20% increase compared to the previous year[42]. - Revenue for the six months ended June 30, 2023, was RMB 43,376,803, representing a year-on-year increase of 6.6% from RMB 40,685,881[27]. - Profit for the period reached RMB 382,957, a significant increase of 67.5% from RMB 228,662 year-on-year[27]. - Adjusted net profit attributable to equity shareholders was RMB 382,957, up 19.5% from RMB 320,492 in the previous year[27]. - The Group achieved total revenue of RMB 43.377 billion in the first half of 2023, representing a year-on-year growth of 6.6%[33]. - Profit attributable to equity shareholders amounted to RMB 245 million, reflecting a significant year-on-year increase of 118.0%[33]. - Basic and diluted earnings per share for the period were RMB 0.44, compared to RMB 0.26 in the previous year[190]. - Profit before taxation rose to RMB 441,822, a significant increase from RMB 281,309 in the same period last year[190]. - Total comprehensive income for the period was RMB 382,948, compared to RMB 228,662 in the prior year[192]. User Growth and Market Expansion - The active user base grew to 5 million, reflecting a 25% increase year-on-year[42]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in international revenue by the end of 2024[10]. - The total number of registered member retail stores reached 217,592, an increase of 13.5% compared to the same period in 2022[32]. - The number of active member retail stores grew to 77,514, marking an 18.8% year-on-year increase[32]. - Total SaaS+ subscription users increased to 121,209, representing a growth of 9.4% year-on-year[32]. - Paid SaaS+ users rose to 37,182, showing a substantial year-on-year growth of 37.4%[32]. Strategic Initiatives and Partnerships - A strategic partnership with Alibaba China is anticipated to enhance supply chain capabilities and improve service delivery[21]. - The company is exploring potential acquisition opportunities to bolster its market position and expand its service offerings[10]. - The acquisition of Nanjing Hosjoy Engineering was completed on May 5, 2023, and has been included in the financial results for the reporting period[30]. - The Group aims to upgrade supply chain capacity by collaborating with high-quality upstream brand manufacturers and creating an innovative supply chain to enhance production and marketing integration[52][53]. - The Group plans to enhance member store service capabilities by leveraging AI technology to improve operational efficiency and profitability in a competitive market[56]. Research and Development - The company is investing RMB 100 million in R&D for new technologies aimed at enhancing user experience and operational efficiency[42]. - Research and development costs decreased by 27.7% from RMB 63.5 million for the six months ended June 30, 2022, to RMB 45.9 million for the six months ended June 30, 2023[85]. - The Group optimized big data analysis functions to enhance operational efficiency for member retail stores[44]. Financial Position and Cash Flow - The cash flow from operating activities for the first half of 2023 was RMB 400 million, up 10% from the previous year[50]. - Cash and cash equivalents as of June 30, 2023, amounted to RMB 4,672.8 million, an increase from RMB 4,082.2 million as of December 31, 2022, indicating sufficient working capital for operating requirements[101]. - Inventories as of June 30, 2023, were RMB 2,705.2 million, up 6.0% from RMB 2,553.1 million as of December 31, 2022, primarily due to stocking of household appliances[103]. - Trade and bills payables increased by 6.4% to RMB 16,033.8 million as of June 30, 2023, compared to RMB 15,071.4 million as of December 31, 2022, reflecting an increase in procurement scale[103]. Corporate Governance and Shareholder Information - The company is committed to maintaining sound corporate governance to enhance corporate value and accountability[139]. - The interests and short positions of Directors and Supervisors in the company's shares were disclosed as of June 30, 2023[140]. - The company has complied with the corporate governance code provisions during the reporting period[139]. - As of June 30, 2023, the total number of issued shares was 562,569,837, including 180,266,339 H Shares and 382,303,498 Domestic Shares[142]. Future Outlook and Guidance - The company has set a performance guidance of RMB 2.5 billion in revenue for the full year 2023, indicating a growth target of 18%[42]. - The company targets a year-on-year increase of no less than 30% in net profits attributable to equity shareholders for the years 2023, 2024, and 2025[119]. - The company aims for a year-on-year increase of no less than 10% in profits before tax for other subsidiaries over the same three-year period[119].