本次会议为中国国际金融股份有限公司中金公司闭门会议仅限受邀嘉宾参会未经中金公司和演讲嘉宾书面许可任何机构和个人不得以任何形式将会议内容和相关信息独来公布转发转载传播复制编辑修改等如有上述违法行为中金公司保留追究相关方法律责任的权利 这次会议是中国国际资产合作组织CICC的闭门会议只有邀请客人能够参加而没有CICC和评论员的签名允许任何组织或人员不得删除、翻载、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、� 大家好欢迎大家参加中金公司联谊荣的线上交流会我是中金公司非业绩金融科技行业的分析师李亚达 联义融科技是中国领先的供应链金融科技服务商结合近期公司主要核心企业客户所处的一些细分行业比如说地产行业等出现的一些政策的变化以及公司基本面未来潜在的一些经营的优化我们也是很荣幸在这个时间邀请到了联义融CFO赵宇赵总和IRD唐贝贝唐总来和大家一起分享一下公司的近况 欢迎赵总跟唐总两位领导参会咱们今天的会议主要是分为两个部分先有请两位领导帮我们分享一下公司的近况然后之后我们也设置了QA的环节然后请线上 ...

本次会议为中国国际金融股份有限公司中金公司闭门会议仅限受邀嘉宾参会未经中金公司和演讲嘉宾书面许可任何机构和个人不得以任何形式将会议内容和相关信息对外公布转发转载传播复制编辑修改等如有上述违法行为中金公司保留追究相关方法律责任的权利 这次会议是中国国际资产合作组织CICC的关闭式会议,只有邀请客人可以参加。没有CICC的签名和评论人的允许,任何组织或人员不得删除、翻载、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、複制、� 大家好欢迎大家参加中金公司联谊荣的线上交流会我是中金公司非业绩金融科技行业的分析师李亚达 联义融科技是中国领先的供应链金融科技服务商结合近期公司主要核心企业客户所处的一些细分行业比如说地产行业等出现的一些政策的变化以及公司基本面未来潜在的一些经营的优化我们也是很荣幸在这个时间邀请到了联义融CFO赵宇赵总和IRD唐贝贝唐总来和大家一起分享一下公司的近况 欢迎赵总跟唐总两位领导参会咱们今天的会议主要是分为两个部分先有请两位领导帮我们分享一下公司的近况之后我们也设置了QA的环节请线上 ...

Financial Performance - Total revenue for the year 2023 was RMB 867,764,000, a decrease of 6.1% compared to RMB 924,200,000 in 2022[5]. - Gross profit for 2023 was RMB 526,515,000, reflecting a significant decline of 32.0% from RMB 774,535,000 in the previous year[5]. - The company reported a net loss attributable to equity shareholders of RMB (441,240,000) for 2023, compared to a loss of RMB (13,458,000) in 2022[5]. - The gross margin decreased to 60.7% in 2023, down from 83.8% in the previous year, a decline of 23.1 percentage points[5]. - The company reported an adjusted net loss of RMB 286.3 million for 2023, attributed to continued investments in product development and customer marketing[11]. - The company reported a net loss of RMB 443,298,000 for the year ended December 31, 2023, compared to a loss of RMB 21,855,000 in 2022[42]. - The company incurred a net cash outflow from operating activities of RMB (324,183) thousand for 2023, compared to a net inflow of RMB 1,859,628 thousand in 2022[195]. - The total comprehensive loss for the year was RMB (441,240) thousand, reflecting a decline from the previous year's performance[194]. Customer Metrics - The number of core enterprise customers increased by 50.6% to 604 in 2023, up from 401 in 2022[6]. - The customer retention rate dropped to 86% in 2023, down from 96% in 2022, indicating a decline of 10 percentage points[6][7]. - The number of core enterprise partners increased by 34.1% to 1,488 in 2023, compared to 1,110 in 2022[6]. - The customer retention rate in the multi-level circulation business segment reached 99%, despite an overall decline to 86% due to losses in the real estate sector[12]. Technology and Solutions - The total amount of supply chain assets processed by the company's technology solutions reached RMB 321,977,000, an increase of 24.2% from RMB 259,299,800 in 2022[9]. - In 2023, the total transaction volume processed by the company's technology solutions reached RMB 322 billion, a year-on-year increase of 24.2% from RMB 259.3 billion in 2022[11]. - The company launched the LDP-GPT model for supply chain finance, enhancing efficiency in information integration and transaction analysis[13]. - The company has established partnerships with 39 central state-owned enterprises and leading private enterprises for supply chain comprehensive platform projects[15]. Financial Position - Cash and cash equivalents, along with restricted cash, totaled RMB 4.85 billion as of December 31, 2023, indicating a healthy financial position[11]. - The company’s cash and cash equivalents decreased to RMB 4,719,157,000 in 2023 from RMB 5,731,387,000 in 2022, a reduction of 17.7%[190]. - The total liabilities decreased to RMB 536,973,000 in 2023 from RMB 1,937,845,000 in 2022, a decrease of 72.2%[190]. - The company’s equity attributable to shareholders decreased to RMB 9,115,571,000 in 2023 from RMB 9,957,299,000 in 2022, a decline of 8.5%[191]. Expenses and Investments - Research and development expenses increased by 4.2% from RMB 351.1 million in 2022 to RMB 365.8 million in 2023[29]. - Sales and marketing expenses decreased by 15.2% from RMB 162.6 million in 2022 to RMB 137.8 million in 2023[30]. - The company has allocated RMB 353.4 million for enhancing core technology capabilities and R&D, with a remaining balance of RMB 846.3 million expected to be used by December 31, 2026[134]. - The company has allocated RMB 527.6 million for expanding cross-border business, with a remaining balance of RMB 88.5 million expected to be used by December 31, 2026[134]. Governance and Management - The board of directors is composed of three executive directors, two non-executive directors, and three independent non-executive directors[55]. - The company has independent non-executive directors with extensive experience in finance and management, including Mr. Gao, who served as the general manager of Deutsche Bank China[105]. - The company has established a risk management committee to oversee the implementation of risk management policies and ensure effective monitoring of risks[164]. - The board has adopted a diversity policy that considers various factors such as gender, age, race, language, cultural background, education, and industry experience to enhance board efficiency[154]. Shareholder Information - The largest single customer accounted for 13.3% of total revenue and income for the year ended December 31, 2023, compared to 13.1% in 2022[63]. - The top five customers represented 35.3% of total revenue and income for the year ended December 31, 2023, up from 29.3% in 2022[63]. - The company is owned by several entities, with the largest shareholder holding 33.40%[88]. - The company has a dual-class share structure where Class A shares have ten votes per share, while Class B shares have one vote per share, allowing certain beneficiaries to exert significant control over corporate decisions[110]. Compliance and Risk Management - The company has established an internal control system and regularly reviews its effectiveness, ensuring compliance with all necessary licenses and permits[165]. - The company has implemented strict internal control procedures to protect the integrity and security of data collected during business operations[166]. - The company is subject to potential tax audits that could negatively impact profitability and shareholder value if additional taxes are owed[89]. - The company has made sincere efforts to comply with applicable laws and regulations regarding its business operations[93].

Financial Performance - The company's main operating revenue for the year ended December 31, 2023, was RMB 867.8 million, a decrease of 6.1% compared to RMB 924.2 million in 2022[1]. - The adjusted net loss for the year was RMB 286.3 million, compared to a profit of RMB 196.0 million in 2022, reflecting a significant change in financial performance[1]. - Total revenue decreased by 6.1% from RMB 924.2 million in 2022 to RMB 867.8 million in 2023[19]. - Gross profit fell to RMB 526.5 million in 2023 from RMB 774.5 million in 2022, reflecting a significant decline[18]. - The company reported a net loss of RMB 443.3 million for the year ended December 31, 2023, compared to a loss of RMB 21.9 million for the year ended December 31, 2022[35]. - The company recorded an operating loss of RMB 340.6 million in 2023, compared to an operating profit of RMB 109.1 million in 2022[31]. Customer Metrics - The number of core enterprise customers increased by 51% to 604, while the total number of partners rose by 34.1% to 1,488[3]. - Customer retention rate decreased from 96% in 2022 to 86% in 2023, primarily due to the loss of clients in the real estate sector[3][8]. - The company added 188 new core enterprise and financial institution clients during the year, bringing the total client count to 735[8]. Technology Solutions and Growth - The total transaction volume processed by the company's technology solutions reached RMB 322.0 billion, representing a year-on-year growth of 24.2% from RMB 259.3 billion in 2022[7]. - The total supply chain assets processed by the company's technology solutions reached RMB 308.6 billion in 2023, representing a year-on-year growth of 24.9%[11]. - The company processed RMB 804 billion in supply chain assets through its e-chain cloud business, reflecting an 18.7% year-on-year growth[12]. - The company’s multi-level circulation cloud business saw a significant increase, processing RMB 136.8 billion in assets, up 82.2% year-on-year[11]. Financial Position - The company's cash and cash equivalents totaled RMB 4.85 billion as of December 31, 2023, indicating a healthy financial position[7]. - As of December 31, 2023, the group's cash and cash equivalents decreased by RMB 1,012.2 million to RMB 4,719.2 million from RMB 5,731.4 million as of December 31, 2022[41]. - The group had unused bank credit facilities of RMB 7,076.0 million as of December 31, 2023, down from RMB 9,950.0 million as of December 31, 2022[44]. - The group’s equity-to-debt ratio was 1.4% as of December 31, 2023, compared to 0.6% as of December 31, 2022[46]. Expenses and Cost Management - Total operating costs surged by 128.0% to RMB 341.2 million in 2023, despite a decrease in revenue[22]. - Research and development expenses increased to RMB 365.8 million in 2023 from RMB 351.1 million in 2022[18]. - Sales and marketing expenses decreased by 15.2% from RMB 162.6 million in 2022 to RMB 137.8 million in 2023[25]. - Administrative expenses decreased by 11.8% from RMB 235.6 million in 2022 to RMB 207.7 million in 2023[26]. Impairment and Credit Risks - Impairment losses increased from RMB 41.8 million in 2022 to RMB 214.4 million in 2023, reflecting deteriorating conditions among clients, particularly in the real estate sector[29]. - The company faced credit risk related to supply chain assets with an outstanding balance of RMB 2,644.2 million as of December 31, 2023[39]. - The overdue amounts for supply chain assets under small and medium-sized enterprise credit technology solutions total RMB 61,735,000 as of December 31, 2023, compared to RMB 38,031,000 in 2022, indicating an increase in overdue receivables[94]. Strategic Initiatives - The company is actively exploring new financing products and expanding its service offerings in response to customer needs, including cross-border supply chain financing solutions[8]. - The company aims to focus on sustainable high-growth core businesses and embrace new technologies to enhance operational efficiency in 2024[17]. - The company continues to explore market expansion opportunities and new strategies to enhance its financial technology offerings[101]. Shareholder Information - The board proposed a special dividend of HKD 0.10 per share for the year ended December 31, 2023, subject to shareholder approval at the annual general meeting scheduled for June 17, 2024[54]. - The company plans to hold its annual general meeting on June 17, 2024, with a suspension of share transfer registration from June 12 to June 17, 2024[55].

Financial Performance - Total revenue for the six months ended June 30, 2023, was RMB 391,031,000, a decrease of 23.4% compared to RMB 510,468,000 in the same period of 2022[6]. - Gross profit for the same period was RMB 237,593,000, down 44.0% from RMB 424,033,000, resulting in a gross margin of 60.8%, down from 83.1%[6]. - The company reported a loss attributable to equity shareholders of RMB 170,298,000 for the period, compared to a profit of RMB 43,046,000 in the same period last year[6]. - The adjusted net loss for the first half of 2023 was RMB 86.5 million, reflecting ongoing investments in product development and customer marketing[11]. - The company reported a net loss of RMB 171.66 million for the six months ended June 30, 2023, compared to a profit of RMB 35.20 million in the same period of 2022[22]. - The company’s operating loss for the period was RMB 144,367 thousand, compared to an operating profit of RMB 90,814 thousand in the same period last year[83]. - The basic and diluted loss per share for the six months ended June 30, 2023, was RMB (0.08), compared to earnings of RMB 0.02 per share in the prior year[83]. Customer Metrics - The number of core enterprise customers increased by 14% to 458 from 401 in the previous year, while the number of financial institution customers decreased by 14% to 126[7]. - Customer retention rate decreased to 86% from 96%, reflecting a decline of 10 percentage points[7]. - The total number of partners increased to 1,240, up 12% from 1,110 in the previous year[7]. - The total number of customers for the supply chain financial technology solutions increased by 7% year-on-year to 584, with core enterprise customers growing by 57 to a total of 458[12]. Market and Product Development - The company aims to expand its market presence and enhance its technology solutions in response to the current market challenges[6]. - The company is focusing on developing new products and technologies to improve its service offerings and regain market share[6]. - The company is focusing on integrating advanced technologies such as AI, blockchain, and big data to enhance supply chain financial services and improve operational efficiency[13]. - The company continues to expand and optimize its solutions to serve a broader range of scenarios and target customer groups within the supply chain ecosystem[97]. - The company aims to enhance its supply chain financial capabilities through innovative solutions tailored for financial institutions[99]. Revenue Breakdown - Revenue from core enterprise cloud decreased by 20.7% to RMB 231.1 million, primarily due to a sluggish supply chain asset securitization market[25]. - Revenue from financial institution cloud decreased by 30.1% to RMB 132.5 million, attributed to a decline in supply chain assets processed[25]. - Revenue from cross-border cloud increased by 27.7% to RMB 21.5 million, driven by expansion into various cross-border financing scenarios[26]. - Revenue from the Supply Chain Financial Technology Solutions segment was RMB 363,625,000, down 24.5% from RMB 481,107,000 in the previous year[95]. - The Emerging Solutions segment generated revenue of RMB 27,406,000, a slight decrease of 6.5% from RMB 29,361,000 in the prior year[95]. Expenses and Costs - Research and development expenses increased by 18.0% to RMB 189.0 million, reflecting continued investment in product and technology development[29]. - Sales and marketing expenses decreased by 19.1% to RMB 58.4 million, due to efforts to improve operational efficiency[30]. - General and administrative expenses decreased by 7.0% to RMB 104.5 million, mainly due to a reduction in unallocated share-based compensation[31]. - Total operating costs increased by 77.5% from RMB 86.4 million to RMB 153.4 million, despite a decrease in revenue[27]. Cash Flow and Financial Position - The net cash used in operating activities for the six months ended June 30, 2023, was RMB (444,042) thousand, compared to RMB 93,603 thousand for the same period in 2022, indicating a significant decline in cash flow[91]. - The net cash generated from financing activities was RMB 584,508 thousand, an increase from RMB 443,625 thousand in the previous year, showing improved financing capability[91]. - The total cash and cash equivalents at the end of the period increased to RMB 5,832,904 thousand from RMB 5,285,402 thousand, marking an increase of approximately 10.4%[91]. - As of June 30, 2023, the group's cash and cash equivalents increased to RMB 5,832.9 million from RMB 5,731.4 million as of December 31, 2022[47]. Governance and Compliance - The company has adhered to all provisions of the corporate governance code during the reporting period, except for the deviation regarding the roles of the Chairman and CEO being held by the same individual, Mr. Song[57]. - The Audit Committee, composed of three independent non-executive directors, reviewed the unaudited interim results for the six months ended June 30, 2023, and discussed accounting policies and internal controls with senior management and auditors[60]. - The Corporate Governance Committee reviewed the company's compliance with governance policies and regulations, including the diversity policy and shareholder communication policy[62]. Shareholder Information - As of June 30, 2023, Mr. Song holds 267,626,789 Class A shares and 19,799,907 Class B shares, representing approximately 57.44% of the voting rights for shareholder resolutions excluding reserved matters[63]. - Major shareholder Cabnetvic owns 221,212,025 Class A shares, accounting for 82.66% of the Class A shares[69]. - Tencent Holdings Limited holds 342,121,980 Class B shares, representing 16.96% of the Class B shares[69]. - The company has a total of 10.04% ownership in Class B shares attributed to Mr. Lin and his spouse[69]. Future Outlook - The company is actively expanding its international business, particularly in cross-border financing scenarios to support Chinese manufacturing enterprises[13]. - The company plans to reassess the separation of the roles of Chairman and CEO in the future, considering the overall situation of the group[57]. - The company aims to ensure sustainable operations and continue delivering returns to shareholders and benefits to other stakeholders through effective capital management[170].

Financial Performance - The company's main business revenue for the six months ended June 30, 2023, was RMB 391.0 million, a decrease of 23.4% compared to RMB 510.5 million in the same period of 2022[3]. - The gross profit for the same period was RMB 237.6 million, down 44.0% from RMB 424.0 million year-on-year, resulting in a gross margin of 60.8%, down from 83.1%[3]. - The adjusted net loss for the period was RMB 86.5 million, with an adjusted loss margin of 22.1%, compared to a profit of RMB 147.4 million and a margin of 28.9% in the previous year[3]. - The total revenue decreased by 23.4% to RMB 391.0 million in the first half of 2023, down from RMB 510.5 million in the same period of 2022[17]. - The revenue from core enterprise cloud solutions decreased by 20.7% to RMB 231.1 million in the first half of 2023, down from RMB 291.6 million in the same period of 2022[18]. - The revenue from financial institution cloud solutions decreased by 30.1% to RMB 132.5 million in the first half of 2023, down from RMB 189.5 million in the same period of 2022[18]. - The company reported a net loss attributable to equity shareholders for the period was RMB 170,298 thousand, compared to a profit of RMB 43,046 thousand in the same period of 2022[50]. - The company recorded an operating loss of RMB 144.4 million for the six months ended June 30, 2023, compared to an operating profit of RMB 90.8 million for the same period in 2022[28]. Customer Metrics - The total transaction volume processed by the company's technology solutions increased by 22.5% year-on-year, reaching RMB 142 billion, driven by the growth of existing core enterprise customers[7]. - The number of core enterprise customers increased by 14% to 458, while the total number of partners rose by 12% to 1,240[4]. - The company reported a customer retention rate of 86%, down from 96% in the previous year, indicating a 10 percentage point decline[4]. - The total number of customers for supply chain financial technology solutions increased by 7% year-on-year to 584 in the first half of 2023, with core enterprise customers growing by 14% to 458[8]. Operational Challenges - The company faced challenges due to the ongoing pressure in the real estate sector, impacting its AMS and ABS cloud products, which continued to show a downward trend[7]. - The company's main operating costs increased by 77.5% from RMB 86.4 million in the six months ended June 30, 2022, to RMB 153.4 million in the six months ended June 30, 2023, despite a decrease in revenue and income[20]. - Impairment losses increased by 215.3% from RMB 22.7 million in the six months ended June 30, 2022, to RMB 71.5 million in the six months ended June 30, 2023[26]. Financial Position - Cash and cash equivalents, along with restricted cash, totaled RMB 5,966.2 million as of June 30, 2023[7]. - The company's borrowings amounted to RMB 581.8 million as of June 30, 2023, compared to RMB 10.0 million at the end of 2022[39]. - The company had unutilized bank credit facilities of RMB 6,128.3 million as of June 30, 2023[39]. - The company's equity-to-debt ratio was 6.6%, a significant increase from 0.6% as of December 31, 2022[40]. - The total liabilities for accounts payable increased to RMB 54,416,000 as of June 30, 2023, compared to RMB 39,900,000 as of December 31, 2022, representing a rise of 36.3%[100]. Research and Development - Research and development expenses rose by 18.0% from RMB 160.2 million in the six months ended June 30, 2022, to RMB 189.0 million in the six months ended June 30, 2023[22]. - The company is actively exploring the application of AI, blockchain, big data, and privacy computing in the supply chain ecosystem to drive industry transformation and innovation[9]. Strategic Initiatives - The company has implemented rapid adjustments in its management structure to focus on customer value enhancement and improve return rates on customer acquisition[7]. - The company aims to focus on quality growth and optimize internal resource allocation to achieve sustainable revenue and profitability growth[15]. - The company is focused on expanding and optimizing its supply chain financial technology solutions to serve a broader range of scenarios and target customer groups[64]. - New products are continuously launched under various business segments to enhance service offerings within the supply chain ecosystem[64]. Dividends and Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2023[48]. - A special dividend of HKD 0.25 per share, totaling RMB 526,610,000, was approved and is expected to be paid on July 14, 2023[80].

Financial Performance - Total revenue for 2022 was RMB 924.2 million, a decrease of 22.9% from RMB 1,198.0 million in 2021[10] - Gross profit for the year was RMB 774.5 million, down 16.5% from RMB 927.3 million in the previous year, with a gross margin of 83.8%[10] - Adjusted profit for the year (non-IFRS) was RMB 196.0 million, a decline of 35.0% from RMB 301.6 million in 2021, with an adjusted profit margin of 21.2%[10] - The company's main business revenue decreased by 22.9% to RMB 9.24 billion from RMB 11.98 billion in 2021, primarily due to changes in customer and product structure[20] - The company reported a net loss of RMB 21.9 million in 2022 compared to a net loss of RMB 12,990.7 million in 2021[38] - The company reported a significant increase in user data, with a growth rate of 25% year-over-year in active users[141] - The overall revenue for the year reached approximately $500 million, reflecting a 15% increase compared to the previous year[142] - The adjusted profit for 2022 was RMB 196.0 million, compared to RMB 301.6 million in 2021[65] Customer and Market Metrics - The number of core enterprise partners increased by 63.5% to 1,110, while the number of core enterprise customers rose by 83.9% to 401[12] - The company reported a customer retention rate of 96%, down from 97% in the previous year[12] - The company acquired 197 new core enterprise and financial institution clients in 2022, bringing the total to 1,110, a 56% increase year-over-year[22] - The company processed supply chain asset transactions exceeding RMB 5 billion across nine industries in 2022, including real estate, infrastructure/construction, and healthcare[34] Technology and Innovation - The company aims to enhance its technology solutions and expand its market presence in the coming year[10] - Research and development investment reached RMB 35.11 million, a 26.6% increase, accounting for 38.0% of total revenue[22] - New product development initiatives are underway, focusing on fintech solutions, with an expected launch in Q3 2023[144] - The company is investing $50 million in research and development for new technologies aimed at enhancing supply chain efficiency[150] Operational Efficiency and Cost Management - The company aims to enhance operational efficiency and achieve sustainable, high-quality growth while creating greater value for customers in 2023[36] - A cost reduction strategy is anticipated to save the company $10 million annually, improving overall profitability[152] - The company has implemented new risk management strategies, which are expected to reduce operational risks by 10%[142] Financial Stability and Capital Management - The company reported a cash and cash equivalents total of RMB 5.9 billion as of December 31, 2022, ensuring a solid financial foundation for future growth[24] - The company's borrowings amounted to RMB 10.0 million as of December 31, 2022, down from RMB 1,190.3 million as of December 31, 2021, reflecting a significant reduction in leverage[73] - The capital-to-debt ratio was 0.6% as of December 31, 2022, compared to 12.9% as of December 31, 2021, indicating improved financial stability[76] Shareholder and Governance Matters - 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 certain beneficiaries to exert significant control over company decisions[155] - The board of directors consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[191] - The company has established mechanisms to ensure independent viewpoints reach the board, enhancing shareholder protection[198] - All independent non-executive directors have confirmed their independence according to listing rules, ensuring objective decision-making[195] Future Outlook and Strategic Plans - The company anticipates a gradual recovery in the overall market in 2023, supported by policy measures and industry demand rebound[31] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[146] - Future outlook includes an expected revenue increase of 20% for the upcoming year, driven by new product launches and market expansion strategies[152] Compliance and Regulatory Matters - The company has complied with relevant laws and regulations affecting its business as of December 31, 2022[90] - The company has demonstrated sincere efforts to comply with applicable laws and regulations in its business operations, particularly in commercial factoring and supply chain finance[128] Risks and Challenges - The company faces significant risks including reliance on innovation and the ability to respond to rapidly changing technology and market dynamics[87] - Risks associated with the contractual arrangements include potential penalties from the Chinese government if found non-compliant with foreign investment regulations, and uncertainties regarding the enforceability of these contracts under Chinese law[125]

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]