Financial Performance - Total order amount for the period was approximately RMB 930.5 million, a decrease of about 26.2% compared to RMB 1,260.4 million in the same period last year[1]. - Total revenue for the period was approximately RMB 898.1 million, an increase of about 4.4% compared to RMB 860.7 million in the same period last year[1]. - Loss attributable to shareholders for the period was approximately RMB 174.2 million, compared to a loss of RMB 37.8 million in the same period last year[1]. - The company reported an operating loss of RMB 215.5 million, compared to an operating loss of RMB 56.5 million in the same period last year, reflecting an increase of 281.4%[3]. - Adjusted loss for the period under non-HKFRS was RMB 153.3 million, compared to a profit of RMB 19.5 million in the same period last year, a decrease of 886.2%[3]. - The company reported a pre-tax loss of RMB 216,787 thousand for the six months ended June 30, 2024, compared to a pre-tax loss of RMB 57,483 thousand for the same period in 2023[21]. - The company reported a basic loss per share of RMB (0.40) for the six months ended June 30, 2024, compared to RMB (0.09) for the same period in 2023, reflecting a significant increase in losses[25]. - The company reported a loss of approximately RMB 174 million for the six months ended June 30, 2024, a significant increase of about 361% compared to a loss of RMB 38 million for the same period in 2023[76]. Research and Development - The R&D department had 654 professionals, accounting for approximately 22.7% of total employees, an increase of about 13.0% compared to the same period last year[1]. - R&D expenditure was approximately RMB 154 million, an increase of about 6.2%, representing about 17.2% of total revenue[1]. - R&D expenses rose to RMB 139,825 thousand, a slight increase from RMB 134,449 thousand in the same period last year[17]. - The company invested approximately RMB 154 million in R&D during the reporting period, an increase of 6.2% year-over-year, representing 17.2% of total revenue[55]. - The R&D team comprised 654 professionals, accounting for about 22.7% of total employees, an increase of approximately 13% year-over-year[55]. - The company conducted around 90 research activities on listed companies and produced over 1,000 analysis articles during the reporting period[56]. Employee and Operational Costs - Total employee costs increased to RMB 575,150 thousand, up 14.4% from RMB 502,891 thousand in the previous year[17]. - Employee costs for the six months ended June 30, 2024, amounted to RMB 103,437,000, representing 51.9% of total expenses, compared to RMB 99,179,000 or 50.4% for the same period in 2023[74]. - General and administrative expenses increased by 1.3% to approximately RMB 199 million, driven by higher employee costs and increased depreciation of right-of-use assets[73]. - Sales costs rose by approximately 23.6% to about RMB 180.3 million, primarily due to increased employee costs in content development[68]. Revenue Breakdown - Revenue from the flagship product, Jiufang Zhituo, was RMB 444,211 thousand, down 13.7% from RMB 514,749 thousand in the previous year[13]. - Revenue from the Jiufang Zhituo Qilong version increased significantly to RMB 449,512 thousand, up 30% from RMB 345,909 thousand in the prior year[13]. - Revenue increased by 4.4% from approximately RMB 860.7 million to approximately RMB 898.1 million for the six months ended June 30, 2024[65]. - Revenue from the flagship product series decreased by 13.7% to RMB 444.2 million, while revenue from the Dragon series increased by 30% to RMB 449.5 million, driven by an increase in paying users from approximately 15,000 to 22,000[66][67]. Assets and Liabilities - Total assets less current liabilities amounted to RMB 1,096.5 million, down from RMB 1,514.8 million as of December 31, 2023[6]. - The company reported a total of RMB 868,683,000 in financial assets measured at fair value through profit or loss as of June 30, 2024, down from RMB 1,322,532,000 as of December 31, 2023[33]. - The total lease liabilities as of June 30, 2024, amounted to RMB 41,853,000, significantly higher than RMB 5,907,000 as of December 31, 2023[32]. - The group’s total liabilities for accrued expenses and other current liabilities increased to RMB 233,706,000 as of June 30, 2024, compared to RMB 168,584,000 as of December 31, 2023[45]. Strategic Initiatives - The company is applying for the "High-tech Enterprise" status for the years ending December 31, 2024, 2025, and 2026, which would allow it to enjoy a preferential income tax rate of 15% if approved[24]. - The company is advancing a "technology + investment research" dual-driven strategy to innovate and upgrade existing products[51]. - The company has engaged in digital cooperation with financial institutions and traditional media, providing customized intelligent solutions[54]. - The company aims to enhance its competitive edge and diversify revenue sources by expanding its product matrix to meet diverse customer needs[53]. - The company has adjusted its product strategy to transition its app from a tool-based approach to a platform model, enhancing user experience and service offerings[51]. Shareholder Actions - The board does not recommend the payment of an interim dividend[1]. - The company repurchased a total of 17,730,000 shares at a total cost of approximately RMB 181.5 million, which were all canceled on June 21, 2024[52]. - The interim dividend approved for the last fiscal year is RMB 89.958 million, translating to HKD 0.22 per share, down from HKD 0.50 per share in the previous year[48]. Market Position and Recognition - The company’s brand, "Jiufang Zhituo," was recognized as one of the "2024 Favorite Chinese Brands" at the China Brand Night event[58]. - The company aims to enhance competitiveness and solidify market leadership by integrating flagship products and expanding the small product line supported by data analysis and AI technology[64]. Capital Raising and Utilization - The company successfully raised approximately HKD 984.2 million (equivalent to approximately RMB 873.3 million) from its global offering and the partial exercise of the over-allotment option, issuing a total of 59,937,000 new shares at an issue price of HKD 17.00 per share[87]. - The allocation of the net proceeds includes 20% (approximately HKD 196.8 million) for enhancing content production capabilities, 30% (approximately HKD 295.3 million) for strengthening the traffic pool, and 30% (approximately HKD 295.3 million) for improving technical capabilities[88].
九方财富(09636) - 2024 - 中期业绩