Financial Performance - For the six months ended June 30, 2024, the company's revenue reached RMB 1,321.35 million, a 6% increase from RMB 1,243.03 million for the same period in 2023[5]. - The company's gross profit for the same period was RMB 967.16 million, reflecting an 8% increase compared to RMB 896.03 million in the previous year[5]. - The operating profit decreased by 26% to RMB 156.83 million, down from RMB 211.70 million in the prior year[5]. - The net profit for the period was RMB 142.83 million, a decline of 31% from RMB 206.81 million in the previous year[5]. - The non-IFRS profit for the period was RMB 197.48 million, with a non-IFRS profit margin of 15%, consistent with the previous year's level[6]. - The company's revenue for the first half of 2024 reached RMB 421.35 million, showing a year-on-year decrease of 2% from RMB 431.13 million in the same period of 2023[15]. - The average revenue per core client decreased to RMB 1.996 million, down 18% from RMB 2.433 million in the previous year[15]. - The company’s MaaS (Model as a Service) business recorded significant growth in June 2024, contributing to the overall revenue recovery[14]. - MaaS revenue decreased by 2% to RMB 421.35 million, while BaaS financial industry cloud revenue increased by 20% to RMB 589.47 million[28]. - Gross profit rose by 8% to RMB 967.16 million, with a gross margin of 73% for the six months ended June 30, 2024, compared to 72% in the previous year[30]. Client and Market Growth - The BaaS business model showed significant growth, with revenue from small and micro enterprises increasing by approximately 47% year-on-year[7]. - The number of core clients increased to 165, up from 146 in the previous year, representing a growth of 13%[15]. - The core client retention rate was 96%, a decrease of 2 percentage points compared to the previous year[15]. - The company assisted over 7,000 institutional clients in China with intelligent decision-making, marketing, and operations, including major state-owned banks and internet technology companies[8]. - The number of banking clients significantly increased compared to last year, demonstrating the strong appeal of the BaaS model in the banking sector[17]. Research and Development - R&D expenses increased by 12% to RMB 225.88 million, primarily due to higher employee costs to support product supply and technology development[31]. - The company aims to leverage generative AI and decision-making AI to enhance product offerings and expand application scenarios[25]. - The company is exploring the application of AI VoiceGPT in the pharmaceutical industry to enhance customer satisfaction feedback processes[7]. - The company is exploring applications of AI VoiceGPT in various sectors, including healthcare, to broaden service offerings[17]. Corporate Governance - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee, each with clear written terms of reference[51]. - The Corporate Governance Committee is responsible for ensuring the company operates in the best interests of all shareholders and complies with listing rules, particularly regarding the dual-class share structure[52]. - The company has confirmed compliance with the corporate governance code and has reviewed its policies and practices regarding legal and regulatory compliance[52]. - The company has implemented sufficient corporate governance measures to manage potential conflicts of interest between different voting rights beneficiaries, ensuring operations align with the interests of all shareholders[53]. Shareholder Information - The company has a dual-class share structure with A shares having 10 votes per share and B shares having 1 vote per share, resulting in Mr. Zhang controlling approximately 65.10% of the voting rights through 77,208,112 A shares and 0.60% through 7,091,503 B shares[47]. - Major shareholders include Genisage Tech Inc. with 77,208,112 Class A shares (100.00%) and HH BR-I Holdings Limited with 37,631,065 Class B shares (9.09%)[58]. - The company has not declared an interim dividend for the six months ended June 30, 2024[88]. - The company has not declared any dividends to its shareholders for the periods ending June 30, 2023, and June 30, 2024[154]. Financial Position - As of June 30, 2024, the company's bank loans amounted to approximately RMB 393.6 million, due within one year[40]. - Cash and cash equivalents, along with time deposits, were recorded at RMB 2,852.85 million as of June 30, 2024, down from RMB 3,301.84 million as of December 31, 2023[41]. - The company's debt-to-asset ratio was 0.18 as of June 30, 2024, slightly improved from 0.19 on December 31, 2023[43]. - Total assets as of June 30, 2024, were RMB 4,294,030 thousand, up from RMB 3,083,818 thousand at the end of 2023[102]. - The company's total equity increased to RMB 4,558,743 thousand from RMB 4,448,924 thousand, showing a growth of 2.5%[104]. Stock Options and Incentives - The company has granted a total of 31,171,400 stock options to eligible participants during the reporting period under the 2021 employee stock option plan[70]. - The company has a maximum limit of 24,764,500 B shares that can be granted under the 2021 Share Award Scheme, subject to a 3% annual cap of the total issued shares[74]. - The total stock-based payment expenses recognized for the six months ended June 30, 2024, amounted to RMB 54.65 million, compared to RMB 20.04 million for the same period in 2023[168]. - The company issued a total of 10,531,500 incentive shares under the 2021 Share Award Scheme during the reporting period, with 1,237,000 shares becoming invalid[75]. Future Outlook - The company plans to explore growth opportunities in inclusive finance and wealth management, with a focus on small and micro-enterprise financing[26]. - The company plans to continue expanding its AI technology platform services in the financial services industry, focusing on enhancing its MaaS and BaaS offerings[111]. - The company aims to enhance its value proposition to financial service providers through strategic investments and acquisitions[90]. - The company plans to extend the timeline for utilizing the unutilized proceeds for R&D investment and general corporate purposes from the end of 2024 to the end of 2026[89].
百融云-W(06608) - 2024 - 中期财报