Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 413,111,000, representing a 5.6% increase from RMB 391,031,000 in 2023[5] - Gross profit for the same period was RMB 292,889,000, with a gross margin of 70.9%, up from 60.8% in 2023, indicating a 10.1 percentage point increase[5] - The company reported an adjusted loss of RMB 204,118,000 for the period, with an adjusted loss rate of 49.4%, compared to 22.1% in the previous year, marking a significant increase[5] - The company reported a net loss of RMB 241.5 million for the six months ended June 30, 2024, compared to a net loss of RMB 171.7 million for the same period in 2023[24] - The operating loss for the six months ended June 30, 2024, was RMB 186.5 million, compared to RMB 144.4 million for the same period in 2023[24] - The company reported a loss of RMB 240,801 for the six months ended June 30, 2024, compared to a loss of RMB 170,298 for the same period in 2023[88] Customer Metrics - The number of core enterprise partners increased to 1,750, a 17.6% rise from 1,488 in the previous year[6] - The number of core enterprise customers grew by 20.2% to 726, compared to 604 in 2023[6] - Customer retention rate improved to 96%, up from 86% in the previous year, reflecting a 10 percentage point increase[6] - The number of core enterprise and financial institution clients reached 856, a 16% increase from 2023, with a client retention rate rising from 86% to 96%[12] Supply Chain Assets - Total supply chain assets processed by the company's technology solutions reached RMB 165,860.2 million, a 16.8% increase from RMB 141,955.2 million in 2023[9] - In the first half of 2024, the total supply chain assets processed by the company's technology solutions reached RMB 165.9 billion, a year-on-year increase of 16.8%[11] - The company's supply chain financial technology solutions processed a total of RMB 156 billion in supply chain assets in the first half of 2024, a year-on-year increase of 14.6%[15] - The total amount of supply chain assets decreased to RMB 372,833,000 as of June 30, 2024, from RMB 780,990,000 at the end of 2023[123] Revenue Segmentation - Revenue from the core enterprise cloud increased by 28.7% from RMB 231.1 million to RMB 297.4 million during the same period, driven by an increase in the number of supply chain assets processed[26] - Revenue from the financial institution cloud decreased by 33.5% from RMB 132.5 million to RMB 88.2 million, primarily due to a decline in the securitization market and the termination of several experimental products[26] - The emerging solutions segment generated RMB 9,898.5 million, a 67.7% increase from RMB 5,901.5 million in 2023[9] Research and Development - The company’s R&D personnel reached 536, accounting for 59% of total employees, and successfully developed the first AI-based supply chain document review platform, "AI Agent"[13] - Research and development expenses for the six months ended June 30, 2024, were RMB 177.7 million, compared to RMB 188.9 million in the previous year[24] - Research and development expenses included in employee costs were RMB 94,700,000, down from RMB 111,886,000, representing a 15.4% decrease[104] Financial Position - Cash and cash equivalents increased from RMB 4,719.2 million on December 31, 2023, to RMB 4,923.1 million as of June 30, 2024, an increase of RMB 203.9 million[49] - The company's borrowings amounted to RMB 2,705 million as of June 30, 2024, compared to RMB 340 million on December 31, 2023[51] - The equity-to-debt ratio as of June 30, 2024, was 4.3%, up from 1.4% on December 31, 2023[53] - The total liabilities decreased to RMB 75,530 as of June 30, 2024, from RMB 80,758 as of December 31, 2023, indicating a reduction of 6.9%[87] Governance and Compliance - The audit committee has reviewed the unaudited interim results for the six months ending June 30, 2024, and discussed accounting policies and internal controls with senior management and auditors[60] - The company has established a corporate governance committee to ensure operations align with shareholder interests and compliance with listing rules[61] - The corporate governance committee confirmed that adequate measures are in place to manage potential conflicts of interest between different voting rights beneficiaries and shareholders[62] Shareholder Information - The company has a total of 267,626,789 Class A shares and 2,017,357,159 Class B shares issued as of June 30, 2024[67] - Major shareholder Cabnetvic owns 221,212,025 Class A shares, representing 82.66% of the total[69] - The company repurchased a total of 139,544,000 Class B shares during the reporting period, at a total cost of HKD 274,215,405[75] Impairment and Credit Risk - Significant impairment losses were primarily due to increased credit risk associated with financial assets, including RMB 106.3 million from receivables related to core enterprises and RMB 40.7 million from supply chain assets[35] - The company anticipates longer repayment periods and lower recovery amounts due to deteriorating operating conditions of core enterprise clients, leading to increased credit risk[36] - The impairment provision for receivables increased to RMB (261,452,000) as of June 30, 2024, compared to RMB (157,662,000) on December 31, 2023, reflecting a significant rise in credit risk[134] Future Outlook - The company plans to focus on sustainable growth and enhance shareholder returns while embracing technological advancements, particularly in artificial intelligence[23] - The company expects to achieve higher growth in the second half of 2024 by optimizing its cross-border and international business models[27] - The company plans to continue expanding its supply chain financial technology solutions, which are expected to drive future revenue growth[135]
联易融科技-W(09959) - 2024 - 中期财报