北森控股(09669) - 2023 - 年度财报

Financial Performance - Revenue for the fiscal year ending March 31, 2023, was RMB 750.9 million, a year-on-year increase of 10.5%[10] - Net loss for the fiscal year ending March 31, 2023, was RMB 2,599.0 million, a year-on-year increase of 36.2%[10] - Adjusted net loss for the fiscal year ending March 31, 2023, was RMB 300.6 million, a year-on-year increase of 83.7%[10] - Total revenue for the reporting period was RMB 750.9 million, a year-on-year increase of 10.5%[32] - The company's financial performance remained strong despite external challenges, with total revenue and gross profit showing positive growth[31] - The company reported a pre-tax loss of RMB 1,921.6 million in FY2022 and RMB 2,604.9 million in the reporting period[59] - The company recorded a tax credit of RMB 5.9 million in the reporting period and RMB 12.8 million in FY2022[60] - The adjusted net loss (non-IFRS measure) was RMB 300.6 million in the reporting period, an increase of 83.7% compared to RMB 163.6 million in FY2022[63] - Cash and cash equivalents increased to RMB 408.7 million as of March 31, 2023, from RMB 288.7 million as of March 31, 2022[66] - The company's asset-liability ratio increased to 546.7% as of March 31, 2023, from 359.5% as of March 31, 2022, with redeemable convertible preferred shares accounting for 92.0% of total liabilities[67] - The company has no significant contingent liabilities as of March 31, 2023[69] - Capital commitments for fixed assets and office renovations decreased by 74.7% to RMB 2.8 million as of March 31, 2023, from RMB 10.9 million as of March 31, 2022[70] - The fair value change of redeemable convertible preferred shares was RMB 1,638.2 million in FY2022 and RMB 2,241.4 million in the reporting period, driven by changes in the company's valuation[58] Revenue Breakdown - Revenue from cloud HCM solutions for the fiscal year ending March 31, 2023, was RMB 537.3 million, a year-on-year increase of 15.9%, accounting for 71.5% of total revenue[11] - Revenue from professional services for the fiscal year ending March 31, 2023, was RMB 213.7 million, a year-on-year decrease of 1.2%, accounting for 28.5% of total revenue[11] - Cloud HCM solution revenue increased by 15.9% to RMB 537.259 million, representing 71.5% of total revenue[33] - Professional services revenue reached RMB 213.7 million, accounting for 28.5% of total revenue[27] - Cloud HCM solution subscription revenue increased by 15.9% from RMB 463.5 million in FY2022 to RMB 537.3 million in the reporting period, driven by new customer acquisition and increased subscriptions from existing customers[35] - Professional services revenue decreased by 1.2% from RMB 216.2 million in FY2022 to RMB 213.7 million in the reporting period, primarily due to the sale of Beisen Career in September 2021[36] Customer Metrics - The company's customer base exceeded 5,100, with a revenue retention rate of 106% for existing customers[14] - Core HCM added approximately 500 new customers, with a cumulative customer base exceeding 1,400, a renewal rate of 95%, and a revenue retention rate of 116%[14] - Total number of customers exceeded 5,100 as of March 31, 2023, with a focus on serving medium and large enterprises, demonstrating strong resilience and risk resistance[15] - Customer renewal rate for software products reached the highest level in the past five years as of March 31, 2023[15] - ARR (Annual Recurring Revenue) from customers using 2 or more modules accounted for 68.6% of total ARR as of March 31, 2023[15] - Revenue retention rate for Core HCM product line customers was 116% during the reporting period[16] - The number of Cloud HCM solution customers grew from over 4,780 as of March 31, 2022, to over 5,119 as of March 31, 2023, with a subscription revenue retention rate of 106%[35] - Annual Recurring Revenue (ARR) for Cloud HCM solutions increased from RMB 581.8 million as of March 31, 2022, to RMB 649.9 million as of March 31, 2023[35] - Core HCM integrated solution ARR grew by 37% from RMB 215.8 million as of March 31, 2022, to RMB 296.1 million as of March 31, 2023, accounting for 46% of total ARR[35] - The company added approximately 500 Core HCM integrated customers during the reporting period, bringing the total to over 1,400, with a subscription revenue retention rate of 116%[35] R&D and Innovation - R&D investment for the fiscal year ending March 31, 2023, was RMB 303.3 million, a year-on-year increase of 17.4%[12] - R&D expenses increased by 17.4% from RMB 258.4 million in 2022 to RMB 303.3 million in 2023, mainly due to a RMB 44.5 million increase in employee benefits as a result of higher headcount and average salaries for R&D staff[50] - Focus on integrating generative AI with HR SaaS as a key initiative for the 2024 fiscal year[19] - The company is integrating generative AI technology into its cloud HCM solutions to revolutionize HR practices[28] - The company has developed a generative AI-powered personal leadership coaching product (Mr.Sen) to address talent development and leadership challenges, expected to create a high competitive barrier[20] - The company plans to develop over 200 ecosystem partners, empower 1,000+ enterprises with custom capabilities, and enable 10,000+ HR users with digital capabilities through its PaaS platform[20] Market Position and Competitive Landscape - The company ranked first in IDC's China HCM SaaS market share for the seventh consecutive year[14] - The company holds a 12.9% market share in China's HCM SaaS market in 2022, ranking first for seven consecutive years[22] - The company is the only integrated cloud HCM solution provider in China with a unified open PaaS infrastructure, covering all major HCM scenarios across the employee lifecycle[22] - The company's Core HCM and performance management solutions ranked first in market share in 2022, and its recruitment management solution ranked first in the second half of 2022[22] - The company offers a comprehensive suite of cloud-native HCM solutions covering the entire employee lifecycle, with weekly software updates to adapt to technological changes[24] - The company's HCM solutions include Recruitment Cloud, Assessment Cloud, Core HR Solutions, Performance Cloud, Succession Cloud, Learning Cloud, and HR Data Analytics Solutions[25] Strategic Priorities and Future Plans - Strategic priorities for 2024 include upgrading the service system and expanding into state-owned enterprises[19] - The company plans to increase investment in state-owned enterprises (SOEs) and aims to establish industry leadership in selected SOE businesses within three years[20] - The company is focusing on expanding its customer base by targeting mature and emerging companies across various industry verticals[28] - The company is committed to leveraging cutting-edge technology to empower enterprises in their HR digitalization efforts[30] - The company raised a net amount of approximately HKD 155.0 million from its global offering, with specific allocations for upgrading cloud HCM solutions (15%), enhancing core HCM features (15%), and upgrading other HCM solutions (5%)[101] - 20% of the net proceeds (HKD 31.0 million) are allocated for upgrading PaaS infrastructure, and 10% (HKD 15.5 million) for expanding the R&D team to improve efficiency[101] - 7% of the net proceeds (HKD 10.9 million) are designated for expanding the sales team nationwide, with HKD 0.5 million already utilized[101] - 10% of the net proceeds (HKD 15.5 million) are allocated for improving customer success and service capabilities, with HKD 0.1 million already utilized[101] - The company plans to fully utilize the remaining net proceeds by December 31, 2028, with specific timelines for each allocated project[101] Customer Satisfaction and Retention - NPS (Net Promoter Score) currently stands at 31.3%, indicating strong customer satisfaction and potential for renewals and upsells[19] - The Net Promoter Score (NPS) reported in March 2023 was 31.3[27] - Manufacturing industry accounted for 27% of ARR, while retail chains accounted for 16% during the reporting period[16] Financial Risk Management - Foreign exchange risk: The company's foreign currency assets and liabilities mainly consist of USD-denominated cash and cash equivalents in Chinese entities and RMB-denominated intercompany loans. A 5% appreciation/depreciation of USD/RMB would result in a net foreign exchange gain/loss of approximately RMB 20,000 for Chinese subsidiaries and RMB 482,000 for non-Chinese subsidiaries[72] - Credit risk management: The company manages credit risk by transacting only with high-quality financial institutions in China, Hong Kong, and the United States, with minimal expected credit losses[74] - Trade receivables risk: The company has policies to grant credit terms to counterparties with suitable credit records and conducts regular assessments of receivables' collectability[75] - Liquidity management: The company maintains sufficient cash and cash equivalents to meet liquidity needs and regularly monitors liquidity risk[76] - Contractual cash flows: As of March 31, 2023, the company's total contractual cash flows for trade payables, other payables, and lease liabilities amounted to RMB 96,626 thousand[77] Corporate Governance and Leadership - The company's executive directors include Mr. Wang Zhaohui, who has nearly 20 years of experience in the HCM industry and enterprise management[84][85] - Mr. Ji Weiguo, another executive director, has nearly 20 years of experience in the HCM industry and is responsible for overall strategic planning and R&D[86][87] - Ms. Liu Xianna, the CFO, has extensive experience in financial management and holds multiple professional qualifications in accounting and finance[88] - The company's board of directors consists of six members, including three executive directors and three independent non-executive directors[192] - The company's Chairman and CEO roles are held by Mr. Wang Zhaohui and Mr. Ji Weiguo respectively, with clearly defined responsibilities[195] - The board has met the requirement of appointing at least three independent non-executive directors, with one-third of the board being independent non-executive directors, and one having appropriate professional qualifications or accounting/financial management expertise[196] - The company has mechanisms in place to ensure the board receives independent opinions, including annual reviews of board composition and the independence of independent non-executive directors[197] - Executive directors have service contracts with the company for an initial term of three years starting from March 30, 2023, which can be terminated with at least three months' written notice[198] - Independent non-executive directors have appointment letters with the company for an initial fixed term of three years starting from March 30, 2023, which will continue thereafter until terminated with at least two months' written notice[198] - The Board of Directors is responsible for leading and controlling the company, overseeing the implementation of strategies, and ensuring robust internal control and risk management systems[199] - Independent Non-Executive Directors ensure high levels of regulatory reporting and provide effective independent judgments on corporate actions and operations[199] - Directors have full and timely access to all relevant company information and can seek independent professional advice when necessary, with costs borne by the company[199] - The Board retains decision-making authority on key matters including policy, strategy, budget, internal control, risk management, major transactions, financial data, and significant operational issues[199] - Management is delegated the responsibility for executing Board decisions and coordinating daily operations[199] - The company has arranged appropriate Directors' and Officers' Liability Insurance, with coverage reviewed annually[199] - Newly appointed Directors receive comprehensive induction training to ensure understanding of the company's business, operations, and regulatory requirements[200] - Induction training is supplemented by regular meetings with senior management to stay informed about the group's business, governance policies, and regulatory environment[200] Shareholder and Ownership Structure - The company's total issued shares as of the report date are 715,297,060 shares[118] - Wang Chaohui holds a beneficial interest of 11.33% in the company's shares through a trust, with additional interests held by controlled corporations and his spouse[117][118] - Ji Weiguo holds a beneficial interest of 11.27% in the company's shares through a trust[117] - Liu Xianna holds a beneficial interest of 0.16% in the company's shares[117] - Zhaosen Holding Limited holds an 11.33% beneficial interest in the company's shares[125] - Ark Trust (Singapore) Ltd. holds a 22.61% interest in the company's shares through controlled entities[125] - Ms. Zhou Dan holds an 11.44% interest as a trust beneficiary and an additional 4.50% beneficial interest[125] - Max Woods Limited holds an 8.95% beneficial interest in the company's shares[125] - Left Lingye holds a 14.85% interest in the company's shares through controlled entities[125] - Shanghai Zhexuan Investment holds 64,039,900 shares, representing 8.95% of the total shares[126] - Genesis Capital I LP holds 56,509,000 shares, representing 7.90% of the total shares[126] - SCGC Holding Company Limited holds 54,619,630 shares, representing 7.64% of the total shares[126] - SVF II Bandicoot (DE) LLC holds 41,041,130 shares, representing 5.74% of the total shares[126] - Matrix Partners China V, L.P. holds 32,892,050 shares, representing 4.60% of the total shares[126] - Matrix Partners China V-A, L.P. holds 3,420,660 shares, representing 0.48% of the total shares[126] - Matrix China Management V, L.P. holds 36,312,710 shares, representing 5.08% of the total shares[126] - Zhaosen Holding Limited holds 81,054,370 shares, with Wang and related entities having interests[127] - Weisen Holding Limited holds 80,644,370 shares, with Ji and related entities having interests[128] - Max Woods Limited holds 64,039,900 shares, with Sequoia entities and Zhou Kui having interests[129] - SCGC Holding Company Limited is wholly owned by Innovation Capital (Hong Kong) Limited, which in turn is wholly owned by Shenzhen Capital Group Co., Ltd. (Shenzhen Capital). Both entities are deemed to have interests in 54,619,630 shares held by SCGC[130] - SVF II Bandicoot (DE) LLC is ultimately controlled by SoftBank Group Corp., which is deemed to have interests in 41,041,130 shares held by SVF Bandicoot[130] - Matrix China V GP GP, Ltd. and Matrix China Management V, L.P. are deemed to have interests in 36,312,710 shares held by Matrix V and Matrix V-A[131] Employee and Workforce Metrics - The company has 2,085 employees as of March 31, 2023, compared to 2,105 employees in the previous year[82] - The company's workforce as of March 31, 2023, consisted of 982 male employees and 1,103 female employees, representing 47.1% and 52.9% of the total workforce respectively[193] - The company aims to increase the proportion of female employees at all levels over time, ultimately achieving gender parity[193] - The group's total employee costs for the year ended March 31, 2023, amounted to approximately RMB 940.1 million, including wages, salaries, bonuses, pension costs, and other benefits[151] - As of March 31, 2023, the company had 2,085 employees, a slight decrease from 2,105 employees in the previous year[151] Share Options and Equity Plans - The company has adopted a pre-IPO share option plan and a restricted share unit plan, with amendments made in 2020 and 2021[152] - The maximum number of shares that can be issued under the Pre-IPO Share Option Plan is 79,728,830 shares, adjusted for dividends, stock splits, or similar transactions[155] - As of the report date, the company has granted 79,725,600 shares under the Pre-IPO Share Option Plan, representing approximately 11.15% of the company's issued share capital[155] - 23,761,790 shares were exercised before the listing date, and 55,821,310 shares remain unexercised as of March 31, 2023[163] - The Pre-IPO Share Option Plan has a remaining term of approximately six years and one month as of the report date[161] - The total number of new shares that can be issued under the Share Option Plan is 54,050,060 shares, representing approximately 7.56% of the total issued shares as of the annual report date[163] - 36,775,600 stock options were granted to other employees of the group between January 1, 2009, and March 1, 2023[165] - 699,550 stock options granted to one employee were exercised before the IPO without a vesting schedule[165] - The Restricted Share Unit Plan was conditionally adopted on December 31, 2021, and further amended on March 23, 2023, effective from the listing date[166] - The Restricted Share Unit Plan aims to align the interests of eligible individuals with the group's interests through share ownership, dividends, and other distributions[168] - Awards under the Restricted Share Unit Plan grant selected participants a conditional right to receive award shares upon vesting or cash equivalent to the sale value of the award shares if deemed impractical by the board[169] - The