Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 1,468.1 million, representing a year-on-year increase of 38.7%[13]. - Gross profit for the same period was RMB 704.6 million, up 33.2% from RMB 528.9 million in the previous year[19]. - The adjusted net loss narrowed to RMB 175.5 million, a decrease of 13.9% compared to the same period last year, with an adjusted net loss margin of 12.0%[14]. - Total revenue for the first half of 2023 reached RMB 1,468.1 million, a year-on-year increase of 38.7% compared to RMB 1,058.2 million in the same period of 2022[31]. - Revenue from software licenses was RMB 342.1 million, up 49.3%, accounting for 23.3% of total revenue[31]. - Revenue from SageOne was RMB 413.9 million, an increase of 36.9%, representing 28.2% of total revenue[31]. - Revenue from application development and other services was RMB 712.1 million, a 35.2% increase[31]. - Operating loss decreased by 8.5% to RMB 253.0 million from RMB 276.3 million year-on-year[46]. - Net loss for the period was approximately RMB 477.7 million, a reduction of 18.2% from RMB 583.8 million in the same period last year[49]. Market Position and Strategy - The company's decision-making AI platform generated revenue of RMB 756.0 million, accounting for 51.5% of total revenue, with a year-on-year growth of 42.2%[15]. - The company maintained its leading position in the decision-making AI market, as reported by IDC, with an expanding market share in China[19]. - In March 2023, the company launched the enterprise-level generative AI product "Shisuo," which features multimodal interaction capabilities[20]. - The company aims to reshape enterprise software services with generative AI technology, targeting a market valued at trillions of RMB[20]. - The decision-making AI market in China reached RMB 53.2 billion in 2022, projected to grow to RMB 210.4 billion by 2027, with a CAGR of 31.7%[27]. - The company ranked first in IDC's evaluation of large model vendors, highlighting its service capabilities and platform strength[24]. - The company aims to enhance its core Prophet platform and integrate AIOT technologies for deeper industry applications[28]. - The company has established partnerships across various sectors, including finance, retail, and healthcare, to promote its AI solutions[23]. Expenses and Financial Management - Sales and marketing expenses were RMB 173.8 million, a slight increase of 1.2% year-on-year[39]. - General and administrative expenses increased by 22.4% to RMB 178.8 million compared to RMB 146.0 million in the same period last year[40]. - Research and development expenses rose by 18.6% to RMB 661.8 million from RMB 557.9 million year-on-year[41]. - Financial income increased by 24.5% to RMB 21.4 million compared to RMB 17.1 million in the previous year[47]. - Financial expenses decreased by 24.4% to RMB 248.5 million from RMB 328.5 million year-on-year[48]. - The company reported a foreign exchange loss of RMB 3,215 thousand during the first half of 2023, compared to a loss of RMB 2,160 thousand in the same period of 2022[119]. Cash and Liquidity - Cash and cash equivalents and time deposits totaled approximately RMB 2,353.8 million, an increase from RMB 2,011.9 million as of December 31, 2022[58]. - The company experienced a net cash outflow from operating activities of RMB 863,282 thousand for the six months ended June 30, 2023, compared to RMB 356,262 thousand for the same period in 2022, reflecting a worsening cash flow situation[125]. - The company raised RMB 194,666 thousand through shareholder contributions during the first half of 2023, while it spent RMB 259,022 thousand on share repurchases[125]. - The cash and cash equivalents at the end of June 30, 2023, amounted to RMB 1,562,856 thousand, an increase from RMB 1,420,922 thousand at the end of June 30, 2022[127]. - The company has short-term bank deposits of RMB 790,900 thousand as of June 30, 2023, which were not present in the previous year, indicating new liquidity management strategies[200]. Shareholder and Equity Information - The company did not declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[83]. - The total number of non-listed shares issued is 330,418,283, and the total number of issued H-shares is 133,642,250[95]. - Dr. Dai holds 106,164,523 non-listed shares directly and has indirect control over 74,068,383 non-listed shares through a controlled platform[95]. - Ms. Wu holds 180,232,906 non-listed shares, representing approximately 54.55% of the non-listed shares and 38.84% of the total equity[98]. - The company has not established any arrangements for directors to acquire shares or debt securities of the company or any other corporate entity during the six months ended June 30, 2023[97]. Compliance and Governance - The audit committee has reviewed the interim financial data for the six months ended June 30, 2023, and confirmed compliance with applicable accounting standards, laws, and regulations[84]. - The company has maintained sufficient public float as required under the listing rules as of the report date[87]. - The company has established an audit committee consisting of two independent non-executive directors and one non-executive director, ensuring appropriate professional qualifications[84]. - The company’s financial data is prepared in accordance with International Accounting Standard 34, ensuring compliance with relevant regulations[105]. - The company’s board of directors is responsible for preparing and presenting the interim financial data[105]. Investments and Future Plans - The company plans to seek strategic investment and acquisition opportunities, allocating 10% of the net proceeds (approximately HKD 83.6 million) for this purpose within five years from the listing date[91]. - The company has not made any significant investments or acquisitions since its listing date up to the report date[71]. - There are no plans for significant investments or capital assets as of the report date[72]. - The company completed its listing on the Hong Kong Stock Exchange on September 28, 2023, marking a significant milestone in its growth strategy[131].
第四范式(06682) - 2023 - 中期财报