Financial Performance - Revenue increased by 14.2% to RMB 400.533 million in the first half of 2023 compared to RMB 350.766 million in the same period of 2022[8] - Gross profit rose by 25.2% to RMB 237.010 million from RMB 189.315 million year-over-year[8] - Adjusted gross profit (non-IFRS) grew by 34.4% to RMB 255.338 million compared to RMB 189.970 million in the previous year[8] - Net loss for the period significantly increased to RMB 3.058 billion, a 1,778.2% rise from RMB 162.822 million in 2022[8] - Adjusted net loss (non-IFRS) improved by 43.5% to RMB 85.920 million from RMB 152.139 million in the prior year[8] - Net cash used in operating activities decreased by 5.9% to RMB 175.166 million from RMB 186.144 million[8] - Total revenue for the six-month period ending September 30, 2023 reached RMB 400.5 million, a 14.2% increase year-over-year[14] - Cloud-based HCM solutions generated RMB 296.5 million in revenue, a 17.1% increase year-over-year, contributing 74.0% of total revenue[14] - Beisen's gross profit margin (non-IFRS) for the six-month period ending September 30, 2023 was 63.7%, up 9.5 percentage points year-over-year[14] - Cloud-based HCM solutions gross margin (non-IFRS) increased by 3.2 percentage points to 78.1%[14] - Total revenue for the reporting period was RMB400.5 million, a year-on-year increase of 14.2%, driven by cloud-based HCM solutions which contributed RMB296.5 million, up 17.1% year-on-year, accounting for 74.0% of total revenue[40] - Revenue from professional services was RMB104.0 million, a year-on-year increase of 6.7%, accounting for 26.0% of total revenue[40] - Total revenue for the reporting period was RMB 400.5 million, a year-on-year increase of 14.2%, driven by growth in cloud-based HCM solutions subscription revenue[42][44][45] - Revenue from cloud-based HCM solutions increased by 17.1% to RMB 296.5 million, accounting for 74.0% of total revenue[42][46] - Professional services revenue grew by 6.7% to RMB 104.0 million, representing 26.0% of total revenue[42][46] - The company's net loss decreased by 43.5% year-on-year to RMB 86.0 million, primarily due to proactive cost control measures[43] - Net cash used in operating activities decreased to RMB 175.2 million from RMB 186.1 million in the same period last year[43][44] - Overall gross profit rose by 25.2% to RMB 237.0 million, and the gross margin increased from 54.0% to 59.2%[52] - Adjusted gross profit (non-IFRS) increased to RMB 255.3 million, with the adjusted gross margin rising from 54.2% to 63.7%[53] - Cloud-based HCM solutions' adjusted gross profit (non-IFRS) increased to RMB 231.7 million, with the adjusted gross margin rising from 74.9% to 78.1%[54] - Professional services turned from a gross loss of RMB 0.1 million to a gross profit of RMB 12.5 million, with the gross margin improving from -0.1% to 12.0%[54] - Adjusted gross profit (non-IFRS) for professional services increased to RMB 23.6 million, with the adjusted gross margin rising from 0.3% to 22.7%[54] - Loss before income tax increased significantly to RMB 3,056.6 million from RMB 167.1 million in the same period last year[57] - Income tax expense was RMB 1.5 million, compared to an income tax credit of RMB 4.3 million in the same period last year[57] - Loss for the period increased to RMB 3,058.1 million from RMB 162.8 million in the same period last year[57] - Adjusted gross profit and adjusted net loss are used as non-IFRS measures to facilitate comparisons of operating performance, though they may not be comparable to similarly titled measures from other companies[58][59] - Adjusted gross profit (non-IFRS measure) increased by 34.4% to RMB 255.3 million in the six months ended September 30, 2023, compared to RMB 189.97 million in the same period in 2022[62] - Adjusted net loss (non-IFRS measure) decreased by 43.5% to RMB 85.92 million in the six months ended September 30, 2023, compared to RMB 152.14 million in the same period in 2022[62] Market Position and Growth - Beisen is the only integrated cloud-based HCM solutions provider in China covering all main HCM-using scenarios of the entire employment lifecycle[11] - The company has successfully built a unified and open PaaS infrastructure, enabling comprehensive and integrated multi-function solutions[11] - The cloud-based HCM solutions market in China is still fragmented with over 500 players in 2022[11] - Beisen is well-positioned to capitalize on the growth of the cloud-based HCM solutions sector supported by China's 14th Five-Year Plan[11] - Beisen holds a 15.3% market share in China's HCM SaaS market in the first half of 2023, maintaining its leading position for seven consecutive years[12][13] - Beisen's contract value in September 2023 increased by 37.0% compared to September 2022, with a 15.9% growth in contract value for the six-month period ending September 30, 2023[14] - Beisen's annual recurring revenue (ARR) from clients engaged in at least two modules stood at 71.4% as of September 30, 2023[14] - The number of Beisen's customers exceeded 5,300 as of September 30, 2023, with a subscription revenue retention rate of 104%[15] - Core HCM integration business ARR accounted for 48.4%, a 35.1% increase year-over-year, with 300 new customers secured during the reporting period[15] - As of September 30, 2023, Beisen's customer base exceeded 5,300, with a subscription revenue retention rate of 104% during the reporting period[16] - Core HCM Cloud's ARR reached 48.4% as of September 30, 2023, with a year-on-year growth of 35.1% and 300 new customers added during the reporting period[17] - Performance Management Cloud's ARR increased by 32.3% year-on-year as of September 30, 2023, with 169 new customers added during the reporting period[19] - E-Learning Cloud's ARR grew by 84.5% year-on-year as of September 30, 2023, with 130 new customers added during the reporting period[22] - E-Learning Cloud engaged over 5,000 employees across more than 1,000 chain stores nationwide, achieving a 90% training participation rate[22] - The number of cloud-based HCM solutions customers increased from over 4,900 to over 5,300, with a subscription revenue retention rate of 104%[47] - Core HCM Integration ARR grew by 35.1% to RMB 339.2 million, accounting for 48.4% of total ARR, with a subscription revenue retention rate of 114%[47] - Total bookings increased by 15.9% to RMB 482.2 million, compared to RMB 415.9 million in the same period last year[47] Product and Service Innovations - Beisen's Payroll Cloud 2.0 has enhanced payroll accounting, salary management, and budget control, enabling 100% online payroll processing for nearly 10,000 staff across eight schools, reducing tax filing time from one week to 40 minutes[16] - Beisen's recruitment system for a renowned automobile company automated the handling of thousands of on-campus recruitment CVs, improving efficiency by 30%[18] - Beisen launched AI-powered leadership coaching tool Mr. Sen and upgraded its AI Interview platform, collaborating with AI technology leaders like Baidu ERNIE Bot[23] - Beisen launched advanced workforce management products in September 2023, focusing on intelligent scheduling, lean work hours, and workforce analytics, particularly for large group companies with over 5,000 employees[26][29] - The company introduced the AI Family product suite, integrating generative AI and SenGPT large-scale manpower model into HCM SaaS, offering intelligent solutions across HR domains[31][34] Strategic Focus and Industry Targeting - Beisen is targeting key industries such as internet, healthcare, manufacturing, retail chains, and new energy, aiming to boost customer acquisition efficiency and market penetration[32][35] - The company is committed to enhancing client service efficiency through digital tools for meticulous working hours management and project cost settlement processes[33][36] - Beisen is expanding its ecosystem partnerships to provide seamless services across various HR-related scenarios like recruitment, business travel, training, and benefits[38] - The company remains committed to its 100% public cloud-based pure SaaS model, achieving sustainable growth and reducing losses despite economic challenges[39] Operational Efficiency and Cost Management - Cost of revenues, excluding share-based compensation, decreased by 9.7% to RMB 145.2 million, representing 36.3% of revenue[48] - Sales cost increased by 1.2% year-on-year to RMB 163.5 million, while adjusted sales cost (excluding share-based compensation) decreased by 9.7% to RMB 145.2 million, with the cost-to-revenue ratio dropping from 45.8% to 36.3%[50] - Gross profit for cloud-based HCM solutions increased by 18.5% to RMB 224.5 million, with a stable gross margin of 75.7%[51] - Selling and marketing expenses increased by 30.9% to RMB 232.3 million, while adjusted expenses (excluding share-based compensation) rose by 2.3% to RMB 178.4 million, with the expense-to-revenue ratio decreasing from 49.7% to 44.5%[54] - General and administrative expenses increased by 55.6% to RMB 100.2 million, while adjusted expenses (excluding share-based compensation) decreased by 4.0% to RMB 61.7 million, with the expense-to-revenue ratio decreasing from 18.3% to 15.4%[54] - R&D expenses increased to RMB 187.0 million, up 29.1% YoY, but decreased by 4.5% YoY to RMB 136.4 million after excluding share-based compensation, with the percentage of revenue dropping from 40.7% to 34.1%[56] - Net impairment losses on financial assets and contract assets rose to RMB 4.6 million, up from RMB 2.6 million in the same period last year, due to increased asset size[56] - Other income increased to RMB 31.3 million, up from RMB 17.3 million, driven by a RMB 9.2 million increase in government grants and a RMB 5.3 million increase in VAT refunds[56] - Other gains, net decreased to RMB 6.3 million from RMB 19.3 million, primarily due to a RMB 11.9 million decrease in net fair value gains on financial assets and a RMB 1.6 million increase in net foreign exchange losses[56] - Net finance income increased to RMB 3.7 million from RMB 1.4 million, driven by a RMB 1.7 million increase in finance income and a RMB 0.7 million decrease in lease liability interest expenses[56] - Fair value changes of redeemable convertible preferred shares resulted in a loss of RMB 2,810.8 million, compared to a loss of RMB 5.0 million in the same period last year, due to changes in the company's valuation[57] Financial Position and Liquidity - Cash and cash equivalents increased by 43.3% to RMB 585.8 million as of September 30, 2023, compared to RMB 408.7 million as of March 31, 2023[65] - The company's gearing ratio significantly decreased to 36.7% as of September 30, 2023, from 546.7% as of March 31, 2023, primarily due to the conversion of redeemable convertible preferred shares into ordinary shares[66] - Capital commitments for fixed assets and office renovations decreased by 52.3% to RMB 1.31 million as of September 30, 2023, compared to RMB 2.75 million as of March 31, 2023[74] - The company recorded a one-time fair value change of RMB 2.81 billion due to the conversion of redeemable convertible preferred shares into ordinary shares after the completion of the Global Offering[63][68] - The company's functional currency is USD, and it is primarily exposed to changes in HKD/RMB and USD/RMB exchange rates[76] - The company entered into foreign currency forwards for financial assets denominated in foreign currency that do not satisfy hedge accounting requirements[77] - The company had unutilized banking facilities of RMB 40.0 million as of September 30, 2023[65] - The company did not have any material contingent liabilities as of September 30, 2023[67][72] - The company's maximum exposure to credit risk is represented by the carrying amounts of cash and cash equivalents, restricted cash, term deposits, trade receivables, and other receivables[80][84] - The company manages credit risk by transacting only with state-owned financial institutions in China or reputable banks and financial institutions with high credit quality in China, Hong Kong, and the United States[81][85] - The company's trade receivables and contract assets are subject to ongoing credit evaluations, with the main exposure being the carrying value of these assets at each reporting date[83] - The company's other receivables are assessed for recoverability based on historical settlement records and past experience, with impairment measured as twelve-month expected credit losses[83] - The company aims to maintain sufficient cash and cash equivalents to meet liquidity requirements and regularly monitors liquidity risk[86][87] - As of 30 September 2023, the company did not recognize any redeemable convertible preferred shares, as all such shares were automatically converted to ordinary shares after the completion of the Global Offering on 13 April 2023[88] - The company did not pledge any assets as of 30 September 2023[89] - The company's wealth management products had an aggregated outstanding principal amount of RMB993.5 million as of 30 September 2023, representing 53.2% of the company's total assets[91] - The outstanding principal amount of wealth management products subscribed from Bank of China was RMB694.0 million, with a fair value of RMB701.4 million, accounting for 37.6% of the company's total assets as of 30 September 2023[91] - The expected return rate for the wealth management products from Bank of China ranged from 1.1% to 3.5%[91] - No assets were pledged as of September 30, 2023[92] - The total unredeemed principal amount of wealth management products was RMB 993.5 million, accounting for 53.2% of the company's total assets[92] - The unredeemed principal amount of wealth management products from Bank of China was RMB 694.0 million, with a fair value of RMB 701.4 million, representing 37.6% of the company's total assets[92] - The expected return rate of Bank of China's wealth management products ranged from 1.1% to 3.5%[92] Human Resources and Employee Management - The company had 1,901 employees as of September 30, 2023, a decrease from 2,295 employees in the same period last year[98] - Total staff costs for the reporting period were RMB 582.3 million[98] - The company did not have plans for material investments and capital assets as of September 30, 2023[97] - No material acquisitions, disposals of subsidiaries, associates, or joint ventures occurred during the reporting period[95] Corporate Governance and Compliance - The company complied with all code provisions of the Corporate Governance Code since its listing date[104] - No incidents of non-compliance with the Model Code by employees were noted since the listing date[105] - The company's public float complies with the requirements of Rule 8.08 of the Listing Rules as of the report date[119] - The interim financial information for the six months ended 30 September 2023 was reviewed by PricewaterhouseCoopers in accordance with International Standard on Review Engagement 2410[113] Shareholder and Equity Information - Mr. Wang holds a long position of 81,054,370 shares, representing 11.33% of the total shareholding[134] - Mr. Ji holds a long position of 80,644,370 shares, representing 11.27% of the total shareholding[134] - Ms. Liu holds a long position of 1,112,160 shares, representing 0.16% of the total shareholding[134] - Total issued shares as of 30 September 2023 are 715,297,060[134] - Zhaosen Holding Limited is deemed to be interested in 81,054,370 shares, with Mr. Wang, Ark Trust (Singapore) Ltd., Sen Talent Holdings Limited, and Huisen Holding Limited having indirect interests[135] - Mr. Wang was granted 1,500,000 options under the Pre-IPO Share Option Plan on 1 March 2023, and directly held 4,200 shares as of 30 September 2023[136] - Ms. Zhou Dan, Mr. Wang's spouse, was granted 783,410 options on 1 January 2019, all exercised, and 1,277,160 options on 1 March 2023, which were not vested[136] - Weisen Holding Limited owns 80,644,370 shares, with Mr. Ji, Ark Trust (Singapore) Ltd., Sen Platform Holdings Limited, and Guosen Holding Limited deemed to have interests in these shares[136] - Ms. Liu was granted 2,843,150 options, including 1,730,990 exercised options and 1,
北森控股(09669) - 2024 - 中期财报