Corporate Transactions - The Group completed a disposal of 51% equity interest in Chengdu ThinkMore Technology Co., Ltd. for a total consideration of RMB30.6 million, reducing its equity interest from 100% to 49%[18]. - The Group completed the sale of 51% equity in Chengdu Rongzhi Interactive Technology Co., Ltd. for a total consideration of RMB 30.6 million, reducing its ownership from 100% to 49%[21]. - The equity registration for the disposal transaction was completed on 6 March 2024[18]. - The remaining consideration for the equity transfer must be paid within one year from the effective date of the agreement[18]. - The Group had no significant acquisitions or disposals of subsidiaries, associates, and joint ventures during the year, except for the aforementioned transaction[19]. Financial Performance - The annual report covers the financial performance for the year ended 31 March 2024[17]. - The Group generated revenue of approximately RMB 1,240.9 million for the financial year ended 31 March 2024, representing a 39.6% increase compared to the previous year[35]. - Revenue from back-office services accounted for approximately RMB 1,186.0 million, which is 95.6% of the total revenue[35]. - For the profit guarantee period from 1 April 2022 to 31 March 2023, the audited consolidated net profit attributable to the equity holders of KingNine was approximately RMB 94.8 million, which was less than the guaranteed profit of RMB 150 million, resulting in a compensation of approximately RMB 41.5 million[29]. - For the profit guarantee period from 1 April 2023 to 31 March 2024, the audited consolidated net profit attributable to the equity holders of KingNine is projected to be approximately RMB 148.2 million, which is less than the guaranteed profit of RMB 180 million, leading to a compensation of approximately RMB 41.3 million[29]. - The Group recorded a revenue of approximately RMB1,240.9 million for the fiscal year ending March 31, 2024, representing a 39.6% increase compared to approximately RMB888.6 million in the previous year[42][45]. - Back-office services revenue was approximately RMB1,185.9 million, accounting for 95.6% of total revenue, with a significant increase from RMB835.6 million in the previous year[49]. - The Group recognized a non-cash impairment loss on goodwill of approximately RMB224.8 million, down from RMB349.4 million in the previous year, indicating a reduction in impairment charges[53]. - The Group's net other income and gains for the year were approximately RMB74.5 million, a decrease from RMB160.8 million in the previous year, mainly due to changes in fair value considerations[50]. - Loss attributable to owners of the Company for the Year was approximately RMB197.4 million, compared to RMB230.3 million in the previous year[70]. - Basic and diluted losses per share for the Year were approximately RMB4.13 cent, down from RMB5.03 cent in 2023[71]. Strategic Focus and Innovation - The Group aims to enhance customer satisfaction and ensure sustainable business development while embracing cutting-edge technologies such as AI[30]. - The Group's long-term strategy focuses on innovation to adapt to changes in consumer habits and behaviors[35]. - The Group has been actively expanding new service scenarios in the enterprise services sector to consolidate its industry leadership[30]. - The Group's commitment to technological innovation is reflected in its continuous efforts to provide professional services to customers[30]. - The Group acquired 37 new software copyrights and cumulatively holds 270 software copyrights and 3 invention patents, reflecting its commitment to independent innovation and R&D[37][39]. - The Group's focus on artificial intelligence and big data technologies has led to positive results in integrating these innovations into business scenarios, enhancing operational efficiency[39]. - The Group is considering acquiring or investing in relevant assets to expand service categories and enhance research and development capabilities[93]. - The Group plans to focus on premium corporate clients in the Internet and finance sectors to diversify service categories and strengthen customer loyalty[92]. Operational Developments - The Group established and reconstructed multiple self-operated contact service centers, increasing the total number of completed workstations to 18,794 across 46 centers, enhancing its service capabilities across tier 1 to tier 4 cities[41][44]. - The cost of services incurred during the year was approximately RMB1,113.0 million, up from RMB767.4 million in the previous year, primarily due to increased staff costs and the operational scaling of new contact service centers[48][51]. - The total staff cost for the year amounted to approximately RMB809.3 million, with an increase in employees from 11,755 in 2023 to 13,446 in 2024[84]. - The Group is focused on project tendering and implementation of self-operated contact centers to support new orders and achieve revenue contributions[119]. Market Outlook and Challenges - The service industry in China is expected to recover significantly, contributing to improved market expectations[112]. - The Group's major clients are from finance, telecommunications, and internet sectors, which are anticipated to recover rapidly with the economic recovery[117]. - The company continues to face challenges such as insufficient effective demand and increasing external uncertainties, but sees growth opportunities in the financial and internet sectors as the economy recovers[120]. - AI technology is evolving rapidly, presenting significant opportunities for development in the enterprise service industry[117]. - The company is actively exploring new business opportunities in the financial industry and live e-commerce, aiming for healthy growth and enhanced shareholder value[120]. Governance and Leadership - Mr. Hu Shilong was appointed as the executive director and CEO of the company in November 2023[137]. - The company holds approximately 4.45% of its shares through NINEGO Corporation, and Mr. Hu is a shareholder of Dalian Kingwisoft with about 32.91% ownership[137]. - Ms. Zhou Fang, appointed as an executive director in November 2023, holds approximately 9.47% of Dalian Kingwisoft shares through FUNGHWA Ltd.[143]. - The company has a strong leadership team with extensive experience in IT and management, including Mr. Li Xiang and Ms. Liu Xiaochen, who have held significant positions in the company since 2023 and 2016 respectively[140][149]. - The company is focused on expanding its market presence and enhancing its product offerings through strategic leadership appointments and experienced management[140][143]. - The company has a diverse board of directors, including independent non-executive directors with extensive backgrounds in finance and business development, such as Mr. Stephen Markscheid[156]. - The company aims to leverage its leadership's expertise to drive innovation and growth in the technology sector[140][157]. - The company is committed to maintaining strong corporate governance through its audit and nomination committees[156]. Compliance and Risk Management - Dalian Kingwisoft Technology Co., Ltd., a subsidiary, is responsible for handling a large amount of personal information from clients, ensuring compliance with the Cybersecurity Law of China[176]. - The Group's risk management includes compliance risk related to the confidentiality of client information[176]. - The Group emphasizes the importance of maintaining confidentiality in client information as per signed contracts[176]. - The Group has implemented strict internal control procedures to ensure the security and confidentiality of client data, but cannot guarantee that personal information will not be leaked or stolen[182]. - The Group has not found any leakage of confidential client information during the financial year and has passed the annual review for its information security system certification[186]. - All employees are required to sign a confidentiality agreement upon joining the Company, with legal and financial consequences for any violations[185]. - The Group has obtained ISO 27001 Information Security Management System Certification, reinforcing its commitment to information security[191][196]. Environmental Responsibility - The Group's environmental policies include green office practices, recycling, and reducing resource consumption to protect the environment[193][198]. - The Group's management is committed to maintaining awareness of environmental responsibilities among employees[193].
金慧科技(08295) - 2024 - 年度财报