凌雄科技(02436) - 2024 - 中期业绩

Financial Summary Financial Highlights The Group achieved a 14.8% revenue increase to RMB 943 million and a 32.9% gross profit increase to RMB 92.9 million, with adjusted EBITDA up 4.5% to RMB 140 million, while net loss attributable to owners slightly narrowed Key Financial Indicators for H1 2024 | Indicator | For the Six Months Ended June 30, 2024 (RMB in millions) | For the Six Months Ended June 30, 2023 (RMB in millions) | | :--- | :--- | :--- | | Revenue | Approx. RMB 942.6 | Approx. RMB 822.4 | | Gross Profit | Approx. RMB 92.9 | RMB 69.9 | | Loss Attributable to Owners of the Company | Approx. RMB 39.8 | Approx. RMB 42.4 | | Adjusted EBITDA | Approx. RMB 140.2 | RMB 134.1 | Management Discussion and Analysis Business Review The Group achieved record half-year revenue of RMB 942.6 million, a 14.6% year-on-year increase, driven by equipment recycling and subscription services, with equipment recycling notably turning gross loss into gross profit - Half-year revenue reached a new high of RMB 942.6 million, representing a 14.6% year-on-year increase[4] - Equipment recycling business significantly improved, turning a gross loss of approximately RMB 11.2 million in the prior period into a gross profit of approximately RMB 7.7 million in the current period[4] Equipment Recycling Business Equipment recycling revenue surged 17.0% to RMB 681.9 million, driven by a 31.3% increase in units sold and a 70.9% rise in customer numbers, despite a decrease in average revenue per customer Equipment Recycling Business Operating Data | Indicator | H1 2024 | H1 2023 | Growth Rate | | :--- | :--- | :--- | :--- | | Revenue | RMB 681.9 million | RMB 582.6 million | +17.0% | | Number of Units Sold (Units) | 449,029 | 341,957 | +31.3% | | Number of Equipment Recycling Customers | 1,309 | 766 | +70.9% | | Average Revenue Per Customer (RMB) | 520,896 | 760,579 | -31.5% | | Average Sales Value (RMB/Unit) | 1,472.3 | 1,377.4 | +6.9% | Equipment Subscription Business Equipment subscription revenue increased by 13.0% to RMB 183.7 million, with both new and used equipment subscriptions growing, and total subscription volume rising 15.2% driven by new equipment Equipment Subscription Business Operating Data | Indicator | H1 2024 (RMB in thousands) | H1 2023 (RMB in thousands) | Growth Rate | | :--- | :--- | :--- | :--- | | Revenue | 183,730 | 162,561 | 13.0% | | — New Equipment | 151,551 | 134,876 | 12.4% | | — Used Equipment | 32,179 | 27,685 | 16.2% | | Total Equipment Subscriptions (Units) | 3,112,036 | 2,700,602 | 15.2% | | — New Equipment | 2,505,320 | 2,102,924 | 19.1% | | — Used Equipment | 606,716 | 597,678 | 1.5% | IT Technology Subscription Services IT technology subscription services revenue remained largely flat, with a slight 0.3% decrease to RMB 77 million, as growth in long-term subscriptions was offset by a decline in short-term subscriptions IT Technology Subscription Services Revenue Composition | Revenue Source | H1 2024 (RMB in thousands) | H1 2023 (RMB in thousands) | Growth Rate | | :--- | :--- | :--- | :--- | | Total Revenue | 77,015 | 77,227 | -0.3% | | — Long-term Subscriptions | 58,685 | 57,332 | 2.4% | | — Short-term Subscriptions | 18,330 | 19,895 | -7.9% | Future Outlook The Group plans to integrate AI deeply into core business operations, focusing on front-end processes and mid-office management to enhance operational efficiency, systematically manage growing demands, and provide customized services, especially for SMEs, to reduce costs and improve efficiency - The strategic core involves deeply integrating AI into front-end business processes and mid-office management to systematically manage contracts, orders, consultations, and demands[12] - Leveraging AI's data analysis capabilities, the aim is to proactively predict and resolve issues, offering customized solutions to enhance customer experience, particularly for small and medium-sized enterprises[12] Financial Review Revenue Analysis Total revenue increased by 14.6% to RMB 942.6 million, primarily driven by growth in equipment recycling and subscription services, with equipment recycling remaining the largest contributor at 72.3% and Shenzhen being the dominant geographical revenue source Revenue by Business Segment | Business Segment | H1 2024 (RMB in thousands) | Proportion | H1 2023 (RMB in thousands) | Proportion | Growth Rate | | :--- | :--- | :--- | :--- | :--- | :--- | | Equipment Recycling Revenue | 681,853 | 72.3% | 582,603 | 70.8% | 17.0% | | Equipment Subscription Services | 183,730 | 19.5% | 162,561 | 19.8% | 13.0% | | IT Technology Subscription Services | 77,015 | 8.2% | 77,227 | 9.4% | -0.3% | | Total | 942,598 | 100% | 822,391 | 100.0% | 14.6% | - The growth in equipment recycling revenue was primarily due to an increase in the number of units sold from 342,000 to 449,000[15] - The increase in equipment subscription services revenue was driven by a rise in total equipment subscriptions and customer numbers, with customers growing from 16,727 to 22,726[17] Revenue by Geographical Location | Region | H1 2024 (RMB in thousands) | Proportion | H1 2023 (RMB in thousands) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Shenzhen | 781,815 | 82.9% | 662,658 | 80.6% | | Shanghai | 54,335 | 5.8% | 30,389 | 3.7% | | Others | 106,448 | 11.3% | 129,444 | 15.7% | | Total | 942,598 | 100.0% | 822,391 | 100.0% | Gross Profit and Gross Margin Overall gross profit increased by 32.9% to RMB 92.9 million, with gross margin rising from 8.5% to 9.9%, primarily due to the significant turnaround in equipment recycling business and improved equipment subscription service margins, despite a decline in IT technology subscription service margins Gross Profit and Gross Margin by Business Segment | Business Segment | H1 2024 Gross Profit (RMB in thousands) | Gross Margin | H1 2023 (Gross Loss)/Gross Profit (RMB in thousands) | Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Equipment Recycling Revenue | 7,677 | 1.1% | (11,179) | (1.9)% | | Equipment Subscription Services | 39,746 | 21.6% | 29,298 | 18.0% | | IT Technology Subscription Services | 45,457 | 59.0% | 51,788 | 67.1% | | Total | 92,880 | 9.9% | 69,907 | 8.5% | - The equipment recycling business turned profitable, primarily due to an increase in the average sales value of units sold from RMB 1,377 to RMB 1,472[22] - Equipment subscription services gross margin improved as revenue growth outpaced cost increases, and the average equipment utilization rate rose from 85.6% to 86.5%[23][24] Operating Expenses and Profitability To expand market share, distribution and selling expenses increased by 48.2% to RMB 77.3 million, while administrative expenses decreased by 4.5% and R&D expenses rose by 14.2% due to AI investments, resulting in a narrowed loss attributable to owners and a 4.5% increase in adjusted EBITDA - Distribution and selling expenses increased by 48.2% year-on-year to RMB 77.3 million, primarily due to the expansion of sales and marketing teams[27] - Administrative expenses decreased by 4.5% year-on-year to RMB 47.1 million, mainly due to a reduction in share-based payments[28] - Research and development expenses increased by 14.2% year-on-year to RMB 14.5 million, primarily due to expenses incurred from AI research and development[29] Reconciliation of Loss to Adjusted EBITDA | Indicator (RMB in thousands) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Loss for the Period | (40,583) | (42,359) | | Adjusted Loss (Non-IFRS) | (22,304) | (11,365) | | Adjusted EBITDA (Non-IFRS) | 140,159 | 134,146 | Financial Position and Liquidity As of June 30, 2024, the Group's current assets totaled RMB 915.5 million with a current ratio of 1.2, while bank balances and cash increased to RMB 477.8 million, and total bank and other borrowings rose to RMB 839.5 million, leading to a capital gearing ratio increase to 117.0% - Current assets increased by 13.2% to RMB 915.5 million, with a current ratio of 1.2 times (2023 year-end: 1.3 times)[35] - Bank balances and cash increased to RMB 477.8 million (2023 year-end: RMB 416.6 million), primarily due to increased cash generated from business operations[43] - Total bank and other borrowings increased to RMB 839.5 million (2023 year-end: RMB 692.2 million) to support business growth[44] - The capital gearing ratio rose to 117.0% (2023 year-end: 93.6%)[45] Other Information Employees and Remuneration Policy As of June 30, 2024, the Group's full-time employees decreased to 1,052 from 1,143 at year-end 2023, with total employee remuneration for the period remaining stable at approximately RMB 93.8 million, supported by competitive compensation and incentive plans - As of June 30, 2024, the Group had 1,052 full-time employees, a decrease from 1,143 at the end of 2023[48] - Employee remuneration for the period was approximately RMB 93.8 million, largely consistent with approximately RMB 93.9 million in the prior period[48] Corporate Governance and Dividends The Group adheres to corporate governance codes, with a deviation where the Chairman and CEO roles are combined, deemed beneficial for management continuity, and the Board resolved not to declare an interim dividend for the period - The roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Hu Zuoxiong, a deviation from Corporate Governance Code provision C.2.1, which the Board believes is in the best interest of the Company and its shareholders[50] - The Board resolved not to declare an interim dividend for the six months ended June 30, 2024[52] Condensed Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2024, the Group reported revenue of RMB 942.6 million and gross profit of RMB 92.9 million, with total loss and comprehensive expenses for the period slightly decreasing to RMB 40.6 million, and basic and diluted loss per share at RMB 0.13 Consolidated Statement of Profit or Loss Summary | Item (RMB in thousands) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 942,598 | 822,391 | | Gross Profit | 92,880 | 69,907 | | Loss Before Tax | (44,122) | (43,102) | | Loss and Total Comprehensive Expenses for the Period | (40,583) | (42,359) | | Loss Attributable to Owners of the Company | (39,792) | (42,359) | | Basic Loss Per Share (RMB) | (0.13) | (0.14) | Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets were RMB 1.7537 billion, total liabilities RMB 1.0361 billion, and net assets RMB 717.6 million, with net assets slightly decreasing compared to year-end 2023, while net current assets remained stable at RMB 162 million Consolidated Statement of Financial Position Summary | Item (RMB in thousands) | As of June 30, 2024 | As of December 31, 2023 | | :--- | :--- | :--- | | Total Non-current Assets | 838,184 | 872,361 | | Total Current Assets | 915,463 | 808,735 | | Total Current Liabilities | 753,443 | 645,173 | | Total Non-current Liabilities | 282,619 | 296,114 | | Net Assets | 717,585 | 739,809 |