云工场(02512) - 2024 - 中期财报

Company Information This section provides an overview of the company's corporate governance structure, including key personnel, committees, and professional advisors Company Information Overview This section outlines the company's corporate governance structure and contact information, including board members, committees, and auditors - The Chairman and Chief Executive Officer of the company is Mr. Sun Tao[15] - The company's auditor is Ernst & Young[19] Financial Highlights For the six months ended June 30, 2024, revenue increased by 22.5%, while gross profit and profit for the period slightly decreased, with total assets and equity significantly improving due to IPO financing Financial Highlights For the six months ended June 30, 2024, revenue increased by 22.5%, while gross profit and profit for the period slightly decreased, with total assets and equity significantly improving due to IPO financing Condensed Consolidated Statement of Comprehensive Income Highlights | Item | For the Six Months Ended June 30, 2024 (thousand RMB) | For the Six Months Ended June 30, 2023 (thousand RMB) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 369,696 | 301,862 | +22.5% | | Gross Profit | 47,110 | 47,771 | -1.4% | | Profit Before Tax | 14,850 | 15,071 | -1.5% | | Profit for the Period | 12,543 | 13,186 | -4.9% | Condensed Consolidated Statement of Financial Position Highlights | Item | As of June 30, 2024 (thousand RMB) | As of December 31, 2023 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 878,297 | 501,741 | +75.0% | | Total Liabilities | 469,468 | 446,840 | +5.1% | | Total Equity | 408,829 | 54,901 | +644.7% | Management Discussion and Analysis This section provides an in-depth analysis of the company's operational performance, financial position, and future outlook Business Review In H1 2024, the company achieved 22.5% revenue growth, primarily driven by a nearly 300% increase in edge computing services, while expanding its 'Sinking Strategy' and enhancing R&D in AI algorithms and AIoT - Total revenue reached RMB 370 million in H1 2024, a 22.5% year-over-year increase[25] - Edge computing services revenue significantly increased by nearly 300%[26] - The company implemented a 'Sinking Strategy' to optimize cross-regional data center resource deployment and expand services to county-level areas[25] - R&D focused on AI algorithm model innovation, developing nearly 100 new AI algorithm models and accumulating over 20 million data samples in H1[26] Research and Development The company's R&D focuses on enhancing IDC solution security, improving EdgeCDN services through system upgrades, and optimizing EdgeAIoT services, particularly in algorithm model lightweighting and edge deployment - R&D directions include enhancing IDC solution services, strengthening edge computing services, and optimizing EdgeAIoT services[28] Outlook The company anticipates growth in edge and intelligent computing driven by the low-altitude economy and digitalization, planning to advance its 'Sinking Strategy' and collaborate on new AI application scenarios - The company believes the implementation of the low-altitude economy will drive demand for edge computing and lower-tier networks[29] - In the second half, the company will continue to focus on the sinking market and improve infrastructure based on its 'Sinking Strategy'[29] Financial Overview Total revenue grew 22.5% to RMB 369.7 million, driven by a nearly 300% surge in edge computing services, though overall gross profit and net profit slightly declined due to a decrease in IDC solution services' gross margin Revenue Analysis Total revenue increased by 22.5% to RMB 369.7 million, with IDC solution services growing 18.2% to RMB 348.7 million, and edge computing services surging nearly 300% to RMB 21 million, while ICT and other services saw minimal revenue due to strategic adjustments Segment Revenue (thousand RMB) | Segment | H1 2024 | % of Total Revenue | H1 2023 | % of Total Revenue | Year-over-Year Growth | | :--- | :--- | :--- | :--- | :--- | :--- | | IDC Solution Services | 348,699 | 94.3% | 295,007 | 97.7% | +18.2% | | Edge Computing Services | 20,997 | 5.7% | 5,285 | 1.8% | +297.3% | | ICT Services and Other Services | — | 0.0% | 1,570 | 0.5% | -100.0% | | Total | 369,696 | 100.0% | 301,862 | 100.0% | +22.5% | Gross Profit and Gross Margin Analysis Overall gross profit slightly decreased by 1.4% to RMB 47.1 million, with gross margin falling from 15.8% to 12.7%, primarily due to a one-time vendor rebate in the prior period affecting IDC solution services, while edge computing services' margin improved from 24.2% to 31.4% Segment Gross Margin | Segment | H1 2024 Gross Margin | H1 2023 Gross Margin | | :--- | :--- | :--- | | IDC Solution Services | 11.6% | 15.4% | | Edge Computing Services | 31.4% | 24.2% | | Overall | 12.7% | 15.8% | Operating Expenses and Other Items Analysis Significant changes in expenses and income include a substantial increase in other income due to RMB 3 million in IPO-related government grants, higher administrative expenses from staff expansion and listing fees, a 23.9% decrease in R&D, and a 52.6% rise in finance costs due to increased borrowings - Other income and gains increased by over 500%, primarily due to the recognition of RMB 3 million in government grants related to the listing[42] - Administrative expenses increased by 19.3%, mainly due to an increase in administrative staff and listing expenses[44] - R&D expenses decreased by 23.9% to RMB 6.7 million, as significant requirements for certain R&D projects were met prior to the reporting period[45] - Finance costs increased by 52.6% to RMB 2.9 million, primarily due to higher interest expenses on loans and borrowings[48] Profit for the Period Profit for the period was RMB 12.5 million, a slight decrease from RMB 13.2 million in the prior period, impacted by lower gross margin and increased expenses - Profit for the six months ended June 30, 2024, was RMB 12.5 million, compared to RMB 13.2 million in the prior period[50] Liquidity and Financial Resources The company's financial position is robust, with significant increases in trade and other receivables due to business expansion, a substantial improvement in the debt-to-equity ratio from 3.1 to 0.61 post-IPO, and stable cash and cash equivalents at RMB 165 million Key Balance Sheet Item Changes (million RMB) | Item | June 30, 2024 | December 31, 2023 | Reason for Change | | :--- | :--- | :--- | :--- | | Trade Receivables | 323.8 | 197.6 | Increase in revenue | | Prepayments, Other Receivables and Other Assets | 262.3 | 38.0 | Increase in prepayments for equipment and resources | | Trade Payables | 191.8 | 244.1 | Settlement of supplier payments | | Interest-bearing Bank Borrowings | 247.0 | 166.7 | New bank loans | | Cash and Cash Equivalents | 164.6 | 162.3 | Remained stable | - The debt-to-equity ratio (total debt/total equity) significantly improved from 3.1 at the end of 2023 to 0.61[60] Other Information This section provides additional disclosures on corporate governance, shareholding, IPO proceeds, and employee matters Other Important Information This section covers director and shareholder interests, IPO proceeds utilization, employee information, and corporate governance, noting that Chairman Mr. Sun Tao holds 75% of shares, HKD 337 million in IPO net proceeds remain unutilized, and the company deviates from the corporate governance code regarding the Chairman and CEO roles, with no interim dividend declared - Chairman Mr. Sun Tao holds 345,000,000 shares, representing 75.0% of the total issued shares, through his wholly-owned entity Ru Yi IT[66][67] - Net proceeds from the global offering, approximately HKD 336.8 million, remained unutilized as of the reporting date[71] - The roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Sun Tao, deviating from corporate governance code recommendations[75] - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2024[77] Interim Condensed Consolidated Financial Statements This section presents the unaudited interim condensed consolidated financial statements for the six months ended June 30, 2024, including the statement of profit or loss, comprehensive income, financial position, changes in equity, and cash flows Interim Condensed Consolidated Statement of Profit or Loss For the period, revenue reached RMB 369.7 million, up 22.5%, but gross profit slightly decreased to RMB 47.11 million due to sales cost growth exceeding revenue, resulting in a profit for the period of RMB 12.54 million, down from RMB 13.19 million in the prior year Key Profit or Loss Statement Data (thousand RMB) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 369,696 | 301,862 | | Cost of Sales | (322,586) | (254,091) | | Gross Profit | 47,110 | 47,771 | | Administrative Expenses | (20,963) | (17,645) | | Research and Development Expenses | (6,683) | (8,805) | | Profit Before Tax | 14,850 | 15,071 | | Profit for the Period | 12,543 | 13,186 | Interim Condensed Consolidated Statement of Comprehensive Income Total comprehensive income for the period was RMB 16.95 million, comprising RMB 12.54 million in profit for the period and RMB 4.41 million in exchange differences on translating foreign operations (other comprehensive income) - Total comprehensive income for the period was RMB 16.952 million, including RMB 12.543 million in profit and RMB 4.409 million in exchange gains[84] Interim Condensed Consolidated Statement of Financial Position As of June 30, 2024, total assets increased to RMB 878 million and total equity to RMB 409 million, primarily due to IPO proceeds, with net current assets turning positive at RMB 282 million, indicating significantly improved liquidity Key Financial Position Statement Data (thousand RMB) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Non-current Assets | 127,596 | 103,811 | | Current Assets | 750,701 | 397,930 | | Total Assets | 878,297 | 501,741 | | Current Liabilities | 469,093 | 446,176 | | Non-current Liabilities | 375 | 664 | | Total Liabilities | 469,468 | 446,840 | | Total Equity | 408,829 | 54,901 | Interim Condensed Consolidated Statement of Changes in Equity Shareholders' equity significantly increased from RMB 54.9 million at year-end 2023 to RMB 409 million, primarily driven by approximately RMB 337 million in net IPO proceeds and RMB 16.73 million in comprehensive income for the period - Total equity increased from RMB 54.901 million to RMB 408.829 million, primarily driven by share issuance (net proceeds of approximately RMB 337 million) and comprehensive income for the period (RMB 16.952 million)[89] Interim Condensed Consolidated Statement of Cash Flows Net cash outflow from operating activities was RMB 398 million, mainly due to significant increases in trade and other receivables, while investing activities saw a net outflow of RMB 24.92 million, and financing activities generated a net inflow of RMB 421 million, primarily from IPO proceeds, resulting in a net increase of RMB 2.3 million in cash and cash equivalents (including exchange rate effects) Cash Flow Statement Summary (thousand RMB) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net Cash Flows Used in Operating Activities | (397,793) | (94,115) | | Net Cash Flows Used in Investing Activities | (24,915) | (33,488) | | Net Cash Flows From Financing Activities | 420,597 | 110,868 | | Net Increase in Cash and Cash Equivalents | (2,111) | (16,735) | | Cash and Cash Equivalents at End of Period | 164,639 | 61,251 | Notes to the Interim Condensed Consolidated Financial Information This section provides detailed explanations and supplementary information for significant financial statement items, including accounting policies, segment information, revenue composition, various expenses, and balance sheet item breakdowns Note 5: Revenue, Other Income and Gains This note details revenue composition, with IDC services remaining the primary revenue driver at RMB 349 million, and other income significantly including RMB 3.5 million in government grants, of which RMB 3 million is IPO-related Revenue from Contracts with Customers (thousand RMB) | Type of Goods or Services | H1 2024 | H1 2023 | | :--- | :--- | :--- | | IDC Services | 348,699 | 295,007 | | Edge Computing Services | 20,997 | 5,285 | | ICT Services and Other Services | — | 1,570 | | Total | 369,696 | 301,862 | - Other income and gains include RMB 3.502 million in government grants[104] Note 6: Profit Before Tax This note discloses key items affecting profit before tax, including RMB 7.51 million in listing expenses contributing to administrative cost increases, and total employee benefit expenses (including directors' emoluments) of RMB 15 million - Listing expenses recognized during the reporting period amounted to RMB 7.507 million[105] - Total employee benefit expenses were RMB 14.967 million (comprising RMB 13.042 million in wages and RMB 1.925 million in retirement benefit scheme contributions)[105] Note 10: Earnings Per Share Basic and diluted earnings per share remained stable at RMB 0.03, calculated based on RMB 12.32 million profit for the period and a weighted average of 382 million ordinary shares outstanding, adjusted for reorganization and capitalization issue - Basic and diluted earnings per share were RMB 0.03, consistent with the prior period[111] Note 13: Trade Receivables Net trade receivables significantly increased by 63.8% from RMB 198 million at year-end 2023 to RMB 324 million, reflecting business expansion, with most receivables due within one year Trade Receivables Movement (thousand RMB) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Trade Receivables | 329,010 | 200,991 | | Impairment | (5,235) | (3,364) | | Net | 323,775 | 197,627 | Note 16: Interest-bearing Bank Borrowings Total interest-bearing bank borrowings increased from RMB 167 million to RMB 247 million, all current liabilities due within one year, with RMB 22.7 million secured and the remainder unsecured, at effective interest rates ranging from 2.90% to 3.40% Composition of Interest-bearing Bank Borrowings (thousand RMB) | Type | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Bank Borrowings — Secured | 20,017 | 28,026 | | Bank Borrowings — Unsecured | 227,008 | 138,708 | | Total | 247,025 | 166,734 | Note 17: Share Capital During the period, the company's share capital significantly changed, with total issued ordinary shares increasing from 1 million to 460 million through a capitalization issue of 374 million shares and an initial public offering of 85 million shares - Through capitalization issue and initial public offering, the company's total issued shares increased from 1,000,000 to 460,000,000 shares[122][123] Definitions This section provides a glossary of specific terms used throughout the report to ensure clarity and consistency Glossary of Terms This section defines specific terms used in the report, such as 'the Company', 'the Group', 'Contractual Arrangements', and 'Controlling Shareholder', to ensure accurate information dissemination