趣致集团(00917) - 2025 - 中期业绩

Interim Results Summary During the reporting period, Quzhi Group achieved significant growth in revenue and gross profit, successfully turning losses into profits, primarily driven by marketing services, with contributions from merchandise sales and other services Interim Results Summary (2025 vs 2024) | Metric | 2025 (RMB Thousand) | 2024 (RMB Thousand) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Revenue | 676,189 | 515,117 | 31.3 | | - Marketing Services | 568,020 | 411,759 | 37.9 | | - Merchandise Sales | 83,219 | 78,449 | 6.1 | | - Other Services | 24,950 | 24,909 | 0.2 | | Gross Profit | 385,511 | 281,424 | 37.0 | | Profit/(Loss) for the Period | 128,363 | (1,846,245) | 107.0 | | EBITDA | 175,751 | (1,805,098) | 109.7 | Management Discussion and Analysis This section details Quzhi Group's operating performance, business segment performance, long-term strategy, financial position, and other significant matters for the first half of 2025, benefiting from macroeconomic support and AI strategy upgrades, achieving significant revenue and profit growth, and increasing AI technology investment and market expansion Performance Review In the first half of 2025, China's economy grew steadily, driving strong marketing demand across various sectors, and Quzhi Group, as an AI interactive marketing leader, achieved rapid revenue and gross profit growth, turning losses into profits, primarily due to its innovative business model, service capabilities, and AI investments - China's economy experienced steady growth, with GDP increasing by 5.3% year-on-year, new energy vehicle sales growing over 40%, and home appliance sales increasing over 30%, stimulating strong marketing demand across industries[4] - The company's revenue reached RMB 676.2 million, a 31.3% year-on-year increase, with gross profit rising to RMB 385.5 million, up 37.0% year-on-year[4] - Profit for the period was RMB 128.4 million, turning losses into profits compared to a loss of RMB 1,846.2 million in the same period last year, primarily due to a non-cash fair value loss of RMB 1,899.4 million related to convertible redeemable preference shares in the first half of 2024[6] - The company's core strategy fully upgraded to "AI+Consumer Scenarios," aiming to reshape more consumption scenarios with AIoT, significantly increasing R&D investment to RMB 77.8 million, a 107.7% year-on-year increase[5] Business Segment Performance During the reporting period, marketing services revenue and gross profit both achieved rapid growth, with value-added marketing services performing particularly well, while merchandise sales revenue saw a slight increase, and lifestyle and innovative businesses (AI+Entertainment) made initial progress in the Middle East market Marketing Services Marketing services revenue increased by 37.9% year-on-year, with gross profit growing by 43.8%, driven by significant growth in both standardized and high-margin value-added marketing services, attributed to a quality customer base, expanded service scope, AI technology innovation, and enhanced AI interactive terminal network efficiency - Marketing services revenue reached RMB 568.0 million, a 37.9% year-on-year increase, with gross profit at RMB 353.3 million, up 43.8% year-on-year[7] - Standardized marketing services revenue reached RMB 483.2 million, a 34.3% year-on-year increase, while value-added marketing services revenue reached RMB 84.9 million, up 63.1% year-on-year[7] - Average revenue per major client increased to RMB 16.2 million, a 52.2% year-on-year increase[8] - The company significantly increased investment in AI interactive marketing and data product development, launching AI digital human shopping guide optimization, AI holographic marketing cabinets, and a marketing selling point database and pre-evaluation services for beverages and snacks[9][10] - During the reporting period, registered software copyrights in China increased to 159 items, with 34 new patent applications submitted[11] - Optimizing the AI interactive terminal network layout and deploying an internal terminal operation large model significantly enhanced single-terminal marketing revenue contribution and operational efficiency[12] Merchandise Sales Merchandise sales revenue increased by 6.1% year-on-year, primarily due to the expansion of the terminal network in high-potential cities and a more cost-effective pricing strategy to enhance consumer appeal - Merchandise sales revenue was RMB 83.2 million, a 6.1% year-on-year increase[13] - Growth was driven by terminal network expansion in high-potential cities like Hangzhou, Chengdu, and Chongqing, and the adoption of more cost-effective merchandise pricing strategies[13] Lifestyle and Innovative Businesses The company is focusing on "AI+Entertainment" as a key new scenario, aiming to create globally leading AI indoor entertainment spaces, with the Middle East market as the first stop, having established an overseas entertainment division and completed initial venue preparations - "AI+Entertainment" is a key new scenario, aiming to build globally leading AI indoor entertainment spaces, with the Middle East market as the initial expansion target[14] - An overseas entertainment division has been established, organizational structure completed, initial venues prepared, and local licenses obtained[14] Other Services Other services revenue remained largely stable, primarily comprising IT system development and software development services, as the company strategically reduced non-core projects to focus resources on enhancing core business technological innovation - Other services revenue was RMB 25.0 million, a 0.2% year-on-year increase[15] - The company strategically focused on core businesses, reducing the undertaking of non-core IT system development and software development projects[15] Long-term Strategy and Outlook For the second half of 2025, the company will continue to advance its "AI+Consumer Scenarios" core strategy, increase investment in AI marketing, and deepen its focus on creating AI entertainment spaces, using the Middle East project to gain experience for global expansion, while also planning strategic business acquisitions and ecosystem integration for high-quality, scaled growth - Looking ahead to the second half of 2025, AI applications are expected to accelerate large-scale implementation, and the company will continue to advance its "AI+Consumer Scenarios" core strategy[16] - In the "AI+Marketing" sector, the company will continue to increase AI interaction investment, providing more innovative and efficient one-stop marketing solutions[16] - In the "AI+Entertainment" sector, the company will focus on creating globally leading AI indoor entertainment spaces, optimizing its business model based on the Middle East project to accumulate experience for global expansion[16] - Plans include strategic business acquisitions and ecosystem integration to deepen diversified layouts and expand business boundaries and value chain depth[17] Financial Performance Analysis This section analyzes Quzhi Group's financial performance during the reporting period, including revenue, costs, gross profit, expenses, and net profit, showing significant growth in revenue and gross profit, slower growth in cost of sales, decreased administrative expenses due to completed listing fees, and substantially increased R&D investment, ultimately turning losses into profits Revenue During the reporting period, the company's total revenue increased by 31.3% year-on-year, primarily driven by China's economic growth, supportive consumer market policies, innovative business models, deepened cooperation with quality clients, and enhanced efficiency of the AI interactive terminal network - Total revenue increased from RMB 515.1 million in the first half of 2024 to RMB 676.2 million in the first half of 2025, a 31.3% year-on-year increase[18] - Key growth drivers include steady economic growth in China, supportive consumer market policies, innovative business models, expanded cooperation with quality brand clients, and enhanced efficiency of the AI interactive terminal network[18] Revenue and Gross Margin by Business Segment | Business Segment | 2025 Revenue (RMB Thousand) | 2025 Gross Margin (%) | 2025 % of Total Revenue | 2024 Revenue (RMB Thousand) | 2024 Gross Margin (%) | 2024 % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Marketing Services | 568,020 | 62.2 | 84.0 | 411,759 | 59.7 | 79.9 | | - Standardized Marketing Services | 483,157 | 57.2 | 71.5 | 359,712 | 55.8 | 69.8 | | - Value-added Marketing Services | 84,863 | 90.9 | 12.6 | 52,047 | 86.2 | 10.1 | | Merchandise Sales | 83,219 | 25.6 | 12.3 | 78,449 | 30.7 | 15.2 | | Other Services | 24,950 | 43.4 | 3.7 | 24,909 | 46.7 | 4.8 | | Total | 676,189 | 57.0 | 100.0 | 515,117 | 54.6 | 100.0 | - Marketing services revenue increased by 37.9% year-on-year, with standardized marketing services growing by 34.3% and value-added marketing services by 63.1%[20] - Merchandise sales revenue increased by 6.1% year-on-year[21] - Other services revenue increased by 0.2% year-on-year[22] Cost of Sales Cost of sales increased by 24.4% year-on-year, primarily due to higher information technology service fees from increased marketing services sales and increased cost of inventories sold from higher merchandise sales, with its growth rate remaining below revenue growth, supporting gross margin improvement - Cost of sales increased from RMB 233.7 million in the first half of 2024 to RMB 290.7 million in the first half of 2025, a 24.4% increase[23] - Main reasons include increased information technology service fees (from RMB 139.8 million to RMB 193.9 million) and increased cost of inventories sold (from RMB 53.6 million to RMB 60.7 million)[23] - The growth rate of cost of sales was lower than that of revenue, reflecting efficient cost control[23] Gross Profit and Gross Margin Gross profit increased by 37.0% year-on-year, with gross margin improving from 54.6% to 57.0%, primarily driven by revenue growth and effective cost of sales control - Gross profit increased from RMB 281.4 million in the first half of 2024 to RMB 385.5 million in the first half of 2025, a 37.0% increase[24] - Gross margin improved from 54.6% in the first half of 2024 to 57.0% in the first half of 2025[24] Other Income and Gains Other income and gains decreased by 17.2% year-on-year, primarily due to a reduction in government grants received after the company's listing in 2024 - Other income decreased from RMB 4.3 million in the first half of 2024 to RMB 3.5 million in the first half of 2025, a 17.2% decrease[25] - The decrease was primarily due to reduced government grants received after the company's listing in 2024[25] Selling and Distribution Expenses Selling and distribution expenses increased by 21.7% year-on-year, with marketing and promotion expenses growing by 28.5%, primarily aimed at enhancing brand awareness, expanding potential customer base, and scaling business operations - Selling and distribution expenses increased from RMB 141.9 million in the first half of 2024 to RMB 172.7 million in the first half of 2025, a 21.7% increase[26] - Marketing and promotion expenses increased from RMB 100.5 million to RMB 129.1 million, a 28.5% increase, primarily for online and offline marketing activities to enhance brand awareness and expand the customer base[26] Administrative Expenses Administrative expenses decreased by 31.3% year-on-year, primarily because the one-off listing expenses related to the global offering incurred in the first half of 2024 had concluded - Administrative expenses decreased from RMB 36.3 million in the first half of 2024 to RMB 24.9 million in the first half of 2025, a 31.3% decrease[27] - The decrease was primarily due to the conclusion of one-off listing expenses related to the global offering in the first half of 2024[27] Finance Costs Finance costs increased by RMB 5.5 million year-on-year, primarily due to the company utilizing domestic loans to supplement its domestic business operational needs and optimize capital allocation efficiency - Finance costs increased from RMB 4.0 million in the first half of 2024 to RMB 9.5 million in the first half of 2025, an increase of RMB 5.5 million[28] - The increase was primarily due to supplementing domestic business operational needs through domestic loans to optimize capital allocation efficiency[28] Research and Development Expenses Research and development expenses significantly increased by 107.7% year-on-year, primarily due to intensified efforts in AI interactive marketing and data product development, yielding substantial technological achievements such as AI digital human shopping guide optimization, AI holographic marketing cabinets, and marketing selling point databases - Research and development expenses increased from RMB 37.5 million in the first half of 2024 to RMB 77.8 million in the first half of 2025, a 107.7% increase[29] - The increase was primarily for intensifying AI interactive marketing and data product development, including AI digital human shopping guide optimization, AI holographic marketing cabinets, and marketing selling point databases and pre-evaluation services for beverages and snacks[29] Other Expenses and Losses Other expenses for the first half of 2025 amounted to RMB 3.8 million, primarily comprising exchange losses arising from foreign currency fluctuations - Other expenses for the first half of 2025 were RMB 3.8 million, primarily exchange losses arising from foreign currency fluctuations[30] Income Tax Expense Income tax expense increased year-on-year, primarily due to higher profit before tax, with the company's effective tax rate of 8.7% benefiting from preferential high-tech enterprise tax rates and super deduction for R&D expenses - Income tax expense increased from RMB 9.2 million in the first half of 2024 to RMB 11.2 million in the first half of 2025[31] - The increase was due to higher profit before tax, with an effective tax rate of 8.7% in the first half of 2025[31] Profit/(Loss) for the Period The company achieved a profit of RMB 128.4 million in the first half of 2025, successfully turning losses into profits compared to a loss of RMB 1,846.2 million in the same period of 2024, primarily due to a one-off non-cash fair value loss in the prior period - Profit for the first half of 2025 was RMB 128.4 million, turning losses into profits compared to a loss of RMB 1,846.2 million in the first half of 2024[32] - The loss in the first half of 2024 was primarily due to a non-cash one-off fair value loss of RMB 1,899.4 million related to convertible redeemable preference shares[32] Financial Position Analysis This section analyzes the company's statement of financial position at the end of the reporting period, showing a robust financial position with ample cash and cash equivalents, decreased inventory turnover days, increased trade receivables and payables commensurate with business expansion, and capital expenditures primarily on AI interactive terminals Inventories Inventory balance slightly increased, but inventory turnover days significantly decreased, reflecting the company's improved lean inventory management - Inventory balance increased from RMB 11.8 million as of December 31, 2024, to RMB 12.0 million as of June 30, 2025[33] - Inventory turnover days decreased from 65.3 days as of December 31, 2024, to 46.2 days as of June 30, 2025[33] Trade Receivables Trade receivables slightly increased, consistent with business expansion, while trade receivables turnover days remained stable, with the company effectively managing credit risk through its credit control department - Trade receivables increased from RMB 510.0 million as of December 31, 2024, to RMB 514.1 million as of June 30, 2025[34] - Trade receivables turnover days remained stable at 172.3 days[34] Trade Payables Trade payables significantly increased, primarily due to business expansion, growth in merchandise transaction volume, and increased R&D investment - Trade payables increased from RMB 19.0 million as of December 31, 2024, to RMB 57.0 million as of June 30, 2025[35] - The increase was primarily due to business expansion, growth in merchandise transaction volume, and increased R&D investment[35] Prepayments, Deposits and Other Receivables - Current Prepayments, deposits, and other current receivables decreased, primarily including prepayments to suppliers, rental deposits, and other receivables - Prepayments, deposits, and other current receivables decreased from RMB 218.1 million as of December 31, 2024, to RMB 178.3 million as of June 30, 2025[36] Capital Expenditure Property, plant and equipment decreased, primarily due to the write-off and depreciation of AI interactive terminals offsetting new purchases, while right-of-use assets increased due to new lease agreements - Property, plant and equipment decreased from RMB 134.6 million as of December 31, 2024, to RMB 113.1 million as of June 30, 2025[37] - Right-of-use assets increased from RMB 4.7 million as of December 31, 2024, to RMB 6.9 million as of June 30, 2025[37] Financial Position The company's financial position is robust, with a significant increase in cash and cash equivalents and a rise in bank borrowings to meet business operational needs and optimize capital allocation efficiency - Cash and cash equivalents increased from RMB 892.0 million as of December 31, 2024, to RMB 1,141.2 million as of June 30, 2025[38] - Bank borrowings increased from RMB 426.8 million as of December 31, 2024, to RMB 544.7 million as of June 30, 2025[38] Gearing Ratio As of June 30, 2025, the company's gearing ratio slightly increased but remained at a low level - As of June 30, 2025, the gearing ratio was 29.4%, higher than 25.7% as of December 31, 2024[39] Pledged Assets As of the end of the reporting period, the company had no pledged assets - As of June 30, 2025, the Group had no pledged assets[40] Contingent Liabilities As of the end of the reporting period, the company had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[41] Foreign Exchange Risk The company primarily operates in China, with transactions settled in RMB, and management believes there is no significant foreign exchange risk exposure, nor has it hedged against foreign exchange fluctuations - The company primarily operates in China, with transactions settled in RMB, and management believes there is no significant foreign exchange risk exposure[42] - As of June 30, 2025, the company had not hedged against foreign exchange fluctuations[42] Credit Risk The company transacts with reputable third parties, managing credit risk through credit checks and continuous monitoring of receivables balances, with no significant bad debt risk - The company only transacts with approved, reputable third parties and has credit check procedures and continuous monitoring of receivables balances in place[43] - The risk of bad debts is not significant[43] Other Significant Matters This section covers non-financial significant matters for the reporting period, including no major acquisitions or disposals, no major investment plans, employee numbers and remuneration policies, post-reporting period events, and the use of proceeds from the global offering Major Acquisitions and Disposals During the reporting period, the company did not undertake any major acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group did not undertake any major acquisitions or disposals of subsidiaries, associates, or joint ventures[44] Major Investments Held and Prospects As of the end