Financial Performance - For the six months ended June 30, 2025, the company's revenue was RMB 374.5 million, a decrease of 9.3% compared to RMB 413.1 million in the same period of 2024[4]. - The gross profit for the same period was RMB 209.9 million, reflecting a significant decline of 28.3% from RMB 292.9 million in 2024, resulting in a gross margin of 56.0%[4]. - The adjusted net loss for the six months was RMB 372.0 million, which is a 97.4% increase compared to RMB 188.5 million in the previous year[4]. - The company reported an operating loss of RMB 337.1 million in the first half of 2025, compared to an operating loss of RMB 186.5 million in 2024, reflecting a significant increase in losses[27]. - The company reported a loss of RMB 382.1 million for the six months ended June 30, 2025, compared to a loss of RMB 241.5 million for the same period in 2024[51]. - The company’s net loss attributable to equity shareholders for the period was RMB 379,727,000, compared to RMB 240,801,000 in the same period of 2024, reflecting a 57.7% increase in losses[83]. - The company recorded a pre-tax loss of RMB 365,576,000 for the six months ended June 30, 2025, compared to a pre-tax loss of RMB 215,850,000 in the same period in 2024[81]. Customer Metrics - The number of core enterprise customers increased by 25.4% to 1,206, while the total number of core enterprises rose by 19.0% to 2,565[5]. - The customer retention rate improved to 99%, up from 96% in the previous year[5]. - In the first half of 2025, the company added 244 new core enterprise and financial institution clients, bringing the total to 1,352, a 22% increase from 2024[11]. - The overall customer retention rate improved from 96% in 2024 to 99% in 2025, reflecting enhanced customer satisfaction[11]. Supply Chain Technology Solutions - The total supply chain assets processed by the company's technology solutions reached RMB 203.6 billion, with a notable increase in multi-level circulation cloud assets by 54.4% to RMB 133.2 billion[10]. - The company reported a total of RMB 198.7 million in supply chain financial technology solutions, marking a 27.4% increase from RMB 156.0 million in 2024[8]. - The multi-level circulation cloud processed a total of RMB 133.2 billion in supply chain assets, representing a 54.4% year-on-year growth and accounting for 65% of the company's overall business scale[17]. - The company launched innovative solutions such as Digital Trade Token (DTT) and Asset Backed Token (ABT) to enhance global trade finance and address cross-border payment challenges[12]. - The company actively participated in international regulatory technology cooperation projects, exploring tokenization technology applications in international trade finance[13]. Financial Position - The cash and cash equivalents, along with restricted cash, totaled RMB 5,378.3 million, an increase of RMB 305.9 million from the end of 2024[10]. - As of June 30, 2025, the company had cash and cash equivalents of RMB 5,157.9 million, an increase of RMB 259.5 million from RMB 4,898.4 million as of December 31, 2024[59]. - The company had an outstanding balance of RMB 20.0 million in borrowings as of June 30, 2025, down from RMB 30.0 million as of December 31, 2024, with interest rates ranging from 2.35% to 2.45%[62]. - The company reported a net asset value of RMB 7,399,552,000 as of June 30, 2025, down from RMB 7,833,595,000 as of December 31, 2024, indicating a decrease of about 5.5%[85]. - The company's total liabilities increased to RMB 1,032,106,000 as of June 30, 2025, compared to RMB 760,309,000 as of December 31, 2024, reflecting a rise of approximately 35.7%[85]. Operational Efficiency - Research and development expenses decreased by 19.8% from RMB 177.7 million to RMB 142.5 million, mainly due to a reduction in salaries and benefits for R&D employees[33]. - Sales and marketing expenses increased by 10.7% from RMB 66.2 million to RMB 73.3 million, attributed to increased spending on overseas cross-border business development[34]. - General and administrative expenses decreased by 18.9% from RMB 113.7 million to RMB 92.2 million, primarily due to a reduction in salaries and benefits for administrative staff[35]. - The company adopted more flexible pricing and sales strategies in response to changing macroeconomic conditions and market competition[32]. Future Outlook and Strategy - The company is focusing on core business areas and has implemented strategic measures to enhance global trade financing capabilities, particularly in the cross-border cloud segment[9]. - The implementation of new regulations in June 2025 is expected to accelerate industry consolidation and provide strategic growth opportunities for leading supply chain financial technology companies[9]. - The company plans to accelerate the innovation and application of digital asset business, particularly in supply chain finance, in collaboration with licensed institutions in Singapore[22]. - The company aims to enhance shareholder returns and achieve sustainable growth through strategic mergers and acquisitions and the integration of AI and compliant stablecoins[25]. - The company is exploring partnerships for the issuance of compliant stablecoins to facilitate the tokenization of traditional trade finance[22]. Employee Metrics - The company had a total of 679 employees as of June 30, 2025, with 347 in R&D, 134 in sales and marketing, and 198 in general administration[71]. - The company’s employee costs for the six months ended June 30, 2025, were RMB 165,218,000, down from RMB 212,356,000 in 2024, reflecting a reduction of approximately 22.2%[99]. Dividends and Shareholder Returns - The company did not declare an interim dividend for the six months ended June 30, 2025[80]. - The company declared a special final dividend of HKD 0.03 per share, totaling RMB 58,456,000, which was paid on July 17, 2025[108]. - The company repurchased a total of 1,046,000 B shares at a total cost of RMB 1,282,290 during the reporting period[77]. Impairment and Credit Risk - Impairment losses increased from RMB 162.4 million to RMB 270.3 million, with significant losses related to credit-impaired financial assets[37]. - The credit risk related to bridge supply chain assets increased significantly, with an outstanding balance of RMB 2,053.9 million as of June 30, 2025[56][57]. - The company is taking measures to mitigate credit risk associated with bridge supply chain assets, including renegotiating repayment schedules and enhancing credit enhancement measures[39]. - The average time required for bridge processes has increased due to cautious investor behavior and adverse market conditions affecting real estate developers[39].
联易融科技(09959) - 2025 - 中期业绩