Financial Performance - Total revenue for the six months ended June 30, 2022, was RMB 510,468,000, a decrease of 3.1% compared to RMB 526,572,000 in 2021[7] - Adjusted profit for the period (non-IFRS) was RMB 127,951,000, down 16.0% from RMB 152,279,000 in the previous year[7] - The company's main business revenue for the first half of 2022 was RMB 510.5 million, a decrease of 3.1% from RMB 526.6 million in the first half of 2021[15] - Operating profit for the six months ended June 30, 2022, was RMB 90.8 million, down from RMB 157.7 million in the same period of 2021[40] - The company reported a profit of RMB 35.2 million for the six months ended June 30, 2022, compared to a loss of RMB 13,032.9 million for the same period in 2021[61] - For the six months ended June 30, 2022, the adjusted profit was RMB 127.951 million, a decrease from RMB 152.279 million in the same period of 2021, representing a decline of approximately 15.9%[64] Gross Profit and Margins - Gross profit increased by 4.2% to RMB 424,033,000, with a gross margin of 83.1%, up from 77.3% in the previous year[7] - Gross profit for the first half of 2022 was RMB 424.0 million, an increase of 4.2% from RMB 406.9 million in the first half of 2021, with a gross margin rising to 83.1%[15] - The gross profit for the six months ended June 30, 2022, was RMB 424,033,000, compared to RMB 406,884,000 for the same period in 2021, representing an increase of 4.2%[144] Customer Metrics - The number of core enterprise customers rose by 31% to 285, compared to 218 in the previous year[9] - Customer retention rate decreased to 95% from 97% in the previous year[9] - The number of financial institution partners increased by 6% to 308, up from 291 in the previous year[9] - The company maintained a high customer retention rate of 95% in the first half of 2022, with 62% of new clients being referrals from existing customers or partners[15] Supply Chain Assets and Technology Solutions - The total amount of supply chain assets processed by the company's technology solutions reached RMB 115,898.3 million, an increase of 13.8% from RMB 101,823.7 million in 2021[13] - In the first half of 2022, the total transaction volume processed by the company's technology solutions reached RMB 115.9 billion, a year-on-year increase of 13.8% compared to RMB 101.8 billion in the same period of 2021[15] - The total supply chain assets processed by the company's supply chain financial technology solutions reached RMB 110.7 billion, a year-on-year increase of 13.0%[19] - The total supply chain assets processed through the core enterprise cloud amounted to RMB 61.5 billion, reflecting a growth of 21.4% year-on-year[20] - The total supply chain assets processed through the Financial Institution Cloud in the first half of 2022 amounted to RMB 49.2 billion, representing a year-on-year growth of 4.1%[23] Research and Development - Research and development investment reached RMB 160.2 million in the first half of 2022, an increase of 33.3% year-on-year, accounting for 31.4% of revenue and earnings[34] - Research and development expenses rose by 33.3% to RMB 160.2 million, primarily due to an increase in the number of employees and related costs[49] - Research and development expenses accounted for RMB 114,111 thousand, representing a 22.7% increase from RMB 93,016 thousand in the previous year[146] Market Outlook and Strategy - The company aims to expand its market presence and enhance its technology solutions to drive future growth[12] - The company anticipates a market rebound in the second half of 2022 due to policy support and a recovery in market demand[25] - The company aims to diversify its customer base and reduce reliance on the real estate sector, especially in light of recent downturns[39] - The company plans to optimize internal resource allocation, focusing on high-growth areas such as multi-level circulation cloud and e-chain cloud[39] Financial Position and Cash Flow - The company's cash and cash equivalents increased to RMB 5,285.4 million as of June 30, 2022, up from RMB 4,927.9 million at the end of 2021, marking an increase of RMB 357.5 million[69] - The company's borrowings amounted to RMB 1,767.0 million as of June 30, 2022, compared to RMB 1,190.3 million at the end of 2021, reflecting an increase of approximately 48.4%[71] - The equity-to-debt ratio was 18.4% as of June 30, 2022, up from 12.9% at the end of 2021, indicating a shift in the company's capital structure[73] - The company reported a net cash inflow from operating activities of RMB 93,603 thousand for the six months ended June 30, 2022, compared to a net cash outflow of RMB 1,661,412 thousand for the same period in 2021[127] Corporate Governance - The board is committed to high levels of corporate governance to safeguard shareholder interests and enhance corporate value[79] - The company has complied with all applicable provisions of the corporate governance code during the reporting period, with the exception of the separation of roles between the Chairman and CEO[80] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the six months ended June 30, 2022[83] - The corporate governance committee has ensured compliance with the corporate governance code and reviewed the company's governance policies and practices[86] Shareholder Structure and Equity Incentives - As of June 30, 2022, Mr. Song holds 269,239,647 Class A shares and 10,008,029 Class B shares, representing approximately 57.23% of the voting rights in the company[88] - The company emphasizes the potential risks associated with its dual-class share structure, where the interests of different voting rights beneficiaries may not align with those of other shareholders[88] - Major shareholders include Cabnetvic with 82.76% of Class A shares, Tencent Holdings with 16.86% of Class B shares, and CITIC Capital Holdings with 11.16% of Class B shares[97] - The 2019 equity incentive plan allows for the issuance of up to 174,618,156 Class B shares, with 122,565,086 restricted share units granted to 393 employees, representing approximately 5.33% of the company's issued share capital[104] Legal and Compliance - The company has not been involved in any significant litigation or arbitration during the reporting period[109] - The company will report its compliance with the latest corporate governance code in the corporate governance report for the year ending December 31, 2022[80]
联易融科技(09959) - 2022 - 中期财报