Revenue Generation - The company generated revenue primarily from two proprietary apps: SmartInvest Pro and SmartInvest Info, which cater to different segments of individual investors [11]. - Revenue decreased by 5.4% to RMB860.7 million for the Period, down from RMB909.4 million in the Corresponding period, primarily due to a slight decrease in revenue from SmartInvest Pro [63]. - Revenue from SmartInvest Pro decreased by 8.7% to RMB514.7 million, while revenue from SmartInvest Info increased by 0.7% to RMB345.9 million [64][65]. User Growth and Engagement - SmartInvest Pro saw significant growth in gross billing, contributing to an increase in the average selling price of offerings [15]. - The number of paying users for SmartInvest Pro increased to 22,389, a rise of 3.7% from 21,592 in 2022 [16]. - The number of paying users for SmartInvest Info decreased to 15,199, down 7.8% from 16,489 in 2022 [16]. Product Offerings and Development - The company focuses on providing tailored investment decision-making solutions through a data service model, enhancing user experience and technology [12]. - The offerings include market data processing, indicator analysis tools, and online investor education courses, aimed at the mass affluent class of individual investors [14]. - The company launched the industry's first digital robo-advisor product "Jiuge" in August 2023, offering eight core services [54]. Financial Performance - Gross profit decreased by 12.0% to RMB714.8 million, with gross margin declining from 89.3% to 83.1% [70][75]. - The company reported a loss of RMB 37.8 million for the period, a significant decrease of approximately 117.2% compared to a profit of RMB 220.2 million in the corresponding period [85][90]. - Basic and diluted loss per share was RMB 0.09, compared to earnings of RMB 0.58 per share in the same period of 2022 [196]. Research and Development - The R&D department had 579 professional staff as of June 30, 2023, representing 21.3% of the total workforce [48]. - The company’s research team, Jiufang Research Institute, produced 6,438 analytical articles and conducted 84 surveys of listed companies during the reporting period [35]. - Research and development expenses increased by 34.3% to RMB145.5 million, reflecting a rise in staff costs due to business development needs [73]. Strategic Initiatives - The company plans to strategically acquire a target company to enhance its fund distribution business and expand service offerings [19]. - Strategic partnerships were established with major tech companies like Baidu and Huawei to enhance AI financial solutions [60]. - Future plans include optimizing technology systems and launching advanced industry technology capabilities, such as a digital Robo-Advisor [61]. Corporate Governance and Compliance - The company maintains a high standard of corporate governance and has complied with all provisions of the Corporate Governance Code from the Listing Date to June 30, 2023 [166]. - All directors have confirmed compliance with the Model Code for Securities Transactions from the Listing Date to June 30, 2023 [167]. - The Audit Committee has reviewed the unaudited interim results for the period along with the accounting principles and policies adopted by the Group [174]. Cash and Financial Position - Cash and liquid financial resources increased from approximately RMB 1,066.7 million as of December 31, 2022, to approximately RMB 2,238.5 million as of June 30, 2023, primarily due to cash generated from financing activities [95][99]. - The gearing ratio improved to 54.30% as of June 30, 2023, down from 61.2% as of December 31, 2022, indicating a better balance between debt and equity [96][100]. - The company recognized an income tax benefit of RMB 19.7 million for the period, compared to an income tax expense of RMB 9.4 million in the corresponding period, due to an increase in contract liabilities [84][89]. Shareholder Information - As of June 30, 2023, Mr. CHEN Wenbin holds 299,925,000 ordinary shares, representing approximately 64.35% of the equity [125]. - The company has granted a total of 28,430,000 RSUs, representing 6.10% of the company's shares in issue as of June 30, 2023 [151]. - The vesting schedule for the RSUs includes 40% vesting upon the second anniversary and 20% vesting on the third, fourth, and fifth anniversaries [156].
九方财富(09636) - 2023 - 中期财报