Financial Performance - For the three months ended March 31, 2023, the group recorded a gross profit of approximately RMB 246,230,000, representing a year-on-year increase of 11.7% from RMB 220,477,000[3]. - The gross profit margin increased from 60.8% in the same period last year to 69.4% this year[4]. - The operating loss for the period was approximately RMB 1,667,000, a significant decrease of 99.5% compared to the operating loss of RMB 344,007,000 in the same period last year[4]. - The company reported a net loss of RMB 9,256,000 for the period, compared to a net loss of RMB 348,280,000 in the previous year[5]. - The total comprehensive loss for the period was RMB 10,999,000, compared to RMB 355,121,000 in the previous year[7]. - The basic and diluted loss per share was RMB 0.0004, compared to a loss of RMB 0.0106 per share in the previous year[5]. - For the three months ended March 31, 2023, the company reported a basic earnings loss of approximately RMB 6,519,000, compared to a loss of RMB 182,687,000 for the same period in 2022[19]. - The company’s accumulated losses as of March 31, 2023, were RMB 4,504,618,000, reflecting an increase in losses of RMB 6,519,000 during the period[23]. Revenue Breakdown - Revenue from customer contracts for the three months ended March 31, 2023, was RMB 354,817,000, a decrease of 2.7% compared to RMB 362,802,000 for the same period in 2022[11]. - Subscription solutions generated revenue of RMB 205,719,000, while merchant solutions brought in RMB 148,172,000 for the first quarter of 2023[11]. - Subscription solutions revenue decreased by 6.5% to approximately RMB 205,719 thousand, primarily due to a reduction in the number of paid merchants[33]. - Merchant solutions revenue increased by 6.3% to approximately RMB 148,172 thousand, driven by growth in private domain operation services[33]. - The total gross merchandise volume (GMV) generated by merchants through the company's solutions reached approximately RMB 23.4 billion, representing a year-on-year growth of about 2%[29]. Cost Management - The financing costs for the period were RMB 6,895,000, compared to RMB 5,459,000 in the previous year[5]. - Research and development expenses amounted to RMB 55,999,000 for the first quarter of 2023, significantly lower than RMB 172,195,000 in the same period of 2022, reflecting a reduction of 67.5%[14]. - The company's sales cost for the reporting period was approximately RMB 108,587 thousand, a year-on-year decrease of 23.7% from RMB 142,325 thousand[36]. - Total sales expenses decreased by 38.6% to approximately RMB 157,128 thousand from RMB 255,966 thousand in the same period last year[41]. - Administrative expenses decreased by 73.0% to approximately RMB 33,338 thousand, primarily due to a reduction in personnel costs[41]. - Other operating expenses decreased by 67.5% to approximately RMB 56,026 thousand, attributed to optimized R&D spending[41]. Shareholder Information - The total equity attributable to the company's owners as of March 31, 2023, was RMB 1,044,995,000, a decrease of RMB 8,337,000 from the previous period[22]. - The total equity held by Mr. Zhu Ning is 1,932,771,804 shares, representing 10.49% of the total equity[47]. - The total equity held by major shareholder Whitecrow Investment is 1,440,601,703 shares, accounting for 7.82% of the total equity[50]. - Tencent Holdings Limited is a major shareholder, holding 1,036,766,038 shares, which is 5.63% of the total equity[51]. Corporate Governance - The company has complied with the corporate governance code, except for a deviation regarding the roles of Chairman and CEO held by Mr. Zhu Ning since February 19, 2021[52]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited financial results for the three months ending March 31, 2023[53]. - The board of directors includes executive directors Zhu Ning, Cui Yusong, Yu Tao, and Ying Hangyan, as well as independent non-executive directors Fang Zhi Hua, Deng Tao, and Li Shaojie[54]. Future Outlook - The company has prepared cash flow forecasts indicating sufficient financial resources to meet its obligations for the foreseeable future[9]. - The company aims to enhance operational efficiency and improve cash flow while focusing on market expansion and customer retention strategies[31]. - The company plans to control operational costs, including employee costs and advertising expenses, as part of its strategy to improve financial performance[9]. New Initiatives - The company launched the data integration platform "Youzan iPaaS" and the first AI product "Jiawo Intelligent" to enhance merchant operations and efficiency[29]. - The number of new paid merchants added in the first quarter of 2023 was 5,015, with store SaaS accounting for 38% of the total[29]. Other Financial Information - The company received government subsidies totaling RMB 4,832,000 during the first quarter of 2023, which was not reported in the same period of the previous year[13]. - The company recognized a deferred tax expense of RMB 4,258,000 for the three months ended March 31, 2023, compared to RMB 1,901,000 for the same period in 2022[16]. - The company’s intangible asset amortization for the three months ended March 31, 2023, was RMB 19,986,000, slightly down from RMB 20,077,000 in the previous year[18]. - The company’s capitalized contract costs amortization decreased to RMB 43,808,000 from RMB 58,572,000 year-over-year[18]. - As of March 31, 2023, the company had cash and cash equivalents of approximately RMB 842,118 thousand[42]. - The company has not purchased, sold, or redeemed any of its listed securities as of March 31, 2023[52]. - The report will be published on the Hong Kong Stock Exchange website and the company's website for at least seven days from the publication date[54].
有赞(08083) - 2023 Q1 - 季度业绩