Core Viewpoint - The financial performance of the two listed companies under the "Changjiu" brand, Changjiu Logistics and Changjiu Holdings, shows a significant divergence in their half-year results for 2025, with Changjiu Logistics experiencing a substantial decline in net profit while Changjiu Holdings reported growth [1][5]. Financial Performance Summary - Changjiu Logistics reported a revenue of approximately 2.326 billion yuan for the first half of 2025, representing a year-on-year increase of 27.54%. However, the net profit was approximately 10.17 million yuan, a decrease of 80.66% compared to the previous year [5][6]. - In contrast, Changjiu Holdings achieved a revenue of approximately 697 million yuan in the same period, marking a year-on-year growth of 106.6%. The net profit for Changjiu Holdings was approximately 66.9 million yuan, up from 57.33 million yuan in the previous year [5][6]. Research and Development Investment - Both companies increased their research and development (R&D) expenditures in the first half of 2025. Changjiu Logistics reported R&D expenses of approximately 5.65 million yuan, a significant increase of 215.22% year-on-year, attributed to increased capitalized R&D spending [9][10]. - Changjiu Holdings also raised its R&D spending from 8.65 million yuan to 10.97 million yuan, reflecting a year-on-year increase of 26.4%, driven by rising employee costs and an increase in staff numbers [9][10]. Business Overview - Changjiu Logistics, established in 2003, focuses on providing comprehensive logistics solutions for the automotive industry, with a core business in automotive logistics. The company has been expanding into new business areas, including energy storage products and integrated services for hazardous materials transportation [5][7]. - Changjiu Holdings, founded in 2021 and listed on the Hong Kong Stock Exchange in 2024, offers services such as pledged vehicle monitoring and automotive dealer operation management. The company reported strong performance in its first year of operations, with both revenue and net profit increasing [10][11].

Core Viewpoint - The financial performance of the two listed companies under the "Changjiu" brand, Changjiu Logistics and Changjiu Holdings, has shown a divergence in the first half of 2025, with Changjiu Logistics experiencing a significant decline in net profit while Changjiu Holdings reported growth [2][4]. Financial Performance Summary - Changjiu Logistics reported a revenue of approximately 2.33 billion yuan in the first half of 2025, representing a year-on-year increase of 27.54%. However, the net profit attributable to shareholders was approximately 10.17 million yuan, a decrease of 80.66% compared to the previous year [4][5]. - In contrast, Changjiu Holdings achieved a revenue of approximately 697 million yuan in the same period, marking a substantial year-on-year growth of 106.6%. The net profit attributable to shareholders was approximately 66.9 million yuan, up from 57.3 million yuan in the previous year [4][10]. R&D and Marketing Expenditure - Both companies have increased their R&D investments significantly. Changjiu Logistics reported R&D expenses of approximately 5.65 million yuan, a remarkable increase of 215.22% year-on-year, attributed to increased capitalized R&D expenditures [8]. - Changjiu Holdings also raised its R&D spending from 8.65 million yuan to 10.97 million yuan, reflecting a year-on-year growth of 26.4%, driven by rising employee costs and an increase in staff numbers [8][9]. Business Overview - Changjiu Logistics, established in 2003, focuses on providing comprehensive logistics solutions for the automotive industry, with a core business in automotive logistics. The company has been expanding into new business areas such as energy storage products and integrated services for hazardous materials transportation [4][5]. - Changjiu Holdings, founded in 2021 and listed on the Hong Kong Stock Exchange in 2024, offers services including collateral vehicle monitoring and automotive dealer operation management. The company has shown strong performance since its inception, with significant revenue and profit growth [9][10].

Core Insights - Longjiu Co., Ltd. reported a significant increase in net profit for the fiscal year 2024, reaching approximately RMB 161.4 million, a year-on-year growth of 57.8% compared to RMB 102.3 million in 2023 [1][2] - The company's adjusted net profit was approximately RMB 155.6 million, showing a slight increase of 0.8% from RMB 154.4 million in the previous year [1] - Longjiu Co., Ltd. operates as a leading provider of collateral vehicle monitoring services in China's automotive circulation sector, with a business model that integrates technology and ecosystem collaboration [1][2] Business Performance - The core business of collateral vehicle monitoring services generated revenue of RMB 612.47 million, accounting for 90.4% of the total revenue, which was a key driver for the profit growth [2] - The company provides services to 17 commercial banks, 22 automotive finance companies, and over 17,000 automotive dealers, showcasing its extensive market reach [2] Technological Innovation - Longjiu Co., Ltd. has enhanced its core business capabilities through technological innovation, including the development of the VFS system and the integration of machine learning and multimodal large model technologies [3] - The launch of the "JiuchergO" automotive supply chain service platform has transformed the business model to a new B2B transaction mode, significantly improving transaction efficiency [3] Strategic Development - Looking ahead to 2025, Longjiu Co., Ltd. aims to focus on solidifying its foundation, enhancing platform construction, and deepening digital transformation and AI technology applications [4] - The company plans to implement three core initiatives in the collateral vehicle monitoring service sector, including a customer-first approach, the establishment of an intelligent management system, and the creation of a dynamic risk assessment model [4] Operational Management - In the automotive dealer operational management service area, the company will focus on resource integration, talent acquisition, and strengthening core capabilities to provide comprehensive services and products [5] - Longjiu Co., Ltd. aims to enhance the "JiuchergO" platform by connecting directly with county-level markets and end-users, improving sales efficiency through a combination of online and offline channels [5] Future Outlook - The company emphasizes the importance of a "technology-driven + ecological collaboration" strategy to deepen its strategic layout and promote innovation in AI and big data [6] - Longjiu Co., Ltd. plans to create a smart hub for automotive circulation, develop a data product matrix, and implement a vehicle lifecycle data management platform to enhance industry efficiency and conversion rates [6]

Summary of Longjiu Co., Ltd. 2024 Annual Performance Conference Company Overview - Longjiu Co., Ltd. successfully listed on the Hong Kong Stock Exchange on January 9, 2024, enhancing its brand image and market position, and opening up new development opportunities [1][2][3] Core Business and Financial Performance - In 2024, Longjiu achieved a net profit of 161 million RMB, a year-on-year increase of 58% [3][22] - Total revenue for 2024 was 678 million RMB, reflecting a growth of 5.6% compared to the previous year [3][22] - The company’s revenue primarily comes from two segments: vehicle pledge monitoring services and automotive dealer operation management services [3][8] Key Business Segments Vehicle Pledge Monitoring Services - Longjiu is the largest provider of vehicle pledge monitoring services in China, with a market share of approximately 50%, serving over 17,000 automotive dealers [4][8] - The revenue from this segment grew from 505 million RMB in 2022 to 612 million RMB in 2024, with a gross profit increase from 210 million RMB to 273 million RMB [23] - The service is provided to around 160 banks and financial institutions, covering over 31 provinces and more than 500 cities in China [13] Automotive Dealer Operation Management Services - Launched in April 2022, this service has expanded to 17 provinces and 33 cities, serving 69 automotive dealer clients [5][15] - The revenue from this segment has seen an annual growth rate of approximately 23% [23] Jiucheng Platform - The Jiucheng platform, which focuses on automotive transactions and services, registered 51,000 automotive dealers by the end of 2024, covering 1,047 county-level markets [6][4] - A strategic partnership with FAW Toyota was established, marking a significant milestone for the company [6] Technological Innovations - Longjiu is committed to integrating AI and big data into its operations, enhancing digital capabilities and service efficiency [2][7] - The company has developed the VFS intelligent monitoring system, which connects financial institutions, manufacturers, and dealers for streamlined operations [11][12] - The introduction of AI-driven tools like DeepSeek and ChaiBI aims to improve decision-making and operational efficiency [19][20] Financial Health - The company reported a 6% increase in overall revenue from 641 million RMB in 2023 to 678 million RMB in 2024 [22] - Operating expenses decreased by 18%, while R&D expenses continued to grow, ensuring future technological advancements [22] - Cash flow from operations increased by 30 million RMB, with a year-end cash balance of 371 million RMB [24] Market Insights and Future Strategies - The automotive market in China is projected to grow significantly, with new car sales reaching 27.56 million units in 2024 [16] - Longjiu aims to leverage its digital platform to enhance supply chain efficiency and expand its market presence, particularly in lower-tier cities [17][34] - The company plans to focus on AI and data-driven strategies to optimize operations and improve service delivery in the automotive sector [30][31] Conclusion - Longjiu Co., Ltd. is positioned for continued growth through strategic partnerships, technological innovations, and a focus on enhancing operational efficiency in the automotive industry [52][53]