Financial Performance - For the six months ended June 30, 2024, the company's revenue was RMB 413.1 million, an increase of 5.6% compared to RMB 391.0 million in the same period of 2023[2]. - The gross profit for the same period was RMB 292.9 million, representing a 23.3% increase from RMB 237.6 million year-on-year, with a gross margin rising from 60.8% to 70.9%[2][7]. - The adjusted net loss for the first half of 2024 was RMB 204.1 million, a significant increase of 136.1% compared to RMB 86.5 million in the previous year[2]. - The company reported a net loss of RMB 241.5 million for the six months ended June 30, 2024, compared to a net loss of RMB 171.7 million for the same period in 2023[57]. - Total comprehensive loss for the period was RMB 198,839,000, significantly higher than the RMB 78,701,000 reported in the previous year, indicating a year-over-year increase of 152.5%[58]. - The basic loss attributable to equity shareholders of RMB 240,801,000 for the six months ended June 30, 2024, compared to a loss of RMB 170,298,000 for the same period in 2023, reflecting an increase in loss of approximately 41.2%[83]. Customer Metrics - The number of core enterprise customers increased by 20.2% to 726 from 604 in the previous year, while the total number of core enterprises rose by 17.6% to 1,750[3]. - The customer retention rate improved to 96%, up from 86% in the previous year, indicating stronger customer loyalty[3][4]. - The overall customer retention rate improved from 86% in 2023 to 96% in the first half of 2024, with a retention rate of 99% in the core multi-level circulation business segment[8]. - The company has maintained a high customer retention rate of 99% in the multi-level circulation cloud business, with a total of 701 customers as of the first half of 2024[12]. Technology and Innovation - The company ranked first in market share among third-party supply chain fintech solution providers in China for four consecutive years, with a market share of 20.9%[9]. - The number of R&D personnel reached 536, accounting for 59% of the total workforce, contributing to the development of the first AI-based supply chain document review platform, "AI Agent"[9]. - The company successfully delivered its AI smart platform "AI Agent" to over 10 financial institutions, aiding in their digital transformation efforts[13]. - The company is focused on expanding and optimizing its technology solutions across various business segments to enhance supply chain management[67]. - The company aims to enhance its digital supply chain management services for core enterprises and their suppliers through its Core Enterprise Cloud solutions[68]. Financial Position - The company reported a total of RMB 5,086.1 million in cash and cash equivalents as of June 30, 2024, maintaining a healthy financial position[7]. - The cash and cash equivalents increased to RMB 4,923.1 million as of June 30, 2024, up from RMB 4,719.2 million as of December 31, 2023[43]. - As of June 30, 2024, the company's borrowings amounted to RMB 270.5 million, a significant increase from RMB 34.0 million as of December 31, 2023[45]. - The company's equity-to-debt ratio as of June 30, 2024, was 4.3%, up from 1.4% as of December 31, 2023[46]. Revenue Breakdown - Revenue from supply chain financial technology solutions was RMB 385.6 million, up 6.0% from RMB 363.6 million in the same period last year[2]. - Revenue from core enterprise cloud solutions rose by 28.7% from RMB 231.1 million to RMB 297.4 million during the same period[22]. - Revenue from financial institution cloud solutions decreased by 33.5% from RMB 132.5 million to RMB 88.2 million, primarily due to a decline in the securitization market[22]. - Emerging solutions revenue was RMB 27.5 million, a slight increase of 0.5% compared to RMB 27.4 million in the previous year[2]. Expenses and Losses - Operating loss for the six months ended June 30, 2024, was RMB 186.5 million, compared to RMB 144.4 million for the same period in 2023[20]. - Research and development expenses for the six months ended June 30, 2024, were RMB 177.7 million, a decrease from RMB 188.9 million in the previous year[20]. - Sales and marketing expenses increased by 13.4% from RMB 58.4 million for the six months ended June 30, 2023, to RMB 66.2 million for the six months ending June 30, 2024, driven by increased salaries and benefits for sales and marketing staff[27]. - General and administrative expenses rose by 8.8% from RMB 104.5 million for the six months ended June 30, 2023, to RMB 113.7 million for the six months ending June 30, 2024, mainly due to higher salaries and professional service fees[28]. Strategic Initiatives - The company is actively exploring strategic acquisitions to enhance market competitiveness and operational efficiency, focusing on businesses that align with its core operations[16]. - The proposed acquisition of a controlling stake in Bait Technology will increase the company's ownership from 25% to 54.3763%, integrating Bait Technology's treasury management solutions into the company's offerings[16]. - The company continues to explore innovative practices in green supply chain finance, integrating environmental and social responsibility considerations into its solutions[10]. Market and Industry Position - The company processed supply chain asset transactions exceeding RMB 2 billion across 13 industries in the first half of 2024, showcasing its extensive industry coverage[17]. - The company introduced the innovative "Small Micro Bee E-commerce Loan" product, targeting the expanding live-streaming e-commerce market, and has successfully partnered with 14 financial institutions[15]. - The company launched innovative cross-border "Go Early" products for well-known cross-border e-commerce platforms, enhancing their logistics financing solutions[8].
联易融科技-W(09959) - 2024 - 中期业绩