Financial Performance - Total revenue for 2024 reached RMB 1,031,173,000, an increase of 18.8% compared to RMB 867,764,000 in 2023[9] - Gross profit for the year was RMB 717,273,000, reflecting a 36.2% increase from RMB 526,515,000 in the previous year, with a gross margin of 69.6%[9] - The company reported a net loss attributable to equity shareholders of RMB 835,381,000, a significant increase of 89.3% from RMB 441,240,000 in 2023[9] - The adjusted loss for the year (non-IFRS) was RMB 679,270,000, representing a 134.8% increase from RMB 289,272,000 in the previous year[9] - The company's revenue and earnings amounted to RMB 10.31 billion, reflecting a year-on-year growth of 19%[18] - Revenue from core enterprise cloud solutions rose by 26.7% from RMB 523.9 million in 2023 to RMB 663.7 million in 2024, driven by an increase in supply chain assets processed[38] - Revenue from financial institution cloud solutions grew by 2.4% from RMB 299.7 million in 2023 to RMB 306.9 million in 2024, despite a decrease in assets processed by e-chain cloud[38] - The company recorded losses of RMB 835.5 million and RMB 443.3 million for the years ended December 31, 2024, and 2023, respectively[61] - Adjusted losses (non-IFRS) for the year ended December 31, 2024, were RMB 679.3 million compared to RMB 289.3 million for the year ended December 31, 2023[64] Customer Metrics - The number of core enterprise customers increased by 59.3% to 962 from 604 in 2023, indicating strong customer acquisition[11] - The customer retention rate improved to 96%, up from 86% in the previous year, showcasing enhanced customer loyalty[11] - The number of core enterprise and financial institution clients increased by 51% to 1,108, with 373 new clients added in 2024[19] - The overall customer retention rate rose from 86% in 2023 to 96% in 2024[19] Supply Chain Assets - The total amount of supply chain assets processed by the company's technology solutions reached RMB 411,210.8 million, a 27.7% increase from RMB 321,977.0 million in 2023[16] - In 2024, the total supply chain assets processed by the company's technology solutions reached RMB 411.2 billion, a year-on-year increase of 28%[18] - The sustainable supply chain asset scale served by the company reached RMB 37.1 billion, a substantial year-on-year increase of 93%[23] - The multi-level circulation cloud business processed supply chain assets totaling RMB 2,073 billion in 2024, reflecting a significant year-on-year growth of 52%[25] - The ABS cloud business saw a total of RMB 542 billion in supply chain assets processed in 2024, marking a substantial year-on-year increase of 101%[26] - The cross-border cloud business processed supply chain assets totaling RMB 207 billion in 2024, achieving a year-on-year growth of 64%[27] - The company processed over RMB 50 billion in supply chain asset transactions across 14 industries for core enterprise clients and partners in 2024[31] Technological Innovations - The company is focusing on technological innovations, particularly in AI, to drive efficiency and value creation in the supply chain finance sector[17] - The company anticipates that supply chain finance will become a key driver for global industrial chain upgrades, supported by macroeconomic resilience and policy incentives[17] - The newly launched lightweight supply chain financial AI product "BeeLink AI" has been successfully deployed in multiple financial institutions[22] Operational Costs and Expenses - Research and development expenses decreased by 9.6% from RMB 365.8 million in 2023 to RMB 330.8 million in 2024, mainly due to a reduction in share-based incentives[42] - Total operating costs decreased by 8.0% from RMB 341.2 million in 2023 to RMB 313.9 million in 2024, due to optimized product structure[40] - Sales and marketing expenses increased by 8.1% from RMB 137.8 million for the year ended December 31, 2023, to RMB 149.0 million for the year ending December 31, 2024, primarily due to increased salaries and business development costs related to customer expansion[43] - Administrative expenses remained stable at RMB 207.7 million for the year ended December 31, 2023, and are projected to be RMB 208.1 million for the year ending December 31, 2024[44] - Equity incentive expenses decreased by 89.4% from RMB 78.1 million for the year ended December 31, 2023, to RMB 8.3 million for the year ending December 31, 2024, mainly due to a reduction in unvested equity incentives[45] Impairment and Losses - Impairment losses increased significantly from RMB 214.4 million for the year ended December 31, 2023, to RMB 640.3 million for the year ending December 31, 2024, primarily due to credit impairment of financial assets[47] - Major impairment losses included RMB 445.1 million from receivables related to core enterprise payments and RMB 176.5 million from supply chain assets[47] - The company recorded other net losses of RMB 58.7 million for the year ending December 31, 2024, compared to net gains of RMB 58.7 million for the year ended December 31, 2023, due to decreased interest income and government subsidies[56] - Operating losses increased from RMB 340.6 million for the year ended December 31, 2023, to RMB 669.7 million for the year ending December 31, 2024[57] Strategic Acquisitions and Growth - The company is exploring external growth strategies through strategic acquisitions to enhance market competitiveness and operational efficiency[29] - The acquisition of Bait Technology will enrich the company's product matrix and extend its solutions from supply chain financing to treasury management systems[30] - The company plans to focus on "AI + industrial finance" and strategic acquisition opportunities to create new growth curves[34] Governance and Compliance - The company has complied with relevant laws and regulations that significantly impact its business as of December 31, 2024[94] - The company has obtained appropriate directors' liability insurance since its listing date[115] - The independent auditor, KPMG, confirmed that the disclosed continuing connected transactions were conducted on normal commercial terms or more favorable terms[158] - The company has demonstrated sincere efforts to comply with applicable laws and regulations regarding its business operations, including commercial factoring and asset securitization[149][150] Shareholder Information - The board proposed a final special dividend of HKD 0.03 per share for the year ending December 31, 2024, subject to shareholder approval at the annual general meeting scheduled for June 17, 2025[112] - As of December 31, 2024, the company's distributable reserves amounted to RMB 7,975.1 million, a decrease from RMB 8,710.5 million as of December 31, 2023[116] - The company has a dual-class share structure that allows different voting rights beneficiaries to exert significant influence over company affairs, which may not align with the interests of other shareholders[184] - The company emphasizes the potential risks associated with investing in companies with different voting rights structures, urging investors to consider these risks carefully[184] Management and Experience - The company has a total of 31 years of experience in finance, internet, and technology industries, with the CEO having held senior positions at major banks[162] - The company’s president has nearly 30 years of experience in the financial industry, previously working at China Construction Bank and China Resources Bank[163] - The company’s risk management is overseen by a vice-chairwoman with nearly 40 years of experience in the financial sector, including roles at major banks[165] - The company’s board includes members with extensive backgrounds in investment and mergers, particularly from Tencent Group[168]
联易融科技-W(09959) - 2024 - 年度财报