Revenue Increased by 22.2% and Net Loss Reduced by Nearly 70%
year-on-year
- In the first half of 2024, Xuan Wu
Cloud achieved total revenue of RMB
647.5 million, reflecting steady growth of 22.2% compared to
the same period last year. Net loss was significantly reduced by
69.5% to RMB 6.1 million.
- The Company's operating expense ratio decreased by 6.7
percentage points year-on-year,
demonstrating significant results in cost
reduction and efficiency enhancement.
- The Company served a cumulative total of 2,406 clients during
the reporting period, our Average Revenue Per User contributed by
core clients reached RMB1.9
million,with core clients' net revenue retention rate has
further increased to 98.4%.
- Revenue from SaaS operations amounted to RMB 365.1 million, representing a year-on-year
growth of 39.6%. The revenue percentage of SaaS business surpassed 50% for the first time,
reaching 56.4%.
- The Marketing Cloud segment reported revenue of RMB 306.5 million, reflecting a year-on-year
increase of 41.1%, driven by advanced product capabilities and
strong customer acquisition.
- Leveraging its leadership in AI technology and a deep
understanding of large-scale consumer business scenarios,
Xuan Wu Cloud has enhanced customer
retention. The Sales Cloud's Annual Recurring Revenue (ARR) reached
RMB 21.7 million, up 22.4%
year-on-year.
GUANGZHOU, China, Aug. 27,
2024 /PRNewswire/ -- Xuan Wu Cloud Technology
Holdings Limited (hereinafter referred to as "Xuan Wu Cloud" or "the Company," stock code:
2392.HK), a leading local intelligent CRM services provider in
China, announced its interim
results for the six months ended June 30,
2024, on August 27.
During the reporting period, the Company achieved steady growth
by implementing its dual-driven strategy of technology and
business. Revenue increased by over 20% year-on-year. Additionally,
the Company made significant progress in reducing net losses
through careful expense management and effective cost-control
measures.
Revenue Up 22.2% year-on-year and SaaS Revenue Percentage Surpasses 50%
for the First Time
The announcement reveals that during the reporting period,
Xuan Wu Cloud continued its steady
progress by expanding its customer base while retaining existing
clients. For the first half of 2024, the Company achieved revenue
of RMB 647.5 million, representing a
year-on-year increase of 22.2%. Notably, revenue from the SaaS
segment reached RMB 365.1 million, up
39.6% from the previous year. This is the first time that SaaS
revenue has surpassed 50% of total revenue for the first time,
reaching 56.4%, highlighting the Company's strategic focus on CRM
SaaS.
Additionally, Xuan Wu Cloud
maintained its commitment to prudent expense management throughout
the period. Following an update to its organizational structure at
the end of last year, the Company significantly reduced its net
losses, which narrowed by 69.5% to RMB 6.1
million.
During the reporting period, Xuan Wu
Cloud, committed to driving digital transformation, served a
total of 2,406 clients across four key industries—finance,
fast-moving consumer goods (FMCG), public utility and
government-related sectors, and TMT. The Company delivered these
services through its CRM SaaS products, including the "Three
Clouds" (Marketing Cloud, Sales Cloud, Customer Service Cloud), as
well as its aPaaS and cPaaS platforms.
Thanks to a long-standing focus on superior service and
continuous product improvement, the average revenue per core client
reached RMB 1.9 million. Core client revenue accounted for 95.3% of
the total client revenue, and the core client net revenue retention
rate was 98.4%. In the SaaS segment specifically, the number of
clients increased to 1,705, representing a year-on-year growth of
9.9%. Additionally, the ARPU for SaaS client reached
RMB 1.5 million, up 14.2% from the
previous year. In addition, our SaaS core clients' net revenue retention rate reached
106.1%
The Dual-Driven Strategy of Technology and Business
Accelerates Expansion of SaaS Standardized Products
Reflecting on the market trends of the first half of the year,
the digital economy has emerged as a central theme, driving the
development of new productive capabilities and supporting
high-quality economic growth. In this context, Xuan Wu Cloud has continued to implement its
dual-driven strategy of technology and business. By the end of the
reporting period, the Company had been granted 172 patents and 196
computer software copyrights, with 36 new patents and software
copyrights awarded during the first half of the year. In terms of
product innovation and service, Xuan Wu Cloud has focused on the
digital transformation needs of industry clients, enhancing their
business scenarios through intelligent upgrades and supporting
their growth. Notably, during the reporting period, the Company
intensified its efforts in developing standardized SaaS products,
aiming to reduce project costs and expand its customer base among
small and medium-sized enterprises.
Specifically, as a business segment dedicated to the digital and
intelligent upgrade of marketing strategies for the clients in
industries such as finance and government-related enterprises, the
Marketing Cloud has closely tracked the policy trends in the
financial industry during the reporting period and has persistently
delved into the understanding of clients' needs. The Marketing
Cloud secured new contracts with several leading banks in East
China, West China, and
Northwest China, generating
revenue of RMB 306.5 million, a
year-on-year increase of 41.1%. Regarding products, the Marketing
Cloud's flagship offering, integrated communication centre ("ICC"),
on the basis of comprehensive compatibility with domestic
localization, has released version 5.3.0, which further enriches
the product modules by introducing features such as, among others,
multiple legal entity mode/international SMS/contract signing
copies to cater to the diverse and emerging business requirements
of an increasing number of financial clients, while also addressing
the repurchase and additional purchase needs of existing customers.
Meanwhile, the ICC has conducted specialized optimization for the
iPush functionality, launching a version tailored for the
securities industry, thereby accelerating breakthroughs into more
niche sectors.
Simultaneously, as the key driver of the Company's secondary
growth phase, the Sales Cloud segment focused on a comprehensive
upgrade of client product usage during the reporting period,
supported by the aPaaS platform. This approach aimed to enhance
user experience and strengthen client retention. Additionally, the
Sales Cloud continued to prioritize the development of standardized
products, refining the operational foundation of these products.
Through the "Mass Innovation Products" initiative, the Company has
promoted the release of over 20 project components. Leveraging the
foundational capabilities of Xuantao, the Company's multi-modal
large model for the mass consumption industry, the AI standardized
product matrix has been further expanded, with the addition of new
projects such as image stitching models and historical database
duplication checks.
Additionally, as a standardized product facilitating FMCG
clients in achieving digital marketing for intelligent retail
stores, the AIoT intelligent fridge experienced smooth market
expansion in the first half of the year, with several major dairy
and beverage clients signing on. In terms of collaboration models,
the Company has introduced an independent AI model cooperation
solution to cater to clients' personalized needs. As a result of
these developments, during the reporting period, the Sales Cloud
achieved revenue of RMB 43.1 million,
reflecting a year-on-year increase of 34.9%. Meanwhile, the ARR for
Sales Cloud reached RMB 21.7 million,
representing a year-on-year increase of 22.4 %.
Based on multi-channel customer communication and full process
business management, the Service Cloud provides intelligent
customer services with human-machine coupling throughout the entire
industry chain. During the reporting period, the Service Cloud
introduced distinctive features specific to the consumer finance
industry, such as intelligent case initiation, voice message, and
industry statements, which enhanced customer willingness to pay and
product competitiveness. In the meantime, the number of paid seats
in the contact centre increased by 42.8% year-on-year.
In parallel with its strong domestic performance, Xuan Wu Cloud has been actively expanding its
international presence and ecosystem partnerships. During the
reporting period, the Company concentrated on supporting domestic
clients in extending their marketing efforts to Southeast Asia, South Asia, and Latin America. In the meantime, the Company
has been actively exploring overseas ecosystem collaborations,
establishing core resources, enhancing risk control capabilities,
and improving operational support for our business. In terms of
domestic ecological cooperation, Xuan Wu
Cloud continued to strengthen cooperation with cloud vendors
such as Huawei Cloud. During the
reporting period, it has signed a HarmonyOS cooperation agreement
with Huawei, the Company's "Smart Sales 100" and "iPush" products
will start developing the native application in HarmonyOS. This
move will also provide more diversified choices and more
intelligent and convenient product service experiences for the
clients.
Accelerated standardization of products to cover mid-tier
customers and aiming for full-year breakeven
For the second half of 2024, Xuan Wu
Cloud stated in its announcement that the company will
closely seize the opportunity presented by the digital economy era.
Supported by our AI and DI technologies, our intelligent CRM
products will assist more enterprises in achieving high-quality
digital and intelligence transformation.
First, with respect to the Company's second growth curve, Sales
Cloud. Xuan Wu Cloud have upgraded
the brand of Sales Cloud from "Xuanxun" to "Xuantong". In this regard, Mr. CHEN YongHui,
Chairman of Xuan Wu Cloud, said
that"Tong"represents AI visual recognition and data insight in the
context of AI, which is precisely relevant to numerous scenarios in
the consumer goods industry involving visual AI and data
applications. The transition from "Xun" to "Tong" signifies the
empowerment of intelligence as wings, and the value enhancement
from "connection"to"intelligent recognition, data insight,
intelligent operation, and industrial interconnection". The brand upgrade will also help us continue to focus
on the top 100 customers in the consumer goods industry, and drive
the iterative upgrade of existing customer businesses through
SaaS+AI products (Sales Cloud + AI + DI + AIOT), and build a
standardised product system to enhance our average revenue per
consumer.
At the same time, Xuan Wu Cloud
will continue to leverage our large-scale models and deep industry
experience to further integrate AI and DI technologies into our
intelligent CRM products. On this basis, the company will invest in
our distribution channels to accelerate the coverage of our
standardised products among mid-tier customers. This part of the
business will also become a new growth engine for the Company's
future development and can further enhance our market share.
In the second half of 2024, our Marketing Cloud business segment
will continue to investigate the needs of financial and
Government-related clients for the digital and intelligent
transformation of their business processes, and assist clients in
deeply mining their data value through products such as ICC and
DMP, helping customers in the construction of comprehensive user
personas, and enhancing their operational management capabilities,
thereby ensuring precise marketing reach and conversion
capabilities. Regarding 5G technology, Xuan
Wu Cloud will enhance the underlying communication
capabilities of 5G messaging on our cPaaS platform, opening it up
for efficient integration with a wider range of communication
products.
Overseas business will also continue to be one of Xuan Wu Cloud's new growth engines. Xuan Wu Cloud will focus on specific countries
in Southeast Asia, Latin America and other regions, prioritizing
the development of core resources to ensure the stability of our
business operation. In terms of clients, while actively expanding
our market presence, we will also assess the overseas marketing
needs of our domestic clients, aiming to achieve cross-selling and
further enhance client stickiness.
Mr. CHEN YongHui, Chairman of Xuan Wu
Cloud, says, "in the second half of 2024, we are committed
to maintaining the steady development of our business while
continuously enhancing the Company's self-sustaining capabilities,
improving profitability, and strengthening shareholders' returns, striving to achieve a break-even
position in our annual performance."
Financial Results
|
Six months
ended 30 June
|
|
2024
RMB'000
|
2023
RMB'000
|
Change
%
|
Revenue
|
647,469
|
529,963
|
22.2
|
Gross profit
|
101,249
|
100,611
|
0.6
|
Operating
(loss)/profit
|
(4,106)
|
(19,612)
|
(79.1)
|
(Loss)/profit before
income tax
|
(5,912)
|
(20,715)
|
(71.5)
|
(Loss)/profit and total
comprehensive (loss)/income
|
(6,140)
|
(20,155)
|
(69.5)
|
|
|
|
|
|
Six months ended 30
June
|
|
2024
|
2023
|
Change
|
|
RMB'000
|
RMB'000
|
%
|
Revenue(By Service
Segment)
|
CRM PaaS
|
282,411
|
268,397
|
5.2
|
CRM SaaS
|
365,058
|
261,566
|
39.6
|
Total
Group
|
647,469
|
529,963
|
22.2
|
About Xuan Wu Cloud:
Xuan Wu Cloud Technology Holdings Limited, the largest local
intelligent CRM service provider in China(stock code 2392.HK), which was
successfully listed on the Main Board of The Stock Exchange of Hong
Kong Limited on 8 July, 2022. The
company's domestic operating entity is Xuan Wu Technology, which
has established a marketing service system covering 34 provinces
and cities across China.
Xuan Wu Cloud has aPaaS, cPaaS, AI,
and DI platform as technical base, with Marketing Cloud, Sales
Cloud, Service Cloud as core SaaS product applications, aiming to
provide customers with multi-touch, all-channel, entire business
cycle management of intelligent CRM products and services.
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SOURCE Xuan Wu Cloud Technology Holdings Limited