Bairong Inc. Announces 2024 Interim Financial Results

PR Newswire
9 min read

In This Article:

Solid Revenue Growth Coupled with High Gross Profit Margin (73%) and Non-IFRS Profit (RMB 200 Million)

BEIJING, Aug. 29, 2024 /PRNewswire/ -- Bairong Inc. (the "Company", "we" , "us" or "our" ; HKEX: 6608), a leading cloud-based AI turnkey service provider, today announced the consolidated results of the Company for the half year ended June 30, 2024.

Mr. Zhang Shaofeng, our founder, chief executive officer and chairman of the Board, commented:
"We proudly announce Bairong's continuous profitability as always. Our Non-IFRS profit margin maintained an impressive level of 15%, with half-year Non-IFRS profit approximately RMB 200 million. Gross profit margin further lifted to a remarkable 73%, demonstrating our strong capability to scale up. By integrating large language model and emotion-recognition technique into our AI VoiceGPT robot, we have extended our BaaS as a Service(BaaS) to achieve a double-digit revenue growth of 20% year-over-year, building on the impressive foundation laid in the prior years, and underscoring our leading position and sustainable value in the market."

Financial Summary

Six months ended June 30,



2024

2023

Change


(unaudited)

(unaudited)

( %)


(RMB in thousands, except percentages)





Revenue

1,321,348

1,243,032

6

Model as a service ("MaaS")

421,352

431,134

(2)

Business as a service ("BaaS")

899,996

811,898

11

BaaS – Financial Scenario

589,473

492,095

20

BaaS – Insurance Scenario

310,523

319,803

(3)

Gross profit

967,155

896,034

8

Operating profit

156,832

211,697

(26)

Profit for the period

142,833

206,808

(31)





Non-IFRS measures




Non-IFRS profit for the period

197,479

226,847

(13)

Non-IFRS EBITDA

243,481

267,644

(9)

Revenue

Our total revenue increased by 6% from RMB1,243.03 million for the six months ended June 30, 2023 to RMB1,321.35 million for the six months ended June 30, 2024, primarily attributable to our enhanced capabilities of providing products and services despite a challenging economic and consumption environment.

For the six months ended June 30, 2024, our MaaS business reported revenue of approximately RMB421.35 million. During the Reporting Period, the number of Key Clients reached 165, representing an increase of 19 from 146 period-over-period, while average revenue per Key Client was RMB2.00 million. Our Key Client Retention Rate was 96%.

Key metrics of MaaS

Six months ended June 30,



2024

2023

Change (%)


(unaudited)

(unaudited)



(RMB in thousands, except percentages)





Revenue from MaaS

421,352

431,134

(2)

Revenue from Key Clients(Note)

329,398

355,246

(7)

Number of Key Clients

165

146

13

Average revenue per Key Client

1,996

2,433

(18)

Retention rate of Key Clients

96 %

98 %

-2 pct


Note:"Key Clients" are defined as paying clients that each contributes more than RMB300,000 total
revenue to the Company year-to-date.

For the six months ended June 30, 2024, our BaaS – Financial Scenario business reported revenue growth of 20% period-over-period to RMB589.47 million. As a result of a rapid growing gross value of transactions we facilitate, of which grew by 23% period-over-period to RMB26,150.46 million for the first half of the year. During the Reporting Period, we deepened our cooperation with clients by jointly developing various marketing activities to contribute to the rapid expansion of the gross value of transactions. In addition, as we see more existing users contributing revenue, which combined with our user acquisition advantage via Generative AI, continue to improve user acquisition efficiency and bring higher ROI.

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