Chanjet (01588.HK) released its mid-year performance forecast for 2024, expecting the group's income to increase by about 20% year-on-year as of June 30, 2024, the end of the six-month period ("reporting period"). Among them, cloud subscription revenue will increase by 33%-37% year-on-year, and the proportion of cloud subscription revenue to total revenue will exceed 65%.
During the reporting period, it is expected that the group's loss attributable to the owners of the parent company will be between RMB 5 million and RMB 15 million, while in the same period of 2023, the profit attributable to the owners of the parent company was about RMB 18.14 million, of which: (i) revenue from sales of financial and tax skills training products and services in the same period of the previous year was approximately RMB 43.75 million, and there was no such revenue in this period; and (ii) the fair value gain of non-listed equity investment recognized in profit or loss in the same period of the previous year was RMB 30.99 million, and this period is expected to record a fair value loss of about RMB 10 million.
After deducting the two non-operating factors mentioned above, it is expected that the profit/loss attributable to the owners of the parent company of the group during the reporting period will be between a loss of RMB 5 million and a profit of RMB 5 million, greatly reduced compared with the loss attributable to the owners of the parent company of RMB 56.61 million in the same period of the previous year, mainly due to the group's firm implementation of the long-term strategy of prioritizing cloud computing services and subscriptions, the national promotion of digital invoices (e-invoicing) through comprehensive digital financial and tax services combined with digitization, and the field and industry driving of smart business promotion, promoting the development of business scale and achieving rapid growth in the number of paid enterprise users and cloud subscription revenue; and at the same time, implementing efficient operation, with a decrease in labor costs compared to the same period of the previous year.
During the reporting period, the group's cloud computing service added 0.073 million paid enterprise users, a 29% increase year-on-year; as of the end of the reporting period, the cumulative number of paid enterprise users for cloud computing services reached 0.706 million. The net cash flow from operating activities generated by the group is expected to turn positive in the reporting period. The board of directors believes that the overall business operation of the group maintains a good development trend.