Asia Vets Financial News App reported that Chanjet (01588) announced that for the 9 months ending on September 30, 2024, the group achieved operating income of RMB 0.675 billion, a 24% increase from the same period last year, with cloud subscription revenue reaching RMB 0.482 billion, a 38% increase from the same period last year, accounting for 71% of total revenue; the cloud subscription contract liability at the end of the reporting period was RMB 0.628 billion, a 17% increase from the end of the previous year.

During the reporting period, the net loss attributable to the parent company's shareholders of the group was RMB 28.95 million, a 23% increase from RMB 23.55 million in the same period last year, including: (i) revenue of RMB 43.75 million from the sale of financial and tax skill training products and services in the same period last year, with no such revenue in this reporting period; and (ii) fair value gains of RMB 32.3 million recognized in the same period last year on non-listed equity investments accounted for at fair value, compared to fair value losses of RMB 9.82 million in this reporting period.

After excluding the impact of the two non-operating factors mentioned above: during the reporting period, the net loss attributable to the parent company's shareholders of the group was RMB 19.13 million, an 81% decrease from RMB 99.6 million in the same period last year, mainly due to (i) the group's firm implementation of a long-term strategy prioritizing cloud service business and subscriptions, continuous expansion of the scale of paid enterprise users, driving rapid growth in cloud subscription revenue; and (ii) the group's promotion of business scaling and efficiency development, with a 7 percentage point increase in gross margin compared to the same period last year, and an increase in gross profit of RMB 0.128 billion compared to the same period last year.

As of September 30, 2024, the group's total assets were RMB 1.603 billion, basically flat compared to RMB 1.586 billion at the end of the previous year.

During the reporting period, the group continued to focus on the two major areas of digital tax for small and micro enterprises and digital business intelligence, firmly adhering to the principle of customer success, continuously enhancing product competitiveness, accelerating the application of AI technology in product innovation and company operations, adhering to the development of ecological prosperity, transitioning from application services to platform services, promoting business scaling development, implementing comprehensive efficiency-oriented operations, improving operational efficiency, and continuously enhancing profitability.

At the product level, combining the nationwide popularity of fully digital e-invoicing and the gradual rollout of the national unified standard e-taxation bureau, digital tax products support the connection to national tax digital accounts, with rapid growth in online automated invoice retrieval, further expanding the coverage area of one-click tax filing and tax data collection; supporting functions such as bank-enterprise cloud collaboration, RPA stream retrieval, bank statement import, and continuing to strengthen the overall advantages of integrated ticket-taxes-fees-banking; providing intelligent tax BaaS services for micro-enterprises for fully automated accounting and tax filing, enhancing intelligent accounting optimization, continuously optimizing accounting rule models leveraging big data technology to further improve accounting accuracy and efficiency. In the field of digital business intelligence, to meet the information management needs of Chinese enterprises going global, Chanjet has released the enhanced version of Chanjet Finance Overseas Edition, further expanding customer coverage; utilizing low/code platform capabilities to strengthen the characteristics of industries such as construction and IT, meeting the industry-specific and personalized needs of small and micro enterprises, enhancing product delivery satisfaction and management efficiency; continuously optimizing a range of AI automation tools such as intelligent billing, smart order checking, and automated business process execution to help small and micro enterprises improve work efficiency; the newly released Financial Advisor, through multi-dimensional, automated, and intelligent financial analysis, helps small and micro enterprises enhance their operational decision-making capabilities.

On the marketing front, the group continues to strengthen channel layout and deployment, advancing the coverage of county-level markets, promoting digital marketing and refined operation solutions based on AI technology, enhancing channel partners' ability to acquire and convert business opportunities, advancing channel operation mode upgrades, and promoting business growth; around the 'Most Beautiful Service Providers' selection activities, helping channel partners promote business growth, providing operational management upgrade solutions for small and micro-enterprises; in the areas of 'new finance and taxation, new commerce, new retail, new manufacturing, and new services', increasing the promotion of 'digital salon' industry operation seminars, 'Top 100 Advanced Visits Customer Site' digital management experience exchange meetings, and helping small and micro-enterprises in their digital transformation and upgrade. The group actively participates in the second batch of national pilot cities for small and medium-sized enterprises' digital transformation, organizing digital transformation service provider application and selection activities, driving partners to participate in the cloud transformation projects initiated by local governments. In the direct sales channel, deepening the precise customer acquisition marketing strategy, focusing on the popularization of finance and taxation markets, expanding the coverage of finance and taxation product markets; applying AI large-scale models to obtain business leads, continuously improving the quality of business leads through refined traffic management and potential customer cultivation systems, enhancing customer conversion rates, and maintaining sustained high growth in direct sales business.

During the reporting period, the group's cloud computing service business added 0.107 million new paid corporate users, a 25% increase from the same period last year; as of the end of the reporting period, the cumulative number of paid corporate users in the cloud computing service business reached 0.74 million. The board of directors believes that the overall business operations of the group have maintained a good development trend.