Hong Kong, August 22, 2024 - Mai Fu Shi (02556.HK) released its interim performance report for the six months ending June 30, 2024, with total revenue of CNY 0.74 billion in the first half of the year, a year-on-year growth of 26.7%, maintaining a steady growth for the past five years.

Mai Fu Shi's business is divided into two major sectors: SaaS business and precision marketing. Among them, Mai Fu Shi's SaaS business revenue is CNY 0.4 billion, accounting for 54% and a year-on-year growth of 30.4%. The gross margin of the SaaS sector is as high as 88.3%, an increase of 1.2 percentage points.

The other segment, precision marketing services, accounts for 46% with revenue of CNY 0.34 billion in the first half of the year, a year-on-year growth of 22.6%. The gross income of precision marketing services reached CNY 3.374 billion, an increase of 11%.

The overall performance in the first half of the year is good, but what is more impressive is that the company achieved profitability for the half year due to refined operations and ecological cooperation. The adjusted net profit was CNY 47.68 million, compared to an adjusted net loss of CNY 24.16 million in the same period last year.

The accounting net loss in the report is RMB 0.82 billion, which does not represent the true operating situation of the company and is due to the fair value change of the preferred stock before the IPO. Because the IPO valuation is much higher than the entry price of the preferred stock shareholders, the preferred stock shareholders have realized significant profits, and the loss has to be recorded as the loss of the listed company in accounting, but in fact, this loss has nothing to do with the operation of the business. On the contrary, it proves that the market recognizes the value of the company, showing the unique vision of the investors who invested in the company before. In contrast, the adjusted net profit of RMB 47.68 million can better reflect the true operating condition of the business.

According to Frost & Sullivan's data report, based on the 2023 revenue, the company is the largest marketing and sales SaaS solution provider in China, and Mafushi has been the number one in the market share of marketing and sales SaaS solutions in China for two consecutive years. The company has received a series of industry recognitions in the first half of the year, such as ranking first for 5 consecutive years in the AI SaaS list, ranking first for 4 consecutive years in the smart marketing list, and ranking in the top 100 of Shanghai's software and information technology service industry for 6 consecutive years, and so on.

From the perspective of product technology capability, 1) Mafushi currently has 240 flexible combinable standardized modules for sales, which enhances its ability to meet the personalized needs of customers and facilitates additional purchases. This is also an important factor in driving revenue growth while maintaining high gross margins; 2) Mafushi's technological layout covers applications of AI in market insights, content generation, precise delivery, intelligent strategy, shopping guides, and intelligent customer service, improving customer acquisition and operational efficiency; 3) Mafushi will continue to adhere to the AI strategy and realize the AI transformation of its full-chain SaaS products, while increasing investment in PaaS open middle platform construction.

From the perspective of customer base, 1) The number of paid users for the SaaS business is 22,247, and the average monthly revenue per user for the SaaS business has increased by 16.5% year-on-year; 2) Mafushi focuses on the dual development curve of small and medium-sized enterprise customers (SMB) and large customers (KA), balancing the profit contribution of the two types of customers, always maintaining a leading position in the small and medium-sized enterprise market, and initially validating the strategy for large customers; 3) In the second half of the year, the company will deepen the strategy for large customers, and with the rich product matrix, it is expected to continue to bring about an increase in revenue from large customers.

During the earnings conference, Zhao Xulong, the company's chairman, stated that the company will further expand its overseas market, increase overseas business lines, and strengthen its product standardization capabilities. This will enable the company to quickly meet customer customization requirements, improve delivery speed, reduce delivery costs, and continuously consolidate its position in the marketing and sales of SaaS solutions.

Media Contact: Dan Xue, xuedan@zhenzhuo.com