Huitongda Announces 2022 Annual Results Revenue Increased 22.2%
Huitongda Network Co., Ltd.
匯通達網絡股份有限公司
（Stock code：9878.HK）
Huitongda Announces 2022 Annual Results
Revenue Increased 22.2% and Gross Profit Increased 34% YoY
[March 28, 2023, Hong Kong] Huitongda Network Co., Ltd. (“Huitongda Network” or the “Company",together with its subsidiaries, the "Group" ;stock code：9878.HK), a fast-growing commerce and service platform dedicated to serving businesses in China's lower-tier retail market, is pleased to announce its annual results for year ended December 31, 2022 (“Reporting Year”). The Group persevered to the working principle of "improving quality, growing steadily and upgrading further", took root in the lower- tier market and served corporate customers. Through cultural guidance, organizational driving and business innovation, the Group eventually realized the rise against the trend, achieved further growth of revenue scale and profitability, and continued to create value for Shareholders.
During the Reporting Year, the Group recorded total revenue of RMB80.35 billion, representing a year-on-year growth of 22.2%; the Group recorded gross profit of RMB2.50 billion, representing a year-on- year growth of 33.7%; profit attributable to equity shareholders of the Company amounted to RMB0.29 billion, turning losses into gains compared with that in the same period in 2021; and the Group adjusted net profit (non-IFRS measure) attributable to equity shareholders of the Company amounted to RMB0.38 billion. The Group recorded positive operating cash inflow of RMB0.27 billion, which was in a good cash flow condition. During the Reporting Year, the Group continued to deepen and explore the services designed for our member stores. Total accumulated registered member stores were 206,000, representing a year-on-year increase of 21.7%; the number of active member stores was 76,000, representing a year-on-year increase of 22.4%; the total number of paid SaaS+ users was 30,000, representing a year-on-year increase of 66.3%.
In respect of our commerce business, the Group continued to focus on supply chain upgrading strategy in 2022. Firstly, the Group continued to strengthen top-tier upstream capacity of brands supply chain. For example, in the consumer electronics industry, the Group continued to implement“1+N”brand strategy, made the Apple series products as the major breakthrough as well as expanding upstream brands such as Lenovo, Dell and Iflytek. In the agricultural materials industry, the Group was engaged in joint operation efficiently with upstream factories and synchronized the layout of pesticides, fertilizers and feeds. In the liquor industry, the Group, focsing on the Wuliangye, was deeply linked to the ten famous maotai-flavour liquor brands such as Jinsha Wine, Guizhou Wine and Yelanggu. In the homebuilding and renovation materials industry, the Group developed cooperation with brands such as Xinyi Glass, Sanxia New Building Materials and Far East Cable.
Secondly, the Group continued to consolidate the innovation of supply chain model. On the one hand, the Group collaborates with factories to develop customized products based on differentiated demands from the lower-tier market, facilitating the integration of manufacturing and marketing. On the other hand, the Group integrated the demand of member stores based on the market and demand insights, and throught the centralized purchase and flexible supply chain management, aiming to improve the efficiency of the industry chain.
Thirdly, the Group continued to expand in emerging sectors. On the one hand, the Group focused on blue ocean segment, particularly in the new energy sector. The Group have officially launched a new energy technology business unit. Meanwhile, the Group built a new landscape that focus on new energy vehicles while considering two-wheel vehicles market and battery business development. On the other hand, the Group concentrated on the segmentation of the business development, initiated deep trials in the detergent and daily consumables industry. Furthermore, the Group have introduced professional talents to inject new blood and resources into the new industry, laying the foundation for a high-value and sustainable future across multiple industries.
During the Reporting Year, the overall sales revenue from our commerce business achieved RMB79.44 billion, representing a year-on- year increase of 21.8%.
In respect of our service business:
During the Reporting Year, the Group continued to strengthen its membership services.
In 2022, the SaaS+ business strategy had been further implemented, with core functions and underlying infrastructure of SaaS+ products been upgraded. To address the differentiated operational needs of the six industries and customers at different stages of development, the Group offered corresponding solution products, assisting member stores to achieve digital transformation and upgrade.
During the Reporting Year, the revenue from our service business reached RMB795 million, representing a year-on-year increase of 81.5%. Revenue from subscription service was approximately RMB534 million, representing a year-on-year increase of 91.7%.
In respect of the construction of our digitalized infrastructures:
During the Reporting Year, the Group continued to upgrade its digitalization construction. On the one hand, the Group further strengthened its digitalization base. Realized online closed loop around the supplier portal, merchant center and Huitongda Mall. At present, 12 core links have been fully online, ensuring a closed loop of business management for suppliers and the whole scenario and the value creation for the whole life cycle of customers.
On the other hand, the Group innovatively developed customized and digitalized trading platforms, such as Nonghuicai for the agricultural material industry, Jiupinhui for the liquor industry, Zhenhuicai for the household appliances industry and Xinghuixuan for the consumer electronics industry, which effectively satisfied customers’ needs for differentiated digital infrastructure and initially built series of multi-industry industrial digitalized platforms.
In respect of our corporate influence:
In 2022, the Group continued to enhance its corporate influence. In terms of accelerating the development of digital villages, the Group cooperated with various local governments to build digital villages. The Group was awarded as the key software enterprise encouraged by the nation. It received 14 national-level honors and 5 provincial and municipal-level honors, including the Top 500 Enterprises in China in 2022 (ranking 347th), Top 500 Service Enterprises in China (ranking 126th), Top 100 Industrial Internet Enterprises in China (ranking 3rd) and National High-tech Enterprise, etc.
–End–
About Huitongda Network Co., Ltd.
Huitongda Network Co., Ltd.（”Huitongda Network”or”Company”, stock code：9878.HK）, is the fast-growing commerce and service platform dedicated to serving businesses in China’s lower-tier retail market. The company integrate family-run retail stores in towns and villages and provide them with end-to-end, full-link, one-stop solutions; Also, the company enhance the digital capabilities, across the entire industry value chain participants, including retails stores, wholesalers, suppliers, comprehensively improving their operational efficiency by “SaaS+” digitalized service, meeting their diversified business needs, service business has also become a new high-speed growth point of the company.
This press release is issued by Huitongda Network Co., Ltd. Investor Relations Department.
For further information, please contact:
Website: www.htd.cn
Email: [email protected]
Tel: 025-68727979
匯通達網絡股份有限公司
（Stock code：9878.HK）
Huitongda Announces 2022 Annual Results
Revenue Increased 22.2% and Gross Profit Increased 34% YoY
[March 28, 2023, Hong Kong] Huitongda Network Co., Ltd. (“Huitongda Network” or the “Company",together with its subsidiaries, the "Group" ;stock code：9878.HK), a fast-growing commerce and service platform dedicated to serving businesses in China's lower-tier retail market, is pleased to announce its annual results for year ended December 31, 2022 (“Reporting Year”). The Group persevered to the working principle of "improving quality, growing steadily and upgrading further", took root in the lower- tier market and served corporate customers. Through cultural guidance, organizational driving and business innovation, the Group eventually realized the rise against the trend, achieved further growth of revenue scale and profitability, and continued to create value for Shareholders.
During the Reporting Year, the Group recorded total revenue of RMB80.35 billion, representing a year-on-year growth of 22.2%; the Group recorded gross profit of RMB2.50 billion, representing a year-on- year growth of 33.7%; profit attributable to equity shareholders of the Company amounted to RMB0.29 billion, turning losses into gains compared with that in the same period in 2021; and the Group adjusted net profit (non-IFRS measure) attributable to equity shareholders of the Company amounted to RMB0.38 billion. The Group recorded positive operating cash inflow of RMB0.27 billion, which was in a good cash flow condition. During the Reporting Year, the Group continued to deepen and explore the services designed for our member stores. Total accumulated registered member stores were 206,000, representing a year-on-year increase of 21.7%; the number of active member stores was 76,000, representing a year-on-year increase of 22.4%; the total number of paid SaaS+ users was 30,000, representing a year-on-year increase of 66.3%.
In respect of our commerce business, the Group continued to focus on supply chain upgrading strategy in 2022. Firstly, the Group continued to strengthen top-tier upstream capacity of brands supply chain. For example, in the consumer electronics industry, the Group continued to implement“1+N”brand strategy, made the Apple series products as the major breakthrough as well as expanding upstream brands such as Lenovo, Dell and Iflytek. In the agricultural materials industry, the Group was engaged in joint operation efficiently with upstream factories and synchronized the layout of pesticides, fertilizers and feeds. In the liquor industry, the Group, focsing on the Wuliangye, was deeply linked to the ten famous maotai-flavour liquor brands such as Jinsha Wine, Guizhou Wine and Yelanggu. In the homebuilding and renovation materials industry, the Group developed cooperation with brands such as Xinyi Glass, Sanxia New Building Materials and Far East Cable.
Secondly, the Group continued to consolidate the innovation of supply chain model. On the one hand, the Group collaborates with factories to develop customized products based on differentiated demands from the lower-tier market, facilitating the integration of manufacturing and marketing. On the other hand, the Group integrated the demand of member stores based on the market and demand insights, and throught the centralized purchase and flexible supply chain management, aiming to improve the efficiency of the industry chain.
Thirdly, the Group continued to expand in emerging sectors. On the one hand, the Group focused on blue ocean segment, particularly in the new energy sector. The Group have officially launched a new energy technology business unit. Meanwhile, the Group built a new landscape that focus on new energy vehicles while considering two-wheel vehicles market and battery business development. On the other hand, the Group concentrated on the segmentation of the business development, initiated deep trials in the detergent and daily consumables industry. Furthermore, the Group have introduced professional talents to inject new blood and resources into the new industry, laying the foundation for a high-value and sustainable future across multiple industries.
During the Reporting Year, the overall sales revenue from our commerce business achieved RMB79.44 billion, representing a year-on- year increase of 21.8%.
In respect of our service business:
During the Reporting Year, the Group continued to strengthen its membership services.
In 2022, the SaaS+ business strategy had been further implemented, with core functions and underlying infrastructure of SaaS+ products been upgraded. To address the differentiated operational needs of the six industries and customers at different stages of development, the Group offered corresponding solution products, assisting member stores to achieve digital transformation and upgrade.
During the Reporting Year, the revenue from our service business reached RMB795 million, representing a year-on-year increase of 81.5%. Revenue from subscription service was approximately RMB534 million, representing a year-on-year increase of 91.7%.
In respect of the construction of our digitalized infrastructures:
During the Reporting Year, the Group continued to upgrade its digitalization construction. On the one hand, the Group further strengthened its digitalization base. Realized online closed loop around the supplier portal, merchant center and Huitongda Mall. At present, 12 core links have been fully online, ensuring a closed loop of business management for suppliers and the whole scenario and the value creation for the whole life cycle of customers.
On the other hand, the Group innovatively developed customized and digitalized trading platforms, such as Nonghuicai for the agricultural material industry, Jiupinhui for the liquor industry, Zhenhuicai for the household appliances industry and Xinghuixuan for the consumer electronics industry, which effectively satisfied customers’ needs for differentiated digital infrastructure and initially built series of multi-industry industrial digitalized platforms.
In respect of our corporate influence:
In 2022, the Group continued to enhance its corporate influence. In terms of accelerating the development of digital villages, the Group cooperated with various local governments to build digital villages. The Group was awarded as the key software enterprise encouraged by the nation. It received 14 national-level honors and 5 provincial and municipal-level honors, including the Top 500 Enterprises in China in 2022 (ranking 347th), Top 500 Service Enterprises in China (ranking 126th), Top 100 Industrial Internet Enterprises in China (ranking 3rd) and National High-tech Enterprise, etc.
–End–
About Huitongda Network Co., Ltd.
Huitongda Network Co., Ltd.（”Huitongda Network”or”Company”, stock code：9878.HK）, is the fast-growing commerce and service platform dedicated to serving businesses in China’s lower-tier retail market. The company integrate family-run retail stores in towns and villages and provide them with end-to-end, full-link, one-stop solutions; Also, the company enhance the digital capabilities, across the entire industry value chain participants, including retails stores, wholesalers, suppliers, comprehensively improving their operational efficiency by “SaaS+” digitalized service, meeting their diversified business needs, service business has also become a new high-speed growth point of the company.
This press release is issued by Huitongda Network Co., Ltd. Investor Relations Department.
For further information, please contact:
Website: www.htd.cn
Email: [email protected]
Tel: 025-68727979