Huitongda Network Announces 2023 Annual Results, Revenue Grows Steadily, with Net Profit Attributable to Parent Company Surging by 42%

March 27, 2024 by No Comments

HONG KONG, Mar 27, 2024 – (ACN Newswire via SeaPRwire.com) – 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, 2023 (“Reporting Year”). The Group stayed true to the working principle of “enhancing quality, stabilizing growth and generating value”, took root in the lower-tier market and served corporate customers. The Group revenue is steadily growing, and profitability maintains a rapid growth momentum, continuously creating value for shareholders.

During the Reporting Year, the Group recorded total revenue of RMB82.43 billion, representing a year-on-year growth of 0.4%; the Company recorded net profit of RMB697 million, representing a year-on-year growth of 25%; profit attributable to equity shareholders of the Group amounted to RMB448 million, representing a year-on-year growth of 42%. The Company recorded positive operating cash inflow of RMB471 million, marking a positive inflow for five consecutive years. During the Reporting Year, the Group continued to deepen its member retail store service. Huitongda Network’s total number of registered member retail stores of the Group exceeded 237 thousand, representing a year-on-year growth of 15%; the total number of subscribed SaaS+ users amounted to nearly 132 thousand, representing a year-on-year growth of 16%, of which, the number of paid member stores exceeded 48 thousand, representing a year-on-year growth of 61%.

In respect of our commerce business, during the Reporting Period, the Group’s commerce business sector achieved a total sales revenue of RMB81.62 billion. The Group continues to strengthen the cooperation with top brands, expedited the construction of its own brands and the integration of production and sales, and carried out a full pipeline deployment both online and offline simultaneously, achieving breakthrough innovations. In terms of brand cooperation, the Group strengthens collaboration with top-tier brands in sectors such as consumer electronics, household appliances, agricultural production materials, new energy, liquor, and personal care. In terms of its own brands, such as Zhonghuida air conditioners and Huizhongtian fertilizers, the Group made a breakthrough in the integration of production and sales. Furthermore, the Group successfully implemented a comprehensive pipeline strategy, not only by fostering strong partnerships with leading online platforms to facilitate the expansion of sales channels for retail stores but also by expanding its reach through partnerships with prominent chain enterprises such as Shandong Sanlian. This comprehensive approach ensured a robust pipeline deployment both online and offline.

In respect of our service business, during the Reporting Period, the Group’s service business sector achieved revenue of RMB655 million. On the one hand, the Group focused on sales assistance and promotion for its member retail store, organizing more than 456 joint promotions together with 35 core top brand factories throughout the year, helping member retail stores to improve their operational efficiency. On the other hand, the Group continues to innovate in the research and development of service products. In 2023, the Group independently researched and developed Qiancheng E-commerce series of service products, focusing on the pain points of member retail stores’ demands, and further upgraded them to satisfy the demand of customers in all industries and all scenes.

In respect of the construction of our digitalized infrastructures, the Group focuses on building industrial Internet platforms, continuously upgrading the digitization platforms across various industries, refined the construction of technical product systems in various industries. Simultaneously, with a focus on the daily operational management scenarios of member retail stores, the Group independently deploys AI large model services capability to align with industry standards.

In respect of equity incentives, the company granted approximately 8,999,500 restricted share units under the restricted share unit scheme. The grantees are members of the Group’s core and backbone team, with the key vesting condition that the Company will record an increase in net profit attributable to equity shareholders of the Company of more than 100% in 2026 compared to 2023.This grant makes a high degree of alignment between the interests of the employees, the Company and the Shareholders, which will help the Group to further enhance the efficiency of the core team, maintain the stability of the core team, and provide protection for the Group to achieve its medium to long-term performance targets.

In respect of our corporate influence, the Group garnered increased attention and recognition from government authorities at all levels and the public across multiple sectors, further enhancing its influence in the industry in 2023. The element of Huitongda, namely “turning mobile phones into a new kind of farming tool, changing information become a new agricultural resource, and making live broadcasting become a new agricultural activity” was implanted in the central documents; the provincial and ministerial leaders, such as the National Development and Reform Commission (NDRC), the State Administration for Market Regulation (SAMR), Department of Commerce of Jiangsu Province, have visited and inspected for many times and highly evaluated the business of Huitongda. In 2023, the Company was awarded “Top 500 Chinese Enterprises in China (ranking 301st)”, “2023 National E-Commerce Demonstration Enterprise”, “Best Board of Directors of Listed Company”, “Annual Investment Value Award” and many other corporate honors, recognitions and awards at the provincial and ministerial levels and above.

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 integrates family-run retail stores in towns and villages and provides them with end-to-end, full-link, one-stop solutions; Also, the company enhances the digital capabilities, across the entire industry value chain participants, including retail stores, wholesalers, and 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: ir@htd.cn

Tel: 025-68727979

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