Bairong Inc. Announces 2021 Interim Results with Strong Financial Growth
BEIJING, Aug. 26, 2021 /PRNewswire/ -- With the increasing customer demand comes after market recovery, Bairong Inc. (6608.HK, the "Company") reported a total revenue of RMB791 million in the first half of 2021, representing a year-on-year increase of 67%. Correspondingly, the gross profit rose by 67% to RMB577 million year on year. As the operational efficiency improved, the Company's profitability is beginning to show. In the first half of 2021, the non-IFRS EBITDA increased by 251% to RMB149 million. Meanwhile, the non-IFRS net profit grew by 2,612% to RMB99 million. In the first half of this year, the net loss of the Company was RMB3,639 million, mainly attributable to the RMB3,697 million losses from the changes in fair value of callable and convertible preferred shares. Upon the completion of the listing, the redeemable convertible preferred shares were converted to the ordinary shares, and no further loss or gain on changes in fair value of the redeemable convertible preferred shares will be recorded afterwards.
Advanced Technology Enables Quality Service. Technologies Help Drive Digital Transformation
As a leading independent AI-powered technology platform in China, Bairong Inc. provided decision-making support and intelligent marketing as well as operational solutions that cover all business processes of financial institutions, helping them lower fraud risks, improve operational efficiency, and speed up their digital transformations with the help of cloud infrastructure and AI technology.
The Company earned recognition from clients with stable, safe, and effective products and services, and the number of customers was growing rapidly. As of June 30, 2021, the Company had served more than 5,100 financial services providers ("FSPs"), including substantially all of China's state-owned banks, more than 840 regional banks, almost all of China's consumer finance companies, over 100 major insurers and a variety of other FSPs. For the more than 5,100 FSPs that the Company served for, 2,876 of them were paying clients who subscribed and paid for the Company's products and services, marking an increase of 274 compared with the 2,602 paying clients by the end of 2020. In 2020, the Company had 237 key FSP clients, namely licensed financial institutions that contributed to more than RMB300,000 within that year, and 210 of them remained paying clients in the first half of this year, a staying rate of 89%. As of the end of the first half of this year, there were already 177 clients that could be regarded as key FSP clients, representing a year-on-year growth of 20% than the 147 of last year. The average revenue per user (ARPU) increased to RMB3.55 million, a year-on-year growth of 25%.
Intelligent Marketing Promotes Operational Efficiency. Safe Platforms Protect User Privacy
The Company provided intelligent and accurate marketing and distribution services that enabled its financial institutions provider clients to reach and serve their target customers more effectively. The Company mainly connected consumers with suitable financial products provided by its FSP clients through a proprietary financial product recommendation platform, Banyan. In this way, financial institutions could access users more accurately and effectively. The company also start providing smart consumer operation solutions for its key FSP clients to satisfy their increasing demand in operation digitalization. The marketing and distribution services experienced very strong growth in the first half due to stronger than expected market rebound and improving operational efficiency. The company's insurance distribution platform empowers brokers with data-driven tools and analytics to facilitate efficient and effective insurance sales and customer relationship management.
The Company put a great emphasis on data security and privacy protection. The Company's technology service platform had passed the Class 3 under the Information Security Classification Protection of China and received ISO27701 (Privacy Information Management System Certification) and many other international security certifications. The Company had implemented comprehensive internal policies on protecting data security and established a CEO-led data security committee. The Company strove to enhance private data protection through the development and use of AI technology, such as joint study, multi-computing of safety, privacy protection computing. In this way, the Company could provide safer and more stable services to financial institution clients. The Company had developed Indra, a secure multi-party computing platform that met key privacy protection needs in the process of data development. Indra offered a safe and efficient data cooperation model for financial institutions, enabling them to tap into the value of data whilst ensuring data security and compliance with data usage policies and preventing data leakage.
Actively Fulfilling Corporate Responsibility. Supporting Epidemic Control and Prevention with Intelligent Devices
The Company officially released the Inaugural Environmental, Social and Governance Report for 2020 (the "Report"). The Report elaborated the Company's work in 2020 across six sections: Corporate Governance, Technological Innovation, Customer Service, Talent Development, Green Development, and Giving Back to Society. With a commitment to serving society and giving back to society, the Report underscored the role Bairong played in social responsibility. During the pandemic, the Company took prompt action and initiated the "Intelligent Voice Epidemic Prevention" program to provide free "Intelligent Voice Dialogue Robot" services to government agencies, neighbourhood communities, and local disease control centres, helping them build a strong epidemic control "frontline".
Going forward, the Company plans to implement the following strategies to further strengthen its core competitive strengths and capture rising business opportunities:
- Solidify leadership in technology. The Company will continue to invest in cutting-edge technologies, improve existing technology infrastructure to provide stable, reliable and scalable services to clients. For example, we will further develop the AutoML technology, train more special models for the financial sector, enhance the standardization of basic structure. Also, we will improve our ability in distributed relational diagram and keep investing in resources for privacy computing. Moreover, we will strengthen cloud-based infrastructure to improve service and reliability.
- Enhance and diversify product and service. The Company will continue to work with financial institutions and expand its products and offerings to cater to their evolving needs. As the demand of clients' digital transformation and existing clients' operations increased, the Company plans to provide various services and solutions, such as intelligent marketing, intelligent operation, and use experience management. The Company has signed agreements on intelligent solution on post-leaning with several state-owned banks to help boost their operational efficiency.
- Further expand the client base and deepen client relationship. The Company will continue to attract clients with the strategy that it "gains market presence first before expansion", and expand our footprint and deepen client relationship by further strengthening business development capacity. Meanwhile, the Company will focus on changing financial institutions into paying clients and core client, and constantly improve the average revenue per user and staying rate of core clients.
- Pursue strategic acquisitions that complement the Company's leadership position. The Company will acquire target companies with collaborative businesses to improve the value service to financial institution clients.
For more information, please visit Bairong Inc.
SOURCE Bairong Inc
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