Bairong Inc. Announces Unaudited Operation Summary for The Third Quarter of 2022


Retention rate of Key FSP clients was as high as 95%;
Smart analytics and operation services achieved 46% revenue growth

BEIJING, Nov. 16, 2022 /PRNewswire/ — Bairong Inc. ("Bairong" or the "Company"; HKEX:6608), a leading artificial intelligence ("AI") and cloud-based software-as-a-service("SaaS") technology firm in China serving the financial services industry, today announced its unaudited operation summary for the nine months ended September 30, 2022.

Highlights

Revenue Summary

Nine months ended September 30,

2022

2021

Change (%)

(unaudited)

(unaudited)

(RMB in thousands, except percentages)

Revenue

1,487,089

1,193,348

25 %

     Smart analytics and operation services

728,737

498,714

46 %

     Precision marketing services

340,135

351,832

-3 %

     Insurance distribution services

418,217

342,802

22 %

 

Operation Summary for SaaS Services

Nine months ended September 30,

2022

2021

Change (%)

(unaudited)

(unaudited)

Number of key clients

180

159

13 %

Average revenue per key client

         (RMB in thousands)

3,252

2,571

26 %

Retention rate of key clients

95 %

90 %

5 pct

Financial Review

For the nine months ended September 30, 2022, the revenue of smart analytics and operation services reached RMB729 million, representing a year-over-year growth of 46%. The growth was primarily driven by a 13% increase in the number of key clients and 26% increase in the average revenue per key client. Smart operation business grew significantly, representing 25% of the business line, up from 12% in the same period last year, reaching RMB182 million.

Since 2017, we have achieved a CAGR of 46% in revenue growth over the last 5 years, and a CAGR of 229% in adjusted net profit growth over the last 3 years. According to the 2022 interim report, our net profit reached RMB93 million in the first half of the year, leading the SaaS industry.

Research and Development

We have cumulatively invested over RMB1.2 billion in research and development, and have obtained over 180 software copyrights and patents, covering key areas including machine learning, AI voice, and privacy computing.

We have developed a mix of cloud-based AI platform to provide data analytics, an auto machine learning system to improve modeling efficiency, a privacy computing platform Indra to ensure data security, as well as multiple products and solutions for smart operation, wealth management and inclusive finance. In September 2022, we officially launched the "Backdrop (Tian Mu) Project", to serve as a one-stop-for-all SaaS service provider for financial institutions.

We have won multiple technology awards including:

– Huawei Kunpeng Partner Program Certification;
– 2022 China New Technology Top 100;
– China Innovative Service Companies in Digital Intelligence Transformation and Upgrading;
– Top 10 Innovation Cases of 2022 Digital Innovation Economy;
– 2022 Best SaaS Company. 

Environmental, Social and Governance

We are dedicated to assisting small and micro enterprises in addressing their financing issues, as they widely face the challenges of inconsistent standards, information asymmetry, and high identification costs. Through our proactive "industry + technology + finance" ecosystem, we accurately portray the credit profiles of small and micro enterprises, thus relieving their financing difficulties, as well as assisting financial institutions to identify high-quality assets. 

Regarding financial scenario in rural areas, we assist addressing the three key challenges: information asymmetry, lack of collateral, and high transaction costs, by facilitating the construction of rural credit systems and providing more convenient services to rural residents.

We focus on building a win-win financial ecosystem and promoting the green transformation of financial services. We provide cloud services based on big data and AI technologies to help financial institutions reduce fraud risks and improve the efficiency and effectiveness of their decision-making analytics and consumer operations. Moreover, we actively leverage technological innovation to enable the green financial businesses to benefit society, and reduce resource and energy consumption in traditional financial business processes.

As the COVID-19 pandemic continues in the domestic, we carried out the Intelligent Voice Epidemic Prevention public welfare project. We have also used our own technology to promote rural revitalization with a new model of financial assistance, and donated scholarships and worked together with Tsinghua University to cultivate data science talents.

About Bairong Inc.

Bairong Inc. is a leader in the facilitation of the Chinese financial service industry’s smart digital transformation. We developed a proprietary AI and cloud-based SaaS platform, which leverages AI, cloud computing, blockchain and machine learning technologies to provide financial service providers with highly adaptable, secured and reliable products and solutions. Built upon our long-term industry understanding and user insights, we provide a comprehensive product and solution matrix covering the entire business process spanning smart user acquisition, smart analysis, smart decision-making, smart operations, and smart wealth management, etc. Recently, we ranked as the highest-scored financial SaaS enterprise among the "Top 100 Enterprises Driving Digital Transformation in 2022" by the Internet Weekly of Chinese Academy of Sciences, joining other industry leaders in facilitating the digital transformation of the economy.

For more information, please visit: http://ir.brgroup.com.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking" statements. These forward-looking statements can be identified by terminologies such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and the negative of these words and other similar expressions or statements. Bairong may also make written or oral forward-looking statements in its periodic reports to the HKEx, in its annual and interim reports to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including statements about Bairong’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statements, including but not limited to the following: Bairong’s strategies, future business development, and financial condition and results of operations; Bairong’s limited operating history; risks associated with the financial service industry, Bairong’s ability to develop and deliver services of high quality and appeal to clients; Bairong’s ability to generate positive cash flow and profits; Bairong’s ability to compete successfully; Bairong’s ability to build its brand and withstand negative publicity; and changes in client demand and government incentives, subsidies, or other favorable government policies. Further information regarding these and other risks is included in Bairong’s filings with the HKEX. All information provided in this press release is as of the date of this press release, and Bairong does not undertake any obligation to update any forward-looking statements, except as required under applicable laws.

For investor inquiries, please contact:

Bairong Inc.
Ms. Sandy Qin, CFA, CMA
Email: ir@brgroup.com

For media inquiries, please contact:

Bairong Inc.
Ms. Shuo Nie
Email: brmarketing@brgroup.com

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