#China #Guangzhou #Xuan Wu Cloud #AI SaaS #Technology Holdings

Xuan Wu Cloud's Remarkable 2024 Annual Results

Xuan Wu Cloud Technology Holdings Limited has announced its annual results for the year ending December 31, 2024, marking a significant turnaround from previous losses to report a net profit of RMB 6.9 million. This achievement underscores the company’s commitment towards high-quality business development, particularly in the realms of Artificial Intelligence (AI) and Software as a Service (SaaS).

The company's financial performance shows a substantial increase in its gross profit, which rose by 2.5% to reach RMB 209.8 million. Additionally, the company's gross margin improved, rising by 2.2 percentage points compared to the previous year due to enhanced operational efficiency and effective cost-reduction measures. With an operating expense ratio that reduced to 17.9%, reflecting a decrease of 3.6 percentage points year-on-year, Xuan Wu Cloud illustrated its capability to optimize resources effectively, resulting in noticeable profit growth.

In terms of customer engagement, Xuan Wu Cloud’s client portfolio expanded impressively, reaching a total of 3,056 clients by the end of the reporting period, of which 2,282 were utilizing its SaaS services, marking a steady growth rate of 7.6%. The company’s revenue for its SaaS segment achieved a remarkable RMB 731.9 million, presenting a year-on-year increase of 23.8% and indicating that over 60% of the company's total revenue is now derived from high-margin SaaS services, a first for the organization.

Amidst these advancements, Xuan Wu Cloud completed a full integration with the DeepSeek large model, seeking to leverage AI agents across various business scenarios in retail and finance sectors. The momentum for international business expansion remains robust, as the company has successfully extended its reach into several markets across Asia, Europe, and South America, thereby satisfying increasing demand for global operations among its clients.

Innovations in Product Development and Market Strategies

Xuan Wu Cloud’s dedication to enhancing its product offerings has played a critical role in its ongoing success. The company secured 399 authorized patents and software copyrights by the end of the reporting period, adding 67 new patents in 2024 alone. New products such as the SKU Super Model and Smart Xiao Xuan have been launched, attending to the intricate demands of consumers in the mass consumption and finance industries.

The integration of AI capabilities through the company's various products has become a cornerstone of its strategy, aimed at empowering clients to navigate their digital transformations effectively. Notably, its Marketing Cloud division introduced enhancements to its flagship Integrated Communication Center (ICC), making strides in its compatibility with the newly developed HarmonyOS while also expanding its partnerships with major banks and e-commerce platforms.

Furthermore, the Sales Cloud division is undergoing a transformation, maintaining its 'consultation-driven services + standard products' model alongside the new advancements in actionable platform-as-a-service (aPaaS) technologies. This strategic adjustment centers around tailoring solutions to diverse industry needs and enhancing interaction between business and technical teams to adapt swiftly to market dynamics.

Strategic Focus for 2025 and Beyond

Looking ahead, the Chairman of Xuan Wu Cloud, Mr. Chen Yong Hui, emphasized the company's goals of product standardization, refined management, and business globalization for the year 2025. With an unwavering focus on AI, the company plans to create innovative AI-powered products tailored to specific business scenarios while expanding its operational efficiency and enhancing client satisfaction.

As the demand for generative AI and AI agents continues to grow, Xuan Wu Cloud is leveraging its expertise in AI and digital intelligence to reinforce its market position. The firm is also working towards establishing strategic partnerships with other telecommunication operators, enhancing the globalization of its offerings.

In summary, Xuan Wu Cloud's 2024 results represent more than just numbers; they reflect a well-structured, strategic approach to growth that blends innovative technology with a keen understanding of customer needs, setting the company on a path for even greater success in the years to come.