The unavoidable profit problem

As a company that provides a cloud-bas one-stop digital retail. SaaS platform for the local retail industry. Duodian Shuzhi’s services cover retail core service cloud. E-commerce service cloud and other businesses. The company’s five major customers are Wumart Group. Metro Supply Chain Group, Yinchuan Xinhua Group. Chongqing Department Store Group, and B&Q entities, and all of these major customers are affiliat entities.

In terms of performance, from 2021 to 2023 and from January to June 2024. Duodian Digital Intelligence’s revenue was RMB 848 million, RMB 1.328 billion, RMB 1.585 billion and RMB 939 million, respectively.

Figure: Multipoint Digital Intelligence’s performance in recent years

The losses from continuing operations during the period were RMB 1.808 billion, RMB 900 million, RMB 749 million and RMB 482 whatsapp data million respectively.

Figure: Multipoint Digital Intelligence’s losses in recent years

In other words, although Duodian Digital’s revenue has increas in recent years, and even reach a year-on-year growth rate of 114.6% in 2021, the loss hole is still difficult to fill.

What is curious is why Duodian Shuzhi doesn’t make money?

The prospectus shows that Duodian Digital’s revenue mainly comes from retail core service cloud, e-commerce cloud and others.

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In the retail core service cloud business

Duodian Digital Intelligence mainly charges see convin in action for free! a commission rate bas on the total amount. Of customer merchandise transactions process by retail customers through the operating system. Or subscription fees for using the operating system as well as customization, implementation, software development and maintenance fees; and charges product and service fees to customers using AIoT solutions.

In the e-commerce cloud business

Duodian Shuzhi charges retailers a percentage of the total customer merchandise transaction volume process by the platform (particularly book your list Duodian mobile applications and mini-programs), and charges consumers a delivery fee for each delivery order relat to transactions conduct on the O2O platform.

Other businesses include providing offline marketing services, offline marketing products and offering discounts and coupons.

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