Gelonghui, April 12, 丨 Easypoint Cloud (02416.HK) announced that as of March 31, 2024, the number of active customers in the Group reached 47,854, an increase of 8.1% year on year; the number of service devices reached 1,256,837, an increase of 12.5% year on year, all breaking through record highs. In March 2024 alone, the Group's monthly net increase in the number of corporate customers exceeded 1,600, and the net increase in the number of service equipment was about 60,000 units, creating a new milestone in the Group's development history. This increase was due to the company's:

(i) Implement sales strategies more effectively: Relying on the company's good reputation and customer base, the company further deepens the sales network and enhances the quality of potential customers, so that more and more customers accept and implement the concept of light assets. Furthermore, the company further acquired high-quality customers from all over the country and increased its market penetration rate.

(ii) Adopt flexible product strategies: Since this year, big data, AI and other related industries have developed rapidly. The market requires higher computing power and performance of IT equipment, and the demand for AIPC with graphics cards has expanded dramatically. The company has captured this market trend and adopted a more agile and flexible product strategy to provide diversified products to meet market needs.

(iii) Enhancing its technical and scale advantages: As a leading supplier of comprehensive office IT solutions in China, the company further exploits its scale advantages in various aspects such as supply chain, equipment scheduling, and remanufacturing, and continues to improve operational capabilities and produce business value through the full-stack self-developed “Nebula” system.

(iv) Optimizing its service capabilities: As the number of customers increases and improves, the company continuously optimizes the service efficiency, speed and quality of engineers, and penetrates deep into the customer's office IT scenario to solve the customer's office IT pain points in a one-stop manner.

With the steady development of the Group's business in the first quarter of 2024, the Group's performance also improved further. For the three months ended March 31, 2024, the Group's revenue was RMB 320 million, up 3.0% year on year; the Group's net profit for the period was RMB 21.47 million, compared with a net loss of 486 million yuan for the same period in 2023 and a net loss of 900 million yuan for the full year of 2023, officially achieving net profit at the net profit level; the Group's adjusted net profit was RMB 21.47 million, up 51.1% from the adjusted net profit of RMB 14.209 million for the same period in 2023.

This increase in the Group's profitability was due to: (i) the number of active customers and service equipment reached a new high, gradually escaping the adverse effects of the pandemic and economic growth; (ii) after listing on May 25, 2023, preferred stock investments in the primary market switched to common shares, eliminating the impact of financial liabilities measured at fair value and included in profit and loss on financial statements.