Xuan Wu Cloud Announces 2023 Annual Results

Revenue Grew Year on Year by 22.8%, Launching the Large Model to Drive Intelligent Growth in the Consumer Goods Industry

  • Revenue increased by 22.8% year-on-year to RMB 1,281.3million (all figures in RMB unless stated otherwise)
  • Average Revenue Per User (ARPU) for core customers reached RMB 3.7million, marking a substantial 25.9% increase from the previous year
  • Net Revenue Retention (NDR) rate for core customers improved to 112.7%
  • Operating expense ratio for 2023 decreased to 21.5%, down by 4.4 percentage points compared to the previous year
  • SaaS customer base expanded with a 28.9% growth to 2,120 customers
  • Attained the prestigious CMMI Level 5 certification, the highest global standard in software development
  • Launched “Xuantao” the first-of-its-kind multi-modal large model tailored for the domestic consumer goods industry
  • Steady growth of “AI + Consumer Goods” initiatives drove Sales Cloud to achieve revenue increase of 15.0% year-on-year, along with a 30.0% growth in contract order amount
  • Marketing Cloud grew by 26.8% year-on-year with core product ICC (Integrated Communication Center) now fully adapted for the domestic market

GUANGZHOU, China, March 27, 2024 /PRNewswire/ — Xuan Wu Cloud Technology Holdings Limited (“Xuan Wu Cloud” or the “Company“, together with its subsidiaries, the “Group“; stock code: 2392.HK), a leading local intelligent CRM services provider in China, today announced its annual results for the year ended 31 December 2023, with the Group recording solid revenue growth.

During the reporting period, the Company achieved robust growth, with total revenue increasing by 22.8% year-on-year to RMB 1,281.3million. In terms of business expansion, Xuan Wu Cloud has upheld its dual-drive philosophy of combining technology and business. While continuing to deepen its presence in mass consumption, finance, government organizations, and TMT sectors, the Company also launched multi-modal large model tailored for the domestic consumer goods industry – Xuantao, empowering terminal intelligence growth for consumer goods enterprises. Furthermore, Xuan Wu Cloud has strengthened its domestic and international ecological partnerships, initiating overseas expansion to drive new momentum for the Company’s future development.

Revenue increased by 22.8% year-on-year, with the core customer Net Revenue Retention (NDR) rising to 112.7%

The announcement reveals that Xuan Wu Cloud recorded a revenue of RMB 1,281.3 million in 2023, a 22.8% year-on-year increase. Among this, the SaaS sector, with higher gross profit, achieved a revenue of RMB 591.0 million, a 24.6% year-on-year increase.

Simultaneously, Xuan Wu Cloud’s customer base also maintained rapid growth. As of the end of the reporting period, the Company’s total number of customers reached 2,970. Rarely, the ARPU for total core customers increased by 25.9% to RMB3.7 million, and the NDR for core customers rose to 112.7%. This signifies that Xuan Wu Cloud’s product value has been continuously recognized by more customers, who are willing to further increase their budgets for investment.

In the SaaS sector, a key focus for the Company, the customer base has grown to 2,120, representing a 28.9% year-on-year increase. Concurrently, the ARPU for core SaaS customers has reached RMB 2.4 million, marking a 12.3% year-on-year increase.

While maintaining steady operations, Xuan Wu Cloud has also undertaken internal organizational restructuring during the reporting period in pursuit of more refined operational management. In terms of customer service, the Company has implemented integrated and localized operations for departments such as sales, implementation, pre-sales, and after-sales services, thereby elevating the value of its customer management system and supporting the Company in maintaining a healthy cash flow. Additionally, in product development, Xuan Wu Cloud has elevated AI and DI from their previous status as Business Units (BU) to the Business Division, with a focus on creating a broader range of standardized products based on the innovative “Quantity and Profit Growth Model” proposed by the Industry Research Institute. These initiatives have contributed to Xuan Wu Cloud reducing its operating expense ratio to 21.5% in 2023, a 4.4 percentage point decrease compared to the same period last year.

Regarding the Company’s overall performance in 2023, Mr. Chen Yong Hui, Chairman of the Board of Xuan Wu Cloud, stated in the report, “Despite the challenges and uncertainties of 2023, we responded to external market and environment with optimistic and decisive actions. Leveraging our SaaS ‘Three Clouds’ (Marketing Cloud, Sales Cloud, and Customer Service Cloud) products and solutions, which target the consumer goods, finance, government organizations and TMT industries, we continuously strengthened our core technical capabilities in AI and DI, while exploring new product applications. During the reporting period, we introduced innovative products such as a multi-modal large model tailored for the consumer goods industry, AIGC applications, DI intelligent store expansion, and DMP. These initiatives have enabled us to maintain a leading competitive position in vertical industry such as mass consumption and finance.”

AI and Digital Innovation Boost SaaS Business Stability and Progress

The artificial intelligence trend, represented by ChatGPT, swept the globe in 2023. With the continuous advancement of underlying large model technology, AIGC applications have begun to deeply impact various industries. In response, Xuan Wu Cloud has kept pace with the trend of the times. Building on its AI technology research and development innovation since 2016 and its expertise in the consumer goods industry, the Company launched the first domestic multi-modal large model tailored for the consumer goods industry, code-named “Xuantao,” during the reporting period. This model will help further enhance the Company’s AI recognition accuracy and generalization.

Building on this foundation, Xuan Wu Cloud has further enriched and enhanced the AIGC product applications for the entire consumer goods terminal chain, focusing on people, goods, and scenes. The Company has introduced a series of AIGC applications such as “Display Commander” and “Visit Summary Assistant,” aiding the consumer goods industry in achieving smarter growth at the terminal.

During the reporting period, Xuan Wu Cloud has continued to iterate its “Smart 100” series products and launched “Smart Store Expansion,” a DI product designed to enhance terminal scale and sales for consumer goods enterprises. Additionally, the Company’s AIoT Smart Freezer, a digital solution for consumer goods terminal business scenarios, has been successfully deployed in large supermarkets with collaborative consumer goods enterprises, expanding the applicable terminal sales channels.

Backed by competitive technology and product offerings, Xuan Wu Cloud’s Sales Cloud segment has actively pursued market expansion. The segment’s revenue for the period increased by 15.0% year-on-year to RMB 69.7million. Furthermore, the contract order amount for Sales Cloud grew by 30.0% year-on-year, laying a solid foundation for the segment’s continued revenue growth.

While steadily advancing in the “AI + Consumer Goods” sector, Xuan Wu Cloud has also deepened its presence in the Smart Finance and Government-Enterprise sectors with its Marketing Cloud. The Company has actively positioned itself around localized IT innovation to replace imported technologies, aiming to achieve digital marketing upgrades for clients in the finance, government, and enterprise sectors. During the reporting period, the flagship product of the Marketing Cloud, ICC (Integrated Communication Center), completed domestic adaptation with partners such as Baolande and Oceanbaes. With this, ICC has completed the entire chain of domestic adaptation for indigenous innovation.

Leveraging its strengths in domestic independence, security, and stability, the Marketing Cloud sustained robust growth in 2023, with revenue increasing by 26.8% year-on-year to RMB 495.6 million. Notably, ICC (Integrated Communication Center), an innovative enterprise-level omnichannel messaging center in the 5G era, maintained a high bid-winning rate. ICC also tailored its offerings to meet the specific needs of the financial industry, introducing standardized components such as “Contract Signing Business” and “Data Desensitization” to facilitate efficient digital upgrades for customers. Simultaneously, the Marketing Cloud intensified its focus on precision marketing solutions for the financial and government-enterprise sectors. It launched a Data Management Platform (DMP) designed for accurate delivery, intelligent management, and enhanced conversion rates.

Notably, alongside the steady development of its core business, Xuan Wu Cloud has been actively seeking new drivers by leveraging its strengths and ecosystem. Throughout the reporting period, Xuan Wu Cloud has pursued a more open and proactive strategy in fostering industry ecosystems. On the technological front, the Company signed a collaborative agreement with Huawei Cloud to jointly develop large-scale consumer goods models. In terms of distribution, Xuan Wu Cloud’s AIoT Smart Freezer, DI Smart Store Expansion, ICC, LTC, and other products have been successfully listed on Huawei Cloud’s ecosystem channel for market sales. Additionally, on the market front, the Company has engaged in various forms of ecosystem partnerships with manufacturers, such as Huawei Cloud, Tianrun Cloud, AMaps.

Focusing on Technological Innovation and Industry Expertise to Build a Mutually Beneficial Ecosystem at Home and Abroad

Looking towards 2024, Mr. Chen Yong Hui stated in the report, in 2024, we will adhere to the commercialisation strategy of persisting with industrialisation and ecologicalisation, investing in R&D in core competitiveness, and product innovation, and we will make efforts from the following three directions:

First of all, we will continue to focus on AI + mass consumption, vertically cultivate major industrial clients, and create omni-channel, full-link and full-scenario standardised solutions for brands. In terms of AI large models, we will collaborate with Huawei Cloud to further upgrade the underlying technical capabilities; In terms of product creation, on one hand, we need to implement more AIGC applications according to the business scenario needs of consumer goods clients. Meanwhile, we will gradually penetrate more mid-tier clients, with AI standardised products and applications, so as to achieve large-scale sales of products.

Secondly, in the field of smart finance and government organizations, we will continue to focus on the financial industry and create more standardised components for our clients. At the same time, we will also use ICC and DMP as the starting points to upgrade the precision marketing capabilities of the Marketing Cloud, assist enterprises in establishing a comprehensive picture of clients’ financial information, help clients to operate in a hierarchical and refined manner, and reach precision marketing, so as to improve the closed loop of financial smart marketing. In terms of reachable channel integration, ICC will enhance the intelligent interaction of 5G message terminals to help clients to improve marketing conversion rates, thereby enhancing their users’ stickiness.

In addition, we will expand overseas markets, continue to deepen strategic cooperation with other players, and create a win-win ecosystem. In terms of products and solutions for overseas business, we plan to provide global cloud communication capabilities solutions including international SMS, precision marketing and etc. In addition, we also plan to expand overseas markets with ecological partners such as Huawei Cloud for products applied in the realm of mass consumption.

Mr. Chen Yong Hui stated, “In 2024, we are committed to gaining more major clients and higher market share, and achieving breakthroughs in technological and regional expansion in terms of products, so as to ensure the overall operation of the Company achieves high-quality growth. At the same time, we will continue to deepen our organization restructuring and manage Group operating expenses prudently, therefore maintaining a stable operating leverage. Through the adoption of measures mentioned above, we are confident to reach breakeven in our Group’s overall business in 2024.”

Financial Results

Year ended 31 December











Gross profit




Operating (loss)/profit




(Loss)/profit before income tax




(Loss)/profit and total comprehensive (loss)/income





Year ended 31 December




RevenueBy Service Segment









Total Group                                                               




About Xuan Wu Cloud:

Xuan Wu Cloud Technology Holdings Limited, the largest local intelligent CRM service provider in China(stock code 2392.HK), which was successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited on 8 July, 2022. The company’s domestic operating entity is Xuan Wu Technology, which has established a marketing service system covering 34 provinces and cities across China. Xuan Wu Cloud has aPaaS, cPaaS, AI, and DI platform as technical base, with Marketing Cloud, Sales Cloud, Service Cloud as core SaaS product applications, aiming to provide customers with multi-touch, all-channel, entire business cycle management of intelligent CRM products and services.

View original content to download multimedia: Read More