Financial Performance - The company achieved a revenue of RMB 6,059,391 thousand for the first half of 2020, representing a year-on-year growth of 9.4% compared to RMB 5,538,248 thousand in 2019[5]. - Service revenue reached RMB 5,970,217 thousand, an increase of 8.7% from RMB 5,493,458 thousand in the same period last year[5]. - The net profit for the period was RMB 397,107 thousand, reflecting a growth of 10.6% from RMB 358,967 thousand in 2019[5]. - The company reported a basic earnings per share of RMB 16.22, up 10.8% from RMB 14.64 in the previous year[5]. - The cost of sales and services for the first half of 2020 was RMB 4,410,391 thousand, up 11.1% from RMB 3,971,495 thousand in the same period of 2019, with a cost-to-revenue ratio of 72.8% compared to 71.7% in 2019[60]. - Gross profit for the first half of 2020 was approximately RMB 1,649,000 thousand, a 5.2% increase from RMB 1,566,753 thousand in the first half of 2019, with a gross margin of 27.2% down from 28.3% in 2019[61]. - Other income for the first half of 2020 was RMB 125,986 thousand, a significant increase of 108.2% from RMB 60,498 thousand in the same period of 2019, mainly due to increased government subsidies[62]. - The company's overall profit margin for the first half of 2020 was 6.6%, slightly up from 6.5% in the same period of 2019[67]. - The mid-term net profit increased by over 10%, reaching a new high since its listing[46]. Cloud Intelligence Business - Cloud intelligent business revenue exceeded RMB 1.2 billion, with a year-on-year growth rate of over 34%[7]. - The company achieved rapid growth in cloud management and professional services, becoming a top 3 player in the IDC China cloud management services market for two consecutive years, with a continuous increase in market share[16]. - The company’s cloud intelligent business revenue reached RMB 1,230,752,000, up from RMB 916,765,000 in 2019, reflecting a growth of approximately 34.2%[94]. - The company believes that its cloud intelligence business is entering a rapid expansion phase, which will continuously drive future performance growth and profit margin improvement[69]. Digital Transformation and Innovation - The company is focusing on digital transformation services, enhancing its Digital-First consulting capabilities to meet the rising demand for digitalization[8]. - The company is focusing on digital transformation consulting services, enhancing overall solution value through enterprise digital transformation, data consulting, and innovation consulting[15]. - The company has implemented a Digital-First approach to digital transformation consulting, helping enterprises build new business capability models and guiding system restructuring[15]. - The company is investing in cloud intelligence services, leveraging emerging technologies such as AI and big data to provide end-to-end cloud services across various sectors, including finance and government[14]. Strategic Partnerships and Collaborations - The company has established a strong partnership with Huawei, becoming a primary distributor for Huawei Cloud in 14 provinces and cities, maintaining the top sales performance[9]. - The company is actively participating in the development of the Huawei HarmonyOS ecosystem, becoming a service partner for Huawei HiLink ecosystem[9]. - The company has established a 10-year strategic partnership with Beijing Institute of Technology to cultivate talent in innovative technology and promote regional cooperation[12]. - The company is deepening its collaboration with Huawei, participating in the development of the HMS Core 4.0 service capabilities[47]. Market Expansion and Client Base - The company has successfully expanded its overseas business, including projects with HSBC and AIA for cloud migration to AWS and Azure[16]. - The company expanded its customer base in the financial and banking sector by adding 12 new clients, including state-owned and private banks, while maintaining long-term cooperation with over 90% of foreign bank clients[29]. - The company has successfully expanded its main data solutions into the real estate sector, signing contracts for major data projects with clients like Unisplendour and Shougang Real Estate[24]. Employee and Workforce Growth - The total number of employees reached 67,992, reflecting a year-on-year growth of 12.5%[52]. - Employee compensation for the six months ended June 30, 2020, was approximately RMB 4,844,011,000, an increase from RMB 4,385,867,000 in the same period of 2019, attributed to an increase in employee count from 60,455 to 67,992[118]. Corporate Governance - The company has adopted various measures to maintain high standards of corporate governance, adhering to the guidelines of the corporate governance code as per the listing rules[120]. - The company established an audit committee to oversee financial reporting and internal control systems, consisting of three independent non-executive directors[139]. - The audit committee reviewed the interim results for the six months ended June 30, 2020, and confirmed compliance with applicable accounting standards and regulations[139]. Financial Position and Assets - As of June 30, 2020, total non-current assets amounted to RMB 2,563,617 thousand, a slight increase from RMB 2,547,070 thousand as of December 31, 2019[77]. - Current assets reached RMB 9,178,317 thousand, compared to RMB 8,198,326 thousand at the end of 2019, indicating a growth of approximately 12%[79]. - Total liabilities decreased from RMB 3,149,763 thousand to RMB 2,010,497 thousand, reflecting a reduction of about 36%[79]. - The net asset value increased to RMB 7,167,820 thousand from RMB 5,048,563 thousand, representing a growth of approximately 42%[79].

Financial Performance - Revenue for the first half of 2019 reached RMB 5,538,248 thousand, a 15.0% increase from RMB 4,813,853 thousand in 2018[14] - Service revenue amounted to RMB 5,493,458 thousand, reflecting a growth of 15.2% compared to RMB 4,770,267 thousand in the previous year[14] - The company's profit for the period was RMB 358,967 thousand, a slight increase of 0.9% from RMB 355,805 thousand in 2018[14] - Basic earnings per share were RMB 14.64, down 1.5% from RMB 14.87 in the same period last year[14] - The gross profit for the first half of 2019 was approximately RMB 1,566,753 thousand, a 12.7% increase from RMB 1,390,052 thousand in the same period of 2018, with a gross margin of 28.3%[90] - The company's selling and service costs for the first half of 2019 were RMB 3,971,495 thousand, a 16.0% increase from RMB 3,423,801 thousand in the first half of 2018, with costs representing 71.7% of revenue[89] - Administrative expenses increased by 22.5% to RMB 832,932 thousand in the first half of 2019, accounting for 15.0% of revenue, primarily due to increased R&D investment in cloud intelligence business[93] - Other income for the first half of 2019 was RMB 60,498 thousand, a significant increase of 219.3% from RMB 18,945 thousand in the same period of 2018, mainly due to VAT input tax credits and increased government subsidies[91] - Financial expenses rose by 56.5% to RMB 85,411 thousand in the first half of 2019, representing 1.5% of revenue, attributed to increased bank loans and new lease accounting standards[96] - The company reported a net profit of RMB 358,967 thousand for the first half of 2019, slightly up from RMB 355,805 thousand in the same period of 2018, with a net profit margin of 6.5%[85] Business Development and Strategy - The company has established a Cloud Intelligent Business Group to enhance R&D investment in cloud products and solutions, aiming for non-linear growth[17] - The company aims to leverage cloud-native opportunities to accelerate digital business and solidify its foundational business over the next three years[16] - The company is committed to enhancing its core competitiveness through partnerships and innovation in the face of complex international conditions[27] - The company aims to maintain strategic determination and confidence for future development, emphasizing its capabilities and accumulated experience[27] - The company plans to accelerate its overseas expansion, leveraging partnerships with Huawei and other strategic clients to enhance its global IT service footprint[77] Partnerships and Collaborations - The company has become a strategic partner of Huawei Cloud, with multiple industry solutions gaining traction and nearly 1,000 consumer clients[20] - The collaboration with Huawei has led to the company becoming a key IT supplier for Huawei's consumer business group, enhancing its presence in East and South Asia[41] - The company established a cloud service team targeting Japanese enterprises, winning contracts for shared platform projects and CDN transformation projects[31] - The company signed a strategic cooperation agreement with Chongqing Hechuan District to provide inclusive intelligent manufacturing services[37] - The company’s partnership with Microsoft continued to expand, launching multiple new projects and achieving Silver Partner certification for Microsoft PowerApps[52] Technology and Innovation - The company launched AI-based platform certification and electronic signature services, and upgraded its big data intelligent recommendation system to version 4.0, enhancing operational data capabilities[27] - The company achieved a significant breakthrough in delivering the TCL park solution and expanded its customer base with nearly 1,000 consumer clients through Huawei Cloud, doubling its cloud consumption[30] - The smart airport business progressed steadily, with the Beijing Daxing International Airport intelligent data center project completed and accepted, serving as a benchmark for digitalization in airports[35] - The company’s big data services in the insurance sector successfully deployed a real-time indicator system for Sunshine Property Insurance, showcasing replicable solutions across property insurance clients[33] - The company completed the delivery of the agricultural big data platform for Guizhou Province, supporting agricultural industry restructuring[56] Market Position and Client Engagement - The company maintained a leading position in supply chain finance solutions, with commercial factoring products undergoing cloud service and customization trials[48] - The company’s insurance business experienced rapid growth, successfully implementing several key projects and expanding its collaboration with AIA Insurance in the Asia-Pacific region[49] - The company’s telecommunications business expanded significantly, with successful bids for key projects with China Mobile and a team size nearing 1,000[51] - The company added over 20 new clients in the financial and banking sector, including domestic and foreign banks, private banks, and non-bank financial institutions[46] - The company achieved successful project collaborations with major clients in the insurance sector, including Sunshine Property Insurance and China Reinsurance, optimizing solutions and winning several significant projects[49] Financial Position and Assets - The total assets less current liabilities as of June 30, 2019, were RMB 7,443,887 thousand, an increase from RMB 6,762,526 thousand as of December 31, 2018[109] - The total assets as of June 30, 2019, were RMB 5,607,320 thousand, compared to RMB 6,031,523 thousand at the end of the previous year[114] - The company's total liabilities were RMB 3,000,000 thousand, reflecting a debt-to-equity ratio of approximately 0.5[114] - The total borrowings amounted to RMB 2,540,724,000 as of June 30, 2019, compared to RMB 1,675,646,000 at the end of 2018, reflecting an increase of approximately 51.5%[168] - Trade receivables (net of provisions) increased to RMB 2,895,261,000 as of June 30, 2019, from RMB 2,139,753,000 as of December 31, 2018, marking a rise of 35.4%[156] Employee and Governance - The number of employees increased to 60,455 as of June 30, 2019, reflecting a growth of 10.6% from 54,663 employees a year earlier[78] - Employee compensation for the six months ended June 30, 2019, was approximately RMB 4,385,867,000, up from RMB 3,379,551,000 in the same period of 2018, marking an increase of about 29.6%[174] - The company believes that maintaining high standards of corporate governance is crucial for its success and has adopted various measures to ensure compliance with governance codes[177] Shareholder Information - As of June 30, 2019, the company had a total of 446,192,861 shares held by Chen Yuhong, representing approximately 17.54% of the total issued ordinary shares[182] - The company has granted a total of 235,960,000 share options under the new share option plan, which remains unexercised, accounting for 9.27% of the total issued ordinary shares as of June 30, 2019[190] - The independent trustee has purchased a total of 46,630,000 shares in the open market, representing 1.83% of the total issued ordinary shares as of June 30, 2019[193] - The company has a diverse range of shareholders, including investment management firms and partnerships[198] - The total percentage of shares held by major stakeholders indicates a concentrated ownership structure[198]

Financial Performance - In 2018, the company's revenue reached RMB 10,585,013, representing a year-on-year growth of 14.5%[74]. - Service revenue for 2018 was RMB 10,339,012, with a year-on-year increase of 17.4%[74]. - Annual profit for 2018 was RMB 716,171, reflecting a growth of 27.6% compared to the previous year[74]. - Basic earnings per share grew by 25.2% compared to the previous year[72]. - The gross profit for 2018 was RMB 3,244,657, an 18.0% increase from RMB 2,750,466 in 2017, with a gross margin of 30.7% compared to 29.8% in the previous year[90]. - The main operating costs in 2018 were RMB 7,340,356, a 13.0% increase from RMB 6,493,218 in 2017, with the cost-to-revenue ratio decreasing to 69.3% from 70.2%[89]. - Research and development expenses rose to RMB 739,434 in 2018, a 30.3% increase from RMB 567,313 in 2017, accounting for 7.0% of total revenue[94]. - The company's revenue for 2018 reached RMB 10,585,013 thousand, reflecting a growth rate of 14.5% from RMB 9,243,684 thousand in 2017[86]. - The technology professional services segment's revenue grew by 16.7% to RMB 9,174,855 thousand, while service revenue increased by 18.5% to RMB 9,022,237 thousand[98]. Strategic Partnerships and Collaborations - Chinasoft International has strengthened its cloud service capabilities, becoming Huawei Cloud's first "Together" partner and receiving awards such as "Best Partner" and "AI Pioneer" from Huawei[5]. - The company has established strategic partnerships in AI with Huawei and Baidu, launching industry-specific AI solutions across sectors like banking and retail[7]. - The company signed strategic cooperation agreements for the "Cloud Gathering Service" with various local governments, enhancing its service recognition and application[6]. - The company entered Huawei's Supplier Development (SD) program, aiming to enhance software engineering capabilities and service quality for major clients like HSBC and Tencent[10]. - The company has established strategic partnerships with major firms like Huawei and Tencent, enhancing service quality and value[75]. Cloud and Digital Transformation - The company is committed to a digital transformation strategy, focusing on cloud services and renewing traditional IT business models[5]. - The cloud business experienced rapid growth, successfully migrating over 3,300 cloud hosts and nearly 1,000 databases, totaling approximately 3,500 TB of data in the Chinese market[9]. - The company aims to become a leading cloud management service provider, competing with Microsoft Azure and Huawei Cloud, by enhancing its cloud consulting, migration, implementation, operations, and training services[13]. - The company launched the "Cloud Gathering Service" for government software needs, with over 3,000 registered government units and a cumulative service project amount exceeding 100 million[6]. - The company is integrating its cloud service resources by establishing the Cloud & Intelligence Group (CIG) to enhance its cloud management services[5]. Innovation and Technology Development - The company has developed a strong project management capability and focuses on large clients in sectors like banking, high-tech, and the internet[20]. - The AI technology applications achieved breakthroughs, with multiple application scenarios implemented in finance and retail sectors[10]. - The company has developed two major software platform products, ResourceOne and TopLink/TSA+, which are fully owned intellectual property and serve as foundational platforms for industry solutions[21]. - The big data middleware product, Ark, is a one-stop big data scenario development platform that encapsulates mainstream big data technology frameworks, enabling enterprises to quickly create data processing workflows[21]. - The company has established a comprehensive enterprise-level data platform solution, including data architecture, data warehouse, and big data platform implementation[23]. Market Expansion and Client Base - The company has served clients in 32 countries and plans to expand its global presence, leveraging the "Belt and Road" initiative to enhance its digital transformation services[17]. - The company is focusing on large clients, aiming to provide quality and valuable services, with a goal to become a strategic partner of Huawei[11]. - The number of new client collaborations in the financial and banking sector exceeded 40, bringing the total to over 500 clients[58]. - The company has established a strong presence in the financial and banking sector, providing personalized financial services and achieving "three national firsts" in payment systems, including the first interbank payment network system in China[39]. - The company has expanded its outsourcing services to become the largest service provider for Hang Seng Bank, with significant project implementations across multiple regions[57]. Corporate Governance and Compliance - The company adopted various measures to maintain high standards of corporate governance, following the guidelines of the Corporate Governance Code as per the Listing Rules Appendix 14[102]. - The board consists of two executive directors and four non-executive directors, ensuring a diverse leadership structure[104]. - The company emphasizes the importance of independent non-executive directors in safeguarding shareholder interests, with ongoing confirmations of their independence[110]. - The company has implemented a director and officer liability insurance to cover any responsibilities incurred during their tenure[113]. - The company confirmed that there are no significant uncertainties affecting its ability to continue as a going concern[122]. Environmental and Social Responsibility - The company has implemented environmental protection policies and adheres to international and national environmental standards[149]. - The total greenhouse gas emissions increased from 17,413 tons CO2 equivalent in 2017 to 19,701 tons CO2 equivalent in 2018, reflecting a rise of approximately 13.1%[185]. - The company emphasizes green office initiatives and encourages employees to participate in environmental protection efforts[184]. - The company aims to balance corporate, employee, investor, and social values through its commitment to corporate social responsibility[183]. - The company has established a governance structure for environmental, social, and governance (ESG) responsibilities, with a dedicated working group reporting to the board[183]. Employee Development and Workforce - The workforce increased to 62,495 employees by the end of 2018, a growth of 23.0% from the previous year[82]. - The company organized a large-scale employee event across 19 cities, with over 5,000 employee representatives participating, aimed at enhancing employee cohesion and sense of belonging[195]. - The company introduced Stanford University's Design Thinking course to foster innovation, with one instructor for every 1,000 employees and one innovative idea for every 500 employees, significantly enhancing creative thinking across the organization[200]. - The company has established a systematic training system, focusing on new employee onboarding, skill enhancement for current employees, and key role development, supporting strategic goals such as efficiency improvement[198]. - The company emphasizes employee health and safety, implementing a "prevention first" principle and providing effective medical coverage, including regular health check-ups and supplementary commercial insurance for employees[197].