Investment Rating - The investment rating for the company is "Buy" (maintained) [1][14]. Core Views - The company is expected to benefit from the domestic substitution trend in ERP software, with continuous improvement in product competitiveness and industry customer coverage. The cloud business is experiencing high growth, and the improvement in profitability is likely to drive a rapid increase in overall net profit, maintaining the "Buy" rating [5][32]. Financial Summary - The company achieved a revenue of 82.94 billion yuan in 2023, representing a year-on-year growth of 19.1%. The net profit attributable to shareholders was 2.02 billion yuan, with a year-on-year increase of 69.9%, which is in line with previous expectations [27]. - The company has adjusted its net profit forecasts for 2024 and 2025 to 3.21 billion yuan and 4.81 billion yuan, respectively, down from previous estimates of 4.21 billion yuan and 7.76 billion yuan. A new forecast for 2026 net profit is set at 6.78 billion yuan, with corresponding year-on-year growth rates of 59.3%, 49.7%, and 40.9% [5][12]. - The company's cloud business generated revenue of 2 billion yuan in 2023, with a year-on-year growth of 59%, significantly outpacing the overall revenue growth of 19.1% [34]. Valuation Metrics - The latest stock price is 3.26 HKD, corresponding to price-to-earnings (P/E) ratios of 9.6, 6.4, and 4.5 for the years 2024, 2025, and 2026, respectively [5][31]. - The company's gross profit margin is projected to improve from 20.7% in 2022 to 27.2% by 2026, while the net profit margin is expected to increase from 1.7% to 4.7% over the same period [12].

股 票 研 究 证 券 研 究 报 告 国资 ERP 领军者，乘国产化浪潮加速云转型 本报告导读： 着国资国企客户实现新突破，叠加中小型企业市场逐步发力，未来营收增速或超预期。 摘要： [Table_Summary] 首次覆盖，给予"增持"评级，目标价 4.41 元。预计公司 2024-2026 年 营收分别为 100.00、121.69、143.25 亿元，归母净利润分别为 3.38、 6.22、7.75 亿元，EPS 分别为 0.30/0.54/0.68 元。公司作为企业级服务 领军企业，按照 PE 估值，给予目标价 4.41 元，对应 2024 年 14.92 倍 PE。首次覆盖，给予"增持"评级。 国资 ERP 领军企业背靠浪潮集团，企业云转型稳步向好。浪潮数字 企业的实控人为山东省国资委，大型 ERP 企业国资背景具备天然信 任背书优势以及具备一站式的集成供应优势和生态协同优势，因而公 司有望在国产替代领域构建护城河。公司业务主要包括传统 ERP 与 云产品业务两部分，2017 年实行云转型战略，2019-2022 年云业务 CARG 达 48%，已成为公司的主要增长点，且云业务占比持续提升。 考虑 ...

Financial Performance - For the year ended December 31, 2023, the company reported revenue from external customers of RMB 8,294,446 thousand, an increase from RMB 6,966,590 thousand in 2022, representing a growth of approximately 19%[6] - The company recorded a pre-tax profit of RMB 278,664 thousand for the year ended December 31, 2023, compared to RMB 148,640 thousand in 2022, which is an increase of approximately 87%[11] - The profit attributable to the company's owners for the year was approximately RMB 201,630,000, up from RMB 118,690,000 in 2022[24] - The company reported a net profit of RMB 210,425,000 for the year, an increase from RMB 124,809,000 in the previous year[31] - The company's net profit attributable to shareholders was RMB 201,630,000, a substantial increase from RMB 118,690,000 in the previous year[87] - The company's income tax expense for the year was RMB 68,239,000, significantly higher than RMB 23,831,000 in 2022, reflecting increased profitability[66] Revenue Segments - The IoT solutions segment generated revenue of RMB 3,829,047 thousand for the year ended December 31, 2023, up from RMB 3,447,275 thousand in 2022, reflecting an increase of approximately 11%[11] - The cloud services segment reported revenue of RMB 2,000,073 thousand for the year ended December 31, 2023, compared to RMB 1,258,088 thousand in 2022, marking a significant increase of around 59%[11] - Cloud services revenue grew by approximately 59.0% to RMB 2,000,073,000, while management software revenue increased by about 9.0% to RMB 2,465,326,000, and IoT solutions revenue rose by 11.1% to RMB 3,829,047,000[24] - The management software segment's revenue grew by 9.0% to RMB 2,465,326,000, while the IoT solutions segment increased by 11.1% to RMB 3,829,047,000[91] Assets and Liabilities - The company’s non-current assets as of December 31, 2023, totaled RMB 1,758,818 thousand, up from RMB 1,576,536 thousand in 2022, representing an increase of approximately 11.5%[6] - Current liabilities increased to RMB 3,915,078,000 from RMB 2,628,409,000 in the previous year[34] - Trade receivables rose to RMB 1,605,229,000 from RMB 1,052,532,000 in 2022[33] - The company's cash and cash equivalents amounted to RMB 1,264,504,000, up from RMB 1,193,170,000 in the previous year[33] - The company's current assets were RMB 4,565,601,000, with current liabilities of RMB 3,915,078,000, resulting in a current ratio of approximately 1.17[102] Government Support - The company received government subsidies amounting to RMB 6,423,000 for the year ended December 31, 2023, compared to RMB 6,679,000 in 2022, indicating a decrease of about 3.8%[3] - The total amount of government grants received was RMB 65,826,000 for the year, compared to RMB 51,915,000 in 2022, supporting social development feasibility studies[40] - Other income increased by 2.8% to RMB 222,098,000, driven by government grants rising by 23.3% to RMB 72,249,000[95] Expenses - The group's administrative expenses increased by 30.6% to RMB 367,543,000 in 2023, compared to RMB 281,364,000 in 2022, primarily due to an increase in the number of administrative staff and related personnel costs[53] - Research and development expenses amounted to RMB 859,197,000, representing a 16.8% increase year-on-year, driven by the expansion of R&D personnel[84] - The total inventory cost recognized as cost of sales was RMB 2,743,322,000 for 2023, compared to RMB 2,600,227,000 in 2022, indicating growth in sales volume[64] Market Strategy and Growth - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[21] - The company aims to strengthen its software industry presence and expand into overseas markets while enhancing support capabilities for high-quality development in 2024[134] - The company is focusing on digital transformation and industry upgrades, aiming to solidify its advantages in the central state-owned enterprise market[134] Product Development and Innovation - The launch of the new "Haiyue" software brand and the GS Cloud product significantly enhanced the group's product and technology competitiveness, with major projects like China Energy Construction being successfully delivered[106] - The Haiyue PaaS platform iGIX 6.0 was released, enhancing capabilities across seven sub-platforms, including low-code and IoT platforms, to support digital innovation for enterprises[109] - The group has made significant advancements in technology innovation, focusing on smart manufacturing and digital transformation, which has further strengthened its position in the high-end market[106] - The company launched the integrated human resources service platform, Inspur HCM Cloud 5.0, featuring a new "4912" flexible hierarchical control business structure, covering 9 major HR management areas[125] - The industrial software MOM 6.0 was released, enhancing smart manufacturing solutions and achieving international advanced software standards in the equipment manufacturing sector[129] Client Contracts and Partnerships - The group signed contracts with 11 central enterprises, including China Rare Earth and China National Machinery, solidifying its market leadership with the highest market share and excellent acceptance ratings[108] - The group achieved strategic partnerships with major banks, including Postal Savings Bank and China Merchants Bank, to expand its SaaS market for small and micro enterprises[119] - The company signed contracts with major clients, including China Datang and China Rare Earth, and has built treasury systems for 25 central enterprises, leading the market share in this sector[130] Employee and Workforce - The group has 7,927 employees, with total employee compensation amounting to approximately RMB 2,328,258,000 during the reporting period[103]

inspur 浪潮 浪潮數字企業技術有限公司 INSPUR DIGITAL ENTERPRISE TECHNOLOGY LIMITED (於開曼群島結冊成立的有限公司) (Incorporated in the Cayman Islands with limited liability) (股份代號 Stock Code : 596) 11111 Interim Report 中期報告 目 錄 | --- | --- | |--------------------------------------|-------| | 公司資料 2 | | | 管理層討論及分析 3 | | | 其他資料 13 | | | 綜合損益表（未經審計） 17 | | | 綜合損益及其他全面收益表（未經審計） | 18 | | 綜合財務狀況表（未經審計） 19 | | | 綜合權益變動報表（未經審計） 21 | | | 綜合現金流量報表（未經審計） 22 | | | 綜合財務報表附註 23 | | 公司資料 執行董事 王興山先生 王玉森先生 崔洪志先生 非執行董事 李春香女士 獨立非執行董事 黃烈初先生 張瑞君女士 丁香乾先生 公司 ...

好 那个时间也差不多了感谢各位参加那个辣潮数字企业的这个交流那现在先由我把那个我们中期的业绩给各位朋友做一个介绍 我这个分为三个部分,第一部分是我们的业绩摘要。在我们的财报上,我们还是继续把我们的业务分为三个部分。第一部分是我们增长最快的,也就是转型的动力,就是我们的云服务业务,今年上半年录得了一个五十的增长。 我们的传统软件永远维持着一个双数的增长就云加软件是我们的核心的重点因为这两年可能看过财报的投资人也看到了我们的IoT业务这部分可以不关注我们的银额主要是看我们的EBITDA吧核心的增长我们是23.7对标我们的主要对手拥有GDA来看我们的增速应该还是不错的 按照公司的五年的云转型的一个规划也就是说到今年年底目标我们的云要占我们的核心要占到50但是因为这两年我们的传统软件仍然维持一个双位数的增长应该说稍稍比预期稍微低一点点但永远我们还是有信心到今年年底能够突破40%的占比 业务回顾,公司今年重塑了我们品牌的一个体系我们正式在三月底的时候启用了浪潮海岳这个品牌 浪潮海域取代了我们原来的英文的一些标识,同时公司也启动了一个221的战略。第一个二是说,公司会以平台加产品,就是我们的浪潮海域这个平台加海域的智能鸭 ...

Financial Performance - The profit attributable to the company's owners for the six months ended June 30, 2023, was RMB 49,241,000, compared to RMB 28,010,000 for the same period in 2022, representing an increase of 75.9%[2] - Revenue for the six months ended June 30, 2023, increased by 96.61% to RMB 4,096,650,000 compared to RMB 2,083,627,000 for the same period in 2022[42] - Total comprehensive income for the six months ended June 30, 2023, was RMB 46,530,000, compared to RMB 21,167,000 for the same period in 2022[44] - The net profit for the six months ended June 30, 2023, was RMB 47,367 thousand, compared to RMB 22,222 thousand in the previous year, reflecting a year-over-year increase of 112.6%[60] - The company recorded a profit before tax of RMB 48,611,000, compared to RMB 34,354,000 in the same period last year[82] Earnings Per Share - The basic earnings per share for the six months ended June 30, 2023, was calculated based on 1,141,921,000 shares, unchanged from the previous year[2] - The diluted earnings per share for the six months ended June 30, 2023, was based on 1,142,384,000 shares, compared to 1,142,115,000 shares in 2022[2] - Basic earnings per share for the six months ended June 30, 2023, was RMB 4.31, compared to RMB 2.45 for the same period in 2022[42] - The company’s basic and diluted earnings per share for the period were both RMB 4.31, compared to RMB 2.45 in the same period last year, marking a significant increase[60] Revenue Breakdown - The company reported a segment revenue of RMB 481,134,000 from cloud services, RMB 1,006,296,000 from management software, and RMB 596,197,000 from IoT solutions for the six months ended June 30, 2023[35] - Cloud services revenue reached RMB 720,677,000, up 49.79% from RMB 481,134,000 year-on-year, accounting for 39.18% of total revenue[77] - Internet of Things (IoT) solutions revenue surged by 278.59% to RMB 2,257,162,000 from RMB 596,197,000 in the previous year[77] - Revenue from the integrated management software business reached RMB 1,118,811,000, an increase of 11.18% from RMB 1,006,296,000 in the same period last year[118] Expenses and Costs - Research and development expenses increased significantly to RMB 414,333 thousand from RMB 230,816 thousand, highlighting the company's commitment to innovation[60] - Administrative expenses rose by 20.83% to RMB 198,725,000, primarily due to increased personnel costs[79] - Sales and distribution expenses increased by 6.75% to RMB 243,207,000 compared to RMB 227,827,000 in the same period last year, driven by expanded sales scale[96] - The company incurred an impairment loss of RMB 6,690,000 during the reporting period[34] Assets and Liabilities - Trade payables as of June 30, 2023, totaled RMB 701,344,000, an increase from RMB 598,008,000 as of December 31, 2022[28] - Trade receivables as of June 30, 2023, amounted to RMB 1,154,345,000, compared to RMB 1,052,532,000 as of December 31, 2022, indicating a growth of 9.7%[21] - The company’s non-current assets as of June 30, 2023, amounted to RMB 1,765,609,000, an increase from RMB 1,576,536,000 as of December 31, 2022[45] - The total assets as of June 30, 2023, amounted to RMB 3,142,302 thousand, slightly down from RMB 3,241,493 thousand at the end of the previous year[63] Cash Flow - Cash and cash equivalents decreased by RMB 714,165 thousand during the period, compared to a decrease of RMB 92,528 thousand in the prior year[50] - The company experienced a net cash outflow from operating activities of RMB 588,991 thousand, compared to RMB 71,431 thousand in the previous year[50] - The company’s cash and cash equivalents were RMB 479,082,000, a decrease from RMB 940,680,000[66] - The company’s financing activities generated cash inflow of RMB 97,738 thousand, contrasting with no inflow reported in the previous year[50] Related Party Transactions - The total amount of related party transactions for the six months ended June 30, 2023, was RMB 201,090,000 for supply transactions, significantly higher than RMB 86,745,000 in the previous year[31] Corporate Governance - The group has complied with the corporate governance code as per Appendix 14 of the Main Board Listing Rules as of June 30, 2023[167] - All directors have adhered to the standards set forth in the securities trading code as per Appendix 10 of the Listing Rules for the six months ending June 30, 2023[168] Strategic Initiatives - The group launched new products including the upgraded iGIX PaaS platform and various digital collaboration software, enhancing its digital transformation offerings[107] - The group expanded its ecosystem partnerships, signing strategic cooperation agreements with multiple banks to enhance financial service offerings[115] - The company aims to become a world-class provider of enterprise software and cloud services, emphasizing technological innovation and digital transformation[163]

Dividend Eligibility and Share Registration - The company will suspend share registration from July 5, 2023, to July 7, 2023, to determine eligibility for the proposed final dividend[3] - Shareholders must submit completed share transfer forms and relevant share certificates by July 4, 2023, at 4:30 PM to qualify for the proposed final dividend[3] Annual General Meeting (AGM) Eligibility and Share Registration - Share registration will be suspended from June 20, 2023, to June 26, 2023, to determine eligibility to attend and vote at the Annual General Meeting[6] - Shareholders must submit transfer documents and relevant share certificates by June 19, 2023, at 4:30 PM to qualify for attending the Annual General Meeting[6] Data Integrity in Annual Reports - The revised information does not affect other data in the 2022 Annual Results Announcement and the 2022 Annual Report[7]

Financial Performance - The company's net profit for the year ended December 31, 2022, was RMB 124,809,000, compared to RMB 52,514,000 in the previous year, representing a significant increase[4]. - The net cash generated from operating activities was RMB 192,487,000, up from RMB 88,102,000 in the previous year, indicating a growth of 118%[9]. - Total revenue for the year ended December 31, 2022, was RMB 6,966,590,000, a significant increase from RMB 3,250,401,000 in 2021[47]. - The company reported a net profit attributable to shareholders of RMB 118,690,000 for 2022, up 120.7% from RMB 53,761,000 in 2021[55][69]. - The overall gross profit for the year was RMB 1,441,224,000, a 39.8% increase from RMB 1,030,789,000 in 2021, with a gross margin of 20.7%, down from 31.7%[89]. - Basic earnings per share for the year ended December 31, 2022, were RMB 10.39, compared to RMB 4.72 in 2021, while diluted earnings per share were RMB 10.39, compared to RMB 4.70 in 2021[70]. Revenue Breakdown - Total revenue from the IoT segment was RMB 1,258,088,000, while the management software segment generated RMB 2,261,227,000, contributing to a total revenue of RMB 6,966,590,000 for the group[17]. - Cloud service revenue reached RMB 1,258,088,000, a 67.2% increase from RMB 752,563,000 in the previous year, accounting for 35.7% of the group's software and cloud service revenue[88]. - Revenue from IoT solutions surged to RMB 3,447,275,000, marking a 441.0% increase from RMB 637,182,000 in 2021[88]. - The group's revenue for the year was RMB 6,966,590,000, representing a 114.3% increase from RMB 3,250,401,000 in 2021[88]. - The total revenue from external customers in mainland China reached RMB 6,897,018,000, a substantial increase from RMB 3,104,885,000 in 2021[47]. Operating Segments - The company incurred a loss of RMB 133,257,000 in the cloud services segment, while the management software segment achieved a profit of RMB 223,699,000[17]. - The management software segment achieved an operating profit of RMB 223,699,000, representing a 111.1% increase compared to RMB 105,953,000 in the previous year[68]. - The IoT and solutions segment's operating profit grew by 195.3% to RMB 49,154,000 from RMB 16,648,000 in 2021[68]. - The cloud services segment reported an operating loss of RMB 133,257,000, an increase of 22.5% from a loss of RMB 108,795,000 in 2021[68]. Cash Flow and Assets - The group’s cash and cash equivalents at year-end were RMB 1,193,170,000, compared to RMB 1,033,139,000 at the beginning of the year, showing an increase of 15.5%[9]. - The group's total assets as of December 31, 2022, included current assets of RMB 3,241,493,000, with cash and bank deposits amounting to RMB 1,193,170,000[70]. - The company generated net cash inflow from operating activities of approximately RMB 192,487,000, up from RMB 88,102,000 in the previous year[168]. - The company incurred a net cash outflow from financing activities of RMB 32,947,000, compared to RMB 12,373,000 in the previous year, indicating increased financing costs[9]. Employee and Operational Costs - The total employee costs, including salaries and other benefits, amounted to RMB 1,969,384,000, up from RMB 1,655,585,000 in 2021, reflecting an increase of approximately 18.9%[25]. - The total employee compensation for the reporting period was approximately RMB 1,976,891,000, with a workforce of 7,713 employees[102]. - The total auditor's remuneration increased to RMB 3,936,000 from RMB 2,839,000 in the previous year, representing an increase of approximately 38.7%[25]. - The company reported a significant increase in retirement benefit plan contributions to RMB 226,896,000 from RMB 169,772,000 in 2021, reflecting an increase of approximately 33.7%[25]. Government Support and Subsidies - Government subsidies received amounted to RMB 58,594,000, significantly higher than RMB 15,796,000 in the previous year, marking an increase of 270%[22]. - The company received government subsidies totaling RMB 6,679,000 in 2022, down from RMB 11,749,000 in 2021, aimed at supporting high-tech industry development[51]. - Deferred income from government grants decreased to RMB 41,779 thousand from RMB 86,755 thousand, a decline of 51.9%[172]. Research and Development - R&D expenses increased by 92.7% to RMB 735,792,000 from RMB 381,828,000 in the previous year, driven by the company's push towards cloud transformation[90]. - The group is committed to increasing R&D investment to drive technological innovation and improve planning and consulting capabilities[132]. Strategic Initiatives and Market Position - The company is focused on digital transformation across various industries, including manufacturing and logistics, enhancing its market presence and technological capabilities[76]. - The company launched the enterprise-level PaaS platform iGIX5.0 and the next-generation intelligent cloud ERP GS Cloud5.0, targeting large enterprises[107]. - The company signed contracts with multiple large state-owned enterprises, including China National Building Material and China Energy Construction, enhancing its presence in the high-end market[107]. - The company is focusing on becoming a major service provider for operators' new infrastructure and digital transformation, with a comprehensive product line covering 31 provincial operator customers[124]. - The company plans to enhance its PaaS platform and cloud ERP product systems, focusing on digital transformation needs of small and medium enterprises[133]. Financial Position and Liabilities - As of December 31, 2022, total liabilities amounted to RMB 2,628,409 thousand, an increase of 42.5% from RMB 1,842,904 thousand in 2021[172]. - Current liabilities include trade payables of RMB 598,008 thousand, significantly up from RMB 179,635 thousand in the previous year, reflecting a growth of 232.5%[172]. - Non-current liabilities totaled RMB 1,877,967 thousand, up from RMB 1,756,698 thousand in 2021, indicating a growth of 6.9%[172]. - The equity attributable to owners of the company reached RMB 1,837,635 thousand, compared to RMB 1,719,157 thousand in the previous year, marking an increase of 6.9%[172]. Future Outlook - Future outlook includes potential market expansion and new product development strategies to enhance revenue streams[177].

Financial Performance - For the six months ended June 30, 2022, the group recorded revenue of HKD 2,516,980,000, representing a 65.79% increase compared to HKD 1,518,139,000 in the same period last year[4] - Revenue from cloud services was HKD 581,200,000, an increase of 81.84% year-on-year, accounting for 23.09% of total revenue[4] - The gross profit for the period was HKD 724,252,000, up 40.52% from HKD 515,424,000 in the previous year, with a gross margin of 28.77%[5] - The company reported a pre-tax profit of HKD 41,497,000, compared to HKD 22,191,000 in the same period last year[9] - Profit attributable to owners of the company was HKD 33,834,000, significantly up from HKD 18,967,000 year-on-year[10] - The net profit for the period was HKD 26,842 thousand, representing a 36.5% increase from HKD 19,667 thousand in the previous year[46] - Basic earnings per share increased to HKD 2.96, compared to HKD 1.67 for the same period last year, reflecting a growth of 77.8%[45] - The company reported a total comprehensive loss of HKD 89,770 thousand for the period, compared to a comprehensive income of HKD 75,065 thousand in the previous year[46] Expenses and Costs - Administrative expenses increased by 18.64% to HKD 198,678,000, primarily due to higher personnel costs[6] - Research and development expenses rose by 46.24% to HKD 278,821,000, driven by increased investment in cloud services[6] - The cost of goods sold for the period was HKD 650,918, significantly higher than HKD 155,031 in the previous year, indicating a substantial increase in operational costs[61] Assets and Liabilities - As of June 30, 2022, current assets amounted to HKD 3,178,597,000, with cash and bank deposits of HKD 1,102,049,000[11] - The group had no bank borrowings and maintained a current ratio of 1.25 times[11] - Total assets as of June 30, 2022, amounted to HKD 3,178,597 thousand, an increase from HKD 2,835,286 thousand at the end of 2021[47] - Trade receivables increased to HKD 919,163 thousand from HKD 697,702 thousand, indicating a growth of 31.6%[47] - The company’s cash and cash equivalents decreased to HKD 1,102,049 thousand from HKD 1,266,356 thousand at the end of 2021[47] Market and Product Development - The launch of the new enterprise-level PaaS platform iGIX 5.0 and the next-generation cloud ERP GS Cloud 3.5 aimed at large enterprises, enhancing digital transformation capabilities[18] - The new generation open-source cloud ERP product inSuite 2.0 was released, focusing on diversified digital scenarios to support small and medium-sized enterprises' digital transformation[22] - The company has successfully signed contracts with major state-owned enterprises and local large enterprises, enhancing its market presence in the high-end sector[18] - The iGIX platform has been recognized as a leader in the Chinese PaaS market, with a top ranking in aPaaS development capabilities according to CCID[19] - The launch of the small and micro enterprise cloud product Easy Cloud 5.0, which includes cloud accounting and industry-specific applications, has been implemented in over 30 provinces and 180 cities[23] - The company is focusing on enhancing its cloud transformation and aims to develop world-class cloud ERP products while deepening digital management and expanding its market presence[27] Recognition and Awards - The company has received multiple honors, including recognition as a leading enterprise in digital transformation and smart manufacturing[16] - The company has received multiple awards for its innovative solutions, including recognition at the 2022 China International Big Data Industry Expo[25] Shareholder and Governance Information - As of June 30, 2022, major shareholders include Inspur Group Limited with a 54.44% stake, Inspur Overseas Investment Limited with 37.50%, and Inspur Cloud Investment Limited with 16.94%[31] - The company has complied with the corporate governance code, with some deviations due to pandemic-related attendance issues at the annual general meeting[43] - The audit committee, consisting of three independent non-executive directors, has reviewed the report and provided recommendations[42] Related Party Transactions - Related party transactions for supply amounted to 104,786 thousand HKD, an increase of 49.5% from 70,225 thousand HKD in the previous year[75] - The cumulative transaction amount for sales agency transactions was 377,589 thousand HKD, down 17.2% from 456,351 thousand HKD in the previous year[75] - The procurement transactions with related parties increased significantly to 71,583 thousand HKD from 4,832 thousand HKD, indicating a substantial growth in procurement activities[75] Future Outlook - The company plans to continue expanding its cloud services and IoT solutions to enhance revenue growth in the future[56] - The company is committed to increasing R&D investment to support the development of new technologies and applications in the SaaS sector[27]

Financial Performance - The group's total revenue for the year was HKD 3,915,821,000, representing a growth of 53.2% compared to HKD 2,556,750,000 in the previous year[4]. - The net profit attributable to shareholders was approximately HKD 64,769,000, a significant increase from a loss of HKD 157,044,000 in the previous year[4]. - Gross profit for the reporting period was HKD 1,241,812,000, reflecting a growth of 65.6% year-on-year, with a gross margin of 31.7%[10]. - The company recorded a profit before tax of approximately HKD 60,170,000, a significant increase from a loss of HKD 149,008,000 in 2020, driven by a reduction in operating losses in the cloud services segment by 22.2%[14]. - Profit attributable to owners of the company was approximately HKD 64,769,000, reversing from a loss of HKD 157,044,000 in the previous year, with basic earnings per share of HKD 0.0568[15]. - The total comprehensive income for the year was HKD 136,841, a significant recovery from a loss of HKD 66,334 in 2020[135]. - The company reported a basic earnings per share of HKD 5.68, recovering from a loss per share of HKD 13.79 in the previous year[134]. Revenue Streams - Revenue from cloud services reached HKD 906,626,000, marking a growth of 79.1% year-on-year, and accounted for 23.2% of total revenue[9]. - The management software revenue was HKD 2,241,569,000, an increase of 38.5% compared to the previous year[9]. - The IoT solutions business generated revenue of HKD 767,626,000, reflecting a significant increase of 77.5% year-on-year[28]. - Cloud services revenue grew by 79.1% to HKD 906,626,000, reflecting strong demand and expansion in the cloud service sector[22]. Research and Development - Research and development expenses increased by 44.2% to HKD 459,995,000, driven by the company's continued push towards cloud transformation[11]. - The company plans to increase R&D investment to enhance its cloud ERP products and digital transformation services in 2022[30]. - The company launched a new generation enterprise-level PaaS platform, iGIX3.5, enhancing product ecosystem capabilities to support digital transformation[21]. Corporate Governance - The company emphasizes good corporate governance practices to enhance shareholder value and investor confidence[37]. - The independent non-executive directors account for more than one-third of the board, confirming their independence as per listing rules[39]. - The company has adopted and strives to comply with the corporate governance code as outlined in Appendix 14 of the listing rules[37]. - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independence[39]. Risk Management - The company has established a robust risk management and internal control system to safeguard shareholder interests, with external consultants assisting in optimizing this system[69]. - The risk management framework is based on a "three lines of defense" model, ensuring effective operational monitoring and independent oversight[70]. - The company conducts regular risk assessments across financial, operational, compliance, and environmental categories to identify and evaluate risks[73]. - The company has identified ten categories of risks, which are detailed in the report[73]. Cloud Transformation Strategy - The company is focusing on digital transformation and cloud services, enhancing its product offerings and operational services[5]. - The company aims to build a new ecosystem and significantly increase the proportion of cloud business revenue[6]. - The company plans to accelerate its cloud transformation strategy and deepen its management digitalization efforts[6]. Financial Position - As of December 31, 2021, total equity attributable to owners was HKD 2,107,236,000, up from HKD 1,964,094,000 in 2020, with current assets of HKD 2,835,286,000 and current liabilities of HKD 2,258,914,000, resulting in a current ratio of 1.26[16]. - The company's total assets as of December 31, 2021, were HKD 4,774,875, compared to HKD 4,158,269 in 2020, showing growth in asset base[137]. - The company's cash and cash equivalents increased to HKD 1,266,356 from HKD 1,033,672, indicating improved liquidity[137]. Shareholder Information - Major shareholders include Inspur Group Limited with 54.44% ownership (621,679,686 shares), Inspur Overseas Investment Limited with 37.50% (428,278,400 shares), and Inspur Cloud Investment Limited with 16.94% (193,401,286 shares)[111]. - The company did not recommend a final dividend for the year ending December 31, 2021[86]. Awards and Recognition - The company received multiple awards, including "2021 Leading Brand in Financial and Tax Services Market," reflecting its strong market presence and product innovation[26]. - The company received multiple awards, including "User Satisfaction First" in the CCW Research 2021 China IT User Satisfaction Survey[28]. Employee and Operational Insights - The total employee compensation for the reporting period was approximately HKD 1,999,850,000, reflecting the company's investment in human resources[19]. - Employee health and safety risks have increased due to the pandemic, prompting the company to implement comprehensive health measures and competitive compensation strategies[78]. Environmental Commitment - The company emphasized its commitment to carbon management by launching a comprehensive carbon management platform to support green transformation[23]. - The group is focused on enhancing employee environmental awareness and reducing operational costs through various green initiatives[81].