Summary of Conference Call Company Overview - The conference call features Mr. Zhou from Yaxin Technology, indicating a focus on recent changes within the company [1] Key Points - Mr. Zhou is expected to provide updates regarding the company's recent developments, suggesting potential shifts in strategy or performance metrics [1] Additional Important Content - The call invites investor questions, highlighting an interactive approach to communication and transparency [1]

Summary of Conference Call Transcript Company or Industry Involved - The discussion pertains to a specific company, focusing on its operational profit adjustments and financial performance. Core Points and Arguments - The company reported an adjusted operating profit, which excludes impacts from commercial and intangible assets [1] - A special dividend was declared, and the effects of dividend taxes were also considered in the adjustments [1] - Non-operational items were removed from the financial analysis to provide a clearer picture of the company's performance [1] Other Important but Possibly Overlooked Content - The adjustments made aim to enhance the understanding of the company's core operational efficiency by eliminating the noise from non-operational factors [1]

Financial Performance - The company reported a revenue of approximately 1.2 billion, representing a year-over-year growth of 15%[22]. - In 2023, the company's revenue reached RMB 7.891 billion, a year-on-year increase of 2.0%[25]. - The new business revenue amounted to RMB 2.899 billion, representing a growth of 12.7% compared to the previous year[25]. - The net profit for 2023 was RMB 0.512 billion, a decrease of 37.9% year-on-year, primarily due to impairment losses on goodwill and intangible assets[25]. - The adjusted net profit, excluding non-operating items, was approximately RMB 0.851 billion, with an adjusted net profit margin of 10.8%[25]. - The gross profit margin slightly decreased to 37.7%, down 0.3 percentage points from 38.0% in 2022[25]. - The company plans to distribute a final dividend of HKD 0.412 per share, which corresponds to a payout ratio of 40.0% of the adjusted annual profit[28]. - The three new business segments accounted for 36.7% of total revenue, indicating a growing contribution to overall performance[27]. - The traditional BSS business faced challenges with a revenue decline of 0.9% year-on-year, while OSS and vertical industry digitalization businesses showed rapid growth[27]. User Growth and Market Expansion - User data showed an increase in active users by 20% compared to the previous year, reaching 5 million users[32]. - The company reported a significant increase in user data, with a growth rate of 25% year-over-year in active users[86]. - The company is expanding its market presence internationally, targeting a 25% increase in international sales[32]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[89]. Strategic Initiatives and Future Outlook - The company provided a future outlook projecting a revenue growth of 10-12% for the next fiscal year[32]. - The management highlighted a shift towards a "product + service" model, aiming to increase service revenue by 30%[32]. - New product development includes the launch of a software suite expected to generate an additional 200 million in revenue[32]. - A strategic acquisition was completed, enhancing the company's technology capabilities and expected to contribute 50 million to annual revenue[32]. - The company plans to enhance its ESG initiatives, allocating 5% of its budget towards sustainability projects[32]. - The company aims to achieve peak carbon emissions by 2025 and full carbon neutrality by 2028, promoting green operations and products[37]. Research and Development - The company is investing 15% of its revenue into R&D to drive innovation in software and hardware integration[32]. - The company has invested $50 million in research and development for new technologies aimed at improving operational efficiency[87]. - The company continues to focus on innovation in AI and digital twin technologies to enhance its product offerings and meet customer demands[32]. Operational Performance - The company is focusing on cash flow health and cost management to ensure long-term sustainable development amidst external economic uncertainties[27]. - The operating cash flow for the year was RMB 0.582 billion, reflecting a 5.9% increase from the previous year[25]. - The company is actively involved in the development of new products and technologies to meet the evolving needs of its clients[21]. - The company is focusing on creating a closed-loop customer service system through its comprehensive capabilities in consulting, product development, implementation, and customer service[21]. Corporate Governance and Management - The board of directors emphasized the importance of diversifying the product portfolio to mitigate market risks[32]. - The company has a strong board with members holding extensive experience in IT, media, entertainment, and venture capital[94]. - The company emphasizes high standards of corporate governance to protect shareholder rights and enhance corporate value and accountability[165]. - The board has established four committees: Audit Committee, Nomination Committee, Remuneration Committee, and Strategic and Investment Committee to oversee specific areas of the company's affairs[166]. Sustainability and ESG Efforts - The company plans to enhance its ESG initiatives, allocating 5% of its budget towards sustainability projects[32]. - The company received multiple awards for its sustainability efforts, including the "Best Technology Innovation Award" in the 2023 ESG Corporate Awards[36]. - The company has implemented new operational strategies that are expected to reduce costs by I% over the next year[97]. Acquisitions and Partnerships - A strategic acquisition was completed, enhancing the company's technology capabilities and expected to contribute 50 million to annual revenue[32]. - The company is actively exploring key technologies for 6G, having published the first global white papers on 6G OSS and BSS technologies[33]. - The company is focusing on expanding into non-telecom industries, leveraging data resources for growth[40]. Financial Health and Risk Management - The company is focusing on cash flow health and cost management to ensure long-term sustainable development amidst external economic uncertainties[27]. - The company has established a comprehensive digital transformation service for various industries, including telecommunications, government, finance, energy, transportation, and postal services[21]. - The company has adopted a whistleblowing policy to provide a confidential reporting channel for employees and stakeholders regarding potential misconduct[200].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 13.85 [2][5]. Core Insights - The company's revenue for 2023 was CNY 7.891 billion, a year-on-year increase of 2%, with traditional business revenue declining by 3.4% [2]. - New business segments, referred to as "three new businesses," generated CNY 2.9 billion, reflecting a year-on-year growth of 12.7% [2]. - The gross profit margin decreased to 37.7%, while the overall gross profit increased by 1.2% to CNY 2.975 billion [2]. - The adjusted net profit for 2023 was CNY 8.51 billion, maintaining a net profit margin of 10.8% [2][5]. - The company plans to distribute a special dividend of HKD 0.412 per share, which is 40% of the adjusted annual profit [2]. Summary by Sections Business Overview - The company operates in the application software industry and was established in July 2003, with a registered capital of HKD 10,000 and 13,235 employees [2]. Financial Performance - The traditional business, primarily based on BSS, generated CNY 4.991 billion, down 3.4% year-on-year, while BSS revenue alone was CNY 4.881 billion, a decrease of 0.9% [2]. - The three new business segments include OSS, digital operations, and vertical industry digitization, with OSS revenue growing by 24.9% to CNY 0.832 billion [2][3]. Future Outlook - The company anticipates continued pressure on BSS revenue due to reduced capital expenditure from telecom operators, but expects opportunities from system restructuring and intelligent upgrades [2][3]. - OSS revenue is projected to grow by at least 20% next year, driven by advancements in AI and network technologies [3]. - The vertical industry digitization business is expanding rapidly, with significant projects in energy and transportation sectors [4]. Strategic Developments - The company is undergoing a transformation strategy, shifting from a pure telecom service provider to a more diversified model that includes non-telecom services and international market expansion [4]. - The focus on "standard products + solutions" aims to enhance market penetration and operational efficiency [4]. Valuation Metrics - The expected revenue for 2024 and 2025 is CNY 8.32 billion and CNY 9.009 billion, respectively, with corresponding net profits of CNY 9.04 billion and CNY 9.89 billion [5]. - The current price corresponds to a projected P/E ratio of 6.87 for 2024, significantly lower than the industry average [5][6].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 13.85 [2][5]. Core Insights - The company's revenue for 2023 was CNY 7.891 billion, a year-on-year increase of 2%. Traditional business revenue, primarily from BSS, was CNY 4.991 billion, down 3.4% year-on-year. New business revenue reached CNY 2.9 billion, up 12.7% year-on-year, slightly exceeding expectations [2][5]. - The gross profit margin decreased to 37.7%, with total gross profit of CNY 2.975 billion, a year-on-year increase of 1.2%. The net profit margin was 6.5%, with net profit of CNY 0.512 billion, down 37.9% year-on-year due to non-operating factors [2][5]. - The company anticipates continued pressure on BSS revenue over the next two years due to reduced capital expenditure from telecom operators, but sees opportunities in system restructuring and intelligent upgrades driven by advancements in data elements and AI [2][3]. Summary by Sections Business Overview - The company focuses on three new business areas: OSS, digital operations, and vertical industry digitization, with OSS revenue expected to grow by at least 20% next year [3][4]. - The digital operations segment faced challenges due to external factors, including a decline in IPOs and cost-cutting measures by internet companies, but is expected to recover in 2024 [4][5]. Financial Performance - The company reported a net profit of CNY 0.512 billion for 2023, with an adjusted net profit of CNY 0.851 billion, maintaining a net profit margin of 10.8% [2][5]. - Revenue projections for 2024 and 2025 are CNY 8.32 billion and CNY 9.009 billion, respectively, with a gross margin expected to stabilize around 38% [5][7]. Strategic Developments - The company is undergoing a transformation strategy, shifting from a pure telecom service provider to a more diversified model that includes non-telecom services and international market expansion [4][5]. - The focus on vertical industries such as energy and transportation is expected to drive future growth, with significant projects already underway in these sectors [4][5].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 13.85 [2][5]. Core Insights - The company's revenue for 2023 was CNY 7.891 billion, a year-on-year increase of 2%, with traditional business revenue declining by 3.4% [2]. - New business segments, referred to as "three new businesses," generated CNY 2.9 billion, reflecting a year-on-year growth of 12.7% [2]. - The gross profit margin decreased to 37.7%, while the overall gross profit increased by 1.2% to CNY 2.975 billion [2]. - The adjusted net profit for 2023 was CNY 8.51 billion, maintaining a net profit margin of 10.8% [2][5]. - The company plans to increase investments in 5G and AI sectors to mitigate challenges in its traditional BSS business [2][3]. Summary by Sections Business Overview - The company operates in the application software industry and was established in July 2003, with a registered capital of HKD 10,000 [2]. - The company employs 13,235 staff and is chaired by Tian Suning [2]. Financial Performance - The traditional BSS business revenue was CNY 4.991 billion, down 3.4% year-on-year, while the BSS segment alone generated CNY 4.881 billion, a decrease of 0.9% [2]. - The three new business segments include OSS, digital operations, and vertical industry digitization, with OSS revenue growing by 24.9% to CNY 0.832 billion [2][3]. - The company’s net profit for 2023 was CNY 0.512 billion, a decline of 37.9% due to non-operating factors, including asset impairments [2]. Future Outlook - The company anticipates that OSS revenue will grow by at least 20% in the coming year, driven by advancements in AI and network technologies [3]. - The vertical industry digitization business is expected to continue its rapid growth, particularly in energy and transportation sectors [4]. - The company is focusing on a strategic transformation to leverage AI and data technologies, aiming to expand into non-telecom sectors [4]. Valuation Metrics - The projected revenue for 2024 and 2025 is CNY 8.32 billion and CNY 9.009 billion, respectively, with corresponding adjusted net profits of CNY 0.959 billion and CNY 1.042 billion [5]. - The company’s current price-to-earnings ratio is estimated at 6.87 for 2024, significantly lower than the industry average [5][6].

研究报告Research Report 20 Mar 2024 亚信科技 AsiaInfo Technologies (1675 HK) 盈利稳定，高派息，行业大模型应用落地，出海 Stable Profitability, High Dividend Payout, Implementation of Industry Model Applications and Business Going Abroad [观Ta点ble聚_y焦em Ieniv1e]s tment Focus [Tab维le_持Info优] 于大市Maintain OUTPERFORM (Please see APPENDIX 1 for English summary) 公司盈利稳定，高派息。2023 年实现营业收入约 78.91 亿元人民 评级 优于大市OUTPERFORM 币，同比增长2.0%，其中三新业务收入同比增长12.7%，占收比达 现价 HK$7.20 目标价 HK$15.86 36.7%，较去年提升 3. 4 个百分点。三新业务依然是公司业务规模 增长的主要驱动力。分业务线看，2023 年 BSS 业务收入实现约 HTI ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因依賴該等內容而引致的任何損失承擔任何責任。 AsiaInfo Technologies Limited （於英屬維爾京群島註冊成立的有限公司） 亞信科技控股有限公司 （股份代號：1675） 截至2023年12月31日止年度之年度業績公告 本公司董事會欣然宣佈本集團於報告期間之經審核綜合業績。 | --- | --- | |-------|------------------------------------------------------------------------------------------------------------------------------| | | | | | 年度業績摘要： | | • | 營業收入約為人民幣 78.91 億元，同比增長 2.0% 。 | | • | 三新業務 * 收入約為人民幣 28.99 億元，同比增長 12.7% ，佔總收入比重達約 36.7% 。 | | • | 毛利約為人 ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 13.85 [2][5]. Core Views - The macroeconomic environment is impacting the industry, leading to cautious spending from government and enterprise sectors. The capital expenditure from telecom operators on 5G is nearing its end, affecting the ICT software and information services sector. The average revenue growth for comparable companies in the industry for the first three quarters is only 1.15% [2][3]. - Despite the overall low growth in the industry, the company is expected to maintain a positive growth trajectory in its new business segments, with a projected revenue increase of 0.5% to 2.5% for the year ending December 31, 2023 [3][5]. Summary by Sections Company Overview - The company, AsiaInfo Technologies, was established on July 15, 2003, with a registered capital of HKD 10,000 and employs 13,235 people. The chairman is Tian Shuning [2]. Financial Performance - The company anticipates a revenue growth of approximately 0.5% to 2.5% for the year 2023, with a projected revenue of around RMB 77.38 billion. However, profits are expected to decline by 37% to 43% due to non-operating factors, including asset impairments [3][5]. - The company’s traditional BSS business is expected to decline by about 3%, while new business segments are projected to grow positively, particularly OSS and vertical industry cloud services [3][7]. Shareholder Structure - As of June 30, 2023, major shareholders include CITIC Capital Holdings Limited (22.87%), China Mobile (19.49%), and Tian Shuning (12.91%) [3][4]. Market Comparison - The report highlights that AsiaInfo Technologies has a significant valuation advantage compared to its peers, with a projected PE ratio of 7.97, while the industry average is 48.2 [6][7]. Future Projections - The company’s revenue is projected to reach approximately HKD 78.52 billion in 2023, with expectations of continued growth in new business segments, which are expected to account for 36% of total revenue by 2024 [5][7].

小冒险 亞信科技控股有限公司 (於英屬維爾京群島註冊成立的有限公司) 股份代號： 01675 數 智 創 末 來 2023 中期報告 AIS Ware Digital Gemini AISWare CNN AJSWare CNC AISWare AIO; THE MICH CHICH CHICH CHICH CHICH CHICH CHICH CHICH CHICH CHICH CHE CHEAD THE CHILIPER THE FOR AISWare MPC Al2 Edge AISWare 5G Agile Network | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|-------|-------|----------------------|-------------------------------------------------------------------- ...