Financial Performance - Revenue for the first half of 2024 was RMB 7.926 billion, a decrease of 6.2% compared to the same period in 2023[4] - Service revenue for the first half of 2024 was RMB 7.648 billion, a decrease of 7.8% compared to the same period in 2023[4] - Net profit for the first half of 2024 was RMB 285.353 million, a decrease of 18.6% compared to the same period in 2023[4] - Basic earnings per share for the first half of 2024 were RMB 10.93 cents, a decrease of 12.1% compared to the same period in 2023[4] - Revenue for the first half of 2024 decreased by 6.2% year-on-year to RMB 7,926.183 million[49] - Service income for the first half of 2024 decreased by 7.8% year-on-year to RMB 7,647.920 million[49] - Net profit for the first half of 2024 decreased by 18.6% year-on-year to RMB 285.353 million[49] - The company achieved revenue of RMB 7.926 billion and net profit of RMB 285 million in the first half of 2024[52] - Revenue for the first half of 2024 was RMB 7,926,183 thousand, a 6.2% decrease compared to the same period in 2023[61] - Service revenue for the first half of 2024 was RMB 7,647,920 thousand, a 7.8% decrease year-over-year[61] - Gross profit for the first half of 2024 was RMB 1,831,400 thousand, a 8.5% decrease compared to the same period in 2023[64] - Gross margin for the first half of 2024 was 23.1%, a 0.6% decrease year-over-year[64] - Sales and distribution costs for the first half of 2024 were RMB 425,950 thousand, a 1.2% increase compared to the same period in 2023[67] - Administrative expenses for the first half of 2024 were RMB 1,113,278 thousand, a 8.0% decrease year-over-year[67] - Financial expenses for the first half of 2024 were RMB 99,837 thousand, a 20.2% increase compared to the same period in 2023[68] - Other income for the first half of 2024 was RMB 94,577 thousand, a 34.2% decrease year-over-year[65] - Other gains for the first half of 2024 were RMB 104,890 thousand, compared to a loss of RMB 5,663 thousand in the same period in 2023[66] - Income tax expense for the first half of 2024 was RMB 10,481 thousand, compared to an income of RMB 8,314 thousand in the same period in 2023[68] - The company's available cash balance decreased to RMB 3,937,782 thousand in the first half of 2024, compared to RMB 5,088,641 thousand at the end of 2023[70] - Net current assets decreased to RMB 8,095,537 thousand in the first half of 2024, down from RMB 9,983,119 thousand at the end of 2023[70] - The company's profit for the period decreased by 18.6% to RMB 285,353 thousand in the first half of 2024, compared to RMB 350,687 thousand in the same period last year[71] - Basic earnings per share decreased by 12.1% to RMB 10.93 cents in the first half of 2024, compared to RMB 12.44 cents in the same period last year[71] - Revenue from the Technology Professional Services Group (TPG) decreased by 7.3% to RMB 7,076,954 thousand in the first half of 2024[72] - Revenue from the Internet Information Technology Services Group (IIG) increased by 3.7% to RMB 849,229 thousand in the first half of 2024[72] - Revenue for the six months ended June 30, 2024, was RMB 7,926,183 thousand, a decrease of 6.2% compared to RMB 8,450,060 thousand in the same period of 2023[79] - Gross profit for the six months ended June 30, 2024, was RMB 1,831,400 thousand, down 8.5% from RMB 2,001,135 thousand in the same period of 2023[79] - Net profit attributable to the company's owners for the six months ended June 30, 2024, was RMB 285,720 thousand, a decrease of 18.6% from RMB 351,028 thousand in the same period of 2023[79] - Total assets as of June 30, 2024, were RMB 13,107,051 thousand, a decrease of 7.1% from RMB 14,105,460 thousand as of December 31, 2023[81] - Current assets as of June 30, 2024, were RMB 12,195,876 thousand, down 5.8% from RMB 12,945,329 thousand as of December 31, 2023[81] - Total equity attributable to the company's owners as of June 30, 2024, was RMB 11,379,724 thousand, a decrease of 3.1% from RMB 11,742,461 thousand as of December 31, 2023[83] - Basic earnings per share for the six months ended June 30, 2024, were RMB 10.93 cents, down 12.1% from RMB 12.44 cents in the same period of 2023[79] - Diluted earnings per share for the six months ended June 30, 2024, were RMB 10.56 cents, a decrease of 12.6% from RMB 12.08 cents in the same period of 2023[79] - Non-current assets as of June 30, 2024, were RMB 5,011,514 thousand, an increase of 21.6% from RMB 4,122,341 thousand as of December 31, 2023[81] - Current liabilities as of June 30, 2024, were RMB 4,100,339 thousand, up 38.4% from RMB 2,962,210 thousand as of December 31, 2023[81] - Operating cash flow decreased to RMB -686,433 thousand in 2024 from RMB -731,184 thousand in 2023[87] - Investment cash flow increased to RMB -910,800 thousand in 2024 from RMB -721,980 thousand in 2023[87] - Financing cash flow turned negative to RMB -332,717 thousand in 2024 from RMB 812,612 thousand in 2023[87] - Total revenue decreased to RMB 7,926,183 thousand in 2024 from RMB 8,450,060 thousand in 2023[93] - Revenue from software and hardware sales decreased to RMB 278,263 thousand in 2024 from RMB 154,309 thousand in 2023[94] - Revenue from the Technology Professional Services Group (TPG) decreased to RMB 7,076,954 thousand in 2024 from RMB 7,631,522 thousand in 2023[96] - Revenue from the Internet IT Services Group (IIG) increased to RMB 849,229 thousand in 2024 from RMB 818,538 thousand in 2023[96] - Pre-tax profit decreased to RMB 295,834 thousand in 2024 from RMB 342,373 thousand in 2023[97] - Interest on borrowings increased to RMB 96,377 thousand in 2024 from RMB 77,399 thousand in 2023[98] - Earnings per share decreased to RMB 285,720 thousand in 2024 from RMB 351,028 thousand in 2023[99] - The weighted average number of ordinary shares for calculating basic earnings per share in 2024 was 2,614,104,739, a decrease from 2,821,509,612 in 2023[101] - The weighted average number of ordinary shares for calculating diluted earnings per share in 2024 was 2,706,115,049, down from 2,905,709,398 in 2023[101] - Trade and other receivables (net of provisions) increased to RMB 6,282,802 thousand in 2024 from RMB 5,304,724 thousand in 2023[103] - Receivables within 90 days accounted for RMB 4,162,887 thousand in 2024, up from RMB 4,019,768 thousand in 2023[105] - Trade and other payables decreased to RMB 1,555,845 thousand in 2024 from RMB 1,662,625 thousand in 2023[106] - Total borrowings increased to RMB 3,605,110 thousand in 2024 from RMB 3,016,817 thousand in 2023[108] - The company prepaid HKD 1.65 billion of loans in February 2024, with the remaining HKD 1.35 billion due in December 2025[109] - The average annual interest rate for borrowings in the first half of 2024 was 2.12%, down from 2.19% in 2023[109] - The company's issued and fully paid shares decreased from 3,027,011,358 to 2,809,753,358 between January 1, 2023, and June 30, 2024, with a corresponding reduction in share value from HKD 151,350,569 to HKD 140,487,669[110] - Capital commitments for property, plant, and equipment amounted to RMB 492,657,000 as of June 30, 2024, compared to RMB 542,091,000 at the end of 2023[110] - The company has committed to additional funding of RMB 246,708,000 for equity method investments as of June 30, 2024, down from RMB 276,408,000 in 2023[110] - Revenue from IT outsourcing services to related parties increased to RMB 4,604,000 in the first half of 2024, up from RMB 1,273,000 in the same period of 2023[112] - Employee compensation for the first half of 2024 totaled RMB 6,526,599,000, including director remuneration of RMB 22,389,000, compared to RMB 7,199,889,000 and RMB 11,995,000 respectively in 2023[113] - Amortization of intangible assets and depreciation expenses for the first half of 2024 were RMB 44,638,000 and RMB 130,436,000 respectively, compared to RMB 38,083,000 and RMB 198,267,000 in 2023[113] AI and Technology Transformation - The company focused on AI-driven transformation, establishing AI consulting, industry model training fields, and model factories[5] - The company developed a multi-heterogeneous large model operation management system to optimize computing resource allocation and scheduling[6] - The company launched HR.ai and Fin.ai models to enhance productivity through AI digital employees[11] - The company has achieved deep cooperation with top clients in industries such as finance, energy, and steel for AI pilot projects[12] - The company has successfully implemented NLP and CV training and inference projects, collaborating with leading clients in finance, energy, steel, and pharmaceutical industries[16] - The company has established partnerships with over 100 enterprises and institutions in fields such as scientific research, smart manufacturing, and healthcare, completing more than 100 projects[17] - The company's AI Agent product solutions, including "Ask Data," "Ask Strategy," "Ask Service," and "Ask Vision," have been upgraded and implemented in industries like finance, transportation, and manufacturing[18] - The company has developed the LMBSS system for managing diverse large models, successfully deploying it in projects such as Gui'an Development Group and Nanjing Big Data Bureau[17] - The company has integrated deep learning and data mining technologies to enhance AI support for the oil and gas pipeline industry[16] - The company launched the "Model Factory" service, offering end-to-end large model application R&D services, including model migration, training, and deployment[15] - The company has achieved compatibility certification for its "Ask" series integrated products with Huawei's training servers and AI framework[18] - The company has been selected for the "2023 Computing Power Network Industry Map" at the 2024 Computing Network Integration Development Conference[17] - The company established the Zhongsoft International AIGC Research Institute, focusing on AI model empowerment and data innovation[52] - The company became a partner in the Ascend AI ecosystem, providing AI computing power services across multiple industries[52] - The company is focusing on AI-related solutions and services, promoting local intelligent upgrades, and building cloud intelligence business capabilities in key regions such as Asia-Pacific[54] - The company is strengthening its organizational structure with a "Spearhead-Army-Base Camp" model, focusing on technology IP incubation and AI team formation[54] HarmonyOS Ecosystem - The company collaborated with over 300 application vendors in various fields for HarmonyOS native applications and services[7] - The company served over 500 categories and 400 brand customers in HarmonyOS chip southbound adaptation, with device access reaching tens of millions[7] - KaihongOS achieved full ecosystem connectivity with HarmonyOS Next, solidifying its leading position in the OpenHarmony ecosystem[23] - Upgraded OpenHarmony edge intelligent products, with 17 models and 13 self-developed products currently available[24] - Collaborated with 300+ application manufacturers in the HarmonyOS ecosystem, covering smart travel, life services, finance, government, healthcare, and cultural tourism[25] - Awarded "HarmonyOS Ecosystem Excellent Development Service Provider" and "HarmonyOS Ecosystem Pioneer Partner Award" at Huawei HDC 2024[25] - Cumulative service of 500+ categories and 400+ brand clients in the HarmonyOS chip adaptation business, with device access reaching tens of millions[25] - Approximately HKD 244 million of the net proceeds were used for the development of HarmonyOS and OpenHarmony products and solutions[76] - Secured multiple large-scale Hongmeng application development projects for state-owned banks, joint-stock banks, and leading insurance institutions[33] - Assisted in the release of HarmonyOS 4.2 and the beta launch of HarmonyOS NEXT, enhancing Huawei's smart ecosystem[42] - Collaborated with Huawei to develop the HiCar integrated solution, supporting the release of ADS 3.0 and the launch of AITO M9 and M7 series[42] ERP and Digital Transformation - The company accelerated the layout of the state-owned enterprise ERP application service market, aiming to become a leading provider of digital transformation solutions[8] - The company partnered with SAP to provide customized consulting solutions based on commercial AI technology[8] - The company has aggregated over 6,000 ecosystem partners and provided digital solutions and services to more than 20,000 customers[9] - The company expanded its ERP consulting and implementation services, securing projects with major clients like CNPC, Sinochem Group, and Southern Power Grid[20] - The company has provided data asset services to key clients in the manufacturing sector, including Changan Automobile and Chutian Technology, promoting data assetization and businessization[21] - The company is accelerating its layout in the ERP application service market for central state-owned enterprises, focusing on high-quality solutions and market expansion[54] - The company has established partnerships with over 100 local enterprises for digital transformation services through the Tangshan RPA demonstration center, replicating the model in Xiangyang[29] - The company has successfully implemented smart audit projects for CNOOC and Shandong Energy, and secured the China Postal Savings Bank's new audit project[40] Cloud and Ecosystem Partnerships - The company has established R&D and delivery centers in multiple countries including Thailand, Japan, Singapore, Saudi Arabia, and the UAE[10] - The company has been awarded the "Huawei Cloud Ecosystem Rock Award" twice, ranking first in Huawei Cloud ecosystem partner capability certifications[13] - The company focuses on industries like energy, finance, and government, serving major clients such as Huawei, HSBC, and China Mobile[14] - Business scale with Huawei Cloud grew over 30 times in seven years, winning the "Huawei Cloud Ecosystem Rock Award" in 2022 and 2023[26] - Certified with 8 primary and 10 secondary labels in CTSP cloud services, maintaining the top position among partners[27] - Successfully implemented 40+ CTSP projects in industries such as energy, steel, and pharmaceuticals, collaborating with leading customers on scenario-based applications of large models[27] - Successfully implemented over 20 advanced cloud integration projects in areas such as RPA, big data, and cloud services, including a data base project for a data group company and a cloud RDS project for an energy technology company[28] - Awarded "Annual Service Partner" by Huawei Cloud in the Asia-Pacific region, supporting smart city projects in Malaysia and Saudi Arabia's NEOM digital infrastructure[30] - The company has been the top partner of Huawei Cloud for seven consecutive years and has won the "Huawei Cloud Ecosystem Rock Award" twice[54] - The company is actively participating in open-source database communities and collaborating with ecosystem partners to achieve independent control of key basic software[54] Industry-Specific Solutions - The company launched the first "Fire Hong" solution in collaboration with Huawei, integrating big data, AI, and IoT technologies for smart fire prevention and control[36] - Developed the first water conservancy solution based on KaihongOS, achieving efficient data collection and remote control, winning the "2024 China Enterprise Digital Innovation Solution" award[36] - Released the first gas industry open-source Hongmeng solution "Ran Hong," enabling unified device communication and reducing manual intervention[37] - Introduced the Hongmeng-based smart station solution for urban rail transit, enhancing operational efficiency and passenger experience[38] - Launched four refined product solutions for aluminum industry clients, covering energy management and MES systems, serving over 10 major aluminum enterprises[39] - Promoted AI golden scenarios such as government hotline 12345, grassroots burden reduction, and industrial investment, completing POC verification and case studies in multiple cities[35] - Invested in the "One Field, Three Centers" project in Changping Energy Valley, providing infrastructure and development platform support for AI models and scenario applications in the power industry[34] Shareholder and Corporate Governance - Chairman and CEO Chen Yuhong holds 340,138,144 shares, representing approximately 12.11% of the company's issued share capital as of June

Incentives and Performance Targets - The company granted incentives to certain directors and employees to subscribe for 145,460,000 shares at a price of HKD 5.08 per share[1] - The performance targets for the share incentives are related to the company's financial parameters, including revenue and profit[1] - Non-financial parameters such as strategic goals and operational objectives are also part of the performance criteria for the incentives[1] Supplementary Information - The company maintains that the supplementary information does not affect other data in the 2023 annual report[2]

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佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公佈全部或任 何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 概要 截至二零二四年上半年業績 截至六月三十日止六個月 二零二四年 二零二三年 損益表概要 （未經審核） （未經審核） 變化 人民幣千元 人民幣千元 % 收入 7,926,183 8,450,060 (6.2%) 服務性收入 7,647,920 8,295,751 (7.8%) 本期溢利 285,353 350,687 (18.6%) 本公司擁有人應佔溢利 285,720 351,028 (18.6%) 每股基本盈利（人民幣分） 10.93 12.44 (12.1%) • 董事不建議就截至二零二四年六月三十日止六個月派發中期股息。 CHINASOFT INTERNATIONAL LIMITED 中軟國際有限公司 * （於開曼群島註冊成立之有限公司） （股份代號：354） 截至二零二四年六月三十日止六個月 中期業績公告 • 本公司不會暫停辦理過戶登記手續。 1 管理層討論與分析 主要運營資料 於二零二四年 ...

Financial Performance - In 2023, the company achieved revenue of RMB 17.12 billion, marking a significant growth of 400 times since its inception[5]. - The net profit margin improved by 0.4% to reach 4.2%, despite a decrease in business scale[5]. - The company reported a gross profit of RMB 4,003,076 thousand, a decrease of 13.0% year-on-year[59]. - The company's revenue for 2023 was RMB 17,116,894 thousand, a decrease of 14.4% compared to RMB 20,005,171 thousand in 2022[72]. - Service revenue for 2023 was RMB 16,631,560 thousand, down 14.7% from RMB 19,489,625 thousand in 2022[72]. - The group reported a net profit of RMB 712,667 thousand in 2023, down 6.1% from RMB 758,829 thousand in 2022, with the profit margin increasing to 4.2% from 3.8%[82]. - The total revenue for the group in 2023 was RMB 17,116,894 thousand, a decrease of 14.4% from RMB 20,005,171 thousand in 2022[83]. - The group maintained a cash balance of RMB 5,088,641 thousand in 2023, slightly down from RMB 5,112,410 thousand in 2022, with a current ratio of 4.4 compared to 3.8 in 2022[81]. - The company achieved a compound annual growth rate (CAGR) of 26.1% in revenue and 32.7% in service revenue since its listing in 2003[62]. Strategic Initiatives - The company launched the SP304 strategic plan, focusing on "embracing the AIGC industrial revolution" and enhancing productivity through AI applications[5]. - The company established the JointPilot platform and the AIGC Research Institute to develop AI-native application capabilities and reduce development barriers[6]. - A strategic cooperation agreement was signed with Huawei to create joint solutions for government and enterprise clients, focusing on AI applications[7]. - The company aims to enhance its capabilities in various sectors, including finance, government, and manufacturing, through integrated AI solutions[7]. - The establishment of the AIGC Research Institute focuses on building a large model application ecosystem, enhancing collaboration with clients, universities, and research institutions to drive innovation in the AIGC field[15]. - The company aims to enhance its overseas service system and compliance construction to provide superior products and services globally[11]. - The company is actively involved in setting industry standards for large model applications in collaboration with various institutions, contributing to the establishment of several industry standards[22]. Market Expansion - The company is expanding its market presence in key regions such as Beijing, Guangdong, Jiangsu, and Sichuan[5]. - The company has expanded its overseas business in Southeast Asia and the Middle East, establishing local project delivery capabilities in the UAE and Saudi Arabia[11]. - The company is expanding its market presence in overseas regions such as Singapore, Malaysia, Thailand, UAE, Saudi Arabia, and Chile, aiming to establish a global IT influence[14]. - The company has achieved nearly 100% renewal rate with existing clients while expanding its market presence to cover over 50 big data bureaus across 25 cities[21]. - The company has successfully completed 7 first-level labels and 12 second-level labels certifications in CTSP professional services, ranking first among partners[39]. Research and Development - The company has over 35,000 certified HarmonyOS developers, ranking first in the ecosystem[8]. - The company launched a financial HarmonyOS native technology development platform, winning multiple significant development projects in the financial sector[26]. - The company has developed a comprehensive domestic self-research IoT product matrix in the water conservancy industry and implemented the first domestic "Harmony Tunnel" solution in the transportation sector[8]. - The company has developed a distributed microservice architecture platform, TOPLINK 5.0, supporting various domestic software systems[41]. - Research and development costs decreased by 12.9% year-on-year, reflecting ongoing investment in innovation[59]. Corporate Governance - The company emphasizes the importance of corporate governance for its success and has implemented various measures to maintain high standards[88]. - The board consists of a mix of executive, non-executive, and independent directors, ensuring diverse expertise and experience[89]. - The company has adhered to the corporate governance code, with the board confirming compliance for the year ending December 31, 2023, except for certain attendance issues at the annual general meeting[88]. - The company has established a risk management and compliance system overseen by the board of directors[185]. - The company has a zero-tolerance policy towards violations of business ethics and has implemented strict internal policies to regulate employee conduct[185]. Environmental, Social, and Governance (ESG) - The company is committed to corporate social responsibility (CSR) by aligning with SA8000 standards and actively engaging in green innovation practices[110]. - The company is focused on digital empowerment for low-carbon development and green transformation in industries[163]. - The ESG governance structure includes a three-tier system with the board of directors, an ESG working committee, and various operational groups to ensure effective implementation of ESG strategies[178]. - The company has established an ESG working committee to oversee key ESG issues and ensure alignment with corporate strategy[162]. - The company promotes integrity in procurement processes and collaborates with suppliers to establish integrity clauses in contracts[185]. Client Engagement and Service Quality - The company provided services for 3,723 projects to over 1,500 government and enterprise clients, generating a Gross Transaction Value (GTV) of 14.4 billion RMB during the reporting period[21]. - The group achieved a customer suggestion handling rate of 91.60% in 2023, with a Net Promoter Score (NPS) of 71%, reflecting a year-on-year increase of 5.4%[198]. - The group has established a customer complaint handling mechanism to improve service quality based on feedback[125]. - The company has optimized customer service through an official consultation platform and regular communication with clients, ensuring timely resolution of issues[197]. Awards and Recognition - The company has been recognized as the largest software enterprise in China and ranked 73rd among global IT service providers by Gartner[5]. - The company received multiple awards from Huawei, including the Gold Supplier Award for 2023 in China[56]. - The company was recognized as an excellent contributor at the openGauss Summit 2023 and launched several new tools, including SQL audit tools and database performance monitoring tools[52]. - The company received multiple awards, including "Best IR Team" and "Best Hong Kong Stock Connect Company" at the 8th Zhitong Finance Listed Company Awards[189].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 17,116,894 thousand, a decrease of 14.4% compared to RMB 20,005,171 thousand in 2022[2]. - Service revenue for the same period was RMB 16,631,560 thousand, down 14.7% from RMB 19,489,625 thousand in the previous year[2]. - Annual profit attributable to shareholders was RMB 713,394 thousand, reflecting a decline of 6.1% from RMB 759,441 thousand in 2022[2]. - Basic earnings per share decreased by 0.9% to RMB 25.88 from RMB 26.11 in the prior year[2]. - Gross profit for the year was RMB 4,003,076 thousand, down from RMB 4,600,170 thousand in 2022[4]. - Total comprehensive income for the year was RMB 706,486 thousand, compared to RMB 756,900 thousand in the previous year[5]. - Revenue from the Technology Professional Services segment was RMB 15,020,564 thousand in 2023, down from RMB 17,930,401 thousand in 2022, representing a decline of 16.4%[13]. - Revenue from the Internet Information Technology Services segment increased slightly to RMB 2,096,330 thousand in 2023 from RMB 2,074,770 thousand in 2022, a growth of 1.0%[13]. - The gross profit for 2023 was RMB 4,003,076 thousand, a decline of 13.0% from RMB 4,600,170 thousand in 2022, with a gross margin of 23.4%[41]. - The group achieved a net profit of RMB 712,667 thousand in 2023, a 6.1% decrease from RMB 758,829 thousand in 2022, with a profit margin of 4.2%[50]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.0811 per share for the year ended December 31, 2023[2]. - The company declared a final dividend of HKD 0.0811 per share for the year ending December 31, 2023, an increase from HKD 0.0567 in 2022[17]. - The board proposed a final dividend of HKD 0.0811 per ordinary share for the fiscal year ending December 31, 2023, subject to shareholder approval[62]. Assets and Liabilities - Non-current assets increased to RMB 4,122,341 thousand from RMB 3,364,263 thousand in 2022[6]. - Total liabilities increased to RMB 2,338,700 thousand from RMB 1,276,708 thousand in the previous year[7]. - Total equity attributable to shareholders decreased to RMB 11,742,461 thousand from RMB 12,109,765 thousand in 2022[7]. - Trade receivables (net of provisions) were RMB 5,304,724 thousand in 2023, a decrease from RMB 5,469,959 thousand in 2022, representing a decline of 3.0%[19]. - The aging analysis of trade receivables showed that RMB 4,019,768 thousand was within 90 days, down from RMB 4,384,078 thousand in 2022, a decrease of 8.3%[21]. - Total liabilities decreased to RMB 1,662,625 thousand in 2023 from RMB 2,043,359 thousand in 2022, a reduction of 18.6%[21]. - The group reported a current ratio of 4.4 in 2023, an increase from 3.8 in 2022, indicating improved liquidity[49]. Operational Highlights - The number of active customers in 2023 was 2,191, with 182 large customers contributing service revenue greater than RMB 6 million[31]. - The company’s top five customers accounted for 61.7% of total service revenue, while the top ten customers contributed 70.4%[31]. - The total number of employees at the end of 2023 was 69,976, a decrease of 14.8% from 82,140 at the end of 2022[33]. - The company is actively expanding its overseas business, achieving rapid growth in Hong Kong and establishing project delivery capabilities in the Middle East[26]. - The company has strengthened its partnerships with major banks and financial institutions, expanding cooperation in various financial sectors[27]. - The company has made breakthroughs in smart water and smart transportation solutions based on open-source Hongmeng technology[25]. - The company is focusing on a "platform + service" model in the ERP sector, enhancing its consulting services in key industries[25]. - The company has successfully maintained its leading position in cloud migration and development services, ranking first in these segments[26]. Strategic Initiatives - The company aims to become a global leader in technology-based IT services, leveraging core technologies and enhancing service capabilities[28]. - The group aims to enhance profit margins through a "1+3" strategic layout, focusing on high-margin service business and software-hardware product transformation[42]. - The establishment of the AIGC Research Institute aims to enhance joint innovation in the AIGC field, focusing on large model applications and solutions[24]. - The company has launched the JointPilot AI application platform to provide integrated AI application solutions for clients and ISVs[24]. - The company plans to expand into new markets including Singapore, Malaysia, Thailand, UAE, Saudi Arabia, and Chile[32]. - The company plans to allocate approximately HKD 7.88 billion for the development of full-stack cloud intelligent products and solutions, with about HKD 6.57 billion specifically for R&D and related investments[55]. - The company intends to invest in the development of the HarmonyOS and OpenHarmony hardware and software products, with a significant portion of the funds allocated for this purpose[55]. Corporate Governance - The audit committee reviewed and approved the financial statements for the fiscal year, ensuring compliance with accounting standards[61]. - The company has adopted various measures to ensure high standards of corporate governance, complying with the corporate governance code[56]. - The company will suspend share transfer registration from May 14 to May 20, 2024, to determine eligibility for voting at the annual general meeting[63]. - The annual general meeting is scheduled for May 20, 2024, at 2 PM[65]. - The annual report will be published in both Chinese and English, with the Chinese version prevailing in case of discrepancies[65]. - Financial reports prepared in accordance with international financial reporting standards will be available in English[65]. - The annual report will include all information required by the listing rules appendix 16 and will be sent to shareholders in due course[65]. Research and Development - R&D expenditure for 2023 was RMB 1,078,296 thousand, a decrease of 12.9% from RMB 1,238,035 thousand in 2022, with an R&D cost ratio of 6.3%[46].

Share Incentive Plan - The share incentive plan granted a total of 130,349,000 shares during the year, with 101,123,000 shares remaining unexercised as of December 31, 2022[2] - The company reported a total of 87,629,000 shares granted to other employees during the year, with 74,703,000 shares remaining unexercised[2] - The share incentive plan does not have any applicable plan authorization or service provider sub-limits[4] Compensation - The five highest-paid individuals in the company received a total of 36,960,000 shares, with 11,000,000 shares granted to the executive director Chen Yuhong[2][3] Governance Structure - The board of directors includes three executive directors and three independent non-executive directors, ensuring a diverse governance structure[5]

[0 -> 19] 然后我们接下来是中国忍者国际进行录演及投资者交流时长40分钟,有请中忍国际。大家好,我是中忍国际的陈怡妮丹妮。那很感谢大家今天来参加我们的这样一个交流会。那么因为我们公司最近也是 [25 -> 50] 我們公司最近也是剛推出中期的一個業績首先我們會先就我們公司大致的情況還有就我們公司中期的業績做個簡單的回顧以及介紹中人國際是在2000年成立的大型軟件信息技術服務公司我們是在2003年的時候在港股上市的 [52 -> 58] 下雨了吗对对对 [59 -> 87] 然後成立那麼多年以來其實我們整體營收都是保持在接近30%的高速增長那麼我們主要的業務是分成兩個大的板塊一個是我們的基石業務也就是大家理解的這種比較傳統的軟件外包服務那麼這一塊主要我們的服務對象是包括像是華為、匯豐、騰訊等等這一種行業的聯通企業客戶 [87 -> 111] 去给他们提供这种软件信息技术服务那么另外一方面呢也就是我们称为的新兴业务这一块呢主要是包括像是云智能业务然后鸿蒙业务 汉语IP然后智能汽车等等的这一系列的现在市场上面比较关注的这种新型的一些业务那么 [111 -> 133] 就是整體來看其實2022年以及2023年 ...

Financial Performance - For the first half of 2023, the company reported revenue of RMB 8,450.06 million, a decrease of 15.7% compared to RMB 10,025.28 million in the same period of 2022[4]. - Service revenue for the same period was RMB 8,295.75 million, down 15.5% from RMB 9,820.49 million year-on-year[4]. - The net profit for the first half of 2023 was RMB 350.69 million, representing a decline of 38.6% from RMB 570.88 million in the previous year[4]. - Basic earnings per share decreased by 36.6% to RMB 12.44 from RMB 19.62 in the same period last year[4]. - The company did not recommend the distribution of an interim dividend for the six months ended June 30, 2023[4]. - The company achieved a net profit margin of 4.2% during the reporting period, indicating a healthy business development despite the revenue decline[6]. - The company reported a profit for the period of RMB 350,687 thousand, down from RMB 570,880 thousand in the first half of 2022[140]. - The company’s total assets as of June 30, 2023, were RMB 14,430,156 thousand, an increase from RMB 13,411,499 thousand at the end of 2022, reflecting a growth of about 7.6%[165]. - The company reported a foreign exchange loss of RMB (3,266) thousand from overseas operations, compared to a gain of RMB 1,743 thousand in the previous year[163]. Strategic Partnerships and Collaborations - The company signed a cooperation agreement with Huawei Cloud for the Pangu model, becoming a strategic partner and receiving the "Pangu Model Technology Leader" award[8]. - The company is actively collaborating with Huawei to develop a core business system that is self-controllable, efficient, and secure, focusing on "extremely simple architecture, extremely high quality, extremely low cost, and extremely superior experience"[14]. - The company has established a strong partnership with Huawei Cloud, binding 10% of its capabilities to enhance advanced cloud digital transformation consulting and system integration services[15]. - The company has established a deep collaboration with Huawei and China Mobile Hong Kong, becoming one of the qualified suppliers for the Hong Kong government's IT services over the next four years[24]. - The company has signed strategic partnerships with NetEase and Zhujian Intelligent Technology to explore AIGC and low-code applications[32]. - The company has established 13 joint innovation centers with Huawei, focusing on software development, industrial internet, and AI capabilities[69]. Technological Innovations and Developments - The company has launched the JointPilot AI platform, integrating with Huawei's Pangu model and AI cloud services, focusing on industry application services[8]. - The company has introduced AIGC technology to enhance operational efficiency and quality, aiming to build a healthy profitability model through process optimization and automation[21]. - The company has developed a self-research voice recognition assistant for digital witnessing in bidding processes, ensuring the authenticity of transaction data[30]. - The company has launched the JointPilot AI application platform, which integrates various model capabilities and data governance to provide comprehensive AI solutions for government and enterprise clients[28]. - The company has developed an enterprise-level server operating system "Pan Shi" based on the openEuler community version, which simplifies system migration and significantly reduces costs[95]. - The company has developed a digital content review system that covers all service types, ensuring excellent SLA performance across various business areas[100]. Market Expansion and Global Presence - The company has expanded its services into Southeast Asia, the Middle East, and Latin America, covering markets such as Singapore, Malaysia, Thailand, Indonesia, and India, and has become the IT service provider for Kenagan Bank[24]. - The company aims to strengthen its global IT influence by establishing an overseas sales service platform and expanding its market presence[24]. - The company is focusing on expanding its presence in Southeast Asia and the Middle East, aiming to enhance its global IT influence[135]. - The company has established a comprehensive digital transformation service for 47 countries globally, leveraging partnerships with major clients such as Huawei, Tencent, and Alibaba[135]. Operational Efficiency and Cost Management - The company aims to enhance efficiency and quality through integrated financial and operational projects while increasing the proportion of high-margin and high-output businesses[143]. - The company plans to accelerate the deployment of AIGC and AIOT industries to improve service and product competitiveness[143]. - The company has committed to a high-quality closed-loop management system to enhance execution efficiency and investment effectiveness[26]. - The company has implemented a one-stop service model for digital transformation, receiving high praise from customers and product partners[60]. Employee and Financial Management - The total number of employees decreased by 19.9% year-on-year to 72,937 as of June 30, 2023, primarily due to business fluctuations and strategic transformation[136]. - Employee compensation for the six months ended June 30, 2023, was approximately RMB 7,199,889,000, up from RMB 8,598,009,000 in the same period of 2022[198]. - The company’s interest expenses for borrowings increased to RMB 77,399,000 in the first half of 2023, compared to RMB 42,244,000 in the same period of 2022[181]. - The company’s total borrowings amounted to RMB 4,060,175,000, a significant increase from RMB 1,928,531,000 as of December 31, 2022, reflecting a growth of approximately 110.5%[83][195]. Industry Engagement and Standards - The company has become a leading participant in the construction of the digital RMB system, winning multiple bids for digital RMB projects with various banks[72]. - The company is focusing on optimizing data applications in railway and water transport sectors, enhancing digital transformation efforts in ports like Ningbo-Zhoushan[82]. - The company has received recognition as a top-level partner in the healthcare sector with Huawei, serving numerous hospitals domestically and internationally[89]. - The company is actively involved in green finance, providing products for financial institutions to support their green transformation efforts[75].

Financial Performance - Revenue for the first half of 2023 was RMB 8,450,060 thousand, a decrease of 15.7% compared to RMB 10,025,275 thousand in the same period of 2022[3] - Service revenue decreased by 15.5% to RMB 8,295,751 thousand from RMB 9,820,494 thousand year-on-year[2] - Net profit for the period was RMB 350,687 thousand, down 38.6% from RMB 570,880 thousand in the previous year[3] - Basic earnings per share decreased by 36.6% to RMB 12.44 from RMB 19.62 year-on-year[3] - The company achieved a gross profit of RMB 2,001,135 thousand in the first half of 2023, with a gross margin of 23.7%, compared to RMB 2,481,725 thousand and a gross margin of 24.8% in the same period of 2022[15] - The company reported a pre-tax profit of RMB 342,373 thousand for the first half of 2023, representing a margin of 4.1%, down from 6.1% in the same period of 2022[15] - Gross profit for the first half of 2023 was RMB 2,001,135 thousand, a decline of 19.4% from RMB 2,481,725 thousand in the same period of 2022, resulting in a gross margin of 23.7%[19] - Other income decreased by 24.0% to RMB 143,660 thousand in the first half of 2023, compared to RMB 188,917 thousand in the same period of 2022[20] - The net profit for the first half of 2023 was RMB 350,687 thousand, a decrease of 38.6% from RMB 570,880 thousand in the first half of 2022, with a profit margin of 4.2%[27] - The basic earnings per share for the first half of 2023 was approximately RMB 12.44, down 36.6% from RMB 19.62 in the same period of 2022[27] Dividends and Shareholder Returns - The company did not recommend the distribution of an interim dividend for the six months ended June 30, 2023[1] - The company declared a final dividend of HKD 0.0567 per share for the year ended December 31, 2022, totaling HKD 153,445,586, compared to HKD 99,148,317 in 2022[50] Strategic Initiatives and Partnerships - The company established the AIGC Research Institute and launched the JointPilot AI application platform to enhance IT asset optimization and upgrade traditional solutions[4] - The company signed a cooperation agreement with Huawei Cloud for the Pangu large model and became an ecosystem partner for Baidu's Wenxin Yiyan and Qianfan platforms[4] - The company focused on digital transformation in six key industries, including petrochemicals and automotive, through a "platform + service" model[5] - The automotive business achieved high gross profit growth, expanding collaborations with major automotive industry players[5] - The company aims to expand its market presence in Southeast Asia and the Middle East, establishing integrated local sales and service teams[11] Employee and Operational Metrics - The number of employees decreased by 19.9% year-on-year to 72,937 as of June 30, 2023, down from 91,114 a year earlier, primarily due to business fluctuations and strategic transformation[12] - Employee compensation for the six months ended June 30, 2023, was approximately RMB 7,199,889,000, an increase from RMB 8,598,009,000 in 2022[67] Financial Position and Cash Flow - The group had a cash balance of RMB 5,042,594 thousand in the first half of 2023, slightly down from RMB 5,112,410 thousand in the same period of 2022[25] - The group’s current ratio improved to 4.0 in the first half of 2023, compared to 3.8 in 2022[25] - The net cash used in operating activities for the six months ended June 30, 2023, was RMB (731,184) thousand, compared to RMB (798,572) thousand for the same period in 2022, indicating an improvement of approximately 8.4%[40] - The net cash generated from financing activities increased significantly to RMB 812,612 thousand in the first half of 2023, compared to RMB 302,897 thousand in the same period of 2022, representing a growth of approximately 168.5%[40] - The company reported a net loss of RMB (640,552) thousand in cash and cash equivalents for the six months ended June 30, 2023, compared to a loss of RMB (1,068,832) thousand in the same period of 2022, showing a reduction in cash outflow of approximately 40.1%[40] Market Position and Shareholder Information - The company ranked 73rd in the Gartner global IT services market share, reflecting its strong market position and resilience[4] - Major shareholders include Dan Capital Tangkula Limited Partnership with 330,142,144 shares (11.07%), UBS Group AG with 270,058,029 shares (9.06%), and Bank of Communications Trustee Limited with 282,638,000 shares (9.48%) as of June 30, 2023[85] Governance and Compliance - The company maintained compliance with corporate governance codes, with minor exceptions noted during the annual general meeting[68] - The company plans to enhance corporate governance practices and will regularly review these practices to ensure compliance with legal and professional standards[70] - The audit committee, consisting of three independent non-executive directors, reviewed the interim results for the six months ended June 30, 2023, ensuring compliance with applicable accounting standards and regulations[88]

Financial Performance - The company's revenue for 2022 exceeded RMB 20 billion, despite challenges from customer demand fluctuations and pandemic-related disruptions[4]. - The company's revenue for 2022 was RMB 20,005,171 thousand, representing an 8.7% increase compared to RMB 18,398,076 thousand in 2021[61]. - Service revenue for 2022 reached RMB 19,489,625 thousand, a 7.5% increase from RMB 18,132,013 thousand in the previous year[61]. - Annual profit decreased by 33.2% to RMB 758,829 thousand from RMB 1,136,690 thousand in 2021[61]. - Basic earnings per share fell by 36.1% to RMB 26.11 from RMB 40.89 in the previous year[61]. - The company's gross profit for 2022 was RMB 4,600,170 thousand, a decrease of 6.2% compared to RMB 4,904,241 thousand in 2021, with a gross margin of 23.0%[77]. - The sales and service costs for 2022 amounted to RMB 15,405,001 thousand, a 14.2% increase from RMB 13,493,835 thousand in 2021, with costs representing 77.0% of total revenue[76]. - The company reported a net profit of RMB 758,829 thousand, down from RMB 1,136,690 thousand in 2021, reflecting a net profit margin of 3.8%[73]. - The Technical Professional Services Group (TPG) revenue grew by 7.9% to RMB 17,930,401 thousand, while the Internet Information Technology Services Group (IIG) revenue increased by 16.8% to RMB 2,074,770 thousand[86]. Market Position and Strategy - The company has secured a 10% market share in Huawei Cloud, supporting its overall business development and expanding its cloud service capabilities[6]. - TPG has positioned itself as a leading brand in consulting, enterprise application services, and data services, focusing on end-to-end digital transformation for enterprise clients[15]. - The company has achieved a significant market presence, ranking second in IDC cloud management services and maintaining the top position in cloud migration and development professional services[16]. - The company is focusing on AIoT technology to build digital infrastructure, targeting key industries such as government and telecommunications, and aims to become a leader in integrated hardware and software solutions[21]. - The cloud strategy emphasizes "cloud adoption, cloud management, and cloud-native" to support digital transformation for enterprises, aiming to capture 10% of the Huawei cloud market share[22]. Digital Transformation and Innovation - The company is focusing on the "Big Xinchuang" era, leveraging OpenHarmony technology to enhance its digital ecosystem and develop smart IoT solutions[5]. - The company is actively engaging in the EAS (Enterprise Application Service) sector, targeting industries such as petrochemicals, energy, and aerospace for digital transformation solutions[7]. - The company is committed to building a brand as a digital transformation service expert, offering end-to-end service capabilities from planning to implementation[7]. - The company is enhancing its cloud management capabilities through continuous upgrades of its CloudEasy CMP and other cloud platforms[6]. - The company is developing the "Liberation Number" platform to enhance software development services for government projects, aiming to increase market penetration and coverage[24]. Research and Development - The company has contributed over 1.2 million lines of code to the OpenHarmony community, fostering talent development through the establishment of the Xinchuang Academy[5]. - TPG's cloud products include CMP, CBP, CAP, and various industry-specific solutions, enhancing its service offerings across multiple sectors[15]. - The company has invested significantly in R&D, successfully cloudifying its main products and solutions, and expanding into diverse new applications[15]. - Research and development expenses for 2022 were RMB 1,238,035 thousand, a slight decrease of 0.9% from RMB 1,249,325 thousand in 2021, representing 6.2% of total revenue[81]. Partnerships and Collaborations - The company has established partnerships with major ERP providers like Yonyou and Kingdee, enhancing its capabilities in digital finance and supply chain management[7]. - The company is collaborating with ERP platform vendors and state-owned enterprises to innovate in the domestic market, positioning itself as a leading brand in consulting and enterprise applications[23]. - The company has established a strong client base, including major players like Huawei, HSBC, Tencent, and Alibaba, indicating its high recognition in digital transformation partnerships[14]. - The company has established 14 joint operation innovation centers with Huawei Cloud, ranking first in third-party operation models, and received recognition for its operational achievements in various innovation centers[30]. Human Resources and Corporate Governance - The company employed 82,140 employees as of December 31, 2022, down from 92,039 employees the previous year, indicating a reduction of approximately 10% in workforce[145]. - The company maintains competitive salary levels for employees, regularly reviewing compensation in line with labor market conditions and local minimum wage guidelines[145]. - The company has established a remuneration committee in June 2005, which reviews the compensation packages for executive directors and senior management[104]. - The board consists of three executive directors, three non-executive directors, and three independent non-executive directors, ensuring a diverse governance structure[92]. Risk Management and Compliance - The company is committed to continuously improving its risk management system to ensure long-term growth and sustainability[117]. - The risk management process consists of four main steps: risk identification, risk assessment, risk response, and risk monitoring and reporting[118]. - The company has established a compliance management organization to enhance compliance capabilities in response to evolving regulatory environments[120]. - Continuous resource investment and compliance management system improvements are in place to address regulatory risks as the company expands its business scale[120]. Environmental and Social Responsibility - The company is committed to corporate social responsibility (CSR) and aims to strengthen its CSR framework in line with SA8000 standards, focusing on environmental sustainability and stakeholder engagement[122]. - The company has implemented environmental protection policies and adheres to international and national environmental standards, aiming to minimize energy consumption and pollutant emissions[144]. - The company aims to contribute to low-carbon development and industrial upgrades, aligning with national goals for carbon neutrality[180]. - The company is focused on low-carbon operations and green office practices while promoting a digital environmental business model to foster a green production lifestyle[197]. Future Outlook and Goals - The company aims to enhance its service capabilities and expand its market presence in key industries, targeting a leadership position in global IT services[65]. - The company plans to allocate approximately HKD 788 million for the development of full-stack cloud intelligent products and solutions, with about HKD 400 million specifically for full-stack development and related investments and acquisitions[89]. - The company is focused on integrating digital technologies across urban scenarios to promote smart city development and improve living quality[190]. - The company aims to create long-term value and sustainable development by integrating value investment, core services, employee growth, and social responsibility into its governance[195].