Shanghai Suochen Information Technology (688507)2024-06-25 11:24Financial Performance - Revenue for 2023 reached 320.38 million yuan, a 19.52% increase compared to 2022[24] - Net profit attributable to shareholders in 2023 was 57.48 million yuan, up 6.89% year-on-year[24] - Operating cash flow for 2023 was -57.15 million yuan, a significant decrease of 6,268% compared to 2022[24] - Total assets at the end of 2023 were 3.09 billion yuan, a 325.86% increase from the end of 2022[24] - Shareholders' equity at the end of 2023 was 2.89 billion yuan, a 449.57% increase from the end of 2022[24] - Basic earnings per share decreased by 12.82% to 1.02 yuan per share in 2023 compared to 1.17 yuan per share in 2022[25] - Diluted earnings per share also decreased by 12.82% to 1.02 yuan per share in 2023[25] - Net profit attributable to shareholders after deducting non-recurring gains and losses increased by 92.72% to 51,694,711.76 yuan in 2023[26] - Basic earnings per share after deducting non-recurring gains and losses increased by 58.62% to 0.92 yuan per share in 2023[26] - Net cash flow from operating activities decreased by 6,268.00% to -57,154,962.81 yuan in 2023[26] - Total assets increased by 325.86% to 3,087,415,768.13 yuan in 2023[26] - Revenue in the fourth quarter of 2023 was 268,018,459.29 yuan, significantly higher than the previous quarters[28] - Net profit attributable to shareholders in the fourth quarter of 2023 was 94,611,360.26 yuan, turning positive after three quarters of losses[28] - Revenue in 2023 reached 320.38 million yuan, a year-on-year increase of 19.52%[37] - Net profit attributable to parent company shareholders in 2023 was 57.48 million yuan, a year-on-year increase of 6.89%[37] - The company achieved a main business revenue of RMB 318.99 million, a year-on-year increase of 19.01%, with a gross profit margin of 69.64%, an increase of 6.23 percentage points compared to the previous year[139] - The company's operating income was RMB 320.38 million, a year-on-year increase of 19.52%, while operating costs decreased by 0.16% to RMB 97.92 million[141] - Sales expenses increased by 68.09% to RMB 20.31 million, primarily due to increased employee compensation[141] - Management expenses rose by 34.42% to RMB 37.95 million, mainly due to increased employee compensation[141] - Financial expenses decreased significantly by 1,482.38% to RMB -30.44 million, driven by increased interest income from the public offering of stocks[141] - R&D expenses increased by 20.14% to RMB 105.25 million, reflecting the company's commitment to innovation[141] - Net cash flow from operating activities was RMB -57.15 million, a sharp decline of 6,268.00% compared to the previous year[141] - Net cash flow from financing activities surged by 19,774.74% to RMB 2.21 billion, primarily due to the receipt of funds from the public offering of stocks[141] - Software and IT services revenue increased by 19.01% to 318,994,781.31 RMB, with a gross margin of 69.64%, up by 6.23 percentage points[142] - Engineering simulation software revenue grew by 39.37% to 187,637,738.27 RMB, but its cost increased by 83.25%, leading to a 1.17 percentage point decrease in gross margin[142] - Simulation product development revenue decreased by 1.78% to 131,024,193.98 RMB, with a gross margin increase of 2.99 percentage points[142] - Domestic revenue accounted for 318,994,781.31 RMB, with a gross margin of 69.64%, up by 6.23 percentage points[142] - Direct sales revenue was 318,994,781.31 RMB, with a gross margin of 69.64%, up by 6.23 percentage points[142] - Top five customers contributed 9,615.16 million RMB, accounting for 30.01% of total annual sales[147] - Personnel and external procurement costs for engineering simulation software increased by 83.25% to 9,167,026.74 RMB[145] - Simulation product development costs decreased by 5.99% to 87,486,612.78 RMB, mainly due to lower external procurement costs[145] - Total procurement amount from top 5 suppliers is 48.3375 million yuan, accounting for 49.86% of the annual procurement total[156] - Government subsidies decreased by 62.57% to 11.7086 million yuan in 2023 compared to 31.278 million yuan in 2022[161] - Credit impairment losses increased by 207.10% to -42.906 million yuan in 2023 due to higher bad debt losses[161] - Monetary funds increased by 1,214.16% to 2.227 billion yuan, accounting for 72.13% of total assets, mainly due to funds raised from public stock issuance[163] - Accounts receivable increased by 54.05% to 510.2786 million yuan, accounting for 16.53% of total assets, due to increased revenue and slower customer payments[163] - Prepayments decreased by 94.06% to 464,147.59 yuan, mainly due to project completion and reduced prepayments[163] - Inventory increased by 163.95% to 10.5334 million yuan, primarily due to the consolidation of Yangpu Intelligence[163] - Long-term equity investments increased to 49.769 million yuan, accounting for 1.61% of total assets, due to new equity investments[163] - Construction in progress increased by 71.59% to 19.939 million yuan, mainly due to significant investment in fundraising projects[163] - Goodwill increased to 40.7207 million yuan, accounting for 1.32% of total assets, due to new non-consolidated business mergers[163] - Total revenue for the period reached 11,004,483, with a net income of 5,282,152, representing a profit margin of approximately 48%[198] Dividends and Share Capital - The company plans to distribute a cash dividend of 3.80 yuan per 10 shares, totaling 23,077,029.50 yuan, which accounts for 40.15% of the net profit attributable to shareholders in 2023[4] - The company will increase its total share capital to 89,108,784 shares through a capital reserve transfer of 4.60 shares per 10 shares, resulting in an additional 27,935,352 shares[4] - The total share capital of the company is 61,173,432 shares, with 444,407 shares held in the repurchase account[4] Business Operations and Strategy - The company's main business involves CAE software and engineering simulation technologies[14] - The company established a subsidiary, Shanghai Suochen Digital Technology Co., Ltd., to focus on investment and M&A activities[39] - The company acquired Guangzhou Yangpu Intelligent Information System Technology Co., Ltd. to expand its market presence in the civil sector[39] - The company has 316 employees, with 202 R&D personnel, accounting for 63.92% of the total workforce[42] - The company's CAE software covers multiple disciplines including fluid, structure, electromagnetic, acoustics, optics, and measurement and control[45] - The company's engineering simulation software is the main source of revenue and profit, including single-discipline, multi-discipline, and engineering simulation optimization systems[47] - The company's simulation product development business includes digital twin systems, simulation-test integration and verification systems, high-performance platforms, and simulation cloud platforms, offering integrated hardware and software solutions[48] - The company's main product categories include single-discipline simulation software (e.g., fluid simulation, structural simulation, acoustic analysis) and multi-discipline simulation software (e.g., thermal-structural coupling, thermal-fluid-structural coupling)[49][50] - The company's revenue model is primarily based on the sale of self-developed engineering simulation software and simulation product development, covering multiple disciplines such as fluid, structural, electromagnetic, acoustic, and optical[51] - The company's procurement model focuses on software modules, hardware, intangible assets, and technical services, with a strong emphasis on supplier evaluation and quality assurance[52] - The company's R&D model prioritizes core technology development, with core solver modules being self-developed, while non-core modules are outsourced to third parties to optimize resource allocation[55] - The company is committed to breaking the monopoly of European and American manufacturers in the CAE industry and promoting the localization and autonomy of CAE software products[72] - The company plans to continue deepening its presence in the industrial software sector, promoting technological innovation and market expansion[74] - The company is exploring AI-based generative applications in simulation, using techniques like GNN and ROM to reduce computational resources and time[81] - The company released four new versions of its general fluid simulation software in 2023, with updates including support for shell conduction models, solid pyrolysis models, and discrete phase models[85] - The company completed three new version releases of its acoustic simulation software in 2023, with updates such as support for time-domain impact response solving and optimization for complex structures[85] - The company released three new versions of its electromagnetic simulation software in 2023, with updates including support for custom far-field output, improved antenna gain calculation accuracy, and enhanced modal analysis solvers[85] - The company's structural simulation software, Suochen Structural Simulation Software, released three new versions in 2023, with key updates including support for acoustic-vibration coupling harmonic response analysis, pre-stressed modal analysis, and linear piezoelectric and piezomagnetic analysis[87] - Suochen Optical Simulation Software also released three new versions in 2023, with updates such as improved finite element file import parsing and the addition of rigid body displacement PV and RMS value outputs[87] - The multidisciplinary simulation software, Suochen Multidisciplinary Simulation Software, released a new version in 2023, featuring optimized automated solving functions and enhanced data visualization capabilities[88] - The company's industrial simulation cloud platform, Suochen Industrial Simulation Cloud Platform, completed two internal beta releases in 2023, with updates including front-end interface optimization, new registration features, and the addition of a training module[88] - The company developed nine core simulation algorithms, including a fluid simulation kernel based on gas kinetic theory and a hydrodynamic simulation kernel using smooth particle hydrodynamics (SPH) coupled with discrete element method (DEM)[90] - The fluid simulation kernel supports multi-region and cross-region flow simulations, with high parallel computing efficiency capable of reaching up to 10,000 cores[90] - The hydrodynamic simulation kernel employs meshless technology, significantly improving grid generation efficiency and supporting GPU parallel computing[90] - The company's simulation algorithms support a wide range of complex flow phenomena, including thermal convection, radiation, conjugate heat transfer, combustion, multiphase flow, and particle phases[90] - The high-precision fluid-structure coupling feature in the hydrodynamic simulation kernel allows for efficient simulation of fluid-solid interactions without the need for complex pre-processing[90] - The company has developed a high-performance computing system that supports parallel computing for various simulation algorithms, significantly enhancing simulation design capabilities with thousands of cores and maintaining a good acceleration ratio[96] - The company's simulation cloud technology, based on high-performance computing, enables rapid processing of large data volumes, improving simulation efficiency and accuracy[96] - The company's digital twin simulation technology supports the entire product lifecycle, from concept design to detailed design, integrating simulation analysis and optimization algorithms to achieve a unified digital twin platform[95] - The company's 3D CAD for CAE kernel modeling technology enhances the accuracy and fidelity of CAD models, providing precise conversion tools for simulation model inputs[93] - The company's lightweight and immersive post-processing display technology supports VR and AR, offering customizable and real-time visualization of simulation results[94] - The company's multi-disciplinary joint simulation engine and optimization technology utilize big data sampling algorithms to improve the effectiveness and accuracy of simulation data[93] - The company's electromagnetic simulation kernel supports high-frequency approximation algorithms, improving simulation efficiency for large-scale electromagnetic field calculations[92] - The company's acoustic simulation kernel covers a frequency range from 1Hz to 80kHz, providing comprehensive solutions for various acoustic problems[92] - The company's structural simulation kernel supports GPU parallel computing, significantly reducing computation time and improving efficiency[91] - The company's fluid simulation kernel uses meshless particle methods, enhancing grid generation efficiency and supporting complex multi-phase flow simulations[91] - The company's R&D investment in 2023 totaled RMB 105,248,346.20, a 20.14% increase compared to the previous year[101] - R&D investment accounted for 32.85% of the company's total revenue, an increase of 0.17 percentage points from the previous year[101] - The company added 29 new intellectual property applications in 2023, including 2 invention patents and 27 software copyrights[100] - The company's cumulative intellectual property portfolio reached 347 applications and 286 granted rights by the end of 2023[100] - The multi-physics simulation software project has received a total investment of RMB 12,215,084.52, with RMB 524,604.79 invested in 2023[103] - Project A has accumulated an investment of RMB 42,608,927.48, with RMB 213,693.32 invested in 2023[103] - The industrial simulation cloud platform development project has received a total investment of RMB 16,000,000.00, with RMB 12,348,508.36 invested in 2023[106] - The digital twin verification project has a total planned investment of RMB 30,000,000.00, with RMB 5,177,723.68 invested in 2023[106] - The company's AI-based generative digital twin technology includes five key aspects: natural language-based mechanism models, generative 3D geometry modeling, generative real-world environment modeling, generative design optimization, and generative intelligent decision control[98] - The company's standard web architecture enables efficient utilization of customer computing resources and enhances collaborative development capabilities[97] - The company invested $30 million in the development of a model-based systems engineering framework, achieving cross-disciplinary collaboration and integration, with $6.63 million spent and $12.6 million allocated for further development[108] - A $30 million investment was made in the integration of simulation software with emerging technologies, leveraging AI, digital twin, and IoT to enhance complex equipment design and simulation, with $20.83 million spent and $22.13 million allocated[108] - The PAM integrated simulation design analysis software project received $20 million in funding, with $4.13 million spent and $5.19 million allocated, aiming to create a unified multi-physics simulation platform[108] - The joint collaborative effectiveness simulation platform received $16 million in funding, with $7.73 million spent and $8.41 million allocated, focusing on multi-domain joint simulation and optimization[110] - The structural kinematics simulation software project was funded with $20 million, with $5.04 million spent and $5.46 million allocated, aiming to reduce product development cycles and improve performance[110] - The Vesta simulation post-processing module received $20 million in funding, with $4.01 million spent and $4.25 million allocated, focusing on enhancing visualization and data processing for CAE simulations[110] - Fluid simulation software project with a budget of 35,000,000.00 and expenditure of 4,457,283.41, aimed at optimizing product design and reducing physical testing costs in industries like aviation, shipbuilding, and automotive[111] - Engine digital twin virtual system project with a budget of 3,000,000.00 and expenditure of 2,955,557.91, focusing on virtual testing to improve efficiency and reduce R&D costs[111] - Underwater acoustic acquisition and management system project with a budget of 3,000,000.00 and expenditure of 4,611,681.82, targeting underwater detection and mapping applications[113] - Digital flow control valve software project with a budget of 3,000,000.00 and expenditure of 2,075,791.88, integrating real-time data analysis with digital twin technology for predictive maintenance[113] - Extended finite element method project with a budget of 29,500,000.00 and expenditure of 18,617,463.52, addressing discontinuous structural simulation problems like crack propagation and material interfaces[113] - Multi-source information comprehensive evaluation and processing analysis project with a budget of 3,000,000.00 and expenditure of 2,974,623.65, focusing on data fusion and evaluation methods to enhance assessment capabilities[113] - The company invested 9 million RMB in the development of a system simulation software project, focusing on multi-disciplinary architecture design and model-based requirements analysis[114] - A 12.4 million RMB investment was made in a simulation software project derived from equipment performance, aiming to improve simulation system credibility and execution efficiency[114] - The Smart.PLM lifecycle management system received a 500,000 RMB investment, targeting cross-department collaboration and product lifecycle efficiency[115] - A 55,000 RMB investment was allocated for the development of a magnetic simulation system software, aimed at optimizing electronic device performance and supporting multi-physics coupling analysis[115] - The Smart.MES V2.0 intelligent manufacturing execution system received a 250,000 RMB investment, focusing on real-time production monitoring and optimization[115] - The company's R&D personnel increased to 202, representing 63.92% of the total workforce, with a total R&D salary expenditure of 7.19475 million RMB[117] - The R&D team consists of 69 PhD holders, 58 master's degree holders, and 65 bachelor's degree holders, with 74 employees under 30 years old[118] - The company emphasizes its core competitiveness in independent R&D and customer-oriented autonomous control, particularly in the CAE field with full-process autonomy[118] - The company holds independent intellectual property rights for key core technologies in the CAE solver module, ensuring no reliance on third-party suppliers[118] - The company benefits from increased domestic demand for CAE solutions due to international trade frictions and foreign technology embargoes[119] - The company has developed three advanced algorithms in the field of fluid simulation: Gas Kinetic Scheme (GKS), Direct Simulation Monte Carlo (DSMC), and Smoothed Particle Hydrodynamics (SPH