Revenue Performance - Revenue for the six months ended June 30, 2024, was RMB 29.94 billion, a decrease of 8.8% compared to RMB 32.82 billion for the same period in 2023[9]. - In the first half of 2024, the company's operating revenue was RMB 2.994 billion, a year-on-year decrease of 8.8%[11]. - Revenue from traditional BSS business was RMB 1.794 billion, down 18.1% year-on-year, while new business revenue reached RMB 1.200 billion, an increase of 10.0% year-on-year[11]. - Revenue from new business segments reached RMB 12.00 billion, an increase of 10.0% from RMB 10.91 billion year-over-year[9]. - Revenue from software development and related services was RMB 2,648,172 thousand, down from RMB 3,049,292 thousand, reflecting a decline of approximately 13% year-over-year[87]. - Revenue from software services provided to a major shareholder was RMB 1,706,772,000 for the six months ended June 30, 2024, down from RMB 2,080,097,000 for the same period in 2023[131]. Profitability and Loss - Gross profit decreased to RMB 7.38 billion, down 35.5% from RMB 11.44 billion in the previous year[9]. - Gross margin fell to 24.7%, a decline of 10.2 percentage points from 34.9%[9]. - The company reported a net loss of RMB 0.70 billion, a significant decrease from a profit of RMB 2.12 billion in the prior year, representing a 133.0% change[9]. - Net profit margin was -2.3%, down 8.8 percentage points from 6.5%[9]. - The company reported a net loss of RMB 70 million in the first half of 2024 due to significant revenue decline[11]. - The company reported a loss before tax of RMB 91,392 thousand for the six months ended June 30, 2024, compared to a profit of RMB 220,716 thousand in the prior year[77]. - The net loss for the period was RMB 70,131 thousand, contrasting with a profit of RMB 212,296 thousand for the same period in 2023[77]. - The company reported a loss of RMB 21,261 thousand for the six months ended June 30, 2024, compared to a profit of RMB 8,420 thousand for the same period in 2023[93]. Cash Flow and Operating Activities - Cash used in operating activities increased to RMB 9.19 billion, a 95.3% increase compared to RMB 4.71 billion in the previous period[9]. - Operating cash outflow increased by 95.3% year-on-year to approximately RMB 919 million, compared to RMB 471 million in the same period of 2023[20]. - Net cash used in operating activities for the first half of 2024 was approximately RMB 919 million, a significant increase of 95.3% compared to RMB 471 million in the same period of 2023[36]. - Net cash generated from investing activities was approximately RMB 328 million, reflecting a year-on-year growth of 27.1% from RMB 258 million in the first half of 2023[36]. - Net cash used in financing activities increased by 98.0% year-on-year to approximately RMB 696 million from RMB 352 million in the same period of 2023, mainly for the payment of special dividends[37]. Business Strategy and Future Outlook - The company is focusing on expanding its new business segments, which include digital operations and vertical industry digitization[9]. - Future outlook indicates a commitment to enhancing research and development in AI and telecommunications technologies[9]. - The company plans to explore strategic partnerships and potential acquisitions to bolster market presence and technological capabilities[9]. - The company aims to maintain a dividend payout ratio of 40% of the annual net profit for the year 2024, with a dividend yield of 9.0%[11]. - The company aims to achieve a rebound in performance in the second half of 2024, with expectations for BSS business revenue decline to significantly narrow[18]. - The company plans to expand its revenue scale through result-based and profit-sharing payment models in its digital operation business[18]. Research and Development - Research and development investment amounted to RMB 436 million, accounting for 14.6% of total revenue[14]. - The company is focusing on enhancing its core R&D capabilities in three product systems: Cloud Network, Digital Intelligence, and IT[14]. - The company has participated in the formulation of 30 international and domestic standards in the first half of the year, with 44 international/domestic patents granted[16]. - Research and development expenses decreased by 13.6% to approximately RMB 436 million, representing 14.6% of total revenue[28]. Shareholder and Equity Information - As of June 30, 2024, the total number of issued shares is 935,304,312[51]. - Skipper Investment Limited holds 213,924,952 shares, representing approximately 22.87% of the total issued shares[50]. - AsiaInfo Security holds 190,016,976 shares, accounting for 20.31% of the total issued shares[52]. - China Mobile International Holdings Limited owns 182,259,893 shares, which is about 19.48% of the total issued shares[52]. - The company is in the process of acquiring up to 190,016,976 shares from Skipper Investment Limited, which will increase its ownership to approximately 51.35%[47]. - The company has granted stock options to independent non-executive directors, totaling 112,000 options[48]. - The report indicates no significant changes in the ownership structure of the company's major shareholders[49]. Employee and Compensation Information - As of June 30, 2024, the total number of full-time employees was 12,929, a decrease from 13,577 as of December 31, 2023[68]. - Total employee costs decreased to RMB 1,820,803 thousand for the six months ended June 30, 2024, down 9.25% from RMB 2,006,986 thousand in the same period of 2023[96]. - Total compensation for the company amounted to RMB 25,511,000 for the six months ended June 30, 2024, down from RMB 29,082,000 in the same period of 2023, representing a decrease of approximately 8.6%[134]. - Salary, allowances, and benefits decreased to RMB 7,142,000 in 2024 from RMB 7,353,000 in 2023, a decline of about 2.9%[134]. - Share-based payment expenses were RMB 13,422,000 for the first half of 2024, down from RMB 16,809,000 in 2023, indicating a reduction of approximately 20.5%[134]. Asset and Liability Overview - Total assets as of June 30, 2024, were approximately RMB 10.004 billion, a decrease of 11.4% from RMB 11.285 billion at the end of 2023[30]. - The company's total equity attributable to equity holders decreased to RMB 6,170,889 thousand, down from RMB 6,615,739 thousand, a decline of 6.7%[79]. - Total liabilities decreased to RMB 3,463,936 thousand, down 19.2% from RMB 4,289,824 thousand[79]. - The company's net asset value decreased to RMB 6,147,590 thousand, a decline of 6.8% from RMB 6,600,399 thousand[79]. - The company's goodwill remained stable at RMB 1,932,246 thousand, unchanged from the previous period[78]. Market and Operational Developments - The company successfully scaled its operations in 16 provinces, enhancing its market coverage and customer response capabilities[13]. - Orders for "AI+" projects increased by over 55% in the first half of 2024, with 56 innovative applications combining "AI large models" and BSS[12]. - The company's smart operation business revenue was RMB 447 million, a slight decline of 1.9% year-on-year, but showed signs of improvement[13]. - In the transportation sector, revenue increased by 2.9 times year-on-year, driven by successful integration of large model technology into toll collection systems[14]. - The company signed over 30 new projects in the energy sector, with 5G private network coverage reaching nearly 30% across 23 units in five major nuclear power bases[14].
亚信科技(01675) - 2024 - 中期财报