NeuSoft(600718)2024-04-23 12:32Accounts Receivable and Bad Debt Provisions - The company's accounts receivable increased to 1,830,195,747 RMB, up from 1,626,439,378 RMB in the previous period, with 1-year receivables accounting for 1,396,384,028 RMB[13] - The provision for bad debts on accounts receivable increased to 285,873,048 RMB, up from 246,642,789 RMB, with a significant portion attributed to individual bad debt provisions[16] - The company's accounts receivable and contract assets combined totaled 551,964,466 RMB, with bad debt provisions of 7,808,770 RMB[18] - The company's accounts receivable with a bad debt provision of 232,994,555 RMB, with the highest provision rate of 100% for receivables over 5 years[126] Revenue and Gross Margin by Sector - The healthcare and social security sector generated 2,571,399,055 RMB in revenue, a 29.74% increase year-over-year, with a gross margin of 35.55%[25] - The intelligent automotive connectivity sector reported revenue of 3,915,956,583 RMB, a 9.36% increase, with a gross margin of 15.34%[25] - The smart city sector saw a slight decline in revenue to 1,623,153,789 RMB, down 2.41%, but the gross margin improved to 24.55%[25] - The enterprise connectivity and other sectors generated 2,433,162,349 RMB in revenue, an 8.64% increase, with a gross margin of 26.24%[25] Contract Assets and Provisions - The company's contract assets increased to 206,241,934 RMB, with a provision for bad debts of 20,752,700 RMB, representing a 10.06% provision rate[20] - The company's accounts receivable and contract assets combined totaled 551,964,466 RMB, with bad debt provisions of 7,808,770 RMB[18] Revenue by Region - Revenue from the East China region was 2,527,465,440 RMB, a year-on-year increase of 24.19%, with a gross margin of 15.43%, up 4.88 percentage points[27] - Revenue from the Western region was 1,130,551,577 RMB, a year-on-year increase of 34.41%, with a gross margin of 27.34%, up 13.00 percentage points[27] - International revenue was 2,248,689,023 RMB, a year-on-year increase of 14.32%, with a gross margin of 21.29%, down 0.18 percentage points[27] Costs by Sector - The cost of healthcare and social security services was 1,657,273,149 RMB, accounting for 20.74% of total costs, a year-on-year increase of 22.08%[27] - The cost of smart vehicle connectivity was 3,315,407,422 RMB, accounting for 41.48% of total costs, a year-on-year increase of 9.01%[27] - The cost of smart city services was 1,224,647,459 RMB, accounting for 15.32% of total costs, a year-on-year decrease of 8.72%[27] - The cost of enterprise connectivity and other services was 1,794,743,997 RMB, accounting for 22.46% of total costs, a year-on-year increase of 2.09%[27] Intangible Assets and Goodwill - The proportion of intangible assets formed through internal R&D at the end of the period is 37.65%[41] - The total value of goodwill at the end of the period is RMB 164,242,277[42] - The company's intangible assets increased by RMB 163,816,353 during the period, with RMB 56,713,012 from acquisitions and RMB 35,724,857 from internal R&D[39] - The company's cumulative amortization of intangible assets increased by RMB 150,851,705 during the period[39] - The company's goodwill for NMSG business and assets increased by RMB 4,218,501 due to exchange rate fluctuations[41] - The company's goodwill for VND business and assets increased by RMB 2,524,925 due to exchange rate fluctuations[41] - The company's goodwill for Taproot business and assets increased by RMB 347,423 due to exchange rate fluctuations[41] - The company's total intangible assets at the end of the period amounted to RMB 1,934,128,591[39] - The company's cumulative amortization of intangible assets at the end of the period amounted to RMB 733,889,330[39] - The company's total goodwill at the end of the period for Neusoft (Japan) Co., Ltd. is RMB 3,928,116[41] R&D and Innovation - The company has registered 447 new software copyrights and applied for 187 new patents, including 147 invention patents, with 175 patents authorized, a 46% year-on-year increase[53] - The number of AI and big data-related patents is approximately three times that of the same period last year[53] - The company has a total of 2,594 patent applications and 1,389 authorized patents, with 3,728 registered software copyrights, ranking among the top in the industry[53] - The company has developed the LLM-SE large model system engineering, enhancing capabilities in knowledge engineering, prompt engineering, and quality engineering in IMS, AMS, and cloud business areas[52] - The company has made key breakthroughs in next-generation intelligent cockpit technologies, including human-machine co-driving navigation and AR-HUD product SDKization[53] - The company has launched the cloud-native data management platform CNDP, providing integrated data integration, development, service, and governance capabilities[53] - The company has invested in blockchain and privacy computing products, achieving breakthroughs in blockchain, data sandbox, and federated learning fields[53] Financial Performance - Revenue for 2023 reached RMB 10,543,671,776, an increase of 11.39% compared to 2022[88] - Net profit attributable to shareholders of the listed company was RMB 73,912,538, a significant improvement from a loss of RMB -342,884,715 in 2022[88] - Operating cash flow increased by 18.69% to RMB 798,265,849 in 2023[88] - Total assets grew by 0.63% to RMB 18,991,166,940 at the end of 2023[88] - Basic earnings per share improved to RMB 0.06 in 2023 from RMB -0.29 in 2022[88] - Weighted average return on equity (ROE) increased by 4.41 percentage points to 0.79% in 2023[88] - Revenue excluding non-core business and non-commercial income was RMB 10,540,154,457, up 11.51% year-over-year[88] - Net profit attributable to shareholders after deducting non-recurring gains and losses was RMB -147,270,632, showing a narrowing loss compared to 2022[88] - Total equity attributable to shareholders increased by 2.42% to RMB 9,461,616,744 at the end of 2023[88] - Diluted earnings per share improved to RMB 0.06 in 2023 from RMB -0.29 in 2022[88] Cash Flow and Investments - The net cash flow from operating activities increased by 125.69 million yuan, a year-on-year growth of 18.69%, reaching 798.27 million yuan[146] - The net cash flow from investing activities decreased by 754.76 million yuan, a year-on-year decline of 2,516.48%, mainly due to increased expenditures on bank wealth management products[146] - The net cash flow from financing activities increased by 223.51 million yuan, primarily due to reduced cash outflows for share repurchases and dividend distributions[146] - Trading financial assets increased by 376.02 million yuan, a growth of 49.14%, primarily due to increased purchases of bank wealth management products[150] - Notes receivable increased by 82.18 million yuan, a growth of 46.98%, mainly due to increased customer payments in the form of notes[150] - Accounts receivable financing increased by 115.17 million yuan, a growth of 61.82%, driven by an increase in digital accounts receivable financing[150] - Construction in progress increased by 246.26 million yuan, a growth of 634.40%, due to increased investment in ongoing projects[150] - Short-term borrowings increased by 295 million yuan, a growth of 5,900.00%, due to increased short-term borrowing to meet funding needs[150] - Non-current liabilities due within one year increased by 446.5 million yuan, a growth of 138.17%, due to the reclassification of long-term borrowings maturing within one year[150] Employee and Employer Recognition - The company has 17,945 employees globally and has been recognized as a top employer, including awards such as "CCTV Annual Employer" and "2023 Most Suitable Workplace"[56] Future Plans and Strategies - The company plans to achieve revenue of 11.76 billion yuan in 2024, with an expected growth of 12%, operating costs of 8.86 billion yuan, and period expenses of 2.48 billion yuan, both expected to grow by 11%[196] - The company emphasizes the importance of talent as a core driver for strategic execution and is focusing on optimizing talent structure and building a talent pipeline to support future business development[197] - The company is committed to innovation and globalization, aiming to enhance profitability and core competitiveness through high-growth, high-quality operations, and industry influence[191] - The company plans to leverage AI, data value, and service-oriented solutions to provide next-generation intelligent solutions, enhancing customer value through digital and AI-driven management and consulting services[191] - The company is restructuring its marketing organization to build a multi-level, three-dimensional marketing system and customer relationship model to ensure high-quality, large-scale development of core businesses[191] - The company is increasing R&D investment in key areas such as AI, data elements, and the Xinchuang ecosystem, focusing on creating commercial value and collaborative innovation[191] - The company is implementing comprehensive informatization and standardization in software production processes, using AI to replace repetitive development tasks and data-driven project management to improve software development and delivery efficiency[191] - The company is focusing on building a simple and agile organization through mechanisms like rotation, market-oriented recruitment, and strict assessments to accelerate strategic transformation and achieve business goals[195] Subsidiaries and Investments - Neusoft (Hong Kong) Co., Ltd. reported a net loss of 4,460,000 yuan, while Neusoft (Japan) Co., Ltd. achieved a net profit of 2,540,000 yuan[187] - Neusoft Medical Systems Co., Ltd. generated a net profit of 30,733,000 yuan with total assets of 682,096,000 yuan and revenue of 318,094,000 yuan[187] - Neusoft Xikang Holdings Co., Ltd. reported a net loss of 15,465,000 yuan, with total assets of 139,801,000 yuan and revenue of 53,772,000 yuan[187] - Rongsheng Property Insurance Co., Ltd. recorded a net loss of 4,946,000 yuan, with total assets of 125,149,000 yuan and revenue of 30,705,000 yuan[187] - Neusoft Group (Dalian) Co., Ltd. achieved a net profit of 3,017,000 yuan, with total assets of 89,834,000 yuan and revenue of 101,902,000 yuan[187] - Neusoft Cloud Technology Co., Ltd. reported a net profit of 3,021,000 yuan, with total assets of 24,806,000 yuan and revenue of 50,136,000 yuan[187] - Neusoft Group (Beijing) Co., Ltd. recorded a net profit of 745,000 yuan, with total assets of 58,289,000 yuan and revenue of 22,935,000 yuan[187] Asset and Liability Management - The company's fixed assets at the end of the period amounted to RMB 1,467,037,949, compared to RMB 1,471,412,340 at the beginning of the period, showing a slight decrease[71] - The company's investment properties with a book value of RMB 13,000,844 for which property certificates have not been obtained due to pending procedures[71] - The company's fixed assets, including buildings and land use rights, decreased to 1,308,602,649 RMB from 1,437,769,113 RMB, with a reduction of 156,948,585 RMB due to disposals and reclassifications[119] - The company's accumulated depreciation and amortization increased to 325,586,929 RMB from 309,923,111 RMB, with an addition of 39,659,457 RMB during the period[119] - The company's restricted assets at the end of the period include monetary funds (127,211,746 RMB), fixed assets (894,938,193 RMB), intangible assets (82,256,154 RMB), and investment properties (651,077,655 RMB)[171] - The short-term borrowings at the beginning of the period were 300,000,000 RMB, with no significant overdue short-term borrowings reported[175] - The company's accounts payable at the end of the period were 1,287,409,571 RMB, a decrease from the beginning balance of 1,547,491,326 RMB[177] - The prepaid lease payments at the end of the period were 28,598,321 RMB, an increase from the beginning balance of 23,011,332 RMB[180] - The contract liabilities at the beginning of the period were 4,623,738,119 RMB[180] - The total amount of unexecuted contracts not yet accepted is 288,110,784 yuan, with individual amounts of 105,086,238 yuan, 103,257,943 yuan, and 79,766,603 yuan for different units[181] Tax and Deferred Tax Assets - The company's deferred tax assets amounted to 2,188.59 million yuan, with government subsidies contributing 334.54 million yuan and bad debt provisions contributing 396.10 million yuan[139] - The deferred tax assets and liabilities are presented net after offset, with the net deferred tax assets at the end of the period being 209,683,580 RMB and the net deferred tax liabilities being 298,242,132 RMB[166] - The unrecognized deferred tax assets for deductible losses amount to 1,345,871,779 RMB at the end of the period, with a decrease from the beginning balance of 1,526,683,380 RMB[169] - The deductible losses for unrecognized deferred tax assets are set to expire in the following years: 2024 (142,806,847 RMB), 2025 (102,781,587 RMB), 2026 (174,436,882 RMB), 2027 (171,754,728 RMB), and 2028 and beyond (754,091,735 RMB)[169] Other Financial Metrics - The company's parent company achieved a net profit of RMB 330,464,546 in 2023, with undistributed profits at the end of the period totaling RMB 5,324,384,703[75] - The company plans to distribute a cash dividend of RMB 1.30 per 10 shares, totaling RMB 154,112,074 (including tax), based on 1,185,477,492 shares after deducting shares held in the repurchase account and restricted shares to be repurchased[75] - The company holds 18,225,976 shares in its repurchase account and plans to repurchase and cancel 9,709,744 restricted shares, which will not participate in the profit distribution[75] - The company's fair value change losses amounted to 16.08 million yuan, mainly due to changes in the fair value of financial assets and liabilities[147] - The company's asset impairment losses totaled 155.15 million yuan, reflecting increased provisions for potential losses[147] - The company's recoverable amount for certain assets was determined to be 11.80 million yuan, with a growth rate projection of 3.32%-4.00% for the forecast period[136] - Asset impairment losses increased by 44.18 million yuan compared to the same period last year, mainly due to an increase in long-term equity investment impairment provisions[150] - The company provided mortgages for 750 million yuan in working capital loans, involving multiple properties and land use rights[155] - The recoverable amount is determined based on the present value of expected future cash flows, with the table showing the carrying amount and recoverable amount of asset groups including goodwill[162]