Financial Performance - In 2018, the company's revenue reached RMB 10,585,013, representing a year-on-year growth of 14.5%[74]. - Service revenue for 2018 was RMB 10,339,012, with a year-on-year increase of 17.4%[74]. - Annual profit for 2018 was RMB 716,171, reflecting a growth of 27.6% compared to the previous year[74]. - Basic earnings per share grew by 25.2% compared to the previous year[72]. - The gross profit for 2018 was RMB 3,244,657, an 18.0% increase from RMB 2,750,466 in 2017, with a gross margin of 30.7% compared to 29.8% in the previous year[90]. - The main operating costs in 2018 were RMB 7,340,356, a 13.0% increase from RMB 6,493,218 in 2017, with the cost-to-revenue ratio decreasing to 69.3% from 70.2%[89]. - Research and development expenses rose to RMB 739,434 in 2018, a 30.3% increase from RMB 567,313 in 2017, accounting for 7.0% of total revenue[94]. - The company's revenue for 2018 reached RMB 10,585,013 thousand, reflecting a growth rate of 14.5% from RMB 9,243,684 thousand in 2017[86]. - The technology professional services segment's revenue grew by 16.7% to RMB 9,174,855 thousand, while service revenue increased by 18.5% to RMB 9,022,237 thousand[98]. Strategic Partnerships and Collaborations - Chinasoft International has strengthened its cloud service capabilities, becoming Huawei Cloud's first "Together" partner and receiving awards such as "Best Partner" and "AI Pioneer" from Huawei[5]. - The company has established strategic partnerships in AI with Huawei and Baidu, launching industry-specific AI solutions across sectors like banking and retail[7]. - The company signed strategic cooperation agreements for the "Cloud Gathering Service" with various local governments, enhancing its service recognition and application[6]. - The company entered Huawei's Supplier Development (SD) program, aiming to enhance software engineering capabilities and service quality for major clients like HSBC and Tencent[10]. - The company has established strategic partnerships with major firms like Huawei and Tencent, enhancing service quality and value[75]. Cloud and Digital Transformation - The company is committed to a digital transformation strategy, focusing on cloud services and renewing traditional IT business models[5]. - The cloud business experienced rapid growth, successfully migrating over 3,300 cloud hosts and nearly 1,000 databases, totaling approximately 3,500 TB of data in the Chinese market[9]. - The company aims to become a leading cloud management service provider, competing with Microsoft Azure and Huawei Cloud, by enhancing its cloud consulting, migration, implementation, operations, and training services[13]. - The company launched the "Cloud Gathering Service" for government software needs, with over 3,000 registered government units and a cumulative service project amount exceeding 100 million[6]. - The company is integrating its cloud service resources by establishing the Cloud & Intelligence Group (CIG) to enhance its cloud management services[5]. Innovation and Technology Development - The company has developed a strong project management capability and focuses on large clients in sectors like banking, high-tech, and the internet[20]. - The AI technology applications achieved breakthroughs, with multiple application scenarios implemented in finance and retail sectors[10]. - The company has developed two major software platform products, ResourceOne and TopLink/TSA+, which are fully owned intellectual property and serve as foundational platforms for industry solutions[21]. - The big data middleware product, Ark, is a one-stop big data scenario development platform that encapsulates mainstream big data technology frameworks, enabling enterprises to quickly create data processing workflows[21]. - The company has established a comprehensive enterprise-level data platform solution, including data architecture, data warehouse, and big data platform implementation[23]. Market Expansion and Client Base - The company has served clients in 32 countries and plans to expand its global presence, leveraging the "Belt and Road" initiative to enhance its digital transformation services[17]. - The company is focusing on large clients, aiming to provide quality and valuable services, with a goal to become a strategic partner of Huawei[11]. - The number of new client collaborations in the financial and banking sector exceeded 40, bringing the total to over 500 clients[58]. - The company has established a strong presence in the financial and banking sector, providing personalized financial services and achieving "three national firsts" in payment systems, including the first interbank payment network system in China[39]. - The company has expanded its outsourcing services to become the largest service provider for Hang Seng Bank, with significant project implementations across multiple regions[57]. Corporate Governance and Compliance - The company adopted various measures to maintain high standards of corporate governance, following the guidelines of the Corporate Governance Code as per the Listing Rules Appendix 14[102]. - The board consists of two executive directors and four non-executive directors, ensuring a diverse leadership structure[104]. - The company emphasizes the importance of independent non-executive directors in safeguarding shareholder interests, with ongoing confirmations of their independence[110]. - The company has implemented a director and officer liability insurance to cover any responsibilities incurred during their tenure[113]. - The company confirmed that there are no significant uncertainties affecting its ability to continue as a going concern[122]. Environmental and Social Responsibility - The company has implemented environmental protection policies and adheres to international and national environmental standards[149]. - The total greenhouse gas emissions increased from 17,413 tons CO2 equivalent in 2017 to 19,701 tons CO2 equivalent in 2018, reflecting a rise of approximately 13.1%[185]. - The company emphasizes green office initiatives and encourages employees to participate in environmental protection efforts[184]. - The company aims to balance corporate, employee, investor, and social values through its commitment to corporate social responsibility[183]. - The company has established a governance structure for environmental, social, and governance (ESG) responsibilities, with a dedicated working group reporting to the board[183]. Employee Development and Workforce - The workforce increased to 62,495 employees by the end of 2018, a growth of 23.0% from the previous year[82]. - The company organized a large-scale employee event across 19 cities, with over 5,000 employee representatives participating, aimed at enhancing employee cohesion and sense of belonging[195]. - The company introduced Stanford University's Design Thinking course to foster innovation, with one instructor for every 1,000 employees and one innovative idea for every 500 employees, significantly enhancing creative thinking across the organization[200]. - The company has established a systematic training system, focusing on new employee onboarding, skill enhancement for current employees, and key role development, supporting strategic goals such as efficiency improvement[198]. - The company emphasizes employee health and safety, implementing a "prevention first" principle and providing effective medical coverage, including regular health check-ups and supplementary commercial insurance for employees[197].
中国软件国际(00354) - 2018 - 年度财报