Nexwise(SZ:301248)2025-04-20 08:20Financial Performance - The net profit attributable to shareholders for the reporting period was -79.9769 million RMB, a decrease of 1,308.05% compared to the same period last year[7]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -92.0074 million RMB, a decrease of 705.38% year-on-year[7]. - The company's operating revenue for 2024 was ¥644,359,190.06, a decrease of 24.47% compared to ¥853,169,580.65 in 2023[23]. - The net profit attributable to shareholders for 2024 was -¥79,976,889.45, representing a decline of 1,308.05% from ¥6,620,309.54 in 2023[23]. - The net cash flow from operating activities for 2024 was -¥42,362,750.29, a decrease of 235.88% compared to ¥31,176,199.00 in 2023[23]. - The total assets at the end of 2024 were ¥2,224,876,235.40, down 4.15% from ¥2,321,205,011.62 at the end of 2023[23]. - The net assets attributable to shareholders at the end of 2024 were ¥1,466,062,042.75, an 8.22% decrease from ¥1,597,305,479.36 at the end of 2023[23]. - The company reported a basic earnings per share of -¥0.52 for 2024, compared to ¥0.04 in 2023, marking a decline of 1,400.00%[23]. - The company achieved operating revenue of 644.36 million yuan, a year-on-year decline of 24.47%, primarily due to reduced capital expenditures from government and enterprise clients affecting the smart city business[94]. - The net profit attributable to shareholders was -79.98 million yuan, a significant decrease compared to the previous year, mainly due to intense industry competition and increased costs from management optimization and depreciation[94]. Business Strategy and Market Position - The decline in performance was primarily due to reduced investment in digital transformation by government and large enterprises, leading to lower business profit margins[7]. - The company focused on high-quality customer opportunities, resulting in a year-on-year decrease in operating revenue[7]. - The ongoing transformation strategy, including new business development and product R&D, has led to a temporary increase in expenses[7]. - The company aims to enhance its competitive edge through strategic partnerships, joint ventures, and mergers and acquisitions, focusing on AI infrastructure and industry applications[45]. - The company is committed to becoming a leader in the AI and next-generation information technology service sectors, contributing to the construction of a digital China[45]. - The company is positioned as a provider of AI products and application solutions, leveraging self-developed technologies and partnerships to meet market demands[45]. - The company is focusing on high-quality business opportunities, leading to a strategic shift in the smart city business to enhance cash flow management and reduce risks[102]. Research and Development - R&D investment reached CNY 73.09 million, accounting for 11.34% of total revenue, with a team of 165 R&D personnel, 19.39% of whom hold graduate degrees or higher[86]. - The company holds a total of 88 authorized patents and 352 software copyrights, with 28 new patents and 57 new software copyrights granted during the reporting period, primarily in AI and intelligent computing technologies[87]. - The company is developing the Jiechuang AI productivity platform, which includes over 20 industry-specific training datasets and hundreds of fine-tuning models[127]. - The company is focusing on developing a public security big data analysis platform to assist in combating fraud and smuggling[127]. - The company is continuously researching and developing new products to maintain and upgrade existing systems, driving revenue growth[123]. Industry Trends and Opportunities - The software and information technology service industry continues to grow, indicating a broad development prospect for the company[7]. - The global artificial intelligence industry is projected to reach $62.33 billion in 2024, with a year-on-year growth of 21.5%[34]. - The Chinese artificial intelligence industry is expected to reach ¥269.7 billion in 2024, maintaining a compound annual growth rate of 32.1% from 2025 to 2029[34]. - The cloud computing market in China is projected to exceed 2.1 trillion yuan by 2027, indicating strong growth potential in the sector[40]. - The company aims to leverage the opportunities from the "Safe China" initiative to drive rapid growth in AI security products, focusing on communication security and embodied intelligence products[165]. Risks and Challenges - Future risks include intensified industry competition, seasonal performance fluctuations, and potential bad debts from accounts receivable[9]. - The company reported an increase in bad debt provisions due to liquidity crises among certain clients and tightening fiscal budgets, leading to a significant rise in expected credit losses[138]. - The company faces risks from intensified industry competition, which may pressure profit margins and require continuous adjustment of team skills[170]. - The company acknowledges the risk of technological innovation, emphasizing the need for strong R&D investment to maintain competitive advantage[171]. Governance and Management - The company held 4 shareholder meetings during the reporting period, passing 21 resolutions, ensuring compliance with legal requirements and protecting shareholder rights[181]. - The board of directors convened 8 meetings, approving 50 resolutions, with a focus on strategic planning and internal audits[183]. - The supervisory board held 6 meetings, passing 24 resolutions, effectively overseeing the company's governance and management practices[184]. - The company maintains independence from its controlling shareholders in terms of assets, personnel, and operations[188]. - The company has established a value management system and disclosed plans for valuation enhancement[176][177]. Cash Flow and Investment - Operating cash inflow decreased by 12.24% to $719.42 million in 2024 from $819.75 million in 2023[133]. - Operating cash outflow decreased by 3.40% to $761.78 million in 2024 from $788.58 million in 2023[133]. - Net cash flow from operating activities turned negative at -$42.36 million, a decline of 235.88% compared to a positive $31.18 million in 2023[133]. - The company has committed a total of 60,000 million CNY for investment projects, with 38,155.42 million CNY already utilized, achieving a progress rate of 63.59%[155]. - The company has raised a total of RMB 1,000,973,400.00 from its initial public offering, with a net amount of RMB 911,548,531.35 after deducting issuance costs[153].