Baolande(SH:688058)2025-04-24 13:25Financial Performance - The company's operating revenue for 2024 is CNY 283,409,479.72, a decrease of 7.18% compared to CNY 305,332,264.26 in 2023[24]. - The net profit attributable to shareholders for 2024 is -CNY 58,722,361.44, representing a decline of 504.43% from CNY 14,519,609.48 in 2023[25]. - The total assets as of the end of 2024 amount to CNY 773,414,119.59, down 18.87% from CNY 953,356,680.74 in 2023[25]. - The net cash flow from operating activities for 2024 is -CNY 96,223,485.26, compared to -CNY 35,277,010.03 in 2023[25]. - The net assets attributable to shareholders decreased by 15.02% to CNY 726,151,350.21 at the end of 2024 from CNY 854,534,300.84 at the end of 2023[25]. - The company's basic earnings per share (EPS) decreased to -0.79 yuan, a decline of 515.79% compared to the previous year[26]. - The company's net profit attributable to shareholders turned from profit to loss, primarily due to a decrease in revenue and increased costs associated with new product development[27]. - Revenue for the reporting period decreased by 7.18%, with telecom sector growth of approximately 6.36% and a decline in the government sector by about 24.86%[26]. - The overall revenue and profit levels declined in 2024 due to a slowdown in downstream customer demand and strategic business adjustments[37]. - The company reported a total revenue of 1,000 million for Jiangsu Baolande, with a net loss of 652.68 million[169]. Research and Development - The company is actively engaged in research and development of new technologies and products to enhance its market position[18]. - Research and development (R&D) expenses accounted for 31.20% of operating revenue, an increase of 0.31 percentage points from the previous year[26]. - Total R&D investment for the year was approximately ¥88.41 million, a decrease of 6.27% compared to the previous year, with R&D expenses accounting for 31.20% of revenue[94]. - The company has obtained 14 new authorized invention patents during the reporting period, bringing the total to 63[92]. - The company has a total of 280 software copyrights, with 63 new software copyrights obtained during the reporting period[92]. - The company achieved CMMI Level 3 certification, indicating effective R&D management and process standardization[116]. - The company is focusing on AI technology and data governance as key drivers for future growth, developing multiple product capabilities in these areas[118]. - The company is focusing on enhancing cloud-native capabilities, including dynamic updates and resource optimization, to improve system resource utilization[99]. Corporate Governance - The company plans not to distribute cash dividends or issue bonus shares for the 2024 fiscal year, aiming for long-term stability and shareholder interests[6]. - The board of directors and supervisory board members have all attended the board meeting, ensuring governance compliance[5]. - The company has not disclosed any special arrangements for corporate governance[7]. - The company is committed to maintaining compliance with regulatory standards and enhancing its corporate governance practices[20]. - The company plans to change its registered capital and amend the articles of association, pending shareholder approval[195]. - The company has approved a stock incentive plan for 2024 to align employee interests with company performance[194]. - The company is set to enhance its governance structure in compliance with relevant laws and regulations to ensure effective decision-making processes[192]. Market and Industry Trends - The software industry in China is projected to achieve a revenue of CNY 137.276 billion in 2024, with a year-on-year growth of 10.0%[62]. - The profit total for the software industry in 2024 is expected to reach CNY 16.953 billion, reflecting a year-on-year increase of 8.7%[62]. - The domestic middleware industry is experiencing a shift towards localization, with companies like Baoland breaking the monopoly of international firms like IBM and Oracle[63]. - The demand for intelligent operation and maintenance software is increasing due to the inadequacies of traditional monitoring products, leading to a surge in new operational tools[65]. - The global artificial intelligence market size reached $538.1 billion in 2023, projected to grow to $638.2 billion in 2024, reflecting a growth rate of 19.21%[67]. - The Chinese core AI industry size reached ¥578.7 billion in 2023, a year-on-year increase of 13.9%, and is expected to grow to ¥653 billion in 2024[67]. - The rapid development of artificial intelligence and big data industries is driving technological innovation and industry upgrades, providing strong support for the sustainable and healthy development of the economy and society[178]. Strategic Initiatives - The company has outlined its future plans and strategic developments, which are subject to investment risks[8]. - The company is exploring market expansion opportunities to increase its customer base and revenue streams[18]. - The company plans to deepen its focus on the 信创 (Xinchuang) industry, enhancing its middleware offerings and ensuring security while improving performance and usability[45][46]. - The company is focusing on future expansion through new product development and technology integration[24]. - The company aims to enhance its intelligent operations capabilities by developing a comprehensive monitoring system and improving service delivery efficiency[189]. - The company is actively capturing new market demands and adjusting its R&D direction to achieve product innovation and breakthroughs in emerging technologies[187]. Operational Challenges - The company is currently facing various operational risks, which are detailed in the report's risk factors section[4]. - The company has not achieved profitability since its listing[4]. - The company faces risks related to market fluctuations and potential declines in software procurement demand due to macroeconomic conditions[127]. - Future macroeconomic changes could adversely affect the company's operations, particularly in telecommunications, finance, and government sectors[130]. - The company reported a slight decline in revenue for 2024, with net profit showing a loss due to reduced IT investments from downstream clients and extended project cycles[123]. Product Development - The company has been focusing on the development of its application performance management software products and cloud management platforms[18]. - The company launched new products including a middleware management platform, AI smart assistant, and AI computing platform, focusing on innovation and smart upgrades in response to market demands[36][39]. - The company has developed various big data platforms, including BES DataLink DXP and DataCool, to support digital transformation and data assetization for downstream users[83]. - The company is enhancing its product offerings with cloud-native and intelligent capabilities to improve robustness and adaptability[19]. - The company is focusing on building a centralized middleware deployment and monitoring system to improve operational efficiency and reduce costs[22]. Customer Engagement - The company emphasizes attracting and nurturing high-quality talent to enhance management capabilities and support sustainable development[41][42]. - The company provides dedicated technical support services, including remote assistance and regular training for client operations personnel to ensure effective product usage[51]. - The company has established local support teams in key cities to provide timely service responses, enhancing customer service capabilities[120]. - The company supports multiple programming languages including Java, Go, and Python in its distributed configuration center software, facilitating flexible configuration management[23]. Financial Management - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[9]. - The company has not violated any decision-making procedures regarding external guarantees[9]. - The controlling shareholder holds 35.29% of the company's issued shares, allowing significant influence over major decisions[132]. - The company plans to prioritize the assessment of customer payment cycles when expanding its client base to mitigate accounts receivable risks[128]. - The company’s investment activities generated a net cash inflow of 104,426,858.54 yuan, contrasting with a net outflow of -18,698,850.59 yuan in the previous year[156].